LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 9, 2001
  
  
          TO:  Honorable David Sibley, Chair, Senate Committee on
               Business & Commerce
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1045  by Moncrief (Relating to the hazardous substances
               law; providing penalties.), As Introduced
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1045, 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.                                                             *
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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:
  
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*Fiscal        Probable             Probable        Change in Number of  *
* Year    Savings/(Cost) from  Savings/(Cost) from State Employees from  *
*        General Revenue Fund General Revenue Fund        FY 2001        *
*                0001                 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
  
1 computer and 1 printer
  
  
Fiscal Analysis
  
The bill would require the Board of Health by rule to establish
flammability standards for certain articles, such as children's clothing.
The bill would require the Department of Health to obtain samples of
these articles and determine the flammability of the articles.  The bill
would also require the Board of Health by rule to require labeling of
certain materials, such as toys, games and hazardous art materials,
consistent with the Federal Hazardous Substances Act; and to require the
packaging of hazardous substances, consistent with federal special
packaging regulations.

The bill would require a person who manufactures, imports or repacks a
hazardous substance that is distributed in the state to file a
registration statement with the Department of Health, and would require
the payment of a fee prescribed by the Board of Health for each initial
registration statement and each annual registration statement filed.  The
bill would require that the registration fee recover not more than TDH
costs to administer, monitor compliance, enforce and conduct testing as
required by the provisions of the bill.

Noncompliance with certain sections of the bill would be a Class A
misdemeanor. The bill would also allow the Commissioner of Health to
request the Attorney General or a district, county or city attorney of
the county or municipality to institute a civil action in the case of a
violation and allow each to recover from the violator reasonable expenses
incurred in obtaining an injunctive relief.

  
  
Methodology
  
According to the Department of Health, an additional 1.5 FTEs would be
needed to implement the provisions of the bill.  TDH assumes a 3 month
start-up period. TDH estimates that salary and benefits would total
$47,607 in FY 2002 and $63,476 in FY 2003-06.  TDH estimates other costs
would include $11,250 in FY 2002 and $12,000 in FY 2003-06 for contracted
services for flammability testing.  TDH estimates it would incur other
costs for rent, travel, other operating expenses and equipment, including
1 personal computer and 1 printer. TDH estimates total cost for the FY
2002-03 biennium would be $166,806.

TDH estimates that 600 manufacturers would file the required registration
statement annually.  TDH assumed a filing fee of $150 per initial
registration statement or renewal and estimates fees collected in FY
2002-06 would total $90,000, each year.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   302   Office of the Attorney General, 501   Texas
                   Department of Health
LBB Staff:         JK, JO, RM