LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

April 5, 2011

TO:	Honorable Dan Branch, Chair, House Committee on Higher Education
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	SB777 by Williams (Relating to re-creating the scholarship trust fund for fifth-year accounting students as a trust fund outside the state treasury.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for SB777, As Engrossed: an impact of $0 through the biennium ending August 31, 2013.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012	$0
2013	$0
2014	$0
2015	$0
2016	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from Schlshp Fnd 5 Yr Acct Std 106	Probable Revenue Gain/(Loss) from New Scholarship Trust Fund Outside Treasury
2012	($600,000)	$600,000
2013	($600,000)	$600,000
2014	($600,000)	$600,000
2015	($600,000)	$600,000
2016	($600,000)	$600,000

Fiscal Analysis

The bill would amend the Occupations Code relating to a scholarship trust fund for fifth-year accounting students.  The bill would reenact portions of the Occupations Code to re-create the scholarship trust fund as a trust fund outside the state treasury for the purpose of enabling the Texas State Board of Public Accountancy to provide scholarships to fifth year accounting students.  The bill would also reenact requirements relating to administrative costs for the program.
 
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

The bill would take effect immediately upon receiving a two-thirds majority vote in each house.  If the bill does not receive a two-thirds vote in each house, the bill would take effect September 1, 2011.

Methodology

Based on the analysis of the Comptroller of Public Accounts, the bill would redirect fee revenue currently deposited to General Revenue-Dedicated Account 106 – Scholarship Fund for Fifth-Year Accounting Students to a trust fund outside the treasury and created by the bill.  According to the Comptroller, this would result in an estimated loss of revenue to the General Revenue-Dedicated Account of $600,000 each year for the next five years and continuing after 2016.  Also based on the analysis of the Comptroller of Public Accounts, it is assumed that fund balances remaining at the end of the fiscal year ending August 31, 2011, would remain in the General Revenue-Dedicated Account 106 – Scholarship Fund for Fifth-Year Accounting.
 
Costs associated with the implementation of the bill for the Texas State Board of Public Accountancy are not considered in this analysis because fiscal impacts for this agency would be realized outside of the Treasury due to the agency being Self-Directed and Semi-Independent.
 
Based on information provided by the Higher Education Coordinating Board, it is assumed that any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 457 Board of Public Accountancy, 781 Higher Education Coordinating Board

LBB Staff:

JOB, KK, MW, EH