LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 30, 2001 TO: Honorable David Sibley, Chair, Senate Committee on Business & Commerce FROM: John Keel, Director, Legislative Budget Board IN RE: SB1478 by Nelson (Relating to the regulation of certain abusable volatile chemicals.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1478, As Introduced: negative impact of $(550,000) 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 $(275,000) * * 2003 (275,000) * * 2004 (275,000) * * 2005 (275,000) * * 2006 (275,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Revenue Savings/(Cost) Revenue Number of State * * Gain/(Loss) from New Gain/(Loss) Employees from * * from General General Revenue from New FY 2001 * * Revenue Fund Dedicated General Revenue * * 0001 Inhalant Abuse Dedicated * * Prevention Inhalant Abuse * * Account Prevention * * Account * * 2002 $(275,000) $(581,250) $856,250 3.0 * * 2003 (275,000) (775,000) 1,050,000 4.0 * * 2004 (275,000) (775,000) 1,050,000 4.0 * * 2005 (275,000) (775,000) 1,050,000 4.0 * * 2006 (275,000) (775,000) 1,050,000 4.0 * *************************************************************************** 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 create a new dedicated account in the General Revenue Fund known as the Inhalant Abuse Prevention Account where the fees would be deposited. Methodology The Department of Health 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 in Section 485.018 (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 associated with 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 per year. The amount of new revenue is estimated at $775,000 each year in FYs 2003 through 2006. In addition, $275,000 per year in revenues formerly deposited into the General Revenue Fund would be deposited into the new account under the provisions of this bill. The loss of revenue to the General Revenue Fund shown above would be associated with the creation of the new account. Revenues formerly deposited into the General Revenue fund associated with paint and glue retail sales permit fees would be required to be deposited into the General Revenue-Dedicated Account. Note: This legislation would create a dedicated account in the General Revenue Fund. Legislative policy, implemented as Government Code 403.094, consolidated special funds (except those affected by constitutional, federal, or other restrictions) into the General Revenue Fund as of August 31, 1993, and eliminated all applicable statutory revenue dedications as of August 31, 1995. Each subsequent Legislature has reviewed bills that affect funds consolidation. The account included in this bill would be subject to funds consolidation review by the current Legislature. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 501 Texas Department of Health, 304 Comptroller of Public Accounts LBB Staff: JK, JO, HD, KF, RM