LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
May 19, 2009

TO:
Honorable Rodney Ellis, Chair, Senate Committee on Government Organization
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2730 by Kolkhorst (Relating to the continuation and functions of the Department of Public Safety of the State of Texas and the Texas Private Security Board; providing a penalty.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for HB2730, As Engrossed: an impact of $0 through the biennium ending August 31, 2011.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable Savings/(Cost) from
State Highway Fund
6
Change in Number of State Employees from FY 2009
2010 ($785,907) 5.0
2011 ($393,371) 5.0
2012 $0 0.0
2013 $0 0.0
2014 $0 0.0

Fiscal Analysis

The Department of Public Safety (DPS) and the Private Security Board (the Board) are subject to the Sunset Act and will be abolished on September 1, 2009 unless continued by the Legislature. The bill contains the following Sunset Commission recommendations regarding DPS and the Board, among others.

 

DPS reported to Sunset that their database is outdated (the agency originally planned upgrades to the database in fiscal year 2009) and the database needs to be upgraded before it can implement the proposed endorsement provisions. DPS states the estimated cost of upgrading the database at $2,000,000 for the biennium. However, Sunset states DPS put the upgrade on hold after an outside audit reorganized the agency’s IT priorities. Sunset states the endorsement provisions would be part of the DPS planned upgrade and separating the cost of the provision from the rest of the upgrade would be difficult to determine.

Sunset also states current statute requires the administration of the Private Security Act be a self-leveling function through fees charged to the regulated community. Sunset assumes that any potential savings or costs associated with changes to the Private Security Act would be offset by increases or decreases in fees and therefore the fee generating provisions of the bill would be revenue neutral.

It is assumed that Sunset views the civilian model concept costs as not significant because the movement of troopers from the Driver License Division to Highway Patrol would address current trooper vacancies. The concept is that DPS could use current vacancy salary funds to pay for the movement of troopers between divisions. However, DPS states they need additional funds for this purpose. Sunset states the bill does not contain agency requirements related to the civilian business model. Sunset states they would accomplish this study within existing resources and that the bill does not require any action by DPS.

Regarding the 2008 information technology audit reporting requirement, DPS states the following fiscal analysis based on the Gartner Assessment implementation plan developed for the agency. To upgrade software, hardware, and various program upgrades to increase agency security, the assessment determined $11,471,790 in fiscal year 2010 and $2,950,000 in fiscal year 2011 for equipment would be required with an additional $4,160,000 in fiscal year 2011 for staff augmentation. Sunset states the bill does not contain agency requirements related to the information technology audit. Sunset states they would accomplish this study within existing resources and that the bill does not require any action by DPS.

This bill would take effect immediately if two-thirds of the members in both the House of Representatives and the Senate vote to approve this bill. If not, the bill would take effect on September 1, 2009.


Methodology

Sections 9.01 and 9.02 add Government Code, Section 411.0203 which requires the DPS to establish a safe school unit pilot program for the 2010-2011 school year. The pilot program would provide selected school districts with information and assistance on juvenile delinquency, juvenile substance abuse, and other law enforcement issues that affect school districts. The bill would take effect on September 1, 2009 and expire on August 31, 2011.

DPS states they would require 5 additional employees (troopers within salary group C-3) to comply with the provisions of the bill.  The total estimated cost for these additional responsibilities including salaries, benefits, equipment, travel, and other operating costs would equal $785,907 in fiscal year 2010 and $393,371 in fiscal years 2011. The requirements of the bill would expire on August 31, 2011, which would limit the fiscal impact to two fiscal years.

 

The Office of the Governor and the Office of Administrative Hearings anticipate no significant fiscal impact to their agencies. The Comptroller of Public Accounts (CPA) states the net fee amounts set by the Private Security Board are not known and can not be estimated. The CPA also states the administrative penalties imposed on a person licensed, commissioned, or registered under the chapter, who violated the chapter or rule, can not be determined. Based on the fiscal analysis provided by both the Sunset Advisory Commission and the Department of Public Safety, this analysis assumes no significant fiscal impact to the State.


Technology

The technology costs for fiscal year 2010 include $51,695 for trooper in-car computer systems, class training equipment and enterprise agreements. The technology cost for fiscal year 2011 includes costs for enterprise agreements.


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
405 Department of Public Safety
LBB Staff:
JOB, KK, GG, LG