LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 5, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1505 by Yarbrough (Relating to the regulation of
plumbing; providing a penalty.), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1505, 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 Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(134,072) $134,072 2.0 *
* 2003 (103,922) 103,922 2.0 *
* 2004 (103,922) 103,922 2.0 *
* 2005 (103,922) 103,922 2.0 *
* 2006 (103,922) 103,922 2.0 *
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Technology Impact
The agency estimates a one time cost associated with the bill of $30,150
for an outside programmer, web site update, and equipment associated
with two additional employees.
Fiscal Analysis
The bill would require the Board of Plumbing Examiners to add new license
and registration categories for plumbers, drain cleaners and plumbing
apprentices. Currently the Plumbing Board does not register apprentices.
One-time apprentice cards are issued, but they are not required to be
renewed or updated.
The bill would take effect September 1, 2001.
Methodology
It is assumed that there are at least two apprentices working with each
journeyman. As of February 20, 2001, there were 12,070 licensed
journeymen, or an estimated 24,140 apprentices. Two additional
Administrative Technician IIIs would be required to support the increase
in licensing activity and to support the processing of new applications
for examination and registration. The agency also anticipates there will
be an increase in the number of hearings due to denials of unqualified
applicants. Currently, denied applicants are not entitled to a hearing.
However, the bill would allow for denied applicants to have a right to a
hearing on any denial. This would increase the estimated number of
cases to be heard by the State Office of Administrative Hearings (SOAH).
According to the agency, the additional estimated number of licensees
that would be added to the licensing system would increase the amount
charged by Northrup Grumman for its services by $22,008 per fiscal year.
It is assumed the agency would adjust fees to offset any costs or revenue
gains due to 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