LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 4, 2001
TO: Honorable Bob Turner, Chair, House Committee on Public
Safety
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB207 by Longoria (Relating to the exemption of certain
peace officers from regulation under the Private Security
Act.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB207, As Introduced: a negative impact of $(283,238) through the *
* biennium ending August 31, 2003, if the effective date of the bill *
* is June 1, 2001; and a negative impact of $(261,450) through the *
* biennium ending August 31, 2003, if the effective date of the bill *
* is September 1, 2001. *
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The following table assumes an effective date of June 1, 2001.
All Funds, Six-Year Impact:
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* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2001 $(21,788) *
* 2002 (130,725) *
* 2003 (130,725) *
* 2004 (130,725) *
* 2005 (130,725) *
* 2006 (130,725) *
*****************************************************
The following table assumes an effective date of September 1, 2001.
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2002 $(130,725) *
* 2003 (130,725) *
* 2004 (130,725) *
* 2005 (130,725) *
* 2006 (130,725) *
*****************************************************
Fiscal Analysis
The bill would exempt Reserve Peace Officers from licensing requirements
under the Private Security Act.
The bill would take effect immediately if it receives a vote of
two-thirds of all the members elected to each house, otherwise the bill
would take effect September 1, 2001.
Methodology
The Texas Commission on Private Security estimates the following loss of
revenue to the State in potential licensing and registration fees:
Annual:
Seven guard companies not renewed (7 x $300 = $2,100)
254 Letters of Authority not applied for (254 x $300 = $76,200)
1,270 Security Officer Commissions not applied for (1,270 x $40 =
$50,800)
Biennial:
50 Security Officer Commissions not renewed (50 x $40 = $2,000)
50 Noncommission Security Officers not renewed (50 x $25 = $1,250)
It is assumed that half of the biennial renewals would occur in the first
fiscal year of a biennium and half of the renewals would occur in the
second fiscal year of a biennium.
The second table represents the fiscal effects should the bill take
immediate effect. It assumes that one-sixth of the annual revenue loss
would occur and one-twelfth of the biennial revenue loss would occur
during fiscal year 2001.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 467 Texas Commission on Private Security
LBB Staff: JK, JC, SD, JN, DG