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