LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 26, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor Honorable James E. "Pete" Laney, Speaker of the House FROM: John Keel, Director, Legislative Budget Board IN RE: HB2255 by McCall (Relating to the continuation and functions of the State Securities Board; providing penalties.), Conference Committee Report ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2255, Conference Committee Report: negative impact of * * $(175,524) 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 $(87,762) * * 2003 (87,762) * * 2004 (87,762) * * 2005 (87,762) * * 2006 (87,762) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(87,762) 1.0 * * 2003 (87,762) 1.0 * * 2004 (87,762) 1.0 * * 2005 (87,762) 1.0 * * 2006 (87,762) 1.0 * *************************************************************************** Fiscal Analysis The bill amends the Securities Act to increase the number of Securities Board members from three to five citizens of the state. The provisions of the bill establishes an investor education program with special emphasis on fraud prevention. The bill continues the Securities Board until September 1, 2013. The effective date of the bill is September 1, 2001. Methodology The expansion of the Securities Board from three current members to five members would result in a cost increase of $1,800 each fiscal year. The Securities Board estimates that the establishment of an investor education program would result in the need for one additional Full-time equivalent position (FTE), which would include a training specialist to manage the program. The additional FTE and the operating expenses for the new program would result in a cost of $85,962 each fiscal year. Operating costs totaling $46,570 per fiscal year include printing and distribution of 3,100 guides for classroom teachers, at a cost of $15 per guide, and internet distribution of the material. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 344 Texas Commission on Human Rights, 329 Texas Real Estate Commission, 116 Sunset Advisory Commission, 302 Office of the Attorney General, 312 State Securities Board LBB Staff: JK, JO, CT, RB, RT, DE