LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 4, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 627 Committee on State Affairs By: Sibley Senate 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 Introduced Implementing the provisions of the bill would result in a net positive impact of $24,710 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 800 bail bondsmen would renew registrations in 1998, half of which would renew for one year at $120, and the remainder would renew for two years at $240. Beginning in 1999, approximately 400 bail bondsman per year would renew for a two year period. The number of examinees would increase from 80 in 1998 to 100 in 1999 at $100 per exam. 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 total cost estimate includes operating expenses. 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 Registration and Savings/(Cost) Examination Fees from General - Probable Revenue Fund Revenue Gain/(Loss) from General Revenue Fund 0001 0001 1998 ($134,180) $152,000 1998 (118,310) 125,200 2000 (118,310) 110,600 2001 (118,310) 129,800 2002 (118,310) 129,800 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 1998 $17,820 1999 6,890 2000 (7,710) 2001 11,490 2002 11,490 No fiscal implication to units of local government is anticipated. Source: Agencies: 452 Department of Licensing and Regulation LBB Staff: JK ,JD ,RA