Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB212 by Birdwell (Relating to the abolishment of the Texas Council on Purchasing from People with Disabilities and the transfer of its functions to the Texas Workforce Commission.), Committee Report 2nd House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB212, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2017.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
$0
2017
$0
2018
$0
2019
$0
2020
$0
Fiscal Year
Probable Revenue Gain/(Loss) from Appropriated Receipts 666
Probable (Cost) from Appropriated Receipts 666
Change in Number of State Employees from FY 2015
2016
$132,345
($132,345)
2.0
2017
$132,345
($132,345)
2.0
2018
$132,345
($132,345)
2.0
2019
$132,345
($132,345)
2.0
2020
$132,345
($132,345)
2.0
Fiscal Analysis
The bill would abolish the Council on Purchasing from People with Disabilities (Council) and transfer responsibility for the administration and oversight of the State Use Program from the Council to the Texas Workforce Commission (TWC). The bill would require TWC to establish a thirteen-member advisory committee to assist in establishing performance goals for the State Use Program and in setting criteria for certifying a community rehabilitation program for participation in the State Use Program. The bill would require TWC to provide administrative support for the advisory committee upon request; the committee would meet semi-annually.
The bill would require the Comptroller of Public Accounts (Comptroller) to assist TWC in determining fair market values, ensuring best rates, testing goods and services, and any other support necessary to implement the provisions of the bill.
Currently, statute requires the Council be reimbursed from the central nonprofit agency contracted by the Council to manage the day-to-day operations of the State Use Program. The bill would transfer the reimbursement to TWC and the Comptroller and would require that the reimbursements also cover the costs associated with providing support to the advisory committee.
Methodology
Currently, the Council collects approximately $100,000 in each fiscal year from a portion of the management fee collected on the sale of goods and services through the State Use Program from the central nonprofit agency. In addition, the Comptroller currently provides administrative and legal support services to the Council with one full-time equivalent (FTE) staff and is reimbursed through these fee revenues. These funds are deposited to General Revenue and appropriated to the Comptroller as appropriated receipts.
It is assumed that an additional 2.0 FTEs would be needed at TWC to hire two contract specialists IV to review and manage contracts and assist in price setting, product testing, compliance and other functions transferred from the Council at a cost of $132,345 in each fiscal year. This analysis also assumes the current 1.0 FTE staff at the Comptroller would remain to support TWC's work with the advisory committee.
This analysis assumes that the fee revenue collected from the central nonprofit agency would reimburse TWC and the Comptroller for administration of the State Use Program, including any costs associated with providing administrative support to the advisory committee.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 320 Texas Workforce Commission