LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable Hugo Berlanga, Chair            IN RE:  Senate Bill No. 1284, As Engrossed
          Committee on Public Health                              By: Gallegos
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1284 ( Relating 
to regulation of new or renovated bedding; providing penalties.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1284-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
 
The bill would provide additional authority to the Department 
of Health to regulate manufacturers and renovators of mattresses 
and other similar products.  The bill would authorize administrative, 
civil, and increased criminal penalties.  The Board of Health 
would be authorized to see fees for initial permits and renewal 
permits as reasonable and necessary to defray the cost of administering 
Chapter 345, Health and Safety Code.  Fees collected would be 
deposited to a special account in the state treasury.  Funds 
in the account would be dedicated.
 
Methodolgy
 
There are approximately 2,450 business establishments that hold 
bedding permits authorizing the sale of bedding products in 
Texas.  Field inspections would be performed for business establishments 
in Texas.  As a condition of permit issuance, staff would inspect 
product samples and review product test results provided by 
1,300 out of state permit applicants.  Three full-time equivalent 
positions would be added to implement the provisions of this 
bill.  It is assumed that revenue collections would equal costs.

The 
bill states that fees collected shall be deposited to a special 
account in the state treasury.  It is assumed that the fees 
would be deposited to a special account in the general revenue 
fund.
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 New - GR      New - GR Dedicated Employees from                                          
            Dedicated                             FY 1997                                                 
            NEW-DED            NEW-DED                                                                     
       1998        ($146,831)          $146,831               3.0                                    
       1998         (144,139)           144,139               3.0                                    
       2000         (144,139)           144,139               3.0                                    
       2001         (144,139)           144,139               3.0                                    
       2002         (144,139)           144,139               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:   302   Office of the Attorney General
                                         501   Department of Health
                                         
                      LBB Staff:   JK ,BB ,KF