LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 27, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 37, Committee Report 1st House, Substituted Committee on Licensing & Administrative Procedures By: Goolsby House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB37 ( Relating to the regulation of plastering contractors; providing penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB37-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net positive impact of $245,916 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis This bill requires the Texas Department of Licensing and Regulation (TDLR) to register plastering contractors and those persons who bid on or accept prime contracts to do the referenced work. The bill also establishes a six-member Plastering Contractors Advisory Board. Methodolgy Costs are based on the agency's assumption that there are 1,000 plastering contractors and 300 spray fireproofers. Each contractor is assessed a $200 registration/renewal fee. Costs also include salaries for three additional FTEs including a Supervising Inspector, an Admin. Tech. IV for advisory board support, and an Admin. Tech. I for license processing. This bill allows for the agency to adopt fees. The agency anticipates collecting sufficient revenue to offset costs related to this bill. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Probable Revenue Savings/(Cost) Gain/(Loss) from from General General Revenue Revenue Fund Fund 0001 0001 1998 ($137,042) $260,000 1998 (137,042) 260,000 2000 (126,542) 247,000 2001 (126,542) 247,000 2002 (126,542) 247,000 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $122,958 1999 122,958 2000 120,458 2001 120,458 2002 120,458 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Agencies: LBB Staff: JK ,TH