LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 24, 2001
  
  
          TO:  Honorable Ron Wilson, Chair, House Committee on Licensing
               & Administrative Procedures
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB784  by Isett (Relating to inactive status for a
               certified public accountant.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB784, As Introduced:  negative impact of $(2,580,833) through the    *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  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 Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                         $(1,283,505)  *
          *       2003                          (1,297,328)  *
          *       2004                          (1,322,357)  *
          *       2005                          (1,348,069)  *
          *       2006                          (1,374,203)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal        Probable         Probable Revenue    Change in Number of  *
* Year    Savings/(Cost) from   Gain/(Loss) from   State Employees from  *
*        General Revenue Fund General Revenue Fund        FY 2001        *
*                0001                 0001                               *
*  2002              $(52,161)         $(1,231,344)                  1.0 *
*  2003               (41,357)          (1,255,971)                  1.0 *
*  2004               (41,357)          (1,281,000)                  1.0 *
*  2005               (41,357)          (1,306,712)                  1.0 *
*  2006               (41,357)          (1,332,846)                  1.0 *
**************************************************************************
  
Technology Impact
  
A total of $4,668 in design and implementation of revisions for the
automated processing system would be required.
  
  
Fiscal Analysis
  
The bill would amend Chapter 901 of the Occupations Code by adding
Section 901.412, Inactive Status.  The bill would provide for an inactive
status whereby those licensees who are not actively engaged in the
practice of public accountancy could apply for inactive status.  An
inactive status would exempt the license holder from the annual license
fee of $30 and the $200 Professional Fee.  The bill would also require a
fee not to exceed $50 for each year the person is on inactive status.

The bill would take effect September 1, 2001.
  
  
Methodology
  
The Board of Public Accountancy estimates there are approximately 6,036
licensees who would be eligible to claim inactive status and that this
number would increase 2 percent per year.  The loss in General Revenue
per licensee would be $200 (the $200 Professional Fee plus the $30
license fee less a $30 administrative fee.
  
  
Source Agencies:   457   Texas State Board of Public Accountancy
LBB Staff:         JK, JO, RT