LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable David Sibley, Chair, Senate Committee on Business & Commerce FROM: John Keel, Director, Legislative Budget Board IN RE: HB1706 by Farrar (Relating to the regulation of architecture, landscape architecture, and interior design by the Texas Board of Architectural Examiners.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1706, As Engrossed: negative impact of $(200,000) 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 $(100,000) * * 2003 (100,000) * * 2004 (100,000) * * 2005 (100,000) * * 2006 (100,000) * **************************************************** All Funds, Five-Year Impact: *********************************************************************** *Fiscal Probable Probable Probable Probable Change in * * Year Savings/ Revenue Revenue Savings/ Number of * * (Cost) from Gain/(Loss) Gain/(Loss) (Cost) from State * * General from New from New General Employees * * Revenue General General Revenue from FY 2001 * * Fund Revenue Revenue Dedicated * * 0001 Dedicated Fund * * 0001 * * 2002 $(57,500) $100,000 $(42,500) $(100,000) 1.5 * * 2003 (57,500) 100,000 (42,500) (100,000) 1.5 * * 2004 (57,500) 100,000 (42,500) (100,000) 1.5 * * 2005 (57,500) 100,000 (42,500) (100,000) 1.5 * * 2006 (57,500) 100,000 (42,500) (100,000) 1.5 * *********************************************************************** Technology Impact The estimated technology costs for the bill would be $11,885 for two computers and related software at the Board of Architectural Examiners. Fiscal Analysis The bill would create a special Architect Scholarship Account within the General Revenue fund. Ten dollars of each architect license renewal fee would be deposited in the account. Appropriations from the fund would be restricted to the Board of Architectural Examiners for scholarships and administrative costs. Interest earned and unexpended balances would remain in the account. The bill would allow the Board of Architectural Examiners to contract with the Texas Higher Education Coordinating Board or a private entity to administer the scholarship program. The bill would also authorize the Board of Architectural Examiners to prescribe fees for an inactive status for architects, interior designers, and landscape architects. The bill would take effect September 1, 2001. Methodology The agency estimates the scholarship fee would generate revenue of approximately $100,000 per year and that administrative costs from the account would be at least 15% of total amount collected each year. Additionally, the Board of Architectural Examiners estimates a need for 1.5 FTEs to monitor, maintain, and provide accounting and registration services for the program at an estimated cost of $57,500 per year. It is assumed the agency would offset any revenue gains and costs associated with the implementation of the bill by adjusting its fees. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 459 Texas Board of Architectural Examiners, 781 Texas Higher Education Coordinating Board, 452 Texas Department of Licensing and Regulation, 304 Comptroller of Public Accounts LBB Staff: JK, SD, JO, RT