LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 2, 2001
  
  
          TO:  Honorable Dale B. Tillery, Chair, House Committee on
               Pensions & Investments
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1503  by McCall (Relating to the continuation of the
               State Pension Review Board, to functions performed by the
               board, and to the funding of the board.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1503, As Introduced:  negative impact of $(84,000) 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                            $(42,000)  *
          *       2003                             (42,000)  *
          *       2004                             (42,000)  *
          *       2005                             (42,000)  *
          *       2006                             (42,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Revenue Gain/(Loss)   *
* Year         General Revenue Fund      from State Pension Review Board  *
*                      0001                            Fund               *
*                                                      0662               *
*  2002                         $(42,000)                       $(42,000) *
*  2003                          (42,000)                        (42,000) *
*  2004                          (42,000)                        (42,000) *
*  2005                          (42,000)                        (42,000) *
*  2006                          (42,000)                        (42,000) *
***************************************************************************
  
Fiscal Analysis
  
The bill enacts the recommendations of the Sunset Advisory Committee, and
includes a prohibition on voluntary contributions to the State Pension
Review Board Fund from local public retirement systems in the state.
Currently, the agency spends approximately $45,000 each year from this
fund.
  
  
Methodology
  
The voluntary contributions are the primary source of revenue to the
State Pension Review Board Fund.  The Comptroller of Public Accounts
estimates that approximately $42,000 each year is received in voluntary
contributions.  If these contributions are prohibited, it is assumed
that General Revenue will be used to maintain the agency at its current
level of funding.  The Fund would still continue to receive fees and
revenues from the seminars conducted by the agency, estimated by the
Comptroller at $3,000 each year.
  
  
Local Government Impact
  
Since the voluntary contributions from local retirement systems would be
prohibited, it is estimated that these systems would save $42,000 each
year.
  
  
Source Agencies:   344   Texas Commission on Human Rights, 304
                   Comptroller of Public Accounts, 338   State Pension
                   Review Board, 302   Office of the Attorney General,
                   116   Sunset Advisory Commission
LBB Staff:         JK, RB, SC