Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1800 by Garcia, Josey (Relating to the licensing and regulation of child swim instruction operators; requiring an occupational license; imposing an administrative penalty; authorizing fees.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1800, As Introduced: a positive impact of $39,720 through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
$38,880
2027
$840
2028
$840
2029
$840
2030
$840
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($422,370)
$461,250
3.0
2027
($306,660)
$307,500
3.0
2028
($306,660)
$307,500
3.0
2029
($306,660)
$307,500
3.0
2030
($306,660)
$307,500
3.0
Fiscal Analysis
The bill would establish a new chapter in the Health and Safety Code relating to the regulation of Child Swim Instruction Operators by the Texas Department of Licensing and Regulation (TDLR), authorizing a fee, and providing a civil penalty. The bill would require TDLR to administer and enforce the provisions of the new "Regulation of Swim Instruction Operators" chapter as established by the bill. TDLR would set administer licenses, receive and investigate complaints, conduct compliance inspections, conduct background checks, assess administrative penalties, and provide education and outreach related to the program.
The bill would take effect on September 1, 2025.
Methodology
Based upon analysis provided by TDLR, this estimate assumes that the agency would require 3.0 additional full-time-equivalent positions (FTEs) to implement the provisions of the bill. TDLR anticipates requiring 0.5 License and Permit Specialist FTEs ($23,000 each year with $6,882 in estimated benefits) to process the applications for the licenses, 0.5 Inspector FTEs ($28,106 each year with $8,409 in estimated benefits) to inspect swim instruction operators, 0.5 Investigator FTEs ($30,135 each year with 9,016 in estimated benefits), 0.5 Attorney FTEs ($51,372 each year with $15,370 in estimated benefits), and 0.5 Legal Assistant FTEs ($32,445 each year with 9,707 in estimated benefits) to serve as enforcement personnel to conduct background checks, investigate, and prosecute cases, and 0.5 Programmer FTE ($50,309 each year with $15,052 in estimated benefits) to provide licensing system remediation and enhancements for the new license type. This estimate assumes an additional annual operating cost of $26,855 related to the new staff positions. Additionally, this estimate assumes a one-time cost of $35,710 in onboarding costs for the new positions and a one-time cost of $80,000 to issue the change order with the licensing database vendor.
Based upon analysis provided by TDLR and the Comptroller of Public Accounts, this estimate assumes a licensing population of 1,500. Since operators would be required to obtain licensing by September 1, 2025, all operators would have to be licensed in the first year. Pursuant to Texas Occupations Code, Section 51.202, TDLR is required to generate sufficient revenues to cover the of agency appropriations and the other direct and indirect costs appropriated to other state agencies. In order to generate revenue sufficient to cover the costs of administering the program each fiscal year, this estimate assumes TDLR would temporarily issue a one-year license in FY2026 for $205 for half the licensing population and a two-year license for $410, to create a staggered effect so that the agency can issue only two-year licenses in later fiscal years and only one half of the licensing population will be renewing each year. As a result, revenue generated will be approximately $461,250 in fiscal year 2026 and $307,500 in other fiscal years.
Technology
The estimate above includes costs of $80,000 for TDLR to issue a change order with their licensing vendor as well as $4,500 annual for case management system licenses for the agency new enforcement staff positions.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 313 Department of Information Resources, 452 Department of Licensing and Regulation