TO: | Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB1285 by Pitts (Relating to the regulation of certain companies that provide for-profit legal service contracts; providing penalties.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | $0 |
2007 | $0 |
2008 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromDEPT INS OPERATING ACCT 36 |
Probable Savings/(Cost) fromDEPT INS OPERATING ACCT 36 |
---|---|---|---|---|
2004 | $63,188 | ($63,188) | ($6,597) | $6,597 |
2005 | $54,338 | ($54,338) | ($6,597) | $6,597 |
2006 | $54,338 | ($54,338) | ($6,597) | $6,597 |
2007 | $54,338 | ($54,338) | ($6,597) | $6,597 |
2008 | $54,338 | ($54,338) | ($6,597) | $6,597 |
Fiscal Year | Change in Number of State Employees from FY 2003 |
---|---|
2004 | 1.5 |
2005 | 1.5 |
2006 | 1.5 |
2007 | 1.5 |
2008 | 1.5 |
The Department of Insurance (TDI) indicates the transfer would reduce its number of licensees by 1,250. Because the agency contracts with an outside vendor for examination and processing of these licensees, with exam fees being paid directly to the vendor, the agency would not see a reduction in full time equivalent positions. However, the agency would see a reduction in the number of criminal background checks it is required to perform. This reduction would save TDI $6,597 each fiscal year. The agency anticipates a $271,680 loss to General Revenue Dedicated Fund 36 because of a reduction in fee revenue. It is assumed any revenue loss from fees collected that is not matched by a corresponding savings to TDI would be offset by an increase in the Insurance Maintenance Tax.
The Department of Licensing and Regulation (TDLR) would need 1.5 additional FTEs to administer the program. Of this, 0.75 FTE for an Administrative Technician III ($25,932 annual salary) would be needed for application processing, and 0.25 FTE for an Administrative Technician III ($25,932 annual salary) would be needed for customer service. Also, 0.5 Administrative Technician IV ($29,232 annual salary) would be needed to review financial security requirements during the initial application process and at registration renewal, and to review registrants' business records to ensure compliance. TDLR's total cost associated with these FTEs would be $63,188 in fiscal year 2004 and $54,338 in each ensuing fiscal year.
It is assumed TDLR would adjust fees to offset any costs associated with implementing the provisions of the bill.
Source Agencies: | 302 Office of the Attorney General, 454 Department of Insurance, 452 Department of Licensing and Regulation
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LBB Staff: | JK, JRO, RR, RT, RB
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