| TO: | Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1413 by Bailey (Relating to the regulation of fire protection sprinkler technicians.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | ($237,454) |
| 2011 | $0 |
| 2012 | ($243,454) |
| Fiscal Year | Probable Revenue Gain from DEPT INS OPERATING ACCT 36 |
Probable (Cost) from DEPT INS OPERATING ACCT 36 |
Probable Revenue Gain from INSURANCE MAINT TAX FEES 8042 |
Probable (Cost) from INSURANCE MAINT TAX FEES 8042 |
|---|---|---|---|---|
| 2008 | $240,000 | ($240,000) | $79,795 | ($79,795) |
| 2009 | $3,000 | ($3,000) | $242,546 | ($242,546) |
| 2010 | $483,000 | ($245,546) | $0 | $0 |
| 2011 | $9,000 | ($9,000) | $236,546 | ($236,546) |
| 2012 | $489,000 | ($245,546) | $0 | $0 |
| Fiscal Year | Probable Revenue (Loss) from INSURANCE MAINT TAX FEES 8042 |
Change in Number of State Employees from FY 2007 |
|---|---|---|
| 2008 | $0 | 6.5 |
| 2009 | $0 | 5.5 |
| 2010 | ($237,454) | 5.5 |
| 2011 | $0 | 5.5 |
| 2012 | ($243,454) | 5.5 |
The bill would amend the Insurance Code to add fire protection sprinkler technicians to the licensing program for fire sprinkler system contractors. The Texas Department of Insurance (TDI) and the State Fire Marshal's Office would be required to administer this licensing function, create a state examination for the new license, and establish a continuing education program. The bill would set the application and examination fee for the license.
The bill would take effect September 1, 2007.
Based on the analysis of TDI, it is assumed there would be costs associated with implementing the provisions of the bill. Costs would include salaries for 6.5 FTEs, one Investigator III, five Administrative Assistants III, and 0.5 Administrative Assistant II, in the amount of $185,500 in fiscal year 2008 with associated benefit costs of $52,478 and salaries for 5.5 FTEs, one Investigator III, four Administrative Assistants III, and 0.5 Administrative Assistant II, in the amount of $157,554 in subsequent fiscal years with associated benefit costs of $44,572. Other costs and operating expenses, including travel, training, and telephone costs are assumed to be $43,420 each fiscal year. It is assumed there would be a one-time cost in fiscal year 2008 for equipment in the amount of $38,397.
Based on the analysis of TDI, it is assumed the new license fee would be $30 and the renewal license fee would be $60 ($30 annual fee for the two-year license). It is also assumed 8,000 new licenses would be issued in fiscal year 2008, 100 new licenses would be issued in fiscal year 2009, 8,000 renewal and 100 new licenses would be issued in fiscal year 2010, 100 new licenses would be issued in fiscal year 2011, and 8,100 renewal and 100 new licenses would be issued in fiscal year 2012.
Based on the analysis of TDI, it is assumed the revenue from this fee would be deposited into General Revenue - Dedicated Fund 36. Since TDI is required to generated revenues equivalent to its costs of operation under current law, it is also assumed that costs would be paid out of General Revenue - Dedicated Fund 36 to the extent that the additional revenue generated under the bill would cover those costs. This analysis assumes that costs incurred above the amount of revenue generated would be paid out of fund balances or maintenance tax revenues in General Revenue Fund 8042 - Insurance Maintenance Tax and Insurance Department Fees and that revenues generated in excess of costs would be credited toward fund balances.
| Source Agencies: | 454 Department of Insurance
|
| LBB Staff: | JOB, JRO, MW, SK
|