LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 March 6, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: HB94 by Maxey (Relating to certain workplace posting requirements regarding the payment of wages to tipped employees; providing an administrative penalty.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB94, As Introduced: positive impact of $0 through the biennium * * ending August 31, 2003. * * * * 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 * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year Unemployment Compensation Employees from FY 2001 * * Special Administration Account/ * * GR-Dedicated * * 0165 * * 2002 $(248,701) 6.0 * * 2003 (224,786) 6.0 * * 2004 (224,786) 6.0 * * 2005 (224,786) 6.0 * * 2006 (224,786) 6.0 * *************************************************************************** Fiscal Analysis The bill would amend Chapter 61 of the Labor Code to require, in all establishments with tipped employees, posted notices and brochures about the regulation of wages and tips and the tipped employees' rights under the law. The bill would also require the Texas Workforce Commission (TWC) to regulate eating and drinking establishments with tipped employees and has provisions to allow the commission to issue an administrative penalty for violations of the bill. The bill would take effect on September 1, 2001. Methodology The fiscal impact of the bill would be $473,487 of General Revenue-Dedicated Account 165 in the 2002-03 biennium. In order to regulate the 18,900 existing eating and drinking establishments with tipped employees, TWC estimates it would need six additional investigator FTEs at a salary of $27,750 plus operating costs of $1,867 and employee benefits of $7,848 per FTE. These investigators could inspect approximately 867 establishments per year based upon the caseload of other investigators at the agency, resulting in a three-year inspection cycle for each eating and drinking establishment with tipped employees. TWC also estimates a total cost of $23,915 for printing and postage for the posters and brochures in fiscal year 2002. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 320 Texas Workforce Commission LBB Staff: JK, JO, RT, HL