LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 21, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1673 by Burnam (Relating to the salvage of certain
distressed merchandise.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1673, As Introduced: an 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 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Revenue Revenue Number of State *
* from General Gain/(Loss) Gain/(Loss) Employees from *
* Revenue Fund from General from General FY 2001 *
* 0001 Revenue Fund Revenue Fund *
* 0001 0001 *
* 2002 $(1,462,504) $1,479,004 $(16,500) 8.3 *
* 2003 (1,846,055) 1,862,555 (16,500) 11.0 *
* 2004 (1,846,055) 1,862,555 (16,500) 11.0 *
* 2005 (1,846,055) 1,862,555 (16,500) 11.0 *
* 2006 (1,846,055) 1,862,555 (16,500) 11.0 *
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Technology Impact
First year costs of $28,700 for computer equipment and programming costs.
Fiscal Analysis
The bill would add Section 432.0035, Health and Safety Code, to create a
new definition of distressed merchandise, and would repeal the current
definition in Section 432.003(6), Health and Safety Code. The bill
would also add Section 432.0115 which would require the Department of
Health (TDH) to provide a statement of proof that establishes the device
as distressed merchandise. The bill would take effect September 1,
2001.
Methodology
TDH estimated the changes to the definition of distressed merchandise
would result in a 20% reduction in the number of licensees under the
current program. This could result in $16,500 annual loss in licensure
revenue.
It is assumed TDH would have to contract with companies that employ
certified biomedical technicians to perform the distress evaluations.
TDH estimates 19,520 evaluations per year would be needed. TDH also
estimates the need for eleven additional FTEs to review the evaluations
and issue an estimated 14,640 statements of proof per year.
A three month implementation period in the first year is assumed.
It is assumed TDH would increase fees to cover the costs of
implementation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 501 Texas Department of Health
LBB Staff: JK, HD