LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 16, 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.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB453, As Introduced: 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. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 16, 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.), As Introduced 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.), As Introduced Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB453 by Dukes (Relating to the application, renewal, and period of validity of a registration under the Texas Controlled Substances Act.), As Introduced HB453 by Dukes (Relating to the application, renewal, and period of validity of a registration under the Texas Controlled Substances Act.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB453, As Introduced: 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. Estimated Two-year Net Impact to General Revenue Related Funds for HB453, As Introduced: 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) 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) fromGeneral Revenue Fund1 2014 $4,594,000 2015 ($1,517,000) 2016 ($1,771,000) 2017 $4,660,000 2018 ($1,061,000) Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2014 $4,594,000 2015 ($1,517,000) 2016 ($1,771,000) 2017 $4,660,000 2018 ($1,061,000) 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. 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. 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 304 Comptroller of Public Accounts, 405 Department of Public Safety LBB Staff: UP, CL, AI, JAW UP, CL, AI, JAW