| TO: | Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3166 by Callegari ( Relating to the licensing and regulation of architecture, engineering, interior design, landscape architecture, and land surveying by the Texas Board of Professional Services and the abolition of the Texas Board of Professional Engineers, the Texas Board of Architectural Examiners, and the Texas Board of Professional Land Surveyors.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2012 | $3,265,130 |
| 2013 | $1,465,130 |
| 2014 | $1,465,130 |
| 2015 | $1,465,130 |
| 2016 | $1,465,130 |
| Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Change in Number of State Employees from FY 2011 |
|---|---|---|---|
| 2012 | ($6,682,609) | $9,947,739 | 58.0 |
| 2013 | ($6,682,609) | $8,147,739 | 58.0 |
| 2014 | ($6,682,609) | $8,147,739 | 58.0 |
| 2015 | ($6,682,609) | $8,147,739 | 58.0 |
| 2016 | ($6,682,609) | $8,147,739 | 58.0 |
For the purpose of this analysis, the Comptroller of Public Accounts’ 2012-13 Biennial Revenue Estimate and revenue records provided by the agencies were used to estimate the revenue impacts of the bill. Under current law, revenues collected by the TBPE and TBAE, as Self-Directed Semi-Independent (SDSI) agencies, are deposited in the Texas Treasury Safekeeping Trust Company (TTSTC) which is operated outside of the treasury, with the exception of the $200 professional fee, which is currently deposited to the General Revenue Fund.
Based on the analysis of the Comptroller of Public Accounts, it is assumed that all revenues currently deposited to the TTSTC would be deposited to the General Revenue Fund and that unexpended fund balances in the TTSTC would be transferred to the General Revenue Fund not later than September 1, 2011. This analysis also assumes that there would be a loss to General Revenue of $883,900 each fiscal year due to payments for the SDSI project not continuing any longer under the provision of the bill.
Based on the analysis of the Comptroller of Public Accounts, it is assumed that there would be a gain of $3,265,130 in 2012 and a gain of $1,465,130 each fiscal year from 2013-16 with similar fiscal implications continuing after 2016.
For the purpose of this analysis, amounts appropriated in fiscal year 2011 in the General Appropriations Act and adjusted for reductions in 2011 and information provided by the TBAE and the TBPE were used to estimate costs to the General Revenue Fund, reflected in the table above, from the abolishment of the TBAE, TBPE, and Texas Board of Professional Land Surveying and the subsequent creation of the Texas Board of Professional Services.
Under current law, costs incurred by the TBPE and TBAE, as SDSI agencies, are realized outside the treasury. Under the provisions of this bill, it is assumed that all costs for these agencies would be realized against the General Revenue Fund. As reflected in the table above, it is assumed that the cost to the General Revenue Fund for the Board of Professional Services is $6,682,609 and the addition of 58 FTEs each fiscal year. This analysis assumed that the transfer of functions for the TBAE to the Texas Board of Professional Services would cost the General Revenue Fund in the amount of $2,423,934 and the addition of 24 FTEs in each fiscal year from 2012-16. This analysis assumes that the transfer of functions for the TBPE to the Texas Board of Professional Services would cost the General Revenue Fund in the amount of $4,212,006 and the addition of 34 FTEs in each fiscal year. This analysis assumes that the Board of Professional Land Surveying’s 2011 appropriations as adjusted by reductions would be transferred to the Texas Board of Professional Services beginning in 2012 and that a saving of $99,502 and 1.0 FTE reduction each fiscal year would be applied to the funding level. This analysis also assumes that the Texas Board of Professional Services would also require funding for additional operational expenses in the amount of $146,171 and 1.0 FTE each fiscal year for board member travel and salary for an Executive Director.
This analysis assumes that the Texas Board of Professional Services would generate revenues as necessary to cover all costs associated with implementing the provisions of the bill.
Based on the provisions of the bill and the analysis of the Sunset Advisory Commission, the Office of the Attorney General, the State Office of Administrative Hearings, and the State Auditor’s Office, it is assumed that any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Based on the analysis of the Sunset Advisory Commission, it is assumed that provisions of the bill could provide the basis for cost savings depending on when the Legislature schedules agencies for sunset review.
| Source Agencies: | 116 Sunset Advisory Commission, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 308 State Auditor's Office, 360 State Office of Administrative Hearings, 459 Board of Architectural Examiners, 460 Board of Professional Engineers, 464 Board of Professional Land Surveying
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| LBB Staff: | JOB, KM, MW, EH, KKR
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