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