LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 20, 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.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1505, As Introduced:  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         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             $(112,064)             $112,064                  2.0 *
*  2003               (81,914)               81,914                  2.0 *
*  2004               (81,914)               81,914                  2.0 *
*  2005               (81,914)               81,914                  2.0 *
*  2006               (81,914)               81,914                  2.0 *
**************************************************************************
  
Technology Impact
  
The agency estimates a one-time cost associated with the bill of $30,000
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 are not required to be renewed or
updated.  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.

The bill would take effect September 1, 2001.
  
  
Methodology
  
Two additional Administrative Technicians III 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 (usually due to criminal history issues) 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).
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   456   Texas State Board of Plumbing Examiners, 302
                   Office of the Attorney General
LBB Staff:         JK, JO, ER, RT