LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 25, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1131
Committee on State Affairs By: Ellis
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1131 ( Relating
to the regulation of cosmetologists; providing an administrative
penalty.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1131-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $7,372,000 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
This bill would amend Article 8451a, Vernon's Texas Civil Statutes
to double the current cosmetology licensing fees, and give the
Cosmetology Commission the authority to assess administrative
penalties for violations of the Cosmetology Act.
This bill
would take effect September 1, 1997.
Methodolgy
The estimated gain in revenue assumes there would not be a decline
in the number of licensees as a result of the fee increase.
The estimate is derived by multiplying estimated annual fee
collections for fiscal year 1997 by two and holding that amount
constant over the five year period. The estimate assumes there
will be small amounts of administrative penalties deposited
to the General Revenue as the provisions of the bill are enforced.
Based
on the Cosmetology Commission's Legislative Appropriations Request,
implementing the provisions of this bill would require an increase
in staff of 16.5 enforcement staff and 5.5 licensing staff and
associated operating costs, including cost for administrative
hearings. The higher costs in FY1998 are due to one time equipment
purchases.
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 Change in Number
Gain/(Loss) from Savings/(Cost) of State
General Revenue from General Employees from
Fund Revenue Fund FY 1997
0001 0001
1998 $4,710,000 ($1,097,000) 22.0
1998 4,710,000 (951,000) 22.0
2000 4,710,000 (951,000) 22.0
2001 4,710,000 (951,000) 22.0
2002 4,710,000 (951,000) 22.0
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 $3,613,000
1999 3,759,000
2000 3,759,000
2001 3,759,000
2002 3,759,000
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: 360 State Office of Administrative Hearings
505 Cosmotology Commission
LBB Staff: JK ,JD ,CG