LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 13, 2003

TO:
Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB2793 by Flores (Relating to the regulation of roofing contractors; providing penalties.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2793, As Introduced: an impact of $0 through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



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) from
GENERAL REVENUE FUND
1 		Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Change in Number of State Employees from FY 2003
2004 $116,360 ($116,360) 2.0
2005 $154,137 ($154,137) 3.8
2006 $244,914 ($244,914) 5.5
2007 $244,914 ($244,914) 5.5
2008 $244,914 ($244,914) 5.5

Fiscal Analysis

The bill would require the Department of Licensing and Regulation to license roofing contractors and provides for criminal and administrative penalties. It would authorize rule making and a six member advisory board. It would also require the agency to provide examinations for each class of license, verify insurance requirements are met, recognize or approve continuing education classes required for renewal, provide an on-line directory of licensees, and investigate consumer complaints. The bill would authorize the agency to enter into contracts with other agencies to enforce the law and rules.

 

Applicants who have been certified by a trade association recognized by the agency could be grandfathered into licensure without examination if they apply by September 1, 2004, and applicants who have not been certified by a trade association but have been working in the industry for the past five years would be licensed upon application, but must pass the appropriate exam(s) by September 1, 2005 to keep the license.

 

The bill would take effect September 1, 2003.

Methodology

.The Department of Licensing and Regulation anticipates a regulated population of about 6,000 individuals, with approximately 5,400 renewals and 600 new licensees each year. The agency would require $63,360, along with 1.5 Administrative Technician II FTEs and 0.5 Accountant II FTEs, each year to process the additional license population.

 

The agency anticipates that complaints would be received starting in fiscal year 2005 when the sections of the bill relating to standards and complaints take effect. The agency assumes there would be 300 complaints filed in fiscal year 2005 and 600 filed in each year thereafter. The agency assumes that 5 percent of complaints received would generate a hearing. In fiscal year 2005 the agency anticipates 15 complaints and in each year thereafter the agency anticipates 30 complaints. The agency would require $90,777, along with 0.5 Investigator IV FTE, 0.25 Administrative Technician III FTE, 0.5 Legal Assistant III FTE, and 0.5 Attorney IV FTE in fiscal year 2005; and $181,554, along with 1 Investigator IV FTE, 0.5 Administrative Technician III FTE, 1 Legal Assistant III FTE, and 1 Attorney IV FTE in each year thereafter to process the additional complaints.

 

The agency would be required to develop two exams and translate each into Spanish for a total cost of $53,000 in FY 2004.

 

It is anticipated that all costs associated with the bill would be offset by increased fee generation from the new licensees.

Technology

The agency would require additional funding for computers and related equipment for the additional FTEs.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
452 Department of Licensing and Regulation
LBB Staff:
JK, JRO, RT, RB, KG