LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 29, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB217 by Reyna, Arthur (Relating to the regulation of
plumbing.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB217, Committee Report 1st House, Substituted: 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. *
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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:
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*Fiscal Probable Probable Revenue Probable Revenue *
* Year Savings/(Cost) from Gain/(Loss) from Gain/(Loss) from *
* General Revenue Fund General Revenue Fund General Revenue Fund *
* 0001 0001 0001 *
* 2002 $(5,179) $(46,650) $51,829 *
* 2003 0 (40,300) 40,300 *
* 2004 0 (40,300) 40,300 *
* 2005 0 (40,300) 40,300 *
* 2006 0 (40,300) 40,300 *
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Fiscal Analysis
The bill would require the Board of Plumbing Examiners to adopt the 2000
versions of the Uniform Plumbing Code and the International Plumbing Code
as the basis for examinations. All examinations would have to be
reviewed in depth to ensure that answers to all questions on the
examinations could be found in both the 2000 Uniform Plumbing Code and
the 2000 International Plumbing Code.
Also, the bill would require unlicensed plumbers that (currently) legally
operate in areas outside of cities of 5,000 or more inhabitants to
install plumbing in accordance with one of the two codes named in current
statute. The bill also would allow plumbing work to be inspected by any
person, without that person holding a plumbing inspector license.
Individuals who perform plumbing inspections would no longer be required
to obtain a plumbing inspector license, so it would be expected that
many, if not all, individuals currently licensed as a plumbing inspector,
would no longer renew their license, and no additional persons would
apply and be examined to become a licensed plumbing inspector.
According to the Board of Plumbing Examiners, the bill would amount to a
total loss in revenue to the State of $59,350 per year from plumbing
inspectors and would also be the amount of revenue loss, per year, to the
State under the proposed amendment.
The bill would take effect September 1, 2001.
Methodology
The Board of Plumbing Examiners estimates a cost of $5,179 and a revenue
loss of $46,650 in fiscal year 2002 and revenue loss of $40,000 in each
subsequent year due to the reduction in the number of licenses issued.
It is assumed the agency would adjust fees to offset any costs or
revenue loss associated with 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