LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 17, 1995 TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 1373 Committee on Public Health By: Coleman House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1373 (Relating to creation of a lead-based paint certification program for target housing, providing for a fee, and providing for civil and criminal 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 stated purpose of this bill is to establish, pursuant to federal requirements, the eligibility of state and local governments for federal lead-based paint abatement funds. The bill would establish a regulatory program at the Texas Department of Health to certify persons involved in lead-based paint activity and accredit training providers. Rules must be passed by the Board of Health to implement the program prior to January 1, 1996. The bill provides that the program created by the Department cannot exceed the minimum program requirements of federal law. The bill would permit the Department of Health to assess a fee to recover the cost of administering the program. The Department of Health, in estimating fiscal implications of the bill as listed below, made certain assumptions regarding fees and number of persons to be certified or accredited. It is possible that federal funds would be made available to the state for lead-based paint activity once the provisions of the bill were implemented. However, the amount that would become available cannot be determined. Costs would accrue to units of local government engaging in lead- based paint abatement for certifying personnel performing these duties. It is assumed that some amount of federal funds would become available to units of local government through the implementation of provisions in the bill. The Department of Health estimates this amount at a minimum of $4,000,000 in fiscal year 1996. Costs noted below assume expenditures to develop and maintain a regulatory program: staff for licensing and enforcement functions, travel, equipment, and other associated operating 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 $622,506 $622,506 14.0 1997 982,644 982,644 22.0 1998 876,644 876,644 22.0 1999 876,644 876,644 22.0 2000 876,644 876,644 22.0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Texas Department of Health, Department of Housing and Community Affairs LBB Staff: JK, KF, DF