LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 4, 2001 TO: Honorable Mike Moncrief, Chair, Senate Committee on Health & Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: SB1586 by Moncrief (Relating to fees for copies of birth and death certificates.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1586, Committee Report 1st House, Substituted: negative impact * * of $(4,151,000) 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 $(2,057,000) * * 2003 (2,094,000) * * 2004 (2,132,000) * * 2005 (2,170,000) * * 2006 (2,212,000) * **************************************************** All Funds, Five-Year Impact: *********************************************************************** *Fiscal Probable Probable Probable Probable Change in * * Year Savings/ Savings/ Revenue Revenue Number of * * (Cost) from (Cost) to Gain/(Loss) Gain/(Loss) State * * New General New General from to New Employees * * Revenue Revenue General Re-Created from FY 2001 * * Dedicated Dedicated Revenue Work and * * Vital Vital Fund Family * * Statistics Statistics 0001 Policies * * Enhancement Enhancement Fund * * Fund Fund * * 2002 $2,363,000 $2,057,000 5.2 * * $(2,665,928) $(2,057,000) * * 2003 (2,699,790) 2,405,000 (2,094,000) 2,094,000 7.0 * * 2004 (2,242,964) 2,449,000 (2,132,000) 2,132,000 6.0 * * 2005 (2,216,964) 2,492,000 (2,170,000) 2,170,000 6.0 * * 2006 (2,216,964) 2,540,000 (2,212,000) 2,212,000 6.0 * *********************************************************************** ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) to * * All Local Units of Government * * 2002 $1,677,000 * * 2003 1,707,000 * * 2004 1,738,000 * * 2005 1,769,000 * * 2006 1,803,000 * ***************************************************** Technology Impact According to the Texas Department of Health (TDH), costs of $1,108,416 in FY 2002, and $496,102 in FY 2003 would be needed for the development and enhancement of new and existing technology systems. It is estimated $14,000 would be expended in FY 2002 for personal computers for the additional FTEs. Fiscal Analysis The bill would increase the fee collected relating to birth certificate copies to $5, from $2. Two dollars of the fee collected would be credited into the Work and Family Policies Fund, which the bill would also re-create. The other $3 would be credited to the newly-created Vital Statistics Enhancement Fund. An additional fee of $2 for issuing a certified copy of a death certificate could also be collected and deposited into the Vital Statistics Enhancement Fund. Local registrars or county clerks would be allowed to retain $1.40 of the fees for processing each certificate issued, which would be an increase of $1.20 over the amount retained under the current statute. Money in the Vital Statistics Enhancement Fund would be used for developing and improving electronic systems for reporting and storing vital statistics. The bill would do one or more of the following: create or re-create a dedicated account in the General Revenue Fund, create or re-create a special or trust fund either within or outside the state treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in the bill would be subject to funds consolidation review by the current Legislature. Methodology It is assumed TDH would implement the provisions of the bill that specify how the funds in the newly-created Vital Statistics Enhancement Fund may be used. According to TDH, expenditures would include grants awarded for local system enhancements, various hardware and software for the development and enhancement of new and existing technology, service and maintenance contracts; and technical/educational assistance and training for local registration officials. TDH estimates they would need seven additional FTEs in fiscal years 2002-2003 and six in fiscal years 2004-2006. According to the Comptroller of Public Accounts, the estimated revenue deposited into the Vital Statistics Enhancement Fund would be $4,768,000 for the 2002-03 biennium. Local Government Impact Under the provisions of the bill, the Comptroller estimated that local registrars or county clerks statewide would experience a revenue gain of over $1.6 million in FY 2002. The amount of gain for each local office would vary. Local courts that are already using automated systems may also experience a slight savings as the Bureau of Vital Statistics implements a paperless electronic reporting system. Source Agencies: 501 Texas Department of Health, 304 Comptroller of Public Accounts LBB Staff: JK, HD, DB