LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 27, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 1391, Committee Report 1st House, Substituted
Committee on Licensing & Administrative Procedures By: Torres
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1391 ( Relating
to continuing education requirements for air conditioning and
refrigeration contractors.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1391-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $175,036 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 amends Section 4B, the Air Conditioning and Refrigeration
Contractor License Law, to change continuing education requirements
for air conditioning and refrigeration contractors from voluntary
to mandatory in order to renew a license. The bill authorizes
the Texas Department of Licensing and Regulation (TDLR) to approve
continuing education courses and continuing education providers.
The bill also sets the period for approval of providers as
two years, with additional two year periods upon reapplication.
Increases in the agency's workload are related to the registration
of continuing education providers and the processing of educational
credits for licensees.
Methodolgy
The agency assumes that the number of license holders, and those
who have expired licenses that can still be renewed without
retesting, is approximately 10,500. The agency also assumes
that the number of license holders will continue to increase
at a rate of approximately 600 per year. Beginning in fiscal
year 2000, 12,300 additional pieces of mail will be received
in the mail room from contractors sending proof of their continuing
education courses. TDLR will assess continuing education providers
a registration fee which will cover two years of approval.
TDLR would also increase license renewal fees from $125 to $144
to cover the cost of tracking continuing education credits.
A computer programmer would be used to write a program to keep
track of continuing education hours for six months. Two FTEs
would be required to implement this bill. One FTE will be responsible
for curriculum monitoring; the other FTE will process increased
mail from continuing education validation.
TDLR assumes that
40 entities will apply as providers of continuing education
courses, seminars and other qualified educational experiences.
TDLR also assumes that 20 providers will apply during fiscal
year 1998 and 1999 and that 20 will renew each year thereafter.
TDLR will set the provider approval fee at $250 to cover administrative
costs. Revenue is generated due to a license renewal increase
of $29 per licensee to cover costs related to continuing education.
Additional revenue would be generated from continuing education
providers at $250 for registration.
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
Savings/(Cost) Savings/(Cost)
from General from General
Revenue Fund Revenue Fund
0001 0001
1998 ($12,000) $112,300
1998 (43,364) 118,100
2000 (82,039) 123,900
2001 (69,335) 129,700
2002 (69,655) 132,600
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 $100,300
1999 74,736
2000 41,861
2001 60,365
2002 62,945
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Source: Agencies:
LBB Staff: JK ,TH