LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

Revision 1

May 1, 2009

TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1471 by Gallegos (Relating to the evaluation of certain regional planning commissions.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for SB1471, Committee Report 1st House, Substituted: an impact of $0 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	$0
2011	$0
2012	$0
2013	$0
2014	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from Other Funds	Probable Revenue Gain from Other Funds
2010	($389,400)	$389,400
2011	$0	$0
2012	$0	$0
2013	$0	$0
2014	$0	$0

Fiscal Analysis

The bill would require the State Auditor to conduct a financial-related compliance audit of a regional planning commission created under Chapter 391, Local Government Code and would require the audit to be completed by June 1, 2010.  The bill would require the commission to reimburse the State Auditor for the cost of the audit.  The bill would be effective September 1, 2009.

Methodology

The bill seems to require the audit of the Houston-Galveston Area Council, which consists of several counties, cities and school districts.  It is estimated that the audit of a large Commission comprised of numerous local governments would require 4,000 hours to complete.  Based on the current billing rate of $90 per hour, it is estimated that the cost of the audit would be $389,400, inclusive of $38,400 in travel costs.

In accordance with current Government Code 321.013, all additional duties and responsibilities prescribed by the bill would be proposed in the SAO's annual audit plan for Legislative Audit Committee approval.

Local Government Impact

Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.

Source Agencies:

308 State Auditor's Office

LBB Staff:

JOB, DB, MS, TP