LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 11, 2001 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB3602 by Capelo (Relating to the hazardous substances law; providing penalties.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3602, As Introduced: positive impact of $13,194 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 $10,998 * * 2003 2,196 * * 2004 2,196 * * 2005 2,196 * * 2006 2,196 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable (Cost) to Probable Revenue Change in Number of * * Year General Revenue Fund Gain to General TDH Employees from * * 0001 Revenue Fund FY 2001 * * 0001 * * 2002 $(79,002) $90,000 1.1 * * 2003 (87,804) 90,000 1.5 * * 2004 (87,804) 90,000 1.5 * * 2005 (87,804) 90,000 1.5 * * 2006 (87,804) 90,000 1.5 * ************************************************************************** Technology Impact The bill would create first year technology costs of $4,500 for one computer and printer. Fiscal Analysis The bill would amend Chapter 501 of the Health and Safety Code to grant additional authority to the Texas Department of Health (TDH) and the Board of Health (board) in regulating potentially hazardous consumer products and other substances. The bill would require annual registration for manufacturers, importers, re-packagers, and distributors of certain hazardous substances distributed in the state. This fee would be set by the board and would be designed to recover not more than the costs of administering, monitoring compliance, enforcing, and conducting tests related to Chapter 501. The bill would take effect September 1, 2001. Methodology A three month implementation period is assumed. It is assumed approximately 600 additional manufacturers, importers, re-packagers, and distributors of hazardous substances would be required to register with TDH each year as a result of the bill. According to TDH, the current registration fee of $150 per business entity would be continued, resulting in $90,000 in annual revenue. Because TDH does not have the appropriate laboratory resources for flammability testing, it is estimated approximately 40 product samples would be tested at a private laboratory for an annual cost of $12,000 (40 x $300). It is estimated TDH itself would perform tests for compliance with hazard warning label requirements on 30 art materials products at a cost of $100 each ($3000 annually). TDH estimates an additional 1.1 FTEs would be required to implement the additional administration, monitoring, and enforcement requirements of the bill during FY 2002, increasing to 1.5 FTEs in subsequent years. Other assumed administrative costs would include fringe benefits, travel, rent, telephone, office supplies, and postage. Total administrative costs (excluding first year technology costs of $4,500 and laboratory testing expenses of $15,000 per year) would be $59,502 for FY 2002 and $72,804 in subsequent years. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 501 Texas Department of Health, 304 Comptroller of Public Accounts LBB Staff: JK, HD, SW, KF, RM