LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 18, 1997 TO: Honorable Kim Brimer, Chair IN RE: House Bill No. 1156, Committee Report 1st House, Substituted Committee on Business & Industry By: Goolsby House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1156 ( Relating to regulation of body piercing.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1156-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 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 The bill would require a body piercing studio to be licensed as a tattoo studio. The bill would assign the responsibility for the regulation of body piercing to the Department of Health. Methodolgy The Department of Health estimates that there are approximately 20,300 body piercing studios in the state that would require a license and inspection. Fifty-one positions, including 45 investigators, would be added to implement the provisions of the bill. A license fee would be collected for body piercing studios. The projected revenues from this source are shown below. 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 Change in Number Savings/(Cost) Gain/(Loss) from of State from General General Revenue Employees from Revenue Fund Fund FY 1997 0001 0001 1998 ($2,644,394) $2,644,394 51.0 1998 (3,293,084) 3,293,084 51.0 2000 (3,044,219) 3,044,219 51.0 2001 (3,044,219) 3,044,219 51.0 2002 (3,044,219) 3,044,219 51.0 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 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,TH ,KF