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