TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB1038 by Ritter (Relating to the operation of the Texas Residential Construction Commission; providing penalties.), As Engrossed |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | $0 |
2010 | $0 |
2011 | $0 |
2012 | $0 |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain from GENERAL REVENUE FUND 1 |
---|---|---|
2008 | ($6,887,576) | $6,887,576 |
2009 | ($6,766,576) | $6,766,576 |
2010 | ($6,766,576) | $6,766,576 |
2011 | ($6,766,576) | $6,766,576 |
2012 | ($6,766,576) | $6,766,576 |
Fiscal Year | Change in Number of State Employees from FY 2007 |
---|---|
2008 | 40.0 |
2009 | 40.0 |
2010 | 40.0 |
2011 | 40.0 |
2012 | 40.0 |
Based on the analysis of TRCC, it is assumed the increased grounds for disciplinary action and disciplinary powers, authority to pursue injunctive relief, and cease and desist orders under the provisions of the bill would require additional staff and resources for enforcement including five Attorney IV positions (5.0 FTEs; $71,284/year); one Attorney II (1.0 FTE; $53,596/year); one Inspector VI (1.0 FTE; $47,382/year); eight Investigator VII positions (8.0 FTEs; $56,983/year); an Investigator IV (1.0 FTE; $42,754/year); three Legal Assistant II positions (3.0 FTEs; $40,267/year); two Program Specialist II positions (2.0 FTEs; $47,382/year); one Administrative Assistant III (1.0 FTE; $33,416/year); and an additional $570,000 for costs associated with hearings and judicial actions.
Based on the analysis of TRCC, it is assumed the reduced experience requirements for third-party inspectors under the provisions of the bill would increase the number of third-party inspector applications received and would require one additional Customer Service Representative IV (1.0 FTE; $37,596) to accommodate the increased duties.
Based on the analysis of TRCC, it is assumed the new registration requirements for builders/remodelers and projects in economically distressed areas, new requirement for builders to follow the state-sponsored inspection and dispute resolution process, and lower project cost threshold for registration of remodelers and remodeling projects would increase the number of registrations processed and the number of inspection requests received, which would require two additional Program Specialist I positions (2.0 FTEs; $42,754/year); one Program Specialist II (1.0 FTE; 47,382/year); six Customer Service Representative IV positions (6.0 FTE; $37,596/year); one Customer Service Representative II (1.0 FTE; $29,779/year); one Legal Assistant II (1.0 FTE; $40,267/year); and three Administrative Assistant III positions (3.0 FTEs; $33,416/year).
Based on the analysis of TRCC, it is assumed two additional Program Specialist I positions (2.0 FTEs; $42,754/year) would be required to process information and evidence received with a response to a request for inspection of an alleged construction defect and to accommodate increased disclosure requirements for the state-sponsored inspection and dispute resolution process.
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 to develop and maintain a database of builders providing services to persons with mobility-related special needs. 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 benefits costs associated with the 40 new positions are estimated to be $536,698 each year (28.29 percent of salaries). Based on the analysis of TRCC, it is assumed additional costs for leasing computer equipment, software, technical support, and enhancements to the commission's database would be $180,000 in 2008 and $80,000 each year thereafter. It is also assumed the agency would require leased office space to accommodate the additional staff at an estimated cost of $45,000 per year.
Based on the analysis of TRCC, it is assumed the agency would incur increased costs of $53,000 per year for reimbursing inspector's travel expenses under the provisions of the bill. Other costs related to personnel, professional fees, reproduction charges, certified mail, TexasOnline fees, background checks, and consumables are estimated to be $3,580,750 each year.
It is assumed TRCC would assess or increase fees sufficient to recover any additional costs associated with implementing the provisions of the bill.
Based on the analysis of the Office of the Attorney General (OAG), it is assumed the provisions of the bill would result in an increased number of administrative hearings, injunction actions, and appeals handled by the OAG's Administrative Law Division, which would require approximately five FTEs and $400,000 each year for salaries and operating expenses. It is assumed the costs could be absorbed within the agency's existing resources.
Source Agencies: | 302 Office of the Attorney General, 370 Residential Construction Commission, 304 Comptroller of Public Accounts
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LBB Staff: | JOB, JRO, KJG, MW, TG
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