LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 5, 2001
  
  
          TO:  Honorable David Sibley, Chair, Senate Committee on
               Business & Commerce
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB217  by Reyna, Arthur (Relating to the regulation of
               plumbing.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB217, As Engrossed:  positive impact of $0 through the biennium      *
*  ending August 31, 2003.                                               *
*                                                                        *
*  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                *
          *       2002                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Revenue Gain/(Loss)   *
* Year         General Revenue Fund         from General Revenue Fund     *
*                      0001                            0001               *
*  2002                          $(5,179)                          $5,179 *
*  2003                                 0                               0 *
*  2004                                 0                               0 *
*  2005                                 0                               0 *
*  2006                                 0                               0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would increase the Plumbing Board's jurisdiction in job site
monitoring by eliminating the current exemption that allows unlicensed
plumbers to perform plumbing work in areas outside of cities of 5,000 or
more.  The bill would require the Board to perform job site monitoring in
those areas previously exempted, to ensure that plumbing work is
performed by licensed plumbers.

The bill would require the Board of Plumbing Examiners to adopt the 2000
version of the Uniform Plumbing Code and the International Plumbing Code
as the basis for examinations. All examinations would have to be reviewed
to ensure that answers to all the questions on the examinations could be
found in both the 2000 Uniform Plumbing Code and the 2000 International
Plumbing Code.

The bill would take effect September 1, 2001.
  
  
Methodology
  
According to the agency, the bill would increase the number of plumbers
examined and licensed by the Board.  The agency estimates that the
increase in the number of unlicensed plumbers that decide to become
licensed would average two (2) new licensees per county over the 2002-03
biennium, the increase would total 508 newly licensed individuals over
the biennium.  It is also assumed that one-half of these individuals
would sit for the journeyman plumber examination during the first year,
and the other half over the second year, the increase in fees to the
Board would be $12,700 in the first year and $19,050 in the second year,
which is a total increase in fees of $ 31,750 for the biennium.  Annual
renewal fees for the additional licensees in fiscal years 2004-2006 would
be $12,700 each year.  It is assumed that the agency would lower
existing fees to offset the increase in the new fees that would be
generated.

The Board of Plumbing Examiners estimates a one time cost in fiscal year
2002 of $5,179 to complete the process of adopting the 2000 versions of
the Uniform Plumbing Code and the International Plumbing Code as the
basis for examinations.

It is assumed the agency would adjust fees to offset any costs or revenue
changes associated with the implementation of the bill.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   456   Texas State Board of Plumbing Examiners
LBB Staff:         JK, JO, RT, ER