LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 9, 2001 TO: Honorable Ron Wilson, Chair, House Committee on Licensing & Administrative Procedures FROM: John Keel, Director, Legislative Budget Board IN RE: SB697 by Wentworth (Relating to the regulation of the practice of professional engineering.), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB697, Committee Report 2nd House, Substituted: 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. Methodology 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 anticipated. Source Agencies: 460 Texas Board of Professional Engineers LBB Staff: JK, JO, RT