LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 30, 1997
TO: Honorable Ron Wilson, Chair IN RE: Senate Bill No. 805, Committee Report 2nd House, Substituted
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 the practice of plumbing; providing penalties.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB805-Committee Report 2nd 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
This bill would amend the Plumbing License Law by deleting the
portion of Section 3(b) which allows unlicensed plumbers to
perform work in incorporated areas and unincorporated areas
of the state with populations of less than 5,000 persons. Deleting
this portion of the section 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:
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
13(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 13(f) of the bill.
Source: Agencies:
LBB Staff: JK ,TH ,JD ,BK