LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session January 30, 1997 TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 218 Committee on Finance By: Ratliff Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB218 ( Relating to the examination fee for licensure as an architect.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB218-As Introduced 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, FY 1997 reflects a partial year of exams at the higher rate. For years after FY1997, the table reflects the entire fee revenue and cost, rather than an 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 six 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 six 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: 304 Comptroller of Public Accounts 459 Board of Architectural Examiners LBB Staff: JK ,RR ,CG