LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 20, 1997 TO: Honorable Ron Wilson, Chair IN RE: Senate Bill No. 218, Committee Report 2nd House, Substituted 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 certain examinations required for registration as an architect.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB218-Committee Report 2nd House, Substituted 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: 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