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 ************************************************************************** * 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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 * *************************************************************************** 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