Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1193 by West (Relating to the deregulation of hair braiding.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1193, As Introduced: a negative impact of ($123,000) through the biennium ending August 31, 2017.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
($71,000)
2017
($52,000)
2018
($52,000)
2019
($52,000)
2020
($52,000)
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable (Cost) from General Revenue Fund 1
2016
($52,000)
($19,000)
2017
($52,000)
$0
2018
($52,000)
$0
2019
($52,000)
$0
2020
($52,000)
$0
Fiscal Analysis
The bill would amend the Occupations Code relating to the deregulation of hair braiding.
The bill would deregulate braiding a person's hair, trimming hair extensions only as applicable to the braiding process, and attaching commercial hair only by braiding and without the use of chemicals or adhesives. The bill would require the Department of Licensing and Regulation (TDLR) to issue a refund to a person holding a barber or cosmetology hair braiding certificate, hair braiding instructor license, or hair braiding specialty shop license immediately before the effective date of the bill.
The bill would take effect immediately upon receiving a two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2015.
Methodology
TDLR reports that the licensee population would be reduced by 2,315 Braiders and 130 Braiding shops. Based on analysis by TDLR and the Comptroller of Public Accounts (CPA), this licensee reduction would result in a revenue loss of $52,000 per year in General Revenue. Additionally, the bill would require a refund to license holders, based on a prorated fee amount for the amount of months remaining from the passage of the bill until the month in which the license or certificate was scheduled to expire, which TDLR and the CPA has estimated to be $19,000.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation