LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 20, 2001
TO: Honorable Steven Wolens, Chair, House Committee on State
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3198 by Maxey (Relating to the establishment of an
electronic system for occupational licensing
transactions, public access to certain information
regarding license holders, and fees imposed by
occupational licensing agencies.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3198, As Introduced: positive impact of $1,521,023 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 $1,101,041 *
* 2003 419,982 *
* 2004 68,480 *
* 2005 117,682 *
* 2006 (858,751) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2002 $(1,242,889) $2,343,930 *
* 2003 (1,923,948) 2,343,930 *
* 2004 (2,275,450) 2,343,930 *
* 2005 (2,226,248) 2,343,930 *
* 2006 (3,202,681) 2,343,930 *
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Technology Impact
The bill would cost $2,500 for a personal computer in FY 2002
Fiscal Analysis
The bill would require the Department of Information Resources (DIR) to
administer a common electronic system using the Internet. It would
electronically send occupational licenses and other documents to persons
regulated by the authority and to the public; receive applications for
occupational licenses and other documents for filing from persons
regulated by the authority and from the public, including documents that
can be electronically signed if necessary; and receive required payments
from persons regulated by the authority and from the public. The bill
would also require eight specific regulatory agencies to include profiles
of their regulated professionals.
Implementation may be phased in, and the portal demonstration project may
be used. A private vendor may be used and paid only with fees collected.
The bill would require DIR to charge the agencies fees sufficient to
cover the contracted cost of implementation. The bill would allow the
eight agencies required to include profiles to raise their licensing fees
to pay DIR.
A steering committee would be established to advise the DIR regarding the
implementation. Any reimbursement of committee members' expenses would
be paid from current budgets.
Methodology
According to DIR, the expense and revenue projections are based on the
following assumptions:
* A $5.00 license fee increase for all the involved agency's' regulated
professionals, which would pay for the project and which includes the
costs of implementing professional profiles.
* Excess revenue would be used to pay for credit card fees (two percent
of total license fees done online).
* Revenue not used for operations and credit card fees is returned to
general revenue fund.
* The number of agencies is based on those listed in HB3198.
* Transaction numbers are as provided in the e-Texas report (EG-4).
* Costs for professional services in FY 2002 would be approximately
$800,000 and $619,000 in FY 2003.
* Ongoing operational costs for transaction fees and credit card charges
would be approximately $379,000 in the first year; $1.2 million in the
second year; $2.2 million in the third and fourth years; and $3.2 million
in the fifth year.
* One FTE would be needed to manage the project for three years, when
the project would be fully operational, at a cost of approximately
$77,000 each year, including benefits.
* Additional costs for travel, other operating expenses and equipment,
as adjusted for one-time expenses, is estimated to be $8,000 in the
first year and approximately $3,300 in the following two years.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 337 Board of Tax Professional Examiners, 502
State Board of Barber Examiners , 533 Executive
Council of Physical Therapy & Occupational Therapy
Examiners, 329 Texas Real Estate Commission, 514
Texas Optometry Board, 313 Department of
Information Resources, 472 Texas Structural Pest
Control Board, 204 Court Reporters Certification
Board, 503 Texas State Board of Medical Examiners,
360 State Office of Administrative Hearings, 513
Texas Funeral Service Commission, 329A Texas
Appraiser Licensing and Certification Board, 520
Board of Examiners of Psychologists, 578 Texas
Board of Veterinary Medical Examiners, 507 Board
of Nurse Examiners, 511 Board of Vocational Nurse
Examiners, 512 Texas State Board of Podiatric
Medical Examiners, 515 Texas State Board of
Pharmacy, 505 Texas Cosmetology Commission, 504
State Board of Dental Examiners, 508 Texas Board
of Chiropractic Examiners, 474 Texas Polygraph
Examiners Board, 456 Texas State Board of Plumbing
Examiners, 464 Texas Board of Professional Land
Surveying, 304 Comptroller of Public Accounts
LBB Staff: JK, RB, SK