LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
April 15, 2015

TO:
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
LBB Staff:
UP, JSm, CL, NV