| TO: | Honorable Carlos Uresti, Chair, House Committee on Government Reform |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB1842 by Delisi (Relating to the licensing and regulation of massage therapists; providing a penalty.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | $48,881 |
| 2007 | ($26,878) |
| 2008 | ($15,502) |
| 2009 | ($4,150) |
| 2010 | $11,966 |
| Fiscal Year | Probable Revenue Gain from GENERAL REVENUE FUND 1 |
Probable (Cost) from GENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2005 |
|---|---|---|---|
| 2006 | $103,956 | ($55,075) | 0.6 |
| 2007 | $45,698 | ($72,576) | 0.8 |
| 2008 | $57,074 | ($72,576) | 0.8 |
| 2009 | $68,426 | ($72,576) | 0.8 |
| 2010 | $84,542 | ($72,576) | 0.8 |
The bill would amend Chapter 455 of the Occupations Code to create a new level of credentialing, licensed massage therapist, in relation to the regulation of massage therapists. Currently, one level of credentials, registered massage therapist, is authorized under this chapter. In addition to meeting educational requirements specified in the bill, applicants for the license credential would be required to pass a state approved examination. Massage therapists are regulated under the Department of State Health Services (DSHS).
The bill would repeal Section 455.102 of the Occupations Code, authorizing DSHS to employ examiners or to compensate examiners for administering the practical portion of the state examination. DSHS indicates this provision of the bill would have no fiscal impact.
It is assumed registration and license application and renewal fees would be set by the department at amounts necessary to generate revenue to cover the costs of implementing the provisions of the bill. The following assumptions were used to calculate revenue: new registration fee=$106 for 2 years, renewal registration fee=$80 for 2 years, new license fee=$120 for 2 years, renewal license fee=$90 for two years. The revenue gain estimate assumes, based on input from DSHS, that approximately 6 percent of the current population of registered massage therapists would pay both the registration renewal fee and the new license fee in fiscal year 2006. DSHS assumes this proportion of the population are eligible for the license and would choose to receive the license credential immediately, rather than waiting 2 years until their next renewal period. DSHS indicates that it is expected that the proportion of individuals seeking licensure rather than registration will increase, becoming 50% of new applicants by fiscal year 2010. The revenue gain estimate compares registration fees (under current law) for new and renewing massage therapists to anticipated registration and license fees (under the provisions of the bill) for new and renewing massage therapists. The biennial revenue gain is estimated to be $150,000.
It is assumed 0.75 FTE will be needed to implement the provisions of the bill. The cost estimate includes salary, benefits, rent, and other operating costs associated with adding 0.75 FTE (Program Specialist II). Costs are included at 75 percent for the first year (2006).
DSHS indicates modifications to existing licensing software would be necessary. The cost estimate includes $20,000 for 100 hours of programming.
| Source Agencies: | 302 Office of the Attorney General, 529 Health and Human Services Commission, 537 Department of State Health Services
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| LBB Staff: | JOB, LB, KF, BW
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