LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 31, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 1711, Committee Report 1st House, Substituted Committee on Licensing & Administrative Procedures By: Lewis, Ron House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1711 ( Relating to the regulation of the practice of plumbing.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1711-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 This bill would amend the Plumbing License Law by deleting Section 3(b) which allows unlicensed plumbers to perform work in incorporated areas and unincorporated areas of the state with populations of less than 5,000 persons. Deleting this section would expand the Board of Plumbing Examiners' jurisdiction and increase the agency's licensing and enforcement workloads. Six new FTEs (one Attorney, one Examination Employee, three Field Representatives, and one Administrative Technician) would be needed, along with associated overhead, training, and computer costs. Also, the Attorney and Field Representatives would require extensive travel (the Attorney to county courts and the Field Representatives to construction sites) so costs for cars, travel and telephones are included. New costs to implement the provisions of this bill would be $439,291 in FY 1998, $367,291 in FY 1999 and $336,291 in FYs 2000, 2001, and 2002. FY 1999 costs are slightly higher than later years due to the phasing in of computer purchases over a two year (FY 1998 and 1999) period. However, all of these costs would be covered by revenue gained from an increased number of licenses issued, an increase in administrative penalties from enhanced enforcement efforts, and, if needed, an overall increase in the agency's license and examination fees. This bill would amend other sections of the Plumbing License Law, but would cause no additional fiscal impact to the State. Methodolgy Deletion of Section 3(b) of the Plumbing License Law would increase the number of persons served by the law by approximately 50%. Licensing and enforcement workload increases to implement the provisions of the bill were calculated accordingly. It is assumed that all new costs would be covered by the following: (1) An increase in revenue from license fees, due to an increase in the number of plumbers required to be licensed; (2) An increase in administrative penalties from enhanced enforcement efforts; and, (3) An overall increase in license and examination fees, if necessary. 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 ($439,291) $439,291 1998 (367,291) 367,291 2000 (336,291) 336,291 2001 (336,291) 336,291 2002 (336,291) 336,291 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