LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 2, 2001 TO: Honorable Ron Wilson, Chair, House Committee on Licensing & Administrative Procedures FROM: John Keel, Director, Legislative Budget Board IN RE: SB1622 by Barrientos (Relating to the regulation of amusement rides; providing a criminal penalty.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1622, As Engrossed: 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 Probable Change in * * Year Savings/(Cost) Revenue Revenue Number of State * * from New Gain/(Loss) Gain/(Loss) Employees from * * General Revenue from New from Texas FY 2001 * * Related General Revenue Department of * * Mobile Related Mobile Insurance * * Amusement Ride Amusement Ride Operating Fund * * Regulation Regulation Account/ * * GR-Dedicated * * 0036 * * 2002 $(230,830) $230,830 $(37,000) 5.0 * * 2003 (200,680) 200,680 (37,000) 5.0 * * 2004 (200,680) 200,680 (37,000) 5.0 * * 2005 (200,680) 200,680 (37,000) 5.0 * * 2006 (200,680) 200,680 (37,000) 5.0 * *************************************************************************** Technology Impact Computers and software for the additional Full-time Equivalent Positions (FTEs) totaling $10,350 in fiscal year 2002. Fiscal Analysis The bill would amend the Health and Safety Code by adding a new chapter to regulate mobile amusement rides under the Texas Department of Licensing and Regulation (TDLR). The Texas Department of Insurance (TDI) currently regulates mobile amusement rides. The Commissioner of Licensing and Regulation would appoint a mobile amusement ride advisory board which would consist of six members. Board members would not receive compensation, but they would be entitled to reimbursement for travel expenses. The Commissioner would establish reasonable and necessary annual registration and inspection fees for mobile amusement rides and establish a fee for registering inspectors, with a renewal fee of not less than $25. The Commissioner also would establish rules to ensure that operators were proficient and trained in the installation, maintenance, transportation, operation, and inspection of mobile amusement rides. All mobile amusement rides would have to register annually with TDLR and pay a $50 annual registration fee, unless the Commissioner by rule increased the fee. Mobile amusement rides would have to be inspected at least once every 180 days and file an inspection report with a $25 fee, unless the Commissioner by rule increased the fee. All fees collected under the new chapter would be deposited to the credit of the newly created General Revenue Account-Mobile Amusement Ride Regulation, which could only be used to administer and enforce the new chapter. The bill would also amend the Occupation Code, Chapter 2151 for Amusement Park Rides, which would become the counterpart of Mobile Amusement Rides. The transfer of the regulation of mobile amusement rides to the Commissioner of Licensing and Regulation from TDI would take place January 1, 2002. The bill has various effective dates but the earliest is September 1, 2001. Methodology It is estimated that TDLR would need five FTEs to implement the provisions of the bill. They include two investigators to perform complex investigative work and administrative tasks, a legal assistant to perform complex legal and administrative tasks and two administrative technicians to process applications, reviews, enter insurance certificates, and issue certificates of registration. Currently, TDI collects a $40 annual filing fee for mobile amusement rides. Because the bill requires the transfer of regulatory authority from the Texas Department of Insurance to the Commission of Licensing and Regulation for all mobile amusement rides, there would be a loss to TDI s Fund 36 of approximately $37,400 annually. This is based upon data indicating that there are currently 935 mobile rides that are required to file a $40 annual filing fee. It is assumed that TDLR would adjust its fees to offset any costs associated with 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, 304 Comptroller of Public Accounts, 454 Texas Department of Insurance, 302 Office of the Attorney General LBB Staff: JK, JO, RT, DE