LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 26, 2013 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1685 by Price (Relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1685, As Introduced: a positive impact of $461,270 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. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 26, 2013 TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1685 by Price (Relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners.), As Introduced TO: Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1685 by Price (Relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners.), As Introduced Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures Honorable Wayne Smith, Chair, House Committee on Licensing & Administrative Procedures Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB1685 by Price (Relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners.), As Introduced HB1685 by Price (Relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1685, As Introduced: a positive impact of $461,270 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. Estimated Two-year Net Impact to General Revenue Related Funds for HB1685, As Introduced: a positive impact of $461,270 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 $230,635 2015 $230,635 2016 $230,635 2017 $230,635 2018 $230,635 2014 $230,635 2015 $230,635 2016 $230,635 2017 $230,635 2018 $230,635 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2014 $230,635 2015 $230,635 2016 $230,635 2017 $230,635 2018 $230,635 Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2014 $230,635 2015 $230,635 2016 $230,635 2017 $230,635 2018 $230,635 2014 $230,635 2015 $230,635 2016 $230,635 2017 $230,635 2018 $230,635 Fiscal Analysis The bill would amend the Government Code relating to the Self-Directed Semi-Independent (SDSI) Agency Project Act (Article 8930, Revised Statutes) and transfer to Subtitle E, Title 4, Government Code relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners. The bill would remove the act's project status and separate Sunset date, but would make its provisions subject to review as part of each agency's future Sunset review. The bill would require agencies subject to the SDSI act to remit all administrative penalties to the General Revenue Fund that are collected upon or after the effective date of the bill. The bill expands the data in the current reports required by agencies subject to the SDSI Act. The bill would require the SDSI agencies to adopt certain policies and require that they use the Comptroller of Public Account's (CPA) Uniform Statewide Accounting System to make all payments upon the effective date of the bill as well. The bill would require each agency to transfer any funds held in an account not under the control of the CPA to an account that is under the control of the CPA as redesignated and amended by this bill by October 1, 2013.This bill would take effect September 1, 2013. The bill would amend the Government Code relating to the Self-Directed Semi-Independent (SDSI) Agency Project Act (Article 8930, Revised Statutes) and transfer to Subtitle E, Title 4, Government Code relating to the continuation of the self-directed and semi-independent status of the Texas State Board of Public Accountancy, the Texas Board of Professional Engineers, and the Texas Board of Architectural Examiners. The bill would remove the act's project status and separate Sunset date, but would make its provisions subject to review as part of each agency's future Sunset review. The bill would require agencies subject to the SDSI act to remit all administrative penalties to the General Revenue Fund that are collected upon or after the effective date of the bill. The bill expands the data in the current reports required by agencies subject to the SDSI Act. The bill would require the SDSI agencies to adopt certain policies and require that they use the Comptroller of Public Account's (CPA) Uniform Statewide Accounting System to make all payments upon the effective date of the bill as well. The bill would require each agency to transfer any funds held in an account not under the control of the CPA to an account that is under the control of the CPA as redesignated and amended by this bill by October 1, 2013.This bill would take effect September 1, 2013. Methodology Information provided by the Board of Public Accountancy, Board of Architectural Examiners, Board of Professional Engineers, and the Sunset Advisory Commission was used to estimate the potential impact of this legislation. Based on the average administrative penalty amounts of the three SDSI agencies from fiscal years 2008 to 2012, this analyis assumes the State would experience an increase in revenue in the following amounts each fiscal year: $108,899 for the Accountancy Board, $72,408 for the Architectural Board, and $49,328 for the Engineers Board for a total annual gain to General Revenue of $230,635. The fiscal impacts of costs that may be generated in association with implementing the provisions of the bill for the Board of Public Accountancy, Board of Architectural Examiners, and the Board of Professional Engineers are not considered in this analysis due to the agencies being Self-Directed and Semi-Independent. Information provided by the Board of Public Accountancy, Board of Architectural Examiners, Board of Professional Engineers, and the Sunset Advisory Commission was used to estimate the potential impact of this legislation. Based on the average administrative penalty amounts of the three SDSI agencies from fiscal years 2008 to 2012, this analyis assumes the State would experience an increase in revenue in the following amounts each fiscal year: $108,899 for the Accountancy Board, $72,408 for the Architectural Board, and $49,328 for the Engineers Board for a total annual gain to General Revenue of $230,635. The fiscal impacts of costs that may be generated in association with implementing the provisions of the bill for the Board of Public Accountancy, Board of Architectural Examiners, and the Board of Professional Engineers are not considered in this analysis due to the agencies being Self-Directed and Semi-Independent. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 116 Sunset Advisory Commission, 304 Comptroller of Public Accounts, 457 Board of Public Accountancy, 459 Board of Architectural Examiners, 460 Board of Professional Engineers 116 Sunset Advisory Commission, 304 Comptroller of Public Accounts, 457 Board of Public Accountancy, 459 Board of Architectural Examiners, 460 Board of Professional Engineers LBB Staff: UP, RB, MW, CWS UP, RB, MW, CWS