LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 20, 2001 TO: Honorable Toby Goodman, Chair, House Committee on Juvenile Justice & Family Issues FROM: John Keel, Director, Legislative Budget Board IN RE: HB2429 by Goodman (Relating to the regulation of private child support enforcement agencies; providing a civil penalty.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2429, As Introduced: negative impact of $(233,390) 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 $(107,555) * * 2003 (125,835) * * 2004 (128,749) * * 2005 (134,314) * * 2006 (133,593) * **************************************************** 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 $(110,055) $2,500 1.7 * * 2003 (128,335) 2,500 2.0 * * 2004 (131,249) 2,500 2.0 * * 2005 (136,814) 2,500 2.0 * * 2006 (136,093) 2,500 2.0 * ************************************************************************** Technology Impact Additional computers and a printer at a cost of $4,800 for the new Full-time equivalent positions in fiscal year 2002. Fiscal Analysis The bill would amend the Finance Code by adding Chapter 36 requiring the Finance Commission (FC) to regulate private child support enforcement agencies as defined by the bill. The bill allows the FC to charge each applicant for a certificate of registration or renewal a non-refundable fee of $500 and up to $500 annually to cover the cost of regulation. The bill takes effect September 1, 2001, except that a private child support enforcement agency be registered applies only on and after January 1, 2002. Methodology The FC estimates that the provisions of the bill would require two additional FTEs. Since the registration requirements is effective January 1, 2002, it is estimated that the agency would need two months of fiscal year 2002 to organize and prepare and eight months for the new registration. Therefore, the FC would need only 1.7 FTEs in fiscal year 2002. The FC estimates that it would require an attorney who will be responsible for developing rules to administer the statute, provide technical and legal advice to potential registrants, help the investigator determine the legal issues in complaints, and perform all duties related to the administrative hearings. It would also require an investigator for the estimated 250 to 1,000 complaints per year. The agency anticipates that half of the complaints would need to be investigated and all of the complaints would be closed within in a year. According to the Office of the Attorney General, there are approximately five to ten private child support enforcement agencies. The basis for this fiscal note assumes that there would be five applicants for a certificate of registration and five renewals each year. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 449 Finance Commission of Texas, 304 Comptroller of Public Accounts, 302 Office of the Attorney General LBB Staff: JK, JC, RT, DE