LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 16, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 371
Committee on State Affairs By: Armbrister
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.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB371-As Introduced
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 continues the Commission on Fire Protection for 12
years and sets the date for the next Sunset review as September
1, 2009. The bill would remove the commission's responsibilities
to review and recommend changes to the Department of Insurance's
Key Rate Schedule. This change is consistent with the department's
change from Key Rate to a Fire Suppression Rating Schedule.
The commission would enter into a memorandum of understanding
with the department and the commission may provide technical
assistance to fire departments about this change. The bill
would combine the paid and volunteer certification programs
and remove employment as a requirement for continued certification.
Methodolgy
The Commission on Fire Protection is subject to the provisions
of the Texas Sunset Act, and unless continued by the 75th Legislature,
will be abolished September 1, 1997. Funding for the commission
is included in the General Appropriations bill, as introduced,
and is contingent upon passage of Senate Bill 371 or similar
legislation. The appropriations would be financed from General
Revenue-Dedicated, Texas Department of Insurance Operating Account
and would provide $6.5 million and 132 employees in fiscal year
1998 and $6.5 million and 132 employees in fiscal year 1999.
The
probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows: the elimination of the Key Rate Strategy
and three positions to conduct key rate inspections and to prepare
recommendations to the department of Insurance would save $167,071
from the previous year. The General Appropriation bill as introduced
does not fund this strategy nor the three positions for 1998-99.
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 each year
of the biennium.
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
Gain/(Loss) from
General Revenue
Fund
0001
1998 $30,000
1998 30,000
2000 30,000
2001 30,000
2002 30,000
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 $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 fiscal implication to units of local government is anticipated.
Source: Agencies: 411 Commission on Fire Protection
116 Sunset Advisory Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,AM