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.
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