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