LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 17, 2001 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB2950 by Chavez (Relating to the regulation of certain abusable volatile chemicals.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2950, Committee Report 1st House, Substituted: positive impact * * of $26,785 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $25,617 * * 2003 1,168 * * 2004 1,168 * * 2005 1,168 * * 2006 1,168 * **************************************************** 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 $(555,633) $581,250 1.5 * * 2003 (773,832) 775,000 2.0 * * 2004 (773,832) 775,000 2.0 * * 2005 (773,832) 775,000 2.0 * * 2006 (773,832) 775,000 2.0 * ************************************************************************** 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. The Board of Health would be authorized to set a fee for a permit in an amount not to exceed $50. The bill would require that the fees collected would be deposited in the General Revenue Fund. The bill would require the Department of Health (TDH) 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, the sale of an abusable volatile chemical without possessing the required permit, and the use of inhalant paraphernalia or delivery of paraphernalia for the abuse of a volatile chemical. Methodology TDH estimates 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 develop a statewide inhalant abuse education and prevention program which would cost $404,692 in the first year and $591,911 in subsequent years. TDH estimates the new revenue collected under the provisions of this bill would be $500,000 for the new establishments, and $275,000 in revenue per year associated with increasing the fee for current establishments from $25 to $50. A three month implementation period is assumed. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 501 Texas Department of Health LBB Staff: JK, HD, RM