LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 16, 2021 TO: Honorable Senfronia Thompson, Chair, House Committee on Licensing & Administrative Procedures FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1650 by Schaefer (Relating to the regulation of plumbing, including the requirements to obtain a tradesman plumber-limited license.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1650, As Introduced : a negative impact of ($78,800) through the biennium ending August 31, 2023. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2022($8,300)2023($70,500)2024($87,000)2025($93,600)2026($100,200)All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable (Cost) fromGeneral Revenue Fund12022($3,300)($5,000)2023($70,500)$02024($87,000)$02025($93,600)$02026($100,200)$0 Fiscal AnalysisThe bill would amend the Occupations Code to create a Career and Technology Education Program for Tradesman Plumber-Limited License to be developed by the Texas State Board of Plumbing Examiners (TSBPE) and offered through career and technology education (CTE) programs throughout the state. The bill would authorize TSBPE to issue a "Tradesman plumber-limited license holder" license to an individual that successfully completed the CTE program created by this legislation. The bill would exempt individuals enrolled in this CTE from registering as a plumber's apprentice with the TSBPE or paying any registration fee while enrolled in the program. The bill would require that an instructor for this CTE program be a licensed master plumber, journeyman plumber, or plumbing inspector and exempts these instructors from paying fees to renew the required license.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 16, 2021
TO: Honorable Senfronia Thompson, Chair, House Committee on Licensing & Administrative Procedures FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1650 by Schaefer (Relating to the regulation of plumbing, including the requirements to obtain a tradesman plumber-limited license.), As Introduced
TO: Honorable Senfronia Thompson, Chair, House Committee on Licensing & Administrative Procedures
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1650 by Schaefer (Relating to the regulation of plumbing, including the requirements to obtain a tradesman plumber-limited license.), As Introduced
Honorable Senfronia Thompson, Chair, House Committee on Licensing & Administrative Procedures
Honorable Senfronia Thompson, Chair, House Committee on Licensing & Administrative Procedures
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1650 by Schaefer (Relating to the regulation of plumbing, including the requirements to obtain a tradesman plumber-limited license.), As Introduced
HB1650 by Schaefer (Relating to the regulation of plumbing, including the requirements to obtain a tradesman plumber-limited license.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1650, As Introduced : a negative impact of ($78,800) through the biennium ending August 31, 2023.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1650, As Introduced : a negative impact of ($78,800) through the biennium ending August 31, 2023.
General Revenue-Related Funds, Five- Year Impact:
2022 ($8,300)
2023 ($70,500)
2024 ($87,000)
2025 ($93,600)
2026 ($100,200)
All Funds, Five-Year Impact:
2022 ($3,300) ($5,000)
2023 ($70,500) $0
2024 ($87,000) $0
2025 ($93,600) $0
2026 ($100,200) $0
Fiscal Analysis
The bill would amend the Occupations Code to create a Career and Technology Education Program for Tradesman Plumber-Limited License to be developed by the Texas State Board of Plumbing Examiners (TSBPE) and offered through career and technology education (CTE) programs throughout the state. The bill would authorize TSBPE to issue a "Tradesman plumber-limited license holder" license to an individual that successfully completed the CTE program created by this legislation. The bill would exempt individuals enrolled in this CTE from registering as a plumber's apprentice with the TSBPE or paying any registration fee while enrolled in the program. The bill would require that an instructor for this CTE program be a licensed master plumber, journeyman plumber, or plumbing inspector and exempts these instructors from paying fees to renew the required license.
Methodology
According to TSBPE, there are approximately 3,240 high schools in Texas and the agency assumes 1,080 may choose to teach a coherent sequence of courses in a CTE program for individuals to become a Tradesman plumber. Based on information provided by the agency, this analysis assumes 100 students would enroll in the CTE program in fiscal year 2022, 500 in fiscal year 2023, 1,000 in fiscal year 2024, 1,200 in fiscal year 2025, and 1,400 in fiscal year 2026. TSBPE reports that it would not collect $33 per student due to the plumber's apprentice registration fee exemption. This would result in a revenue loss of $3,300 in fiscal year 2022, $16,500 in fiscal year 2023, $33,000 in fiscal year 2024, $39,600 in fiscal year 2025, and $46,200 in fiscal year 2026 to the General Revenue Fund.Based on information provided by the agency, this analysis assumes 1,000 instructors would teach in these CTE programs across the State and would not pay a license renewal fee beginning in fiscal year 2023. A master plumber renewal fee is $72; a journeyman plumber renewal fee is $38; and an Inspector license renewal fee is $53. Using an average of those three license renewal fees, $54, this would result in a revenue loss of $54,000 per fiscal year beginning in fiscal year 2023 to the General Revenue Fund.According to TSBPE, the cost to develop the CTE course and make minor data collection modifications to the agency's regulatory database would be approximately $5,000 to the General Revenue Fund in fiscal year 2022.
Based on information provided by the agency, this analysis assumes 1,000 instructors would teach in these CTE programs across the State and would not pay a license renewal fee beginning in fiscal year 2023. A master plumber renewal fee is $72; a journeyman plumber renewal fee is $38; and an Inspector license renewal fee is $53. Using an average of those three license renewal fees, $54, this would result in a revenue loss of $54,000 per fiscal year beginning in fiscal year 2023 to the General Revenue Fund.
According to TSBPE, the cost to develop the CTE course and make minor data collection modifications to the agency's regulatory database would be approximately $5,000 to the General Revenue Fund in fiscal year 2022.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 456 Board of Plumbing Examiners
304 Comptroller of Public Accounts, 456 Board of Plumbing Examiners
LBB Staff: b > td > JMc, SZ, MB, DFR
JMc, SZ, MB, DFR