Honorable Helen Giddings, Chair, House Committee on Business & Industry
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB901 by Zedler (Relating to a list of consumers who object to receiving by mail certain solicitations; providing a civil penalty.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB901, As Introduced: an impact of $0 through the biennium ending August 31, 2009.
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
2008
$0
2009
$0
2010
($213,428)
2011
($188,428)
2012
($203,428)
Fiscal Year
Probable Savings/(Cost) from GENERAL REVENUE FUND 1
Probable Revenue Gain from APPROPRIATED RECEIPTS 666
Probable Savings/(Cost) from APPROPRIATED RECEIPTS 666
Change in Number of State Employees from FY 2007
2008
$0
$850,000
($652,553)
15.0
2009
$0
$475,000
($448,428)
10.0
2010
($213,428)
$235,000
($235,000)
10.0
2011
($188,428)
$260,000
($260,000)
10.0
2012
($203,428)
$245,000
($245,000)
10.0
Fiscal Analysis
The bill would require the Office of the Attorney General (OAG) to create and maintain a database for individuals who object to receiving certain types of unsolicited mail. In addition, the OAG would develop and make available a form and a toll-free telephone number for consumers to apply for inclusion on the list.
The OAG may charge a fee not to exceed $3 to an individual for inclusion on the list for up to three years, after which the $3 fee would be charged for an additional three years. Furthermore, the bill would provide for dissemination of the list to businesses and setting a fee not to exceed $75 for each distribution of the list. The OAG would be required to adopt rules to administer the provisions of the bill.
Methodology
For purposes of analysis, it is assumed that approximately 250,000 individuals would request inclusion on the database. As a result, it is assumed that approximately 10 FTEs would be required in the first year to handle enrollment calls at a cost of $320,470. In addition, related costs totaling $80,780 would be required for items such as furniture, computers, telephones, and other consumables and approximately $7,000.
It is anticipated that enrollment calls would decrease after the first year and as a result it is assumed that the agency would need only 5 FTEs to handle those reduced number of enrollment calls. As a result, it is assumed that the 5 FTEs required in the remaining years would cost approximately $160,235. In addition, related costs totaling $40,390 would be required for items such as furniture, computers, telephones, and other consumables and approximately $3,500.
The bill would also require the OAG to accept enrollment fees and charges to businesses for dissemination of lists on individuals objecting to unsolicited mail. As a result, it is assumed that an additional 3 FTEs would be required to handle the volume of revenue transactions totaling approximately $137,579 per year. In addition, related costs totaling $24,234 for the first year would be required for items such as furniture, computers, telephones, and other consumables and approximately $2,100 for each remaining year for reoccurring consumables.
It is also assumed that mail volume would increase as a result of individuals mailing in forms to be included in the database. For purposes of analysis, it is assumed that approximately 38 percent of projected enrollment would be via mail, resulting in approximately 88,000 additional pieces of mail processed. As a result, an additional 2 FTEs would be required to handle the increased volume of mail at a cost of approximately $62,808 per year. In addition, related costs totaling $16,156 for the first year would be required for items such as furniture, computers, telephones, and other consumables and approximately $1,426 for each remaining year for reoccurring consumables.
The bill would also provide for a $3 fee to be charged to an individual for inclusion on the list. For purposes of this analysis, it is assumed that approximately $750,000 would be collected in the first year. It is also assumed that the number of participants would decrease in the second year by approximately 50 percent, resulting in approximately $375,000 collected by the agency. Furthermore, it is anticipated that fees collected by the agency would further decrease resulting in approximately $135,000 for fiscal year 2011. A slight increase in revenue from renewals would result in approximately $160,000 in fiscal year 2012 and $145,000 in fiscal year 2013. In addition, the agency would disseminate the list to businesses and set a fee not to exceed $75 for each individual distribution. It is assumed that approximately $100,000 would be generated by collection of this fee.
Technology
No significant fiscal impact is anticipated for technology.
Local Government Impact
No fiscal implication to units of local government is anticipated.