Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2186 by Hernandez (relating to the regulation of elevator mechanics, elevator apprentices, and contractors; requiring an occupational registration.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB2186, Committee Report 1st House, Substituted: an impact of $0 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
$0
2027
$0
2028
$0
2029
$0
2030
$0
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
$0
$0
0.0
2027
($112,674)
$112,674
1.0
2028
($200,956)
$200,956
2.0
2029
($200,956)
$200,956
2.0
2030
($200,956)
$200,956
2.0
Fiscal Analysis
The bill would amend the Health and Safety Code to include elevator mechanics and elevator apprentices as professions that must be registered with the Texas Department of Licensing and Regulation (TDLR). Individuals would be prevented from doing any work on elevators, escalators, or related equipment until they are registered with TDLR. The bill would set requirements for registration and authorizes TDLR to adopt rules on the issuance of the registrations. The bill states that an individual is not required to be registered with TDLR as an elevator mechanic or apprentice until November 1, 2027. The bill would allow individuals who have engaged in the business for at least 5 years to obtain a license under this chapter if they submit an application before September 1, 2027.
The bill would take effect September 1, 2025.
Methodology
Based upon analysis provided by TDLR, this estimate assumes that the agency will require 1.0 additional Programmer ($100,618 each year with $30,104 in estimated benefits) full-time equivalent position (FTE) to make the necessary changes to the licensing system and 1.0 additional License and Permit Specialist FTE ($46,000 each year with $13,763 in estimated benefits) to review and process the additional applications. This estimate assumes an additional $10,470 in annual operating expenses related to the additional staff and an additional $12,196 in fiscal year 2027 for one-time costs related to the onboarding of the new staff. As individuals would not be required to register until November 1, 2027, the agency would not hire these additional staff until halfway through fiscal year 2027, resulting in reduced costs in that fiscal year.
Pursuant to the Texas Occupations Code, Section 51.202, TDLR is required to generate sufficient revenues to cover the cost of agency appropriations and the other direct and indirect costs appropriated to other state agencies. This estimate assumes that the agency would be required to collect fee-generated revenue from the new registrants to cover the costs associated with implementing the bill's provisions. Based upon population projections provided by TDLR and the Comptroller of Public Accounts, the fee for initial and renewed registration would be $70 for elevator mechanics and $42 for elevator apprentices. This estimate assumes that with an estimated participating population of 1,600 elevator mechanics in fiscal year 2026, and that an estimated 2,555 mechanics and 518 apprentices apply in fiscal year 2027 onward, there is sufficient revenue to cover the costs of implementing the provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation