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