LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 23, 2001
  
  
          TO:  Honorable Steven Wolens, Chair, House Committee on State
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2519  by Craddick (Relating to the licensing and
               regulation of certain electricians; providing a criminal
               penalty.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2519, 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           $(1,741,860)           $1,741,860                 27.0 *
*  2003            (1,571,760)            1,571,760                 27.0 *
*  2004            (1,571,760)            1,571,760                 27.0 *
*  2005            (1,571,760)            1,571,760                 27.0 *
*  2006            (1,571,760)            1,571,760                 27.0 *
**************************************************************************
  
Fiscal Analysis
  
The bill would establish the Texas State Electrician Licensing Board
(Board) to examine and license electricians.  The nine-member Board
would serve without compensation and would be able to hire an executive
director and staff.  In addition, the Board would be allowed to collect
fees to cover the costs of administering examinations and issuing
licenses and license renewals.  It is estimated that the cost to General
Revenue to implement the provisions of the bill, including hiring 27
FTEs, would be $1,741,860 in FY 2001 and $1,571,760 per year thereafter;
these costs would be recovered through the collection of examination and
license fees.
  
  
Methodology
  
Costs to implement the provisions of the bill were estimated using the
following assumptions:

(1) As of 1998, there were 45,900 electricians working in the state of
Texas, according to the Texas Workforce Commission.  It is assumed that
the majority of these electricians would be licensed by the Board.

(2) It is assumed that all costs would be to General Revenue.
Accordingly, all revenue gains from license and examination fees would be
deposited into General Revenue.

(3) The Board would need $170,100 for equipment in FY 2001 for the 27
FTEs.

(4) Assuming a mileage reimbursement of 28 cents per mile, the Board
would need $11,760 per year for travel to conduct site visits.

It is assumed the agency would adjust fees to offset any costs associated
with the implementation of the bill.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.  However, since the bill would prevent municipalities from
requiring a person to take a municipal examination if that person holds
the appropriate license issued by the Board, there may be some loss of
revenue to local governments.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, RB, RT