LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 2, 2009 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB675 by Bonnen (Relating to a retired status license for an optometrist or therapeutic optometrist practicing voluntary charity care.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB675, As Introduced: a negative impact of ($92,496) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 2, 2009 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB675 by Bonnen (Relating to a retired status license for an optometrist or therapeutic optometrist practicing voluntary charity care.), As Introduced TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB675 by Bonnen (Relating to a retired status license for an optometrist or therapeutic optometrist practicing voluntary charity care.), As Introduced Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB675 by Bonnen (Relating to a retired status license for an optometrist or therapeutic optometrist practicing voluntary charity care.), As Introduced HB675 by Bonnen (Relating to a retired status license for an optometrist or therapeutic optometrist practicing voluntary charity care.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB675, As Introduced: a negative impact of ($92,496) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for HB675, As Introduced: a negative impact of ($92,496) through the biennium ending August 31, 2011. 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 2010 $0 2011 ($92,496) 2012 ($92,496) 2013 ($92,496) 2014 ($92,496) 2010 $0 2011 ($92,496) 2012 ($92,496) 2013 ($92,496) 2014 ($92,496) All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable (Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2010 $0 ($6,144) $6,144 2011 ($92,496) ($5,760) $5,760 2012 ($92,496) $0 $0 2013 ($92,496) $0 $0 2014 ($92,496) $0 $0 Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable (Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2010 $0 ($6,144) $6,144 2011 ($92,496) ($5,760) $5,760 2012 ($92,496) $0 $0 2013 ($92,496) $0 $0 2014 ($92,496) $0 $0 2010 $0 ($6,144) $6,144 2011 ($92,496) ($5,760) $5,760 2012 ($92,496) $0 $0 2013 ($92,496) $0 $0 2014 ($92,496) $0 $0 Fiscal Analysis The bill would allow the Texas Optometry Board, by rule, to allow a licensee to apply to the Texas Optometry Board, on a form prescribed by the board, to have a license placed on retired status. In retired status, a license holder would not be required to pay license renewal fees. The bill would authorize a license on retired status to be reinstated to active status and would authorize the board to charge a reasonable administrative fee to cover the costs of research and the preparation of documentation for the board's consideration of a request for reinstatement. The bill would require the board to adopt rules to implement the provisions of the bill no later than December 1, 2009. The provisions of the bill would apply to an application for retired status filed on or after January 1, 2010. The bill would take effect on September 1, 2009. The bill would allow the Texas Optometry Board, by rule, to allow a licensee to apply to the Texas Optometry Board, on a form prescribed by the board, to have a license placed on retired status. In retired status, a license holder would not be required to pay license renewal fees. The bill would authorize a license on retired status to be reinstated to active status and would authorize the board to charge a reasonable administrative fee to cover the costs of research and the preparation of documentation for the board's consideration of a request for reinstatement. The bill would require the board to adopt rules to implement the provisions of the bill no later than December 1, 2009. The provisions of the bill would apply to an application for retired status filed on or after January 1, 2010. The bill would take effect on September 1, 2009. Methodology Based on the analysis of the Texas Optometry Board (TOB), it is assumed that the board's rules would authorize 80 percent of the 615 current licensees on inactive status to be approved for the new retired status. The current annual renewal fee for an inactive license is $188. Therefore, it is assumed 492 inactive licenses would apply for and achieve retired status and no longer pay an annual renewal fee, which would result in a loss of $92,496 from fees deposited to the General Revenue Fund beginning in fiscal year 2011. It is assumed the loss in fee revenue would continue at the same or similar levels each year thereafter. Based on the analysis of TOB, it is assumed the agency would incur programming costs of $6,144 in fiscal year 2010 to add an additional license type to its licensing and enforcement database. Also based on the analysis of TOB, it is assumed a majority of the initial applications for retired status would be received over a period from October 2010 to January 2011, which would require the agency to hire a temporary employee at $12 per hour for three months to assist in processing the additional license applications for a total cost of $5,760 in fiscal year 2011. It is assumed TOB would assess fees sufficient to cover any costs associated with implementing the provisions of the bill. Based on the analysis of the Texas Optometry Board (TOB), it is assumed that the board's rules would authorize 80 percent of the 615 current licensees on inactive status to be approved for the new retired status. The current annual renewal fee for an inactive license is $188. Therefore, it is assumed 492 inactive licenses would apply for and achieve retired status and no longer pay an annual renewal fee, which would result in a loss of $92,496 from fees deposited to the General Revenue Fund beginning in fiscal year 2011. It is assumed the loss in fee revenue would continue at the same or similar levels each year thereafter. Based on the analysis of TOB, it is assumed the agency would incur programming costs of $6,144 in fiscal year 2010 to add an additional license type to its licensing and enforcement database. Also based on the analysis of TOB, it is assumed a majority of the initial applications for retired status would be received over a period from October 2010 to January 2011, which would require the agency to hire a temporary employee at $12 per hour for three months to assist in processing the additional license applications for a total cost of $5,760 in fiscal year 2011. It is assumed TOB would assess fees sufficient to cover any costs associated with implementing the provisions of the bill. Technology It is assumed the agency would incur information resource technology costs of $6,144 for database programming to implement the provisions of the bill in fiscal year 2010. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 514 Optometry Board 304 Comptroller of Public Accounts, 514 Optometry Board LBB Staff: JOB, CL, MW, TG JOB, CL, MW, TG