LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 18, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 259, Committee Report 1st House, Substituted
Committee on State Affairs By: Moncrief
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB259 ( Relating
to the regulation of roofing contractors; providing penalties.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB259-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $222,872 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 would require the Department of Licensing and Regulation
(TDLR) to license roofing contractors and provide for criminal
and administrative penalties. The bill would exempt certain
maintenance personnel and allow homeowners to sign a disclosure
statement acknowledging that the roofer is not licensed. Examinations
at various locations and reciprocity agreements with other states
would be required to license these contractors. Liability insurance
and bonding requirements are also specified. The TDLR would
also be required to publish an annual directory of all persons
licensed under this legislation. In addition, this bill would
provide for the creation of a six member Roofing Contractors
Advisory Board. This bill would allow the Department to employ
personnel as necessary for implementation and authorize additional
expenditures including office expenses, equipment, and other
necessary facilities.
Methodolgy
According to the TDLR, an additional 23 FTEs would be required
to implement the provisions of this bill. Most of the costs
are related to examination administration. The agency assumes
that 15,000 contractors would be required to have a license.
The agency would examine and license 6,000 people in the first
year. The second year would include 6,000 additional new licensees
and 6,000 renewals from the first year. In the third year,
the agency would license any remaining contractors requiring
licenses (about 3,000) and continue license renewals. The
initial license fee would be $175 per contractor and annual
license renewals would be $125 per contractor. Regulation of
this industry would also result in new administrative hearings
from complaints originated in the industry. The agency assumes
30 administrative hearings would result from 900 complaints
received annually. This analysis assumes that the Commission
would set fees necessary to cover the costs of administering
this Act.
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 Salaries/Wages
Probable Probable Revenue Change in Number
Savings/(Cost) Savings/(Cost) Gain/(Loss) from of State
from General from General General Revenue Employees from
Revenue Fund Revenue Fund Fund FY 1997
0001 0001 0001
1998 ($520,864) ($497,700) $1,050,000 23.0
1998 (360,864) (497,700) 1,050,000 23.0
2000 (351,864) (497,700) 1,875,000 23.0
2001 (367,864) (497,700) 1,875,000 23.0
2002 (367,864) (497,700) 1,875,000 23.0
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 $31,436
1999 191,436
2000 1,025,436
2001 1,009,436
2002 1,009,436
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Revenue impacts to local governments would occur as a result
of deferring licensing requirements to the state. Local governments
currently regulating roofing contractors would be limited to
only enforcement authorization. Currently, the City of San
Antonio generates approximately $47,000 per year in roofer licensing;
the City of Fort Worth collects approximately $60,000 in roofer
licensing.
Source: Agencies: 452 Department of Licensing and Regulation
LBB Staff: JK ,JD ,RA