LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 28, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 930 Committee on Licensing & Administrative Procedures By: Pickett House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB930 ( Relating to the examination of an applicant for an air conditioning and refrigeration contractor license.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB930-As Introduced FN Revision 1 Implementing the provisions of the bill would result in a net positive impact of $5,598 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 would require the agency to expand the number of examination locations and offerings for air conditioning and refrigeration licensees. These expansion locations would be determined by the commissioner. The expanded number of offerings would increase from quarterly to monthly or more frequently as determined by the commissioner. The bill also allows the examinations to be offered by computer. The costs related to this bill are related to the increased frequency and locations of the air conditioning and refrigeration license examination. Currently, air conditioning and refrigeration examinations make up the majority of examinations administered by the agency. The agency assumes that 83 percent of the examination division's time is spent on air conditioning and refrigeration examinations (10 of 12 months). Methodolgy The agency assumes an additional 917 applications for examinations and examination retakes per year. The exam fee is $50. At least 15 applicants will be examined per location. The agency assumes that the examination would be administered at one additional location per month, not multiple locations per month. The examination administration would require 1 staff employee and 1 contracted examiner at each administration of the examination. The costs for this function include salaries, professional services contracts, travel expenses, other exam administration costs such as exam room rental, and equipment expenses for computer administration. 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 Total Exam Exam Fee Revenue Change in Number Administration at $50 Per of State Costs Probable Exam Probable Employees from Savings/(Cost) Revenue FY 1997 from General Gain/(Loss) from Revenue Fund General Revenue Fund 0001 0001 1998 ($45,811) $45,850 1.0 1998 (40,291) 45,850 1.0 2000 (40,291) 45,850 1.0 2001 (40,291) 45,850 1.0 2002 (40,291) 45,850 1.0 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 $39 1999 5,559 2000 5,559 2001 5,559 2002 5,559 No fiscal implication to units of local government is anticipated. Source: Agencies: 452 Department of Licensing and Regulation LBB Staff: JK ,TH ,RA