LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
March 14, 2001
TO: Honorable Dale B. Tillery, Chair, House Committee on
Pensions & Investments
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.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2255, As Introduced: 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, RB, RT, DE