LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION

March 2, 2015

TO:	Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	SB765 by Eltife (Relating to the repeal of certain occupational license fees and taxes.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB765, As Introduced: a negative impact of ($249,951,000) through the biennium ending August 31, 2017.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016	($124,256,000)
2017	($125,695,000)
2018	($126,791,000)
2019	($127,900,000)
2020	($129,021,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from General Revenue Fund 1	Probable Revenue Gain/(Loss) from Foundation School Fund 193	Probable Revenue Gain/(Loss) from Texas A&M Real Estate Center
2016	($92,852,000)	($31,404,000)	($1,360,000)
2017	($93,931,000)	($31,764,000)	($1,360,000)
2018	($94,753,000)	($32,038,000)	($1,360,000)
2019	($95,585,000)	($32,315,000)	($1,360,000)
2020	($96,426,000)	($32,595,000)	($1,360,000)

Fiscal Analysis

The bill would repeal certain occupational license fees and taxes.
 
The bill would repeal Sections 153.053, 201.153(b) and (c), 254.004(b), 351.153, 501.153, 801.154(b), (c) and (d), 901.406, 901.407, 901.410, 1001.206, 1051.652, 1101.153, and 1105.003(e) of the Occupations Code; Subchapter H of Chapter 191 of the Tax Code; and Section 41 of Article 581-41, Vernon's Texas Civil Statutes. 
 
All the sections to be repealed (except 153.053) charge additional fees of $200 to be collected from chiropractors, dentists, optometrists and therapeutic optometrists, psychologists, veterinarians, accountants, engineers, architects, real estate brokers, attorneys, and investment representatives; $50 is deposited to the Foundation School Fund (FSF) and the remaining $150 to the General Revenue (GR) Fund.  From the fee for real estate brokers, $100 is deposited to GR, $50 to the FSF, and $50 to the Texas A&M Real Estate Center.  Section 153.053, regarding physicians, has three additional fees (a $200 license fee, a $200 fee for license reinstatement after cancellation, and a $400 fee for registration permits), with each allocated 75 percent to GR and 25 percent to the FSF.

The bill would take effect September 1, 2015.

Methodology

The Comptroller's 2016-17 Biennial Revenue Estimate was used, with projections made for 2018 and beyond, for determining the bill's fiscal impacts.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 312 Securities Board, 329 Real Estate Commission, 457 Board of Public Accountancy, 459 Board of Architectural Examiners, 460 Board of Professional Engineers, 503 Texas Medical Board, 514 Optometry Board, 520 Board of Examiners of Psychologists, 578 Board of Veterinary Medical Examiners

LBB Staff:

UP, KK, SD, AG, AH