Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3848 by Hernandez (Relating to the electronic submission of inspection reports and filing fees for the inspection of elevators, escalators, and related equipment.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB3848, As Engrossed: a negative impact of ($487,770) 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
($243,885)
2027
($243,885)
2028
($243,885)
2029
($243,885)
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($705,300)
$461,415
(6.5)
2027
($705,300)
$461,415
(6.5)
2028
($705,300)
$461,415
(6.5)
2029
($705,300)
$461,415
(6.5)
2030
$0
$0
0.0
Fiscal Analysis
The bill would amend the Texas Health and Safety Code to require the Texas Department of Licensing and Regulation (TDLR) to adopt rules requiring that elevator inspections of an elevator in a building of not more than four stories occur at least every five years. The bill would authorize TDLR to issue emergency orders for the closure of elevators if an inspection has not been performed in more than six years.
Additionally, the bill would amend the Health and Safety Code to allow the determination of timely filings to include the time of electronic submission to TDLR.
The bill would take effect September 1, 2025.
Methodology
Based upon analysis of TDLR, this estimate assumes that there are 35,265 elevators in buildings four stories or less that would no longer require yearly inspections and would instead be inspected every five years. The certificate application for compliance has a fee of $20, resulting in no fees being collected from the certification of these elevators in fiscal years 2026 through 2029. This would result in a revenue loss of $705,300 each year.
This estimate assumes that as a result of the decreased workload, TDLR would require less staffing resources to fulfill all duties and responsibilities. The reduced workload would be represented by a reduction of 6.5 full-time equivalent positions and a decrease in $461,415 in General Revenue Fund agency appropriations. However, this estimate assumes that resources would be necessary in fiscal year 2030 for the agency to hire temporary staff to handle the increased workload of 35,265 additional certificate applications.
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