LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 31, 2009

TO:	Honorable Jeff Wentworth, Chair, Senate Committee on Jurisprudence
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1276 by Gallegos (Relating to the regulation of service of process; providing criminal and administrative penalties.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1276, As Introduced: an impact of $0 through the biennium ending August 31, 2011.

This 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	$0
2011	$0
2012	$0
2013	$0
2014	$0

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	($296,941)	$296,941	2.5
2011	($276,915)	$276,915	2.5
2012	($276,849)	$276,849	2.5
2013	($276,601)	$276,601	2.5
2014	($276,439)	$276,439	2.5

Fiscal Analysis

The bill would require the Texas Department of Licensing and Regulation (TDLR) to license and regulate persons who serve civil process in Texas. The bill would establish qualifications for the license, insurance, criminal history record check requirements, practices of licensed process servers, and enforcement by TDLR. The bill would require TDLR to perform criminal history background checks on license applicants and to issue a photo identification card and a unique identification number to eligible licensees.

The bill would take effect September 1, 2009. The license requirement would take effect March 1, 2010.

Methodology

The Texas Department of Licensing and Regulation (TDLR) estimates there would be 3,400 eligible licensees. Based on information provided by TDLR, it is assumed an additonal 2.5 FTEs would be needed to administer the licenses and criminal history background checks, to process complaints and handle casework for investigations. The agency anticipates holding 70 enforcement cases per year and issuing 3,400 exams in 2010 and 300 exams each subsequent year. Other costs included in the estimates are for the exam development and maintenance, the photo ID cards, the criminal history background checks from DPS and the FBI, increases in Data Center Services, and TexasOnline fees. The bill would not explicitly authorize the collection of fees by TDLR, but would require applicants for licenses and renewals to submit fees.

This analysis assumes that any increased costs to the agency, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue.

Technology

According to TDLR estimates, there would be increased costs for TexasOnline services and Data Center Services.

Local Government Impact

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

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 405 Department of Public Safety, 452 Department of Licensing and Regulation

LBB Staff:

JOB, MN, MW, ES, TP