LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 8, 1999
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1438 by Duncan (Relating to a pilot project
transferring certain professional and occupational
licensing boards to self-directed semi-independent
status; making an appropriation.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1438, As Introduced: negative impact of $(3,094,928) through *
* the biennium ending August 31, 2001. *
**************************************************************************
Appropriations:
*****************************************************
* Fiscal Year Appropriation out of General *
* Revenue Fund *
* 0001 *
* 2000 $6,142,917 *
* 2001 0 *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(1,552,773) *
* 2001 (1,542,155) *
* 2002 (1,569,155) *
* 2003 (1,601,155) *
* 2004 (1,617,155) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Revenue Savings/ Savings/ Revenue Number of *
* Gain/(Loss) (Cost) from (Cost) from Gain/(Loss) State *
* from General Other Funds from Other Employees *
* General Revenue Funds from FY 1999 *
* Revenue Fund *
* Fund 0001 *
* 0001 *
* 2000 $6,727,227 $56,363 $0 (89.0) *
* $(8,280,000) *
* 2001 (8,352,000) 6,809,845 (117,427) 174,300 (89.0) *
* 2002 (8,379,000) 6,809,845 (117,427) 174,300 (89.0) *
* 2003 (8,411,000) 6,809,845 (117,427) 174,300 (89.0) *
* 2004 (8,427,000) 6,809,845 (117,427) 174,300 (89.0) *
***********************************************************************
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* Scholarship Fund 5th Year Account *
* Students Account/ GR-Dedicated *
* 0106 *
* 2000 $(578,000) *
* 2001 (596,000) *
* 2002 (596,000) *
* 2003 (596,000) *
* 2004 (596,000) *
*****************************************************
Fiscal Analysis
The bill would establish the Self-Directed Semi-Independent Agency Pilot
Project and designate the State Board of Public Accountancy, the Board of
Professional Engineers, the Board of Architectural Examiners, the Board
of Tax Professional Examiners and the Board of Professional Land
Surveying as part of the pilot project. The bill would remove the
project agencies from the legislative budgeting process, allow the
agencies to retain fees (except the $200 professional fee) in accounts
outside the State Treasury and generally operate outside the provisions
of the General Appropriations Act. On the first day of each regular
legislative session, each agency would be required to submit a report to
the Legislature and the Governor describing all of the agency's
activities in the previous biennium.
The bill would authorize each project agency to contract, sell and
acquire property, borrow money and set their own fees with in the
restrictions of its enabling legislation. Employees of the project
agencies would remain members of the Employees Retirement System of Texas
under Chapter 812 of the Government Code.
The bill would require the State Auditor to contract with each agency to
conduct financial and performance audits.
The bill would also transfer all supplies, materials, records, equipment,
and facilities used by each project agency to the respective agency in
fee simple and allow the General Services Commission to charge agencies
remaining in state owned buildings rent.
The bill would take effect September 1, 1999. Provisions relating to the
Sunset Act would apply and, unless continued, the Act would expire
September 1, 2005.
Methodology
The revenue loss was estimated based on the Comptroller's 2000-01
Biennial Revenue Estimate. Because fees would be deposited outside the
State Treasury, there would be a loss to the General Revenue Fund and to
GR Account 106-Scholarship Fund for Fifth Year Accounting Students.
The general revenue and other funds savings were estimated based on the
historical legislative appropriations to the project agencies and
employee benefit cost for the associated employees. It is assumed that
the employees will remain members of the Employees Retirement System for
retirement benefits only and that the project agencies will provide the
employer contribution to the system.
The State Auditor estimates the cost of audit work required by the bill
would be approximately $35,000 per year per agency and require an
additional 2 FTE's. It is assumed the agencies would pay for the audit
services out of fees collected.
The State Property Accounting Division of the Comptroller's Office,
estimates the value of the assets that would be transferred to the
project agencies at $1,367,723.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, SD, RT