LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 7, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1927 by Geren (Relating to the installation of
asbestos in public buildings; providing penalties.), As
Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1927, 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. *
**************************************************************************
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 (Cost) from Probable Revenue Change in Number of *
* Year Asbestos Removal Gain from Asbestos State Employees from *
* Licensure Account/ Removal Licensure FY 2001 *
* GR-Dedicated Account/ *
* 5017 GR-Dedicated *
* 5017 *
* 2002 $(202,244) $206,391 2.2 *
* 2003 (231,964) 238,813 3.0 *
* 2004 (231,964) 238,813 3.0 *
* 2005 (231,964) 238,813 3.0 *
* 2006 (231,964) 238,813 3.0 *
**************************************************************************
Technology Impact
Three personal computers and three printers, one for each additional FTE
Fiscal Analysis
The bill would prohibit the installation or reinstallation of building
materials or replacement parts containing more than one percent asbestos
in a public building. The bill would allow the Department of Health
(TDH) to impose an administrative penalty on a contractor in violation
of the provisions of the bill. The bill would allow the Office of the
Attorney General to sue to collect the penalty. The effective date of
the bill would be September 1, 2001, and would apply only to
installation and reinstallation of asbestos on or after the effective
date.
Methodology
According to TDH, Section 161.402 of the bill would increase the number
of asbestos inspections the agency would conduct by 20%, based on local
building permits. The current number of annual inspections is
approximately 1,785. TDH estimates three FTEs would be needed to perform
the additional inspections.
It is assumed that an estimated 10% increase in the number of
non-compliant items will be generated from the increase in inspections
performed. TDH estimates that 5% (17) of these increased enforcement
actions will be referred to the State Office of Administrative Hearings
each year at an approximate cost of $3,000 per hearing, for a total
dollar value of $51,000 a year. The year of implementation, FY 2002, TDH
estimates only 12 actions will be referred at a cost of $36,000.
Other expenses include travel (average of $25.20 per inspection), sample
analysis (three samples per inspection x $20 per sample), and photo
processing costs ($.50 x 6 photos per inspection).
According to TDH, the bill does not authorize a fee to be charged. It is
assumed TDH would assess fees sufficient to offset the costs associated
with the bill under the agency's general authority.
Local Government Impact
No significant 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, KF, RM