LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

Revision 2

April 11, 2007

TO:	Honorable David Swinford, Chair, House Committee on State Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB340 by Leibowitz (Relating to the creation by the Texas Residential Construction Commission of a list of builders who provide certain types of building services.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB340, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2009.

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
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GENERAL REVENUE FUND 1	Probable Revenue Gain from GENERAL REVENUE FUND 1
2008	($76,659)	$76,659
2009	($55,659)	$55,659
2010	($55,659)	$55,659
2011	($55,659)	$55,659
2012	($55,659)	$55,659

Fiscal Year	Change in Number of State Employees from FY 2007
2008	1.0
2009	1.0
2010	1.0
2011	1.0
2012	1.0

Fiscal Analysis

The bill would amend the Property Code to require the Veteran’s Land Board and the Texas Residential Construction Commission (TRCC) to maintain an electronic list and hard-copy list of registered builders who provide certain types of building services in Texas, as specified by the bill.  The bill would require TRCC to contact all volume builders in Texas who do not provide building services to persons with mobility-related special needs, as specified in the bill, and encourage those builders to develop floor plans that are designed to be accessible for persons with mobility-related special needs. The bill would specify that TRCC must certify a builder's floor plans before the builder is included on the electronic or hard-copy list prescribed by the bill and would require TRCC to establish rules, procedures, and fees necessary to certify floor plans. The bill would require the Veteran's Land Board to make the electronic list available to the public on its Internet website.

The bill would take effect on September 1, 2007.

Methodology

Based on the analysis of TRCC, it is assumed the commission would incur costs of $25,000 in fiscal year 2008 for programming and enhancements to the commission's builder database and an additional $4,000 each year thereafter for increased database mainenance. Also based on the analysis of TRCC, it is assumed an additional Inspector V position (1.0 FTE; $40,267/year) would be required to review and certify builders' floor plans. Employee benefit costs associated with the new position are estimated to be $11,392 each year (28.29 percent of salary). It is assumed any other costs associated with implementing the provisions of the bill could be absorbed within the commission's existing resources.

It is assumed the commission would assess or increase fees in an amount sufficient to recover any additional costs associated with implementing the provisions of the bill.

Technology

Technology costs associated with the implementation of the bill are estimated to be $25,000 for database programming and enhancements in fiscal year 2008 and $4,000 for database maintenance each year thereafter.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

370 Residential Construction Commission, 305 General Land Office and Veterans' Land Board

LBB Staff:

JOB, KJG, MW, TG