Honorable Dennis Bonnen, Speaker of the House, House of Representatives
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB1550 by Paddie (Relating to certain governmental entities subject to the sunset review process. ), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for HB1550, As Passed 2nd House: an impact of $0 through the biennium ending August 31, 2021.
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
2020
$0
2021
$0
2022
$0
2023
$0
2024
$0
Fiscal Year
Probable (Cost) from Appropriated Receipts 666
Probable Revenue Gain from Appropriated Receipts 666
2020
($60,069)
$60,069
2021
($6,438)
$6,438
2022
$0
$0
2023
$0
$0
2024
$0
$0
Fiscal Analysis
The bill would require the following agencies, which underwent Sunset review during the 2018-2019 biennium, to undergo Sunset review during the 2020-21 biennium:
1)Texas Alcoholic Beverage Commission 2) Office of Consumer Credit Commissioner (OCCC) 3) Department of Public Safety 4) Texas Veterans Commission 5) Texas Military Department 6) Texas State Library and Archives Commission 7) Texas Historical Commission 8) Texas Windstorm Insurance Association (TWIA) 9) School Land Board 10) Veterans' Land Board 11) Texas Medical Board 12) Texas State Board of Examiners of Psychologists 13) Texas State Board of Examiners of Marriage and Family Therapists 14) Texas State Board of Examiners of Professional Counselors 15) Texas State Board of Social Worker Examiners 16) Texas Funeral Service Commission 17) Texas State Board of Public Accountancy (TSBPA) 18) Texas Board of Professional Land Surveying 19) Texas Real Estate Commission (TREC) 20) Texas Appraiser Licensing and Certification Board (TALCB) 21) Texas State Board of Plumbing Examiners 22) Texas Department of Motor Vehicles 23) State Securities Board
Methodology
The following agencies are statutorily required to pay for costs incurred by the Sunset Advisory Commission (SAC) in performing their reviews: OCCC, TWIA, TSBPA, TREC, and TALCB.
The costs and savings reflect SAC anticipated costs of $9,905 per analyst for each month required to conduct a review. This amount includes the costs for salaries, benefits, and other operating costs necessary for staff to conduct these reviews. Travel costs are calculated for each review individually. Because these agencies underwent full reviews in 2018-2019, it is assumed that the 2020-2021 reviews would be limited to verifying the appropriateness of SAC's 2018-2019 recommendations. This analysis assumes the following for review changes made by the bill:
1) Costs would be realized from two analyst positions conducting a review of the OCCC. Total costs and revenue offsets include $4,782 in fiscal year 2020 and $495 in fiscal year 2021.
2) Costs would be realized from one analyst position conducting a two month review of TWIA. Total costs and revenue offsets for this project would be $18,429 in fiscal year 2020 and $1,981 for fiscal year 2021.
3) Costs would be realized from one analyst position conducting a two month review of TSBPA. Total costs and revenue offsets for this project would be $18,429 in fiscal year 2020 and $1,981 for fiscal year 2021.
4) Costs would be realized from one analyst position conducting a two month review of TREC (includes TALCB). Total costs and revenue offsets for this project would be $18,429 in fiscal year 2020 and $1,981 for fiscal year 2021.
This analysis, based on information provided by SAC, assumes the additional reviews required in the bill would have no fiscal impact to the state.
Local Government Impact
Entities and agencies required to reimburse SAC would realize costs of the reviews.