LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION
 
May 13, 2019

TO:
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
HB2847 by Goldman (Relating to the licensing and regulation of certain occupations, activities, and agreements; providing a civil penalty; authorizing fees; requiring an occupational registration and an occupational license.), Committee Report 2nd House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB2847, Committee Report 2nd House, Substituted: a negative impact of ($152,800) through the biennium ending August 31, 2021.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The Texas Department of Licensing and Regulation and any other state agency subject to this Act are required to implement a provision of this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the agencies may, but are not required to, implement a provision of this Act using other appropriations available for that purpose.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020 ($76,400)
2021 ($76,400)
2022 ($76,400)
2023 ($76,400)
2024 ($76,400)




Fiscal Year Probable Revenue Gain/(Loss) from
General Revenue Fund
1
Probable (Cost) from
General Revenue Fund
1
2020 ($11,400) ($65,000)
2021 ($76,400) $0
2022 ($76,400) $0
2023 ($76,400) $0
2024 ($76,400) $0

Fiscal Analysis

The bill would amend the Business & Commerce, Education, Health & Safety, and Occupations Codes relating to the licensing and regulation of certain occupations, activities, and agreements; providing a civil penalty; authorizing fees; requiring an occupational registration and an occupational license.
 
The bill states the Texas Department of Licensing and Regulation (TDLR) and any other state agency subject to the bill would be required to implement the provisions of the bill only if the Legislature appropriates money specifically for that purpose. The bill would take effect on September 1, 2019.

Methodology

Driver Education
Based on information provided by TDLR, this analysis assumes the bill would result in a loss of fee revenue of approximately $15,000 per fiscal year, beginning in fiscal year 2020, due to the removal of the requirement of approval by TDLR for alternative methods of instruction for driver education courses. This analysis assumes the bill's requirement for one driver instructor license and three certifications will take the place of the current instructor licenses with no fiscal impact to the state. The bill would not have an effect on TDLR's workload in this program and no change in full-time-equivalent (FTE) positions is necessary to implement the provisions of the bill related to the driver education program.
 
Pharmacists
The Prescription Monitoring Program (PMP) does not currently have the capacity to allow practitioners access to the prescribing activity of an individual to whom they have delegated prescriptive authority. According to information provided by the State Board of Pharmacy, the vendor estimates that modifying the database to allow this access would have a one-time cost of approximately $65,000 in fiscal year 2020.
 
Seven regulatory agencies whose licensees have prescriptive authority (Texas Medical Board, Optometry Board, Texas State Board of Dental Examiners, Texas Board of Nursing, Board of Veterinary Medical Examiners, Texas Department of Licensing and Regulation (TDLR), and Texas State Board of Pharmacy) share PMP costs. This analysis assumes the participating agencies will increase fees or use available revenue to fund the cost of implementing the provisions of the bill.
 
Repeal Orthotic and Prosthetic Technicians
TDLR issues very few orthotic and prosthetic technician licenses. The deregulation of this program would result in a revenue loss of approximately $400 per fiscal year to General Revenue beginning in fiscal year 2020.
 
Repeal Used Automotive Parts Regulation
Based on information provided by TDLR, this analysis assumes the repeal of the used automotive parts employee license would result in a revenue loss of approximately $61,000 per fiscal year to the General Revenue Fund beginning in fiscal year 2020. The program currently uses minimal TDLR employee time so no related savings are anticipated from removing this program.
 
Based on information provided by the Office of the Attorney General, Office of Court Administration, Department of Motor Vehicles, TDLR and the Board of Architectural Examiners, this analysis assumes all other provisions of the bill can be implemented with no significant fiscal impact to the state. This analysis assumes that any increased cost to TDLR, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee-generated revenue.

Technology

Technology costs are estimated to be $65,000 in the first year for modifying the PMP database and no cost in subsequent fiscal years.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation, 459 Board of Architectural Examiners, 515 Board of Pharmacy, 608 Department of Motor Vehicles
LBB Staff:
WP, CLo, SGr, DFR