LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 9, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 761, Committee Report 1st House, Substituted Committee on State Affairs By: Gallegos Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB761 ( 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 SB761-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 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 would bill require the Department of Licensing and Regulation (TDLR) to register and regulate wall and ceiling contractors. The provisions of the bill would establish the Texas State 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 provides for registration, annual renewal, and continuing education requirements for qualifying applicants. In addition, this bill provides penalties and sanctions for violations of this Act. 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 bill provides that the commissioner shall set application and registration fees. It is assumed that fees generated would cover the cost of administering the provisions of the bill. 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) $154,322 3.0 1998 (131,138) 131,138 3.0 2000 (131,138) 131,138 3.0 2001 (131,138) 131,138 3.0 2002 (131,138) 131,138 3.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 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 ,JD ,RA