LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 3, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1622 by Barrientos (Relating to the regulation of
amusement rides; providing a criminal penalty.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1622, As Introduced: 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. *
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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:
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*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 *
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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 not to exceed $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 with an inspection fee of $50, 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 would take effect on January 1, 2002.
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