LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 31, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB371 ( Relating
to the continuation and functions of the Texas Commission on
Fire Protection and the transfer of certain commission functions
to the state fire marshal and the Texas Department of Insurance.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB371-Conference Committee Report
Implementing the provisions of the bill would result in a net
positive impact of $60,000 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
The bill would transfer the regulation, licensing, administration,
and advisory board oversight of Fire Extinguishers, Fire Detection
and Alarm Devices, Fire Protection Sprinkler Systems, and Fireworks
from the Texas Commission on Fire Protection to The Texas Department
of Insurance. The bill would also transfer the State Fire Marshal's
duties and the Texas Fire Incident Reporting System to the Department
of Insurance. The bill also transfers two attorneys and their
unspent appropriations to the State Fire Marshal's Office within
the Department of Insurance.
Methodolgy
The bill would amend Article 5-43.2 of the Insurance Code by
decreasing the cap of certain renewal fees from $500 to $250.
This affects approximately 11 licensees at a loss of $250 each,
providing a decrease of $2,750 into fund 36 per year of the
biennium. Eliminating the employment requirement for recertification
of paid fire fighters would result in an annual increase in
application and issuance of 1,500 fire fighting certificates
at $20 each, providing additional revenue of $30,000 to the
General Revenue Fund each year of the biennium. The transfer
of duties, powers, rights, obligations, contracts, records,
property, funds and personnel directly from the Commission on
Fire Protection to the Department of Insurance will have no
significant fiscal impact . Funding for both agencies is currently
from GR-Dedicated Fund 036. The transfer of two attorneys and
related appropriations will have no significant fiscal impact.
The Commission on Fire Protection will retain all responsibilities
not transferred by the bill.
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 Revenue Probable Revenue
Gain/(Loss) from Gain/(Loss) from
General Revenue Texas Department
Fund of Insurance
Operating
Account/
GR-Dedicated
0001 0036
1998 $30,000 ($2,750)
1998 30,000 (2,750)
2000 30,000 (2,750)
2001 30,000 (2,750)
2002 30,000 (2,750)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $30,000
1999 30,000
2000 30,000
2001 30,000
2002 30,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies:
LBB Staff: JK ,TL ,JD ,AM