LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 18, 1997 TO: Honorable Ron Wilson, Chair IN RE: Senate Bill No. 486, As Engrossed Committee on Licensing & Administrative Procedures By: Brown House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB486 ( Relating to the regulation of geologists, geophysicists, and soil scientists; providing an administrative and a criminal penalty.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB486-As 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 This bill would establish a Board of Registration for Geologists, Geophysicists and Soil Scientists for the examination, registration and discipline of these professions. The bill would create a nine member board appointed by the governor. The board would appoint an executive director to run day-to-day operations. The bill would authorize the board to adopt and enforce rules, administer examinations, issue certificates of registration, impose administrative penalties for violations, and perform other duties to administer the provisions of this bill. The bill would allow the board to set fees necessary to offset expenses incurred in administering the provisions of this bill. The bill would also provide that all funds collected be deposited in a special fund from which all expenses related to administration and enforcement would be paid. Any unexpended balance in the fund at the end of the fiscal year would lapse to the General Revenue Fund. This bill would take effect September 1, 1997, except that Sections 18 and 42 take effect January 1, 1999. Methodolgy It is estimated that a staff of approximately 15 full-time equivalent positions (FTEs) plus associated operating costs would be required to administer the bill. This estimate is based on the assumption that approximately 10,000 out of an estimated 23,000 professionals in this field would apply for a certificate of registration. It is estimated that the costs to administer the bill would be approximately $1,200,000 in the first year and $1,000,000 every year thereafter. This bill would create a new special fund and a dedicated revenue source in the State Treasury. The creation and/or continuation of special funds and dedicated revenue sources outside the General Revenue Fund could further restrict the Legislature's ability to appropriate revenues for general operating purposes. 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 Change in Number Gain/(Loss) from Savings/(Cost) of State New - from New - Employees from Geoscientists Fund Geoscientists Fund FY 1997 NEW-OTH NEW-OTH 1998 $1,200,000 ($1,200,000) 15.0 1998 1,000,000 (1,000,000) 15.0 2000 1,000,000 (1,000,000) 15.0 2001 1,000,000 (1,000,000) 15.0 2002 1,000,000 (1,000,000) 15.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 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 LBB Staff: JK ,TH ,JD ,CG