LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 11, 1999 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB1248 by Farrar (Relating to the regulation of the practice of architecture, landscape architecture, and interior design; providing administrative penalties.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1248, As Engrossed: impact of $0 through the biennium ending * * August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: *********************************************************************** *Fiscal Probable Probable Probable Probable Change in * * Year Savings/ Revenue Savings/ Revenue Number of * * (Cost) from Gain/(Loss) (Cost) from Gain/(Loss) State * * General from New - GR from New - Employees * * Revenue General Dedicated GR from FY 1999 * * Fund Revenue Scholarship Dedicated * * 0001 Fund Fund for Scholarship * * 0001 Architectu- Fund for * * ral Architectu- * * Examination ral * * Applicants Examination * * Applicants * * 2000 $(205,744) $205,744 $(100,000) $100,000 4.0 * * 2001 (196,529) 196,529 (100,000) 100,000 4.0 * * 2002 (202,598) 202,598 (100,000) 100,000 4.0 * * 2003 (208,878) 208,878 (100,000) 100,000 4.0 * * 2004 (215,361) 215,361 (100,000) 100,000 4.0 * *********************************************************************** Fiscal Analysis This bill would require the Board of Architectural Examiners (BAE) to recognize, prepare, or administer continuing education programs for architects, landscape architects, and interior designers. Participation in the continuing education programs would be mandatory. Persons renewing their registrations would be required to submit proof to the BAE of satisfactory compliance with the continuing education requirement. The bill would allow the BAE to accept payment of fees by credit card and charge a fee for processing the payment, not to exceed 5 percent of the fee paid. The bill would remove the $200 professional fee from applications for examination and allow the board to set penalties for late registrations. The bill would also allow the board to assess administrative penalties for violations of the registration requirements for landscape architects and interior designers. Such penalties would be deposited to the credit of the General Revenue Fund 0001. The bill requires the BAE to deposit $10 of each certificate of registration renewal fee collected to the credit of a new Scholarship Fund for Architectural Examination Applicants. This bill would take effect September 1, 1999. Methodology The BAE estimates a need for four additional FTE's to comply with the continuing education provisions. The elimination of the $200 professional fee and the continuing education requirements would cause a loss of revenue to the General Revenue Fund, while the implementation of administrative and late penalties would increase revenue to fund. It is assumed the BAE would adjust fees collected by the agency to offset any revenue loss and costs associated with the bill. It is assumed all funds in the Scholarship Fund for Architectural Examination Applicants would be distributed for scholarships. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 459 Board of Architectural Examiners, 304 Comptroller of Public Accounts LBB Staff: JK, SD, TH, RT