LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 9, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2451 by Wilson (Relating to the regulation of
elevators, escalators, and related equipment and related
licensing requirements.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2451, 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. *
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General Revenue-Related Funds, Five-Year Net 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 $(153,557) $153,557 1.7 *
* 2003 (284,683) 284,683 6.0 *
* 2004 (243,133) 243,133 6.0 *
* 2005 (243,133) 243,133 6.0 *
* 2006 (242,833) 242,833 6.0 *
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Technology Impact
Computers and software for the additional Full-time Equivalent Positions
(FTEs) totaling $2,300 in fiscal year 2002 and $11,500 in fiscal year
2003.
Fiscal Analysis
The bill would amend the Health and Safety Code to expand the role of the
Elevator Advisory Board from an advisory capacity to a regulatory agency
known as the Texas Elevator Board. The board would assume the
regulation of elevators and elevator inspectors from the Texas Department
of Licensing and Regulation (TDLR).
The nine-member board would be authorized to adopt and enforce rules
governing the operation, maintenance, servicing, construction,
alteration, installation, and inspection of elevators, escalators, and
other related equipment. It would also appoint an advisory committee,
set reasonable fees for certificates, applicants, and license holders.
Fees would be in amounts sufficient to cover the costs of administration.
Board members would be entitled to reimbursement of travel expenses and
other necessary expenses as provided by the General Appropriations Act.
TDLR would provide administrative support to the board.
The bill would establish the minimum qualifications for three types of
occupation licenses that include (1) elevator mechanic, (2) elevator
inspector, and (3) elevator contractor. The board would issue a license
to a qualified applicant after a determination that the applicant had
passed the licensing examination, paid the necessary fees, and provided
proof of insurance. Licenses would expire at the end of the license
period set by the board. A license could be renewed upon payment of the
renewal fee and compliance with continuing education requirements. The
bill would vest the board with the power to issue, deny, revoke, suspend,
and renew licenses. The board could issue temporary licenses and
reciprocal licenses.
The bill would take effect September 1, 2001. The board would be
required to adopt rules by May 1, 2002 and licenses would not be
required until September 1, 2002.
Methodology
TDLR estimates that the provisions of the bill would require six
additional FTEs starting in fiscal year 2003. Since the individuals
would not have to be licensed until September 1, 2002, TDLR would only
need two-thirds of an investigator FTE starting in January 1, 2002 to
draft the rules and one-third of the other five FTEs starting on May 1,
2002 for fiscal year 2002. The new staff would include three
administrative technicians to process up to 1,400 new and renewal
licenses and certificates of insurance for elevator contractors,
mechanics and inspectors. They would also process up to 10,000 new
elevator certificates. It would require an Investigator to conduct
complaint investigations, which are estimated at 225 per year, and draft
rules. The agency would need a legal assistant to provide technical
support to the Investigator, assist a case manager and upkeep and
maintain the Complaint Intake Monitoring System. It would also require
another administrative technician to process an anticipated increased
number of waivers and delays resulting from newly registered elevator
equipment. TDLR estimates that 5,000 additional inspections would be
completed per year.
It is assumed the agency would adjust fees to cover the cost of
implementing the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 116 Sunset Advisory Commission, 452 Texas
Department of Licensing and Regulation, 304
Comptroller of Public Accounts
LBB Staff: JK, JO, RT, DE