LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 6, 1997
TO: Honorable Ron Wilson, Chair IN RE: Senate Bill No. 805,
As Engrossed
Committee on Licensing & Administrative Procedures By: Brown
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB805 ( relating
to the regulation of plumbing; providing penalties) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB805-As Engrossed
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
This bill would amend the Plumbing License Law to require the
Board of Plumbing Examiners to license plumbers who perform
work in certain unincorporated areas of the state and in incorporated
areas with populations of more than 1,000 persons. This would
expand the Board of Plumbing Examiners' jurisdiction and increase
the agency's licensing and enforcement workloads. Six new FTEs
(one Attorney, one Examination Employee, three Field Representatives,
and one Administrative Technician) would be needed, along with
associated overhead, training, and computer costs. Also, the
Attorney and Field Representatives would require extensive travel
(the Attorney to county courts and the Field Representatives
to construction sites) so costs for cars, travel and telephones
are included.
New costs to implement the provisions of this
bill would be $439,291 in FY 1998, $367,291 in FY 1999 and $336,291
in FYs 2000, 2001, and 2002. FY 1999 costs are slightly higher
than later years due to the phasing in of computer purchases
over a two year (FY 1998 and 1999) period. However, all of
these costs would be covered by revenue gained from an increased
number of licenses issued, an increase in administrative penalties
from enhanced enforcement efforts, and, if needed, an overall
increase in the agency's license and examination fees.
This
bill would amend other sections of the Plumbing License Law,
but would cause no additional fiscal impact to the State.
Methodolgy
Implementing the provisions of the bill would increase the number
of persons served by the law by approximately 50%. Licensing
and enforcement workload increases to implement the provisions
of the bill were calculated accordingly. It is assumed that
all new costs would be covered by the following:
(1) An increase
in revenue from license fees, due to an increase in the number
of plumbers required to be licensed;
(2) An increase in administrative
penalties from enhanced enforcement efforts; and,
(3) An
overall increase in license and examination fees, if necessary.
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 ($439,291) $439,291 6.0
1998 (367,291) 367,291 6.0
2000 (336,291) 336,291 6.0
2001 (336,291) 336,291 6.0
2002 (336,291) 336,291 6.0
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 $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.
The provisions of this bill may create some fiscal impact to
municipalities and municipal utility districts (MUDs). Section
14(e) of the bill allows a MUD with boundaries that overlap
those of a municipality to be the controlling jurisdiction over
plumbing inspections if the MUD has stricter plumbing standards
than the municipality and the inspection is performed by a state-licensed
plumber. Accordingly, some MUDs may experience an increase
in plumbing inspections and related revenues from inspection
permit fees. Conversely, some municipalities may experiences
a decrease in plumbing inspections and fee revenue. However,
municipalities with stricter plumbing standards than MUDs may
experience an increase in the number of plumbing inspections
performed. It is assumed that any increase in costs would be
offset by an increase in inspection permit fees as allowed under
Section 14(f) of the bill.
Source: Agencies:
LBB Staff: JK ,TH ,BK