LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 30, 2009

TO:	Honorable Joe Deshotel, Chair, House Committee on Business & Industry
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB1635 by Smith, Todd (Relating to the abolition of the Texas Residential Construction Commission.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1635, As Introduced: a negative impact of ($1,215,762) through the biennium ending August 31, 2011.

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
2010	($607,881)
2011	($607,881)
2012	($607,881)
2013	($607,881)
2014	($607,881)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Revenue Gain/(Loss) from General Revenue Fund 1	Change in Number of State Employees from FY 2009
2010	$10,424,119	($11,032,000)	(80.0)
2011	$10,424,119	($11,032,000)	(80.0)
2012	$10,424,119	($11,032,000)	(80.0)
2013	$10,424,119	($11,032,000)	(80.0)
2014	$10,424,119	($11,032,000)	(80.0)

Fiscal Analysis

The bill would abolish the Texas Residential Construction Commission effective February 1, 2010.  The bill would take effect September 1, 2009. 

Methodology

Abolishment of the Texas Residential Construction Commission (TRCC) would result in a loss of General Revenue from professional fees and home registrations collected by the agency.  Based on the 2010-11 Biennial Revenue Estimate, this loss is estimated to be approximately $22.1 million for the biennium.  This loss is offset by a cost savings of $20.8 million in General Revenue expenditures for the biennium.  These expenditures are based on fiscal year 2009 budgeted General Revenue expenditures for TRCC. 

The bill calls for the Texas Facilities Commission (TFC) to take custody of all property, records, and other assets of the TRCC.  TFC reports that this would have no significant fiscal impact to the agency as TFC currently has the capability to take custody of the property with existing resources. 

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

303 Facilities Commission, 370 Residential Construction Commission

LBB Staff:

JOB, JRO, MS, DEH, TG