LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 15, 2007

TO:	Honorable Geanie Morrison, Chair, House Committee on Higher Education
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2165 by Villarreal (Relating to the authority to approve schools of nursing.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2165, As Introduced: a negative impact of ($224,934) through the biennium ending August 31, 2009.

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
2008	($123,868)
2009	($101,066)
2010	($101,066)
2011	($101,066)
2012	($101,066)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1	Change in Number of State Employees from FY 2007
2008	($123,868)	1.5
2009	($101,066)	1.5
2010	($101,066)	1.5
2011	($101,066)	1.5
2012	($101,066)	1.5

Fiscal Analysis

The bill would amend Occupations Code to provide that the Board of Nurse Examiners may not require the accreditation of the governing institution of a school of nursing.  The bill would require that the Board of Nurse Examiners shall accept the requirements established by the Texas Higher Education Coordinating Board for accrediting the governing institution of a school of nursing.

The bill would take effect September 1, 2007.

Methodology

Based on information provided from the Texas Higher Education Coordinating Board, this analysis assumes that there would be a 33 percent increase in the number of career schools which would offer programs of study for registered nurses. 

It is estimated that the Texas Higher Education Coordinating Board would have a cost associated with processing the additional applications for Certificate of Authority for these institutions.  Based on the analysis of the Texas Higher Education Coordinating Board, it is assumed that the provisions of this bill would necessitate additional resources at a cost of $224,934 through 2009. 
 
The Texas Higher Education Coordinating Board also estimates costs for staff of $70,044 for 1.5 FTEs in each fiscal year from 2008 through fiscal year 2012.  Other operating expenses are estimated to be $34,009 in fiscal year 2008 and $11,207 in each fiscal year from 2009 through 2012.  Estimated costs also include $19,815 in each fiscal year from 2008 through fiscal year 2012 for associated benefits.

Based on information provided from the Texas Higher Education Coordinating Board and the Board of Nurse Examiners, it is assumed that any additional costs related to the duties and responsibilities associated with implementing the provisions of the bill could be covered by utilizing existing resources.

Technology

No technology impact is anticipated.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

507 Board of Nurse Examiners, 781 Higher Education Coordinating Board

LBB Staff:

JOB, MN, MW, AH