LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 22, 2013

TO:	Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB453 by Dukes (Relating to the application, renewal, and period of validity of a registration under the Texas Controlled Substances Act; authorizing the increase of a fee.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB453, Committee Report 1st House, Substituted: a positive impact of $3,077,000 through the biennium ending August 31, 2015.

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
2014	$4,594,000
2015	($1,517,000)
2016	($1,771,000)
2017	$4,660,000
2018	($1,061,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from General Revenue Fund 1
2014	$4,594,000
2015	($1,517,000)
2016	($1,771,000)
2017	$4,660,000
2018	($1,061,000)

Fiscal Analysis

The bill would amend the Health and Safety Code to extend the expiration of registrations issued to manufacture, distribute, analyze, or conduct research with a controlled substance from one year to three years.

The bill would require the Department of Public Safety (DPS) to implement an electronic registration program for renewal applications and payment of applicable fees.

The bill would adjust the maximum nonrefundable fee from $25 to $75 for initial registration or registration renewal, and would require renewal notices to be sent either by mail or electronically to the applicant 90 days prior to expiration. The present requirements call for renewal notices to be sent 60 days prior to expiration.

The bill would take effect immediately upon a two-thirds vote of all members of both chambers; otherwise, the bill would take effect September 1, 2013.

Methodology

The Comptroller estimates the bill would result in a net revenue gain to the General Revenue Fund of $3,077,000 in the 2014-15 biennium.  The Comptroller assumes that starting September 1, 2014 applicants for a controlled substance registration would be subjected to a $75 application or renewal fee instead of the current $25 fee. Registrations would be valid until the third anniversary of the date of issuance and would be renewable every three years instead of the current one year. Registration information was provided by Texas Department of Public Safety.

It is assumed the costs associated with implementing the provisions of the bill could be absorbed within existing resources. 

Technology

It is assumed the technology-related costs associated with implementing the provisions of the bill could be absorbed within current resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 405 Department of Public Safety

LBB Staff:

UP, JAW, CL, AI