LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 16, 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), Committee Report 1st
House, Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1438, Committee Report 1st House, Substituted: impact of $0 *
* through the biennium ending August 31, 2001. *
**************************************************************************
Appropriations:
*****************************************************
* Fiscal Year Appropriation out of General *
* Revenue Fund *
* 0001 *
* 2000 $3,071,458 *
* 2001 0 *
*****************************************************
General Revenue-Related Funds, Five-Year Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(1,535,729) *
* 2001 1,535,729 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
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 $3,655,769 $56,363 $0 (89.0) *
* $(5,191,498) *
* 2001 (5,274,116) 6,809,845 (117,427) 174,300 (89.0) *
* 2002 (6,809,845) 6,809,845 (117,427) 174,300 (89.0) *
* 2003 (6,809,845) 6,809,845 (117,427) 174,300 (89.0) *
* 2004 (6,809,845) 6,809,845 (117,427) 174,300 (89.0) *
***********************************************************************
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 and $10
scholarship fee) in accounts outside the State Treasury and generally
operate outside the provisions of the General Appropriations Act. Any
surplus revenue generated by the project agencies would be remitted
annually to the General Revenue Fund, and project agencies would repay
the appropriated amount to the General Revenue Fund as funds became
available. 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 requires 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. Chapter 325 of the
Government Code, relating to the Sunset Act, would apply to the act; and
unless continued, the Act would expire September 1, 2005.
Methodology
The Comptroller estimates the project agencies would collect fees in
sufficient amounts to reimburse the General Revenue Fund for the
appropriations made to them in fiscal 2000 and estimates their excess fee
collections deposited to the General Revenue Fund would not be
significantly different from the amounts historically contributed by the
project agencies to the General Revenue Fund.
The general revenue and other funds savings were estimated based on the
historical legislative appropriations to the project agencies and
employee benefit costs 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 General Services Commission estimates it would charge the project
agencies $18.00 per square foot for debt service and indirect costs.
The State Property Accounting Division of the Comptroller's Office and
the General Land Office, estimates the value of the assets that would be
transferred to the project agencies at $2,167,723.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office Of The Attorney General, 303 General
Services Commission, 304 Comptroller of Public
Accounts, 308 State Auditor's Office, 337 Board
of Tax Professional Examiners, 452 Department of
Licensing and Regulation, 457 Board of Public
Accountancy, 459 Board of Architectural Examiners,
460 Board of Registration for Professional
Engineers
LBB Staff: JK, SD, RT