LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 26, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: SB846 by Carona (Relating to certain fees and penalties applicable to the regulation of barbers.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB846, As Engrossed: positive impact of $59,673 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 $21,041 * * 2001 38,632 * * 2002 38,632 * * 2003 38,632 * * 2004 38,632 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Revenue Gain/(Loss) Probable Savings/(Cost) from * * Year from General Revenue Fund General Revenue Fund * * 0001 0001 * * 2000 $39,041 $(18,000) * * 2001 56,632 (18,000) * * 2002 56,632 (18,000) * * 2003 56,632 (18,000) * * 2004 56,632 (18,000) * *************************************************************************** Fiscal Analysis The bill would allow the Board of Barber Examiners to raise the examination fee up to $50 and to assess administrative fines up to $1,000 for violations effective September 1, 1999. An increase in the examination fee would generate almost $48,000 in revenue during the biennium. The Board would also generate about $48,000 in revenue during the biennium from administrative fines assessed, and there would be costs of $36,000 for fine cases referred to the State Office of Administrative Hearings. Methodology The Board of Barber Examiners estimates that the examination fee would be raised to $35, which is the actual cost of administering the examination, and it would administer approximately 924 examinations in 2000 and 990 in 2001. Presently, the Board charges $10 for the examination. For the assessment of administrative fines, the Board estimates that there will be 200 violations per year. The Board believes it would collect the fines from 100 of those violations and refer the remaining 100 violations to the State Office of Administrative Hearings (SOAH). Based upon the Cosmetology Commission's experience assessing administrative fines up to $1,000 in 1998-99, it is assumed that the Board would have a similar experience assessing administrative fines. At the Cosmetology Commission the average amount of the fines assessed is $159.41 for a one year period. For the 100 cases referred to SOAH each year, the estimated cost to the Board would be $18,000. SOAH reports that it spends an average of two hours per administrative fine case for the Cosmetology Commission, which is similar to the Board, and has costs of $90 per hour. Local Government Impact No significant fiscal implication to units of local government is anticipated. However, the impact on an individual local court will depend upon the number of violations referred in its jurisdiction and the amount of fines collected. Source Agencies: 304 Comptroller of Public Accounts, 360 State Office of Administrative Hearings, 502 Board of Barber Examiners, 302 Office Of The Attorney General LBB Staff: JK, TP, SD, RT, HL