LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 16, 2001
TO: Honorable Jim Solis, Chair, House Committee on Economic
Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3178 by Solis, Jim (Relating to the requirement that
certain persons associated with development corporations
complete a training seminar on the operation and
administration of development corporations; providing an
administrative penalty.), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3178, Committee Report 1st House, Substituted: 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. *
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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:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year Appropriated Receipts from Appropriated Receipts *
* 0666 0666 *
* 2002 $(58,449) $58,449 *
* 2003 (54,849) 54,849 *
* 2004 (54,849) 54,849 *
* 2005 (54,849) 54,849 *
* 2006 (54,849) 54,849 *
***************************************************************************
Fiscal Analysis
The bill would require that certain persons associated with development
corporations complete a training seminar on the operation and
administration of development corporations and it provides for an
administrative penalty. The bill would require the Texas Department of
Economic Development (TDED), in conjunction with the Office of the
Attorney General and the Comptroller, to develop a training seminar for
municipalities or counties that have created corporations under the
Development Corporation Act of 1979. The Department will ensure that
certain city, county and corporation officials are trained at least once
in a 24-month period.
The Department would issue a certificate of completion to each person who
completes the required training. Initial training certification must be
obtained by January 1, 2004.
The cost to the Department of Economic Development would be $58,449 in FY
2002 and $54,849 for each fiscal year thereafter for so long as the Act
is in effect. Since the corporations may pay for the required training,
the Department would charge each participant for the training and fund
the expenses with Appropriated Receipts.
This bill would take effect September 1, 2001.
Methodology
TDED estimates that one additional FTE, a Finance Program Specialist
(B11), would be required to administer the program. It is assumed fees
would cover all costs of the FTE. The roles and responsibilities of the
FTE would include development of training materials, workshop
coordination with local government officials, and the conducting of
certification seminars in each region of the state. Travel expenses in
the amount of $3,000 each fiscal year are anticipated. Travel is based
on ten workshops being conducted annually. Estimated reimbursement for
travel expenses is $300 per trip.
Local Government Impact
This bill requires members of an economic development corporation,
created by local government, to seek training from the Texas Department
of Economic Development on at least a bi-annual basis. The local
authority is directed to reimburse the state for this training. It is
assumed that 450 cities have economic development corporations and that
two employees will be attending the training on a bi-annual basis.
Training cost per participant was not disclosed; however, the department
intends to recoup all of its cost, which would result in $58,000 divided
by 450 participants each year. Based on these assumptions, the training
costs do not represent a significant impact on units of local
government.
Source Agencies: 480 Department of Economic Development, 304
Comptroller of Public Accounts, 302 Office of the
Attorney General
LBB Staff: JK, JO, RT, ER, DW