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