LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 12, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 323
Committee on State Affairs By: Armbrister
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB323 ( Relating
to the requirement of a training certificate for State Office
of Administrative Hearings administrative law judges and to
the establishment of an Administrative Law Judge Training School
by the state bar.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB323-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(21,520) 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.
The bill would add a new Section 81.115 to the
Government Code to require that an Administrative Law Judge
(ALJ) Training School in Austin be established by the State
Bar of Texas for the purpose of training administrative law
judges (ALJs) of the State Office of Administrative Hearings
(SOAH). The training course would be developed by the Administrative
Law Judge Education Committee, composed of the Dean of The University
of Texas School of Law or designee, the Chief Administrative
Law Judge of SOAH or designee, and a judge of the Court of Appeals
for the Third Court of Appeals District in Austin. The Committee
would meet at least once each calendar quarter, and its members
would serve without compensation, except for reimbursement for
actual expenses incurred in connection with the performance
of the duties of the Committee.
The bill would also add a
new Section 2003.0451 to the Government Code to require that,
within two years after being employed by SOAH as an ALJ, the
person would successfully complete the administrative law judge
training course, developed by the Administrative Law Judge Education
Committee and established by the board of directors of the State
Bar of Texas. If the person were hired as an administrative
law judge by SOAH before January 1, 1998, the person would have
to complete the training course before December 31, 2000.
The
bill would allow the board of directors of the State Bar to
collect reasonable tuition to cover the costs of operating the
school, and require that tuition for ALJs employed by SOAH be
paid by SOAH. The Act would take effect September 1, 1997,
except for the new Section 20003.0451, Government Code, which
would become effective January 1, 1998.
Fiscal Analysis
The State Office of Administrative Hearings estimates that the
bill would cost $71,733 during the three-year period of training
for SOAH's ALJs. This three-year period begins fiscal year 1999
and continues into fiscal year 2001 in order for the ALJs to
complete the training course by December 31, 2000. SOAH receives
no direct general revenue funding appropriations, as it is funded
only by funds received from interagency contracts. The projected
cost of this bill could not be recovered by SOAH from interagency
contracts.
Methodolgy
The State Office of Administrative Hearings estimates that fiscal
year 1998 would be a planning year for both the ALJ Education
Committee and the State Bar, and that training for SOAH's ALJs
would begin in fiscal year 1999 as follows: fiscal year 1999,
approximately 30 percent of SOAH's ALJs; fiscal year 2000,
approximately 60 percent; fiscal year 2001, approximately 10
percent; fiscal year 2002 and forward, newly hired ALJs, which
SOAH projects as about three per year.
Currently, 23 Administrative
License Revocation ALJs are stationed outside of Austin and
would incur travel, lodging, and meal costs to attend the school.
SOAH would reimburse the ALJs for their expenses at the rate
of $55 per day for lodging and $25 per day for meals, for each
of the five days of training, and an average round trip travel
expense of $161, for a total of $561 x 23 ALJs = $12,903.
SOAH
estimates that the State Bar would establish tuition for the
school at least at the same hourly rate charged for the annual
two-day advanced Administrative Law Course, which is approximately
$26.50 per attendee. Estimated tuition costs based on this
rate would be $58,830 over the required three-year training
period (fiscal year 1999 to fiscal year 2001).
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
Savings/(Cost)
from General
Revenue Fund
0001
1999 ($21,520)
1999 (43,040)
2001 (7,173)
2002 (3,587)
2003 (3,587)
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
1999 ($21,520)
2000 (43,040)
2001 (7,173)
2002 (3,587)
2003 (3,587)
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: 720 University of Texas System Administration
360 State Office of Administrative Hearings
212 Office of Court Administration
LBB Staff: JK ,JD ,JC ,DC