LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 21, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 2135, Committee Report 1st House, Substituted
Committee on Licensing & Administrative Procedures By: Garcia
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2135 ( Relating
to the regulation of wall and ceiling contractors; ) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2135-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $228,290 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
Section 2 of the bill would establish the Texas State Wall and
Ceiling Contractors Advisory Board (Board) to advise the Department
of Licensing and Regulation (TDLR). The bill would authorize
the Commissioner to appoint the board's six members. TDLR estimates
that the agency would need to hire one FTE, an Administrative
Technician IV, for Board support.
Section 3 of the bill would
require TDLR to issue a Wall and Ceiling Contractor License.
Section 5 of the bill would allow TDLR to set application
and registration fees. Section 7 of the bill would require
TDLR to investigate all allegations of violations and Section
8 would require TDLR to conduct corresponding administrative
hearings related to these violations. To implement these sections
of the bill, TDLR estimates that the agency would need to hire
two FTEs, one Supervising Inspector to conduct inspections and
one Administrative Technician I for inspection support.
The
total cost to General Revenue to hire the three FTEs would be
$154,322 in FY 1998 and $131,138 per year thereafter, costs,
benefits and equipment. The total revenue gain to General Revenue
from TDLR collecting Wall and Ceiling Contractor License fees
would be $285,000 in FY 1998 and $228,750 per year thereafter.
Methodolgy
Costs and revenue gains to implement the provisions of this
bill are calculated under the following assumptions:
(1)
TDLR estimates that there would be 1,425 Wall and Ceiling Contractor
License registrants in the FY 1998.
(2) TDLR estimates that
there would be 75 new registrations and 1,425 renewals per year
in FYs 1999 thorough 2002.
(3) A Wall and Ceiling Contractor
License would cost $200 per year and renewals would cost $150
per year.
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 ($154,322) $285,000 3.0
1998 (131,138) 228,750 3.0
2000 (131,138) 228,750 3.0
2001 (131,138) 228,750 3.0
2002 (131,138) 228,750 3.0
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 $130,678
1999 97,612
2000 97,612
2001 97,612
2002 97,612
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: TH ,BK