LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 11, 2001
  
  
          TO:  Honorable David Sibley, Chair, Senate Committee on
               Business & Commerce
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2950  by Chavez (Relating to the regulation of certain
               abusable volatile chemicals.), As Engrossed
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2950, As Engrossed:  positive impact of $10,785 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                               $9,617  *
          *       2003                                1,168  *
          *       2004                                1,168  *
          *       2005                                1,168  *
          *       2006                                1,168  *
          ****************************************************
  
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             $(177,883)             $187,500                  3.0 *
*  2003              (248,832)              250,000                  4.0 *
*  2004              (248,832)              250,000                  4.0 *
*  2005              (248,832)              250,000                  4.0 *
*  2006              (248,832)              250,000                  4.0 *
**************************************************************************
  
Technology Impact
  
4 personal computers and 4 printers.
  
  
Fiscal Analysis
  
The bill would expand the retail sales permit requirement for sales of
abusable glues and paints to include abusable volatile chemicals and
nitrous oxide.  In the bill (engrossed), as amended , the Board of Health
would be authorized to set a fee for a permit in an amount not to exceed
$25.  The bill would require that the fees collected would be deposited
in the General Revenue Fund.  The bill would authorize the Department of
Health to use general revenue to administer the provisions of the bill.
The bill would create a criminal offense for failure to post the required
bilingual sign, for the sale of an abusable volatile chemical without
possessing the required permit and for the use of inhalant paraphernalia
or delivery of paraphernalia for the abuse of a volatile chemical.
  
  
Methodology
  
The Department of Health estimates that an additional 10,000 businesses
would be required to obtain a retail sales permit.  An additional 2,500
inspections would be conducted annually to identify businesses that have
not obtained the permit, checking for compliance with the warning sign
posting requirement, making undercover purchases of volatile chemicals,
and for informing managers and employees of permitted businesses about
inhalant abuse issues.  Staff, operating, and travel costs would be
required to conduct these inspections.  In addition, TDH would contract
with an entity to implement a statewide inhalant abuse education and
prevention program which would cost $10,942 in the first year and $66,911
for subsequent years.

TDH estimates that the additional revenue collected under the provisions
of this bill would be $250,000 for the new establishments.  TDH
estimates a start-up period of 3 months. The amount of new revenue
collected is estimated at $187,500 in FY 2002 and $250,000 each year in
FY 2003-06.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   501   Texas Department of Health
LBB Staff:         JK, JO, RM