LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 23, 1997
TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 2135
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; providing
penalties.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2135-As Introduced
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
This bill requires the Department of Licensing and Regulation
(TDLR) to register and regulate wall and ceiling contractors.
The provisions of this bill establish the Wall and Ceiling
Contractors Board as an advisory board and authorize the Commissioner
to appoint the board's six members. The board members are to
serve without compensation but may be reimbursed for necessary
expenses.
The bill sets registration, annual renewal, late
fee, and continuing education requirements for qualifying applicants.
Contractors with less than 10 employees are exempt from registration
requirements. In addition, this bill provides penalties and
sanctions for violations of this Article. The Department of
Licensing and Regulation is authorized to investigate all allegations
of violations and to conduct corresponding hearings related
to these violations.
Methodolgy
The Department assumes 1,425 new registrants in the first year.
It is assumed that 75 new registrations will be received with
1,425 registration renewals the second year, remaining at an
average of 1,500 per year for each year thereafter. The registration
fee is estimated at $200 initially with renewals at $150 per
year. Related costs include an estimated 4 administrative hearings
per year. The Department will require 3 FTEs to implement this
Article: 1 Supervising Inspector, 1 Admin. Tech. IV for board
support, and 1 Admin. Tech. I for inspection support. It is
assumed that any programming requirements can be accomplished
with existing information resources staff.
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: 452 Department of Licensing and Regulation
LBB Staff: JK ,TH ,RA