LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 7, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor
Honorable James E. "Pete" Laney, Speaker of the House
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB187 by Shapleigh (Relating to the creation of an
authority and related projects and duties regarding
government services provided through online systems.),
Conference Committee Report
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB187, Conference Committee Report: 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) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Revenue Savings/ Revenue Savings/ Number of *
* Gain/(Loss) (Cost) from Gain/(Loss) (Cost) from State *
* from General from Appropriat- Employees *
* General Revenue Appropriat- ed Receipts from FY 2001 *
* Revenue Fund ed Receipts 0666 *
* Fund 0001 0666 *
* 0001 *
* 2002 $2,343,930 $278,261 $(183,754) 2.5 *
* $(1,242,889) *
* 2003 2,343,930 (1,923,948) 306,087 (178,654) 2.5 *
* 2004 2,343,930 (2,275,450) 336,696 (178,654) 2.5 *
* 2005 2,343,930 (2,226,248) 370,366 (183,754) 2.5 *
* 2006 2,343,930 (3,202,681) 407,403 (178,654) 2.5 *
***********************************************************************
Technology Impact
$12,700 in personal computers, ($7,600 in fiscal year 2002 and $5,100 in
fiscal year 2005) and $65,000 each year for computer programming
support.
Fiscal Analysis
The bill would create the Texas Online Authority, with 15 members. The
members would implement TexasOnline. It establishes a common electronic
infrastructure through which state agencies and local governments can
electronically send and receive documents or required payments to and
from members of the public, persons who are regulated by agencies and
local governments and the agencies and local governments. The bill would
permit each state agency or local government that uses the project to
charge a fee in order to recover actual reasonable costs.
The bill would also require TexasOnline to receive applications for
licenses and permits, complaints about occupational license holders and
other documents for filing; send occupational licenses to persons
regulated by licensing authorities; and send profiles of occupational
license holders to persons regulated by licensing authorities.
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 the authority to charge the agencies
fees sufficient to cover the contracted cost of implementation. The
bill would require eight agencies to establish a profile system.
Methodology
One project manager would be needed to administer the program at a cost
of approximately $57,000 per year plus benefits, and a half-time
administrative assistant would also be needed at approximately $12,500
per year plus benefits. Technology costs would be approximately $7,600
in the first and fourth years. The costs of programming support would be
approximately $65,000 per year. Additional costs include travel
expenses estimated to be $14,500 per year and operating expenses of
approximately $10,000 per year.
Estimated revenues are based on a projected FY 2002 transaction volume of
3,171,449 per year at an average cost of $.90 per transaction.
Estimates for FY 2003-06 assume a 10% increase in volume per year. The
state's share of the transaction fees would be 10% of the total
transaction charge.
According to DIR, the expense and revenue projections related to the
occupational licensing component of the bill 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 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 would be approximately $800,000 in FY
2002 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 at a cost of approximately $77,000 each year,
including benefits, for three years to manage the project, at which time
it would be fully operational.
* 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 $3,300 each in the following two years.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 308 State
Auditor's Office, 313 Department of Information
Resources
LBB Staff: JK, RB, SK