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