LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 9, 2001 TO: Honorable Ron Wilson, Chair, House Committee on Licensing & Administrative Procedures FROM: John Keel, Director, Legislative Budget Board IN RE: SB1198 by Carona (Relating to inspection, installation, repair, and maintenance of elevators, escalators, chairlifts, people movers, moving sidewalks, and related equipment; providing an administrative penalty.), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1198, Committee Report 2nd House, Substituted: 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. * ************************************************************************** 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: ************************************************************************** *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 $(193,077) $193,077 4.3 * * 2003 (195,468) 195,468 5.0 * * 2004 (195,468) 195,468 5.0 * * 2005 (195,468) 195,468 5.0 * * 2006 (195,468) 195,468 5.0 * ************************************************************************** Technology Impact Computers and software for the additional five Full-time Equivalent positions (FTEs) totaling $11,500 in fiscal year 2002. Fiscal Analysis The bill amends the Health and Safety Code requiring the Texas Department of Licensing and Regulation (TDLR) to regulate and register elevators, escalators, moving sidewalks and related equipment and provides for administrative and criminal penalties. It requires licensing of elevator mechanics and provides for renewal, temporary, emergency, and reciprocity licenses. The bill would allow the Commissioner to adopt standards for the installation, alteration, operation and inspection of equipment used by the public. In addition, the Commissioner could promulgate rules and collect fees and issue emergency orders to shut down equipment when it poses an imminent and significant danger. The bill changes the composition of the elevator advisory board to twelve members including three additional public members and changes the appointment authority from the Commissioner to the Governor. The effective date of the bill is September 1, 2001. Contractors and mechanics do not have to be registered or licensed until January 1, 2002. Methodology TDLR estimates that it would need five additional FTEs. Since registration and licensure is not required until January 1, 2002, only four FTEs would be needed in fiscal year 2002. TDLR estimates needing an investigator to investigate 300 complaints per fiscal year and a legal assistant to prepare legal documents for the complaints, which would only be required two-thirds of the first year. TDLR also anticipates needing three administrative technicians to review and process up to 10,000 applications for certificates of compliance, up to 800 delay requests, and up to 1,200 new elevator mechanic license applications. It is assumed that TDLR would adjust its fees to cover the cost of implementing the bill. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 452 Texas Department of Licensing and Regulation LBB Staff: JK, JO, RT, DE