LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 18, 2023 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3744 by Goldman (Relating to the regulation of water well drillers and water well pump installers.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB3744, As Engrossed : a positive impact of $158,000 through the biennium ending August 31, 2025. 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 toGeneral Revenue Related Funds2024$314,0002025($156,000)2026$157,0002027($156,000)2028$157,000All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund12024$314,0002025($156,000)2026$157,0002027($156,000)2028$157,000 Fiscal AnalysisThe bill would amend the Occupations Code relating to water well drillers and water well pump installers. The bill would change the duration of these licenses from a one-year term to a two-year term. Additionally the bill would authorize the Texas Department of Licensing and Regulation to prepare and administer the licensing exam of the relevant licensing exams. The bill would take effect September 1, 2023. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 18, 2023 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3744 by Goldman (Relating to the regulation of water well drillers and water well pump installers.), As Engrossed TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3744 by Goldman (Relating to the regulation of water well drillers and water well pump installers.), As Engrossed Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB3744 by Goldman (Relating to the regulation of water well drillers and water well pump installers.), As Engrossed HB3744 by Goldman (Relating to the regulation of water well drillers and water well pump installers.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB3744, As Engrossed : a positive impact of $158,000 through the biennium ending August 31, 2025. 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 HB3744, As Engrossed : a positive impact of $158,000 through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 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: 2024 $314,000 2025 ($156,000) 2026 $157,000 2027 ($156,000) 2028 $157,000 All Funds, Five-Year Impact: 2024 $314,000 2025 ($156,000) 2026 $157,000 2027 ($156,000) 2028 $157,000 Fiscal Analysis The bill would amend the Occupations Code relating to water well drillers and water well pump installers. The bill would change the duration of these licenses from a one-year term to a two-year term. Additionally the bill would authorize the Texas Department of Licensing and Regulation to prepare and administer the licensing exam of the relevant licensing exams. The bill would take effect September 1, 2023. Methodology Based on the analysis of the Comptroller of Public Accounts, this estimate assumes the change in the license terms from one year to two years will result in $314,000 in additional revenue in fiscal year 2024 because 67% of these license holders would pay fees associated with a two-year license instead of a one-year license, and $156,000 in less revenue in fiscal year 2025, because that same 67% would not renew that year. The revenue amount will then on would be $157,000 in additional revenue in subsequent even fiscal years and $156,000 less revenue in odd fiscal years.Based on the analysis of the Texas Department of Licensing and Regulation, 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: b > td > 304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation 304 Comptroller of Public Accounts, 452 Department of Licensing and Regulation LBB Staff: b > td > JMc, SZ, KDw, GDZ, BFa JMc, SZ, KDw, GDZ, BFa