LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 31, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2755 by Uher (Relating to the regulation of the
practice of public accounting.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2755, As Introduced: negative impact of $(14,534,940) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(7,267,470) *
* 2003 (7,267,470) *
* 2004 (7,267,470) *
* 2005 (7,267,470) *
* 2006 (7,267,470) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) *
* Year from General Revenue Fund from Scholarship Fund for Fifth *
* 0001 Year Accounting Students *
* Account/ GR-Dedicated *
* 0106 *
* 2002 $(7,267,470) $(313,440) *
* 2003 (7,267,470) (313,440) *
* 2004 (7,267,470) (313,440) *
* 2005 (7,267,470) (313,440) *
* 2006 (7,267,470) (313,440) *
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Fiscal Analysis
The bill would amend the Occupations Code, Subchapter H, by changing the
activities requiring a license from the Board of Public Accountancy.
The bill would take effect September 1, 2001.
Methodology
The bill would permit licensing of only those individuals who perform
attest services as defined in the bill. The Board of Public Accountancy
estimates that 31,344 of the current lincensees would no longer have to
be licensed. The loss of General Revenue is approximate $7.2 million per
year (31,344 X $230 annual license fee) and the loss to General Revenue
Dedicated Account 106 would approximate $313,440 per year (31,344 X $10
annual license fee). The bill also provides the opportunity for
sole-proprietors to opt out of registration. The Board of Public
Accountancy estimates that 25% of the total number of sole-proprietors
(4,668) would take advantage of this provision, resulting in an
additional loss of General Revenue of approximately $58,350 (25% X 4,668
X $50 annual practice unit fee).
The fiscal impact would continue as long as the bill remains in effect.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 457 Texas State Board of Public Accountancy
LBB Staff: JK, JO, RT