LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 17, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 2703, Committee Report 1st House, as amended Committee on Licensing & Administrative Procedures By: Stiles House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2703 ( Relating to the regulation of manufactured housing; providing penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2703-Committee Report 1st House, as amended Implementing the provisions of the bill would result in a net negative impact of $(479,636) 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 amends the Texas Manufactured Housing Standards Act (Article 5221f, V.T.C.S.). Generally, all references to "registration" and "registrant" would be converted to "license" and "licensee". In addition, the bill provides for a random sample method for inspecting a minimum of 25 percent of installed manufactured housing. The bill also expands the department rules to include internal standard operating procedures. All rules are required to be published in the Texas Register prior to public hearings. Methodolgy The department anticipates that all significant costs related to the provisions of this bill correspond with an increased workload due to the requirement of holding public hearings for internal management standard operating procedures and any changes to them. This analysis includes annual costs of $64,000 for travel to public hearing sites, $24,000 for court reporting, $29,000 for hearing facilities, and 2 FTEs, a Planner IV and an Admin. Tech. III, to process the standard operating procedures and prepare for the related public hearings. This analysis assumes that any legal review and additional clerical processing would be absorbed by current 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 Change in Number Savings/(Cost) of State from General Employees from Revenue Fund FY 1997 0001 1998 ($246,818) 2.0 1998 (232,818) 2.0 2000 (232,818) 2.0 2001 (232,818) 2.0 2002 (232,818) 2.0 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 ($246,818) 1999 (232,818) 2000 (232,818) 2001 (232,818) 2002 (232,818) 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 ,RA