Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                               May 19, 2001
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB697  by Wentworth (Relating to the regulation of the
               practice of professional engineering.), As Passed 2nd
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB697, As Passed 2nd House:  positive impact of $0 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                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
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             $(238,934)             $238,934                  4.0 *
*  2003              (174,461)              174,461                  4.0 *
*  2004              (174,461)              174,461                  4.0 *
*  2005              (174,461)              174,461                  4.0 *
*  2006              (174,461)              174,461                  4.0 *
Technology Impact
The agency estimates technology costs of $32,093 due to the
implementation of the bill, including programming costs of $25,493 and
$6,000 for additional computer equipment and printers.
Fiscal Analysis
The bill would amend Article 3271a, Vernon's Texas Civil Statutes (the
Texas Engineering Practice Act), by authorizing the Board of Professional
Engineers by rule to mandate up to 8 hours of continuing professional
education for persons regulated by the Board.  The bill would also
require the Board to review a proposal for the procurement of services
issued by a governmental entity to determine whether the services are
within the scope of the practice of professional engineering.

The bill would also authorize the Board to reduce the firm registration
fee for a sole proprietorship to half the registration fee for other
engineering firms and provide that the Board may adopt a system under
which a sole proprietor's firm registration expires on the same date as
the professional engineer license.

The bill also establishes an exemption for a sole proprietorship, firm,
partnership, joint stock association, corporation, or other business
entity or the entity's employees or contractors whose products and
services are provided or sold to an agency or department of the United
States Government or the government of a foreign country that involves
the design, development, production, sale or provision of defense
projects or services; consists of or supports commercial aircraft and the
entity holds a certificate issued by the Federal Aviation Administration
under 14 C.F.R. Chapter 21; or consists of space vehicles or space
services that are subject to licensing or regulation by an agency or
department of the United States government under  Title 14 or 47, Code of
Federal Regulations; or for sale or use outside the United States.

The bill would take effect September 1, 2001.
The agency estimated the need for four additional FTEs to implement the
provisions of the bill.  The agency estimates that approximately 4,000
professional engineers would allow their licenses to expire the first
year and an additional 1,500 would let their licenses expire each year
thereafter.  Currently, sole proprietorships make up approximately one
third of the total firms registered with the Board.  The Board estimates
that 1,325 sole proprietorships would pay a reduced registration fee.

It is assumed the agency would adjust fees to offset any costs or revenue
loss associated with the implementation of the bill.
Local Government Impact
No significant fiscal implication to units of local government is
Source Agencies:   460   Texas Board of Professional Engineers
LBB Staff:         JK, JO, RT