LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 29, 1995



 TO:     Honorable Ron Wilson, Chair            IN RE:  House Bill No. 796
         Committee on Licensing &                       By: Carona
         Administrative Procedures
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
796 (Relating to the regulation of air conditioning and
refrigeration contractors; providing penalties.) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would allow the Department of Licensing and Regulation
or a municipality to issue citations to persons who perform air
conditioning and refrigeration contracting without a license. 
The Department of Licensing and Regulation would regulate the use
and sale of certain equipment relating to air conditioning and
refrigeration by issuing licenses or exemptions.  The affected
population would need to be licensed or registered exempt by
January 1. 1996.

It is assumed that the first fiscal year would department would
issue 55,300 licenses/permits.  Thereafter the number issued
would be approximately 5,500 per year.  The agency would set the
fees to cover expenses.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
         





            Fiscal  Probable Cost Out   Probable Revenue      Change in   
             Year      of  General      Gain to  General   Number of State
                     Revenue Fund 001   Revenue Fund 001    Employees from
                                                               FY 1995    
                                                                          
          1996                $707,000         $4,147,500              8.0
          1997                 368,000            412,500              9.0
                                                                          
          1998                 365,000            412,500              9.0
                                                                          
          1999                 365,000            412,500              9.0
          2000                 365,000            412,500              9.0
                                                                          
                                                                          
                                                                          





Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No significant fiscal implication to units of local government is
anticipated.


Source:   Department of Licensing and Regulation
          LBB Staff: JK, LR, DF