LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 16, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1251 by Menendez (Relating to fire-resistant
upholstered furniture; providing a civil penalty.),
Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1251, Committee Report 1st House, Substituted: positive impact *
* of $162 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 Net Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 162 *
* 2004 9,493 *
* 2005 9,493 *
* 2006 9,493 *
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All Funds, Five-Year Impact:
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*Fiscal Probable (Cost) from Probable Revenue Change in Number of *
* Year General Revenue Fund Gain from General State Employees from *
* 0001 Revenue Fund FY 2001 *
* 0001 *
* 2002 $0 $0 0.0 *
* 2003 (74,838) 75,000 1.0 *
* 2004 (90,507) 100,000 1.5 *
* 2005 (90,507) 100,000 1.5 *
* 2006 (90,507) 100,000 1.5 *
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Technology Impact
One personal computer, one notebook computer, a printer, and software
Fiscal Analysis
The bill prohibits the sale of upholstered furniture that is not
fire-resistant or chemically treated to be fire resistant and requires
the upholstered furniture for sale is labeled as fire resistant, unless
exempt as outlined in the bill. The bill would require the Board of
Health to adopt rules, not later than November 1, 2001, in accordance
with the provisions of the bill and to adopt, in consultation with the
fire marshal, minimum smolder standards for fire-resistant products. At
the request of the Board of Health, the Office of the Attorney General
would be required to bring an action to recover a civil penalty.
The bill is effective September 1, 2001, and applies to upholstered
furniture offered for sale on or after September 1, 2002.
Methodology
It is assumed only one FTE would be required in FY 2003, to allow for
start-up, and 1.5 FTEs would be required each year for FYs 2004-06. Total
estimated cost in salary and benefits for the 2002-03 biennium is
$42,317. It is assumed travel cost would include 300 inspections each
year at a cost of $12.50 each (300 X $12.50 = $3,750), except in FY 2003
when it is assumed only 200 inspections would be conducted at a total
estimated cost of $2,500. It is also assumed the cost of travel
associated with training one FTE would be $500 in FY 2003 only.
Estimated total cost of equipment, including the purchase of one personal
computer, one notebook computer, one printer, and associated software
would be $6,900, in FY 2003 only. The total estimated cost for the
2002-03 biennium would be $74,838.
The Department of Health (TDH) estimates that 20% of the annual
inspections would identify labeling violations. It is assumed 60
labeling violations would be identified each year. TDH estimates 24
upholstered furniture samples would be tested each year for compliance
with fire-resistant standards of which five would be found in violation.
It is assumed the average amount recovered in civil penalty per case
would be $12,500. TDH estimates eight civil penalty cases would be
referred to the Office of the Attorney General each year for FYs
2004-2006 for which $100,000 would be collected in civil penalties. It
is assumed only six civil penalty cases would be referred in FY 2003 and
$75,000 would be collected in civil penalties. The total estimated
amount of civil penalties recovered in the 2002-03 biennium would be
$75,000.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 501 Texas
Department of Health
LBB Staff: JK, HD, RM