LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 2, 2017 TO: Honorable J. M. Lozano, Chair, House Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3119 by Allen (Relating to funding sources for the repayment of certain speech-language pathologist and audiologist education loans.), As Introduced If fee revenue that is currently deposited into GR is used to fund the program, there would be an indeterminate revenue loss to the state. The bill would amend Education Code and the Occupations Code as it relates to funding sources for the repayment of certain language pathologist and audiologist education loans. Under current law, the program to support the repayment of certain speech-language pathologist and audiologist education loans is exclusively funded by gifts, grants, and donations. Under provisions of the bill, a new funding source for the program, fees that are in excess of the money required to pay the expenses for the administration of those programs or activities, could be used to support the program. Effective September 1, 2016, the fees for speech pathologists and audiologists are being collected by the Texas Department of Licensing and Regulation. Prior to this date, the Department of State Health Services collected these fees. Historically, revenue collected from these fees has exceeded costs associated with administering the program. Currently these excess funds are deposited in the General Revenue Fund. The Texas Department of Licensing and Regulation (TDLR), has estimated that $793,787 in excess fees will be generated in fiscal year 2018 and fiscal year 2019 that can be used to support the program based on information provided to the agency from the Department of State Health Services. TDLR also provided information that it is required under Occupations Code to adjust its fees to only cover the costs of administering the program. As a result, beginning in fiscal year 2020, there will not be available excess funds to transfer to the program.If fees were used to support the program, there could be a revenue loss to the General Revenue Fund. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 452 Department of Licensing and Regulation, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration LBB Staff: UP, GO, THo, DEH LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 2, 2017 TO: Honorable J. M. Lozano, Chair, House Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3119 by Allen (Relating to funding sources for the repayment of certain speech-language pathologist and audiologist education loans.), As Introduced TO: Honorable J. M. Lozano, Chair, House Committee on Higher Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB3119 by Allen (Relating to funding sources for the repayment of certain speech-language pathologist and audiologist education loans.), As Introduced Honorable J. M. Lozano, Chair, House Committee on Higher Education Honorable J. M. Lozano, Chair, House Committee on Higher Education Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB3119 by Allen (Relating to funding sources for the repayment of certain speech-language pathologist and audiologist education loans.), As Introduced HB3119 by Allen (Relating to funding sources for the repayment of certain speech-language pathologist and audiologist education loans.), As Introduced If fee revenue that is currently deposited into GR is used to fund the program, there would be an indeterminate revenue loss to the state. If fee revenue that is currently deposited into GR is used to fund the program, there would be an indeterminate revenue loss to the state. The bill would amend Education Code and the Occupations Code as it relates to funding sources for the repayment of certain language pathologist and audiologist education loans. Under current law, the program to support the repayment of certain speech-language pathologist and audiologist education loans is exclusively funded by gifts, grants, and donations. Under provisions of the bill, a new funding source for the program, fees that are in excess of the money required to pay the expenses for the administration of those programs or activities, could be used to support the program. Effective September 1, 2016, the fees for speech pathologists and audiologists are being collected by the Texas Department of Licensing and Regulation. Prior to this date, the Department of State Health Services collected these fees. Historically, revenue collected from these fees has exceeded costs associated with administering the program. Currently these excess funds are deposited in the General Revenue Fund. The Texas Department of Licensing and Regulation (TDLR), has estimated that $793,787 in excess fees will be generated in fiscal year 2018 and fiscal year 2019 that can be used to support the program based on information provided to the agency from the Department of State Health Services. TDLR also provided information that it is required under Occupations Code to adjust its fees to only cover the costs of administering the program. As a result, beginning in fiscal year 2020, there will not be available excess funds to transfer to the program.If fees were used to support the program, there could be a revenue loss to the General Revenue Fund. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 452 Department of Licensing and Regulation, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 452 Department of Licensing and Regulation, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration LBB Staff: UP, GO, THo, DEH UP, GO, THo, DEH