LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 26, 2001
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2984 by Corte (Relating to the regulation of air
conditioning and refrigeration contractors and
technicians.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2984, 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 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 $(5,409,090) $5,409,090 19.0 *
* 2003 (1,837,263) 1,837,263 25.0 *
* 2004 (1,562,263) 1,562,263 25.0 *
* 2005 (1,562,263) 1,562,263 25.0 *
* 2006 (1,562,263) 1,562,263 25.0 *
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Technology Impact
Additional computers and software would be needed for the additional
Full-time Equivalent Positions (FTEs) totaling $57,500 in fiscal year
2002.
Fiscal Analysis
The bill amends Article 8861, Vernon's Texas Civil Statutes by defining
air conditioning and refrigeration contracting technicians and requiring
them to become licensed, which entitles the license holder to install,
service, or repair only the type of system for which the license is
endorsed. The provisions of the bill require the Commissioner of the
Department of Licensing and Regulation (TDLR) to prescribe a separate
examination for each of the seven endorsements established.
The effective date of the bill is September 1, 2001. A person is not
required to hold a technician license until March 1, 2002. The rules
must be established by December 31, 2001.
Methodology
According to TDLR, the agency estimates that the new licensing of
technicians would add approximately 37 percent to the agency's current
license population.
TDLR estimates that there will be 45,000 first year applicants with
35,000 anticipated to pass the exam. The agency also estimates that each
applicant will apply for an average of two endorsements (90,000 exams in
2002), requiring a separate exam for each. The professional fee for
each exam is estimated at $50. Total estimated professional fees in
fiscal year 2002 are $4,500,000 with a reduced number of anticipated
license exam fees in subsequent years of $825,000 in fiscal year 2003 and
$550,000 each year thereafter.
According to TDLR, the agency would need additional FTEs for the required
licensing of technicians. It is anticipated the agency would need five
licensing analysts to process applications, renewals, and assist in
processing/administering the exam program. Seven enforcement
investigators to process complaints, write rules, assist in the
development of exams, testify at hearings, and liaison with the Advisory
Board. The agency would need four legal assistants to assist in
complaint investigation and process required legal notices prior to and
after administrative hearings. It is assumed that the investigators and
legal assistants would not be needed until March 1, 2002 when technician
licenses are required. It is estimated that the agency would need four
administrative technicians to develop and administer exams and to handle
the additional mail anticipated for licensing. It would need three
accountants to process the additional fees anticipated for licensing
received by mail. The agency also anticipates needing a programmer to
write new programs and make necessary changes to their system, to create
a licensing database, and to perform maintenance. It is also
anticipating needing a network specialist to help maintain the computer
network as a result of the increase in staff and licensees.
It is assumed the agency would adjust fees to offset any costs
associated with the implementation of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 452 Texas Department of Licensing and Regulation
LBB Staff: JK, JO, RT, DE