LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 20, 2001
TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB736 by Duncan (Relating to the continuation and
operation of the self-directed semi-independent agency
pilot project and the continuation of the Texas State
Board of Public Accountancy, the Texas Board of
Professional Engineers, and the Texas Board of
Architectural Examiners; making an appropriation.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB736, As Introduced: positive impact of $111,975 through the *
* biennium ending August 31, 2003. *
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Appropriations:
*****************************************************
* Fiscal Year Appropriation out of General *
* Revenue Fund *
* 0001 *
* 2002 $3,089,523 *
* 2003 0 *
*****************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,452,274) *
* 2003 1,564,249 *
* 2004 19,487 *
* 2005 19,487 *
* 2006 19,487 *
****************************************************
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 Other Other Funds Employees *
* General Revenue Funds 0997 from FY 2001 *
* Revenue Fund 0997 *
* Fund 0001 *
* 0001 *
* 2002 $4,147,964 $1,161,514 $103,073 (85.0) *
* $(5,600,238) *
* 2003 (5,673,238) 7,237,487 1,335,814 (71,227) (83.0) *
* 2004 (7,218,000) 7,237,487 1,335,814 (71,227) (83.0) *
* 2005 (7,218,000) 7,237,487 1,335,814 (71,227) (83.0) *
* 2006 (7,218,000) 7,237,487 1,335,814 (71,227) (83.0) *
***********************************************************************
Fiscal Analysis
The bill would amend Section 14, Article 8930, of the Self-Directed
Semi-Independent Agency Project Act by extending the Act until September
1, 2005 and directing all fees collected and any funds appropriated to a
project agency to be deposited into the Texas Safekeeping Trust Company
outside the Treasury. Any appropriations made by the bill are to be
repaid to the General Revenue Fund as funds become available.
The bill would take effect September 1, 2001.
The adoption of this legislation would allow the project agencies to
participate in the Self-Directed Semi-Independent Agency project adopted
by the 76th Legislature. The Act established the Self-Directed
Semi-Independent Agency Pilot Project and designated the State Board of
Public Accountancy, the Board of Professional Engineers and the Board of
Architectural Examiners as part of the pilot project. The Act removes
the project agencies from the legislative budgeting process and generally
allows them to operate outside the provisions of the General
Appropriations Act. Each of the project agencies are required to
annually remit certain amounts to the General Revenue Fund.
On the first day of each regular legislative session, each agency is
required to submit a report to the Legislature and the Governor
describing all of the agency's activities in the previous biennium. In
addition, the agency is required to report its two year expenses and
revenue collections by November 1 of each year to the Legislature and
Governor. Each agency can set their own fees with in the restrictions of
its enabling legislation. Employees of the project agencies would remain
members of the Employees Retirement System of Texas under Chapter 812 of
the Government Code.
The Act requires the State Auditor to contract with each agency to
conduct financial and performance audits and allows the Attorney General
to collect fees from the project agencies for legal services.
The Act would also transfer all supplies, materials, records, equipment,
and facilities used by each project agency to the respective agency in
fee simple as long as the agency was covered by the Act and allow the
General Services Commission to charge agencies remaining in state owned
buildings rent.
Methodology
The Comptroller estimates the project agencies would collect fees in
sufficient amounts to reimburse the General Revenue Fund for the
appropriations made to them in fiscal 2002.
The State Auditor estimates the cost of audit work required by the Act
would be approximately $35,000 per year per agency and require an
additional 2 FTE's. It is assumed the agencies would pay for the audit
services out of fees collected.
The General Services Commission estimates it would charge the project
agencies $18.00 per square foot for debt service and indirect costs.
It is assumed the project agencies would contract with the Employees
Retirement Service for employee benefits and the General Services
Commission for building services.
The State Property Accounting Division of the Comptroller's Office and
the General Land Office, estimates the value of the assets that would be
transferred to the project agencies at $1,859,000.
Source Agencies: 459 Texas Board of Architectural Examiners, 116
Sunset Advisory Commission, 460 Texas Board of
Professional Engineers, 457 Texas State Board of
Public Accountancy, 304 Comptroller of Public
Accounts, 302 Office of the Attorney General, 303
General Services Commission, 308 State Auditor's
Office
LBB Staff: JK, SD, RT