LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 26, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 1017 Committee on Intergovernmental Relations By: Patterson, Jerry Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1017 ( Relating to training for members of appraisal review boards and to the qualifications of the members of certain appraisal review boards.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1017-As Introduced Implementing the provisions of the bill would result in a net negative impact of $307,222 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 The bill would amend Chapter 5 and 6 of the Tax Code to require the Comptroller to assume responsibility for training appraisal review board (ARB) members by: (1) providing standards for training and educating ARB members; (2) approving curricula and materials for training ARB members; and (3) establishing standards for a certificate of training and issuance of a certificate for successfully completing required training and education. The Comptroller would be required to implement these provisions by January 1, 1998. The bill would prohibit ARB members in counties having a population of 50,000 or more from participating in an ARB hearing unless they had successfully completed required training and education and had been issued a certificate of completion. Appraisal districts and taxing units would be prohibited from providing ARB training and education. The bill would make the following persons ineligible to serve on an ARB: (1) former appraisal district or taxing unit officers or employees, (2) former appraisal district board members, and (3) former members of taxing unit governing bodies. The bill would take effect September 1, 1997 and only apply to an ARB member appointed on or after the effective date. The bill would not prohibit current ARB members from being reappointed if those persons met the qualifications otherwise established by this bill for new members. Methodolgy The bill would require the Comptroller to assume a central role in training and educating ARB members. There could be some costs to local governments for expenses associated with providing training and education to ARB members. 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 Change in Number Savings/(Cost) of State from General Employees from Revenue Fund FY 1997 0001 1998 ($158,831) 3.0 1998 (148,391) 3.0 2000 (148,391) 3.0 2001 (148,391) 3.0 2002 (148,391) 3.0 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 ($158,831) 1999 (148,391) 2000 (148,391) 2001 (148,391) 2002 (148,391) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,TL ,BR