LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 16, 1999
TO: Honorable Bill Carter, Chair, House Committee on Urban
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 2838 by Keffer (Relating to the regulation of
manufactured homes.), Committee Report 1st House,
Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2838, Committee Report 1st House, Substituted: positive impact *
* of $50,575 through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $40,575 *
* 2001 10,000 *
* 2002 10,000 *
* 2003 10,000 *
* 2004 10,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $40,575 *
* 2001 10,000 *
* 2002 10,000 *
* 2003 10,000 *
* 2004 10,000 *
*****************************************************
Fiscal Analysis
The bill would amend the Texas Manufactured Housing Standards Act by
expanding the prerequisites for retailers to obtain either a new or
renewed license. The provisions of the bill require that a retailer not
licensed or registered with the Texas Department of Housing and Community
Affairs (TDHCA) or a predecessor agency as of September 1, 1987 must
pass an examination based on the currently required 20 hour course of
instruction in the law and consumer protection and that the Executive
Director of TDHCA may not issue a retailer's license until the
instruction is completed and the examination is passed. The bill also
requires TDHCA to create a licensing examination for retailers and to set
and charge an examination fee. The provisions of the bill apply to
retailers who apply for a license on or after the effective date and
allow retailers who apply for a license before the effective date to be
covered by the law in effect when the retailers applied for licensure and
continues the law in effect for that purpose.
The bill would take effect September 1, 1999.
Methodology
According to TDHCA, there are currently 1,223 licensed retailers who were
not licensed or registered with TDHCA or a predecessor agency as of
September 1, 1987. Each of these individuals would be required to take
and pass the licensing examination for retailers to renew their license.
TDHCA also estimates 400 new retailers would apply for a license in
fiscal year 2000 and in each following year and that the examination fee
charged would be $25 per exam. It is assumed that TDHCA will adopt
rules necessary to implement the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 332
Department of Housing and Community Affairs
LBB Staff: JK, TL, RT, MW