LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 6, 1997
         
         
      TO: Honorable Keith Oakley, Chair            IN RE:  House Bill No. 3604
          Committee on Public Safety                              By: Oakley
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3604 ( Relating 
to the abolition of the Texas Board of Private Investigators 
and Private Security Agencies and the transfer of the functions 
of that agency to the State Board of Security Agencies.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB3604-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(10,544,000) to General Revenue Related 
Funds through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
This bill would abolish the Texas Board of Private Investigators 
and Private Security Agencies and transfer the functions of 
that agency to a new State Board of Security Agencies (Board). 
 The transfer of the obligations, property, rights, powers, 
and duties of the Texas Board of Private Investigators and Private 
Security Agencies must be completed within 30 days of the effective 
date of the bill.  

All money paid to the board, except for 
fines, would be deposited to a new dedicated account in the 
general revenue fund and may be used for the administration 
of the bill's provisions.  Fines would continue to be deposited 
in general revenue.  Currently, both fines and fees are deposited 
in the State Treasury to the credit of the General Revenue Fund.
 
Methodolgy
 
This bill would create a new dedicated account in the General 
Revenue Fund and a new dedicated revenue source in the State 
Treasury.  The bill would dedicate fee revenue that currently 
is deposited in the undedicated portion of the General Revenue 
Fund.  Unexpended funds from existing appropriations to the 
Texas Board of Private Investigators and Private Security Agencies 
would be transferred to the State Board of Security Agencies. 
 This estimate assumes the board would continue to collect the 
same amount of revenue. Money collected from fines would continue 
to be deposited in the General Revenue Fund.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable Revenue   Probable Revenue   
            Gain/(Loss) from   Gain/(Loss) from                                                           
            General Revenue    New GR-Dedicated                                                           
            Fund               Account -                                                                  
            0001               8021                                                                        
       1998      ($5,272,000)        $5,272,000                                                      
       1998       (5,272,000)         5,272,000                                                      
       2000       (5,272,000)         5,272,000                                                      
       2001       (5,272,000)         5,272,000                                                      
       2002       (5,272,000)         5,272,000                                                      
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998         ($5,272,000)
               1999          (5,272,000)
               2000          (5,272,000)
               2001          (5,272,000)
               2002          (5,272,000)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   467   Board of Private Investigators and Private Security Agencies
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,CB ,AM