LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 25, 2011 TO: Honorable David Dewhurst, Lieutenant Governor, Senate FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1170 by Carona (Relating to the regulation of barbers and cosmetologists. ), As Passed 2nd House Estimated Two-year Net Impact to General Revenue Related Funds for SB1170, As Passed 2nd House: a positive impact of $56,422 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 25, 2011
TO: Honorable David Dewhurst, Lieutenant Governor, Senate FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1170 by Carona (Relating to the regulation of barbers and cosmetologists. ), As Passed 2nd House
TO: Honorable David Dewhurst, Lieutenant Governor, Senate
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB1170 by Carona (Relating to the regulation of barbers and cosmetologists. ), As Passed 2nd House
Honorable David Dewhurst, Lieutenant Governor, Senate
Honorable David Dewhurst, Lieutenant Governor, Senate
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB1170 by Carona (Relating to the regulation of barbers and cosmetologists. ), As Passed 2nd House
SB1170 by Carona (Relating to the regulation of barbers and cosmetologists. ), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for SB1170, As Passed 2nd House: a positive impact of $56,422 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1170, As Passed 2nd House: a positive impact of $56,422 through the biennium ending August 31, 2013.
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 2012 $0 2013 $56,422 2014 $11,500 2015 $27,922 2016 $11,500
2012 $0
2013 $56,422
2014 $11,500
2015 $27,922
2016 $11,500
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2012 $0 2013 $56,422 2014 $11,500 2015 $27,922 2016 $11,500
Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2012 $0 2013 $56,422 2014 $11,500 2015 $27,922 2016 $11,500
2012 $0
2013 $56,422
2014 $11,500
2015 $27,922
2016 $11,500
Fiscal Analysis
The bill would amend the Occupations Code to allow for Cosmetology Operators to hold a Barber license and a Barber to hold a Cosmetology Operator license resulting in an increase in the number of Class A Barbers and Cosmetology Operators. The bill also adds the shampoo apprentice permit, reduces requirements on barber and cosmetology schools, revises the instructor to student ratio and simplifies the requirements for obtaining a Barber Instructor License. The bill would repeal the following sections of the Occupations Code: Sections 1601.001(a)(5), 1601.354, 1601.355; and 1602.403(b). The bill would take effect September 1, 2011.
The bill would amend the Occupations Code to allow for Cosmetology Operators to hold a Barber license and a Barber to hold a Cosmetology Operator license resulting in an increase in the number of Class A Barbers and Cosmetology Operators. The bill also adds the shampoo apprentice permit, reduces requirements on barber and cosmetology schools, revises the instructor to student ratio and simplifies the requirements for obtaining a Barber Instructor License.
The bill would repeal the following sections of the Occupations Code: Sections 1601.001(a)(5), 1601.354, 1601.355; and 1602.403(b).
The bill would take effect September 1, 2011.
Methodology
Information and estimates provided by the Department of Licensing and Regulation were used as the basis of developing this analysis. For the purpose of this analysis it is assumed that in fiscal year 2012 no new barber schools, cosmetology schools, dual licensure or shampoo apprentice permits would occur. In fiscal year 2013, it is assumed that 5 new Barber Schools and 50 new Cosmetology Schools would open and that 1,100 Cosmetology Operators and 134 Barbers would obtain dual licensure which would result in an anticipated revenue gain of $56,422. In fiscal year 2014, it is assumed that only the Barber and Cosmetology schools would have to renew their licenses resulting in an anticipated revenue gain of $11,500. In fiscal year 2015, it is assumed that the Barber schools, Cosmetology schools, dual licensure and shampoo apprentices would be required to renew their licenses resulting in a revenue gain of $27,922. In fiscal year 2016, only the Barber and Cosmetology schools will have to renew their licenses resulting in a revenue gain of $11,500. Based on information provided by the Department of Licensing and Regulation, it is assumed that the agency would assess fees in accordance with existing fees for Barbers and Cosmetologists as well as for schools. The new cosmetology fees would also be within the realm of fees charged to Cosmetologists. Based on the analysis of the Department of Licensing and Regulation, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Information and estimates provided by the Department of Licensing and Regulation were used as the basis of developing this analysis. For the purpose of this analysis it is assumed that in fiscal year 2012 no new barber schools, cosmetology schools, dual licensure or shampoo apprentice permits would occur. In fiscal year 2013, it is assumed that 5 new Barber Schools and 50 new Cosmetology Schools would open and that 1,100 Cosmetology Operators and 134 Barbers would obtain dual licensure which would result in an anticipated revenue gain of $56,422. In fiscal year 2014, it is assumed that only the Barber and Cosmetology schools would have to renew their licenses resulting in an anticipated revenue gain of $11,500. In fiscal year 2015, it is assumed that the Barber schools, Cosmetology schools, dual licensure and shampoo apprentices would be required to renew their licenses resulting in a revenue gain of $27,922. In fiscal year 2016, only the Barber and Cosmetology schools will have to renew their licenses resulting in a revenue gain of $11,500.
Based on information provided by the Department of Licensing and Regulation, it is assumed that the agency would assess fees in accordance with existing fees for Barbers and Cosmetologists as well as for schools. The new cosmetology fees would also be within the realm of fees charged to Cosmetologists.
Based on the analysis of the Department of Licensing and Regulation, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 452 Department of Licensing and Regulation, 304 Comptroller of Public Accounts
452 Department of Licensing and Regulation, 304 Comptroller of Public Accounts
LBB Staff: JOB, AG, MW, CWS
JOB, AG, MW, CWS