Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1185 by Huffines (Relating to a biennial study regarding occupational licensing requirements.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1185, As Introduced: a negative impact of ($4,246,902) 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
$2,174,351
2017
$2,072,551
2018
$2,072,551
2019
$2,072,551
2020
$2,072,551
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2015
2016
$2,174,351
20.0
2017
$2,072,551
20.0
2018
$2,072,551
20.0
2019
$2,072,551
20.0
2020
$2,072,551
20.0
Fiscal Analysis
This bill would amend the Labor Code relating to a biennial study regarding occupational licensing requirements.
The bill requires the Texas Workforce Commission (TWC) to perform a biennial study and report on the extent to which a license requirement serves as a barrier to entering the workforce for each license required by a licensing authority.
The bill requires TWC to adopt rules that establish a schedule for the review of licenses under this new section. Under provisions of the bill, TWC is required to review approximately 20 percent of the licenses required by a licensing authority each biennium, but shall not review each required license more than once in a 10-year period. The bill requires, upon TWC's request, a licensing authority to provide information to TWC or otherwise assist TWC in preparing the report.
This bill would take effect September 1, 2015.
Methodology
Based on information provided by TWC, it is estimated that implementing the provisions of the bill would require 16 reviews of licensing programs annually to fully review the estimated 80 licensing programs within the state of Texas during a five year period. Under the assumption that it would require 1.25 full-time equivalent (FTEs) positions per annual review, the agency would require 20.0 additional FTEs to handle the increased workload. The agency estimates that these FTEs would require recurring costs of $1,271,092 in salaries and $684,229 in related support and benefit costs each fiscal year. Additional program costs include a one-time cost of $101,800 for additional rent and technology needs, and recurring costs of $117,230 for other related operating expenses.
Based on information provided by the Department of Licensing and Regulation, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Technology
TWC estimates recurring technology costs of $35,900 each fiscal year related to computer leases for new FTEs and $9,510 related to printing and mailing costs for the required surveys needed to implement the provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
320 Texas Workforce Commission, 452 Department of Licensing and Regulation