LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 31, 1997 TO: Honorable Bob Bullock Honorable James E. "Pete" Laney Lieutenant Governor Speaker of the House Senate 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-Conference Committee Report 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 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