LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 17, 2001 TO: Honorable James E. "Pete" Laney, Speaker of the House, House of Representatives FROM: John Keel, Director, Legislative Budget Board IN RE: HB217 by Reyna, Arthur (Relating to the regulation of plumbing.), As Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB217, As Passed 2nd House: 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