| TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1754 by Davis, Yvonne (Relating to a preconstruction termite treatment fee program.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $0 |
| 2005 | $0 |
| 2006 | $0 |
| 2007 | $0 |
| 2008 | $0 |
| Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2003 |
|---|---|---|---|
| 2004 | $978,092 | ($978,092) | 21.0 |
| 2005 | $827,892 | ($827,892) | 21.0 |
| 2006 | $827,892 | ($827,892) | 21.0 |
| 2007 | $827,892 | ($827,892) | 21.0 |
| 2008 | $827,892 | ($827,892) | 21.0 |
The bill would amend the Occupations Code to require the Structural Pest Control Board to create a fee of not less than $10 nor more than $20 for each initial building construction treated by a business licensed by the Board. Revenue from the fee would be deposited into the general revenue fund. The bill would take effect September 1, 2003.
It is estimated that 55,832 initial building construction sites would be charged the new fee. The number of building construction sites would increase five percent in fiscal year 2006 based on expected increases in the building industry and would continue to increase five percent in subsequent years.
The Structural Pest Control Board estimates it would incur a total cost of $978,092 in fiscal year 2004 and $827,892 in fiscal year 2005. The agency estimates the increased workload from implementing the bill would require 21 additional FTEs in each year as well as travel, equipment, training, and professional costs associated with the additonal staff.
It is assumed the agency would set fees in an amount to offset any costs associated with implementation of the bill.
| Source Agencies: | 472 Structural Pest Control Board
|
| LBB Staff: | JK, CL, JRO, RT, JW
|