LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 11, 1997 TO: Honorable Allen Place, Chair IN RE: Senate Bill No. 627, As Engrossed Committee on Criminal Jurisprudence By: Sibley House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB627 ( Relating to certification of bail bondsmen by the Texas Department of Licensing and Regulation; providing a penalty.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB627-As Engrossed Implementing the provisions of the bill would result in a net positive impact of $116,710 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 requires the Department of Licensing and Regulation (TDLR) to register bail bondsmen and provides for criminal penalties for related violations. The certification of bail bondsmen would be administered through an examination provided through the Department and through continuing education requirements. In addition, this bill provides for the creation of the Bail Bondsman Advisory Council to serve as an advisory committee to the Department. The fiscal impacts related to this bill relate primarily to the examinations and certification requirements. Methodolgy It is assumed that approximately 400 bail bondsmen per year would renew their registrations at $120 per year. In the first year, all examinees would be required to take the examination at $100 per exam. As a result, 1,000 examinees (800 existing plus 200 new) are expected in 1998. This would decrease to 100 in 1999. The number of examinees would decrease to 50 per year in future years. Travel costs are assumed at a total of $5,000 per meeting for 9 members. For 2 meetings per year, the estimate is $10,000. The agency would require 3 additional FTEs at an annual cost of $60,936 primarily for exam administration. 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 Probable Revenue Change in Number Savings/(Cost) Gain/(Loss) from of State from General General Revenue Employees from Revenue Fund Fund FY 1997 0001 0001 1998 ($134,180) $244,000 3.0 1998 (118,310) 125,200 3.0 2000 (118,310) 110,600 3.0 2001 (118,310) 129,800 3.0 2002 (118,310) 129,800 3.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $109,820 1999 6,890 2000 (7,710) 2001 11,490 2002 11,490 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: 452 Department of Licensing and Regulation LBB Staff: JK ,CB ,JD ,RA