LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 19, 1997
TO: Honorable Carlos F. Truan, Chair IN RE: Senate Bill No. 771
Committee on International Relations, Trade & Technology By: Moncrief
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB771 ( Relating
to the licensing of the name, logo, and other artwork of the
Texas Commission on the Arts.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB771-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
This bill would allow the Texas Commission on the Arts (TCA)
to license the use of its name, logo, or artwork and graphics
developed by the TCA to a private vendor. The bill would allow
the TCA to purchase and resell these items to promote arts in
Texas. The bill would require the use of licensed property
to be consistent with TCA's mission.
The bill would require
the licensing fees and the net profits from sales to be deposited
in the Texas Commission on the Arts Operating Fund.
Methodolgy
The agency expects to have a two year development stage for
designing and introducing new promotional products for sale
and licensing, resulting in a relative increase in revenue by
the year 2000.
In the 1998-99 biennium, the agency would
begin collecting revenue by selling TCA promotional items such
as T-shirts and cups, and by obtaining licensing fees for use
of TCAnet from arts-related private vendors, artists, craftsmen,
non-profit and cultural organizations.
The costs to the
agency for implementing this bill would include the cost of
purchasing promotional merchandise and the use of professional
services to design graphics, artwork and merchandise. In addition
to using existing agency resources to implement this bill, the
agency would require an additional .5 FTE to promote, sell and
license the agency name, logo, and specific products.
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 Commission Commission on Employees from
on the Arts the Arts FY 1997
Operating Operating
Account/ Account/
GR-Dedicated GR-Dedicated
0334 0334
1998 ($68,050) $100,000 0.5
1998 (69,550) 110,000 0.5
2000 (73,550) 170,000 0.5
2001 (75,950) 182,000 0.5
2002 (78,250) 200,000 0.5
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 $0
1999 0
2000 0
2001 0
2002 0
No fiscal implication to units of local government is anticipated.
Source: Agencies:
LBB Staff: JK ,TH ,NT