LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 17, 1997
         
         
      TO: Honorable Ron Wilson, Chair            IN RE:  Senate Bill No. 218, Engrossed
          Committee on Licensing & Administrative Procedures                              By: Ratliff
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB218 ( Relating 
to fees for licensure as an architect.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB218-Engrossed
         
Implementing the provisions of the bill would result in a net 
impact of $0 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
 
The bill would remove the upper limit, currently $300, on the 
examination fee for architects.  It would allow the Texas Board 
of Architectural Examiners to charge the fee in an amount that 
would cover administrative costs, as those costs change.
 
Methodolgy
 
The architectural examination fee consists of an administrative 
fee of $40 and an exam fee of $485.  The total current fee is 
$525, the maximum allowed under Rider 3, p. VIII-8, of the 1995 
General Appropriations Act (GAA).  The only manufacturer of 
the national exam raised the examination cost to $980 because 
the exam is now administered by computer.  Because of the cost 
increase, the board is unable to administer the exam.

Removing 
the $300 maximum allowed by statute and the $525 maximum allowed 
in the GAA would enable the board to administer the exam and 
recover the actual examination costs.  The $40 administrative 
fee has not changed.

The number of examination candidates 
estimated by the board and multiplied by the new, higher fee 
of $1,020 ($980 plus $40) was used to estimate the expected 
revenue and cost from the exam fee increase.  In the table below, 
FY1997  reflects a partial year of exams at the higher rate. 
 For years after FY 1997, the table reflects the entire fee 
revenue and cost, rather than the incremental increase, because 
the exam would not be administered without the increase
 
The 
probable fiscal implications of implementing the provisions 
of the bill during each of the first  five years following passage 
is estimated as follows:
The probable fiscal implications of implementing the provisions 
of the bill during each of the first  five years following passage 
is estimated as follows:
 
Six Year Impact:
 
Fiscal Year Probable Revenue   Probable           
            Gain/(Loss) from   Savings/(Cost)                                                             
            General Revenue    from General                                                               
            Fund               Revenue Fund                                                               
            0001               0001                                                                        
       1997          $217,307        ($217,307)                                                      
       1997           731,598         (731,598)                                                      
       1999           738,914         (738,914)                                                      
       2000           746,302         (746,302)                                                      
       2001           753,765         (753,765)                                                      
       2002           761,303         (761,303)                                                      
 
 
         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
               1997                   $0
               1998                    0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
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:   
                                         
                      LBB Staff:   JK ,TH