LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 1, 2013 TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1666 by Carona (Relating to the regulation of amusement rides.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1666, As Introduced: an impact of $0 through the biennium ending August 31, 2015. 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, 83RD LEGISLATIVE REGULAR SESSION
April 1, 2013
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1666 by Carona (Relating to the regulation of amusement rides.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1666 by Carona (Relating to the regulation of amusement rides.), As Introduced
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Honorable John Carona, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1666 by Carona (Relating to the regulation of amusement rides.), As Introduced
SB1666 by Carona (Relating to the regulation of amusement rides.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1666, As Introduced: an impact of $0 through the biennium ending August 31, 2015. 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 SB1666, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
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 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromDept Ins Operating Acct36 Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGeneral Revenue Fund1 2014 ($141,558) $141,558 $141,558 ($141,558) 2015 ($141,558) $141,558 $141,558 ($141,558) 2016 ($141,558) $141,558 $141,558 ($141,558) 2017 ($141,558) $141,558 $141,558 ($141,558) 2018 ($141,558) $141,558 $141,558 ($141,558)
Fiscal Year Probable Revenue Gain/(Loss) fromDept Ins Operating Acct36 Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGeneral Revenue Fund1 2014 ($141,558) $141,558 $141,558 ($141,558) 2015 ($141,558) $141,558 $141,558 ($141,558) 2016 ($141,558) $141,558 $141,558 ($141,558) 2017 ($141,558) $141,558 $141,558 ($141,558) 2018 ($141,558) $141,558 $141,558 ($141,558)
2014 ($141,558) $141,558 $141,558 ($141,558)
2015 ($141,558) $141,558 $141,558 ($141,558)
2016 ($141,558) $141,558 $141,558 ($141,558)
2017 ($141,558) $141,558 $141,558 ($141,558)
2018 ($141,558) $141,558 $141,558 ($141,558)
Fiscal Analysis
The bill would amend the Occupations Code relating to the regulation of amusement rides. The bill would transfer the administration and regulation of the Amusement Ride Safety Inspection Act from the Texas Department of Insurance (TDI) to the Department of Licensing and Regulation (TDLR). The bill would also remove the provision limiting the fee assessed on amusement ride operators to a maximum of $40 per year for each amusement ride inspected and repeal provisions that provide for criminal penalties. The bill would take effect immediately upon receiving a two-thirds majority vote in both houses; otherwise, it would take effect on September 1, 2013.
The bill would amend the Occupations Code relating to the regulation of amusement rides. The bill would transfer the administration and regulation of the Amusement Ride Safety Inspection Act from the Texas Department of Insurance (TDI) to the Department of Licensing and Regulation (TDLR). The bill would also remove the provision limiting the fee assessed on amusement ride operators to a maximum of $40 per year for each amusement ride inspected and repeal provisions that provide for criminal penalties.
The bill would take effect immediately upon receiving a two-thirds majority vote in both houses; otherwise, it would take effect on September 1, 2013.
Methodology
Based on information provided by TDLR and TDI, it is assumed that $141,558 in fiscal years 2014-18 and 3.0 Full-time Equivalents (FTE) would be necessary to license, regulate and enforce the provisions of the bill. These amounts include salary and benefit costs, and other operating expenses for the administration and regulation of the Amusement Ride Safety Inspection Act. The licensing and enforcement fees that would be transferred from TDI to TDLR under the provisions of the bill would be collected by TDLR and deposited to the credit of the General Revenue Fund instead of being collected by TDI and deposited to the credit of the General Revenue-Dedicated Texas Department of Insurance Fund 36. Since TDLR is statutorily required to cover the cost of its operations with fee generated revenue, it is assumed that the agency would adjust fees as necessary to cover all costs associated with implementing the provisions of the bill. Since General Revenue-Dedicated Texas Department of Insurance Fund 36 is a self-leveling account, this analysis also assumes that any revenue losses resulting from the implementation of the bill would be offset by an equal adjustment to the maintenance tax or other fees accordingly in the following year.
Based on information provided by TDLR and TDI, it is assumed that $141,558 in fiscal years 2014-18 and 3.0 Full-time Equivalents (FTE) would be necessary to license, regulate and enforce the provisions of the bill. These amounts include salary and benefit costs, and other operating expenses for the administration and regulation of the Amusement Ride Safety Inspection Act.
The licensing and enforcement fees that would be transferred from TDI to TDLR under the provisions of the bill would be collected by TDLR and deposited to the credit of the General Revenue Fund instead of being collected by TDI and deposited to the credit of the General Revenue-Dedicated Texas Department of Insurance Fund 36. Since TDLR is statutorily required to cover the cost of its operations with fee generated revenue, it is assumed that the agency would adjust fees as necessary to cover all costs associated with implementing the provisions of the bill. Since General Revenue-Dedicated Texas Department of Insurance Fund 36 is a self-leveling account, this analysis also assumes that any revenue losses resulting from the implementation of the bill would be offset by an equal adjustment to the maintenance tax or other fees accordingly in the following year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation, 454 Department of Insurance
302 Office of the Attorney General, 304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation, 454 Department of Insurance
LBB Staff: UP, RB, MW, ER, KKR
UP, RB, MW, ER, KKR