LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 29, 2003

TO:	Honorable David Swinford, Chair, House Committee on Government Reform
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2933 by Flores (Relating to the abolition of the Commission on Human Rights and the transfer of its functions to a civil rights division within the attorney general's office), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB2933, Committee Report 1st House, Substituted: a negative impact of ($2,053,240) through the biennium ending August 31, 2005.

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
2004	($1,026,620)
2005	($1,026,620)
2006	$520,000
2007	$520,000
2008	$520,000

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1	Probable Revenue (Loss) from FEDERAL FUNDS 555	Change in Number of State Employees from FY 2003
2004	($1,026,620)	($1,546,620)	(13.0)
2005	($1,026,620)	($1,546,620)	(13.0)
2006	$520,000	$0	(13.0)
2007	$520,000	$0	(13.0)
2008	$520,000	$0	(13.0)

Fiscal Analysis

The bill would abolish the Commission on Human Rights and the transfer of its functions to a civil rights division within the attorney general’s office.  However, though the operations of the Commission on Human Rights are transferred to attorney general’s office, this bill does not repeal the statute pertaining to the Commission on Human Rights; instead it references Chapter 416 of the Government Code, which does not currently exist. 

Methodology

The Commission on Human Rights reported the state could lose up to two years of federal funding from the federal Equal Employment Opportunity Commission ($729,480/year) and the Department of Housing and Urban Development (approximately $817,140/year) due to requirements for the Attorney General’s Civil Rights Division being required to be certified by these two federal agencies prior to being eligible to receive federal funds.  In fiscal years 2004 and 2005 it is assumed that general revenue funds ($1,546,620) would be used to fund employment and housing discrimination cases.  However this amount would be offset by savings due to the elimination of 13 administrative FTEs which is estimated at $520,000 each year, including salaries and benefits.

In addition to handling employment and discrimination cases, it is assumed that the Attorney General’s Civil Rights Division would provide technical assistance and comprehensive training on compliance with laws prohibiting discrimination using appropriated receipts and interagency contracts.  

The Comptroller of Public Accounts estimated $5,808 in administrative costs to close out the Commission on Human Rights in the Uniform State Accounting System in fiscal year 2004.  However, for the purposes of this fiscal note, it is assumed that these costs would be absorbed within current resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:	302 Office of the Attorney General, 304 Comptroller of Public Accounts, 344 Commission on Human Rights
LBB Staff:	JK, JO, GO, WP, BL, MS