Honorable DeWayne Burns, Chair, House Committee on Land & Resource Management
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2665 by Gates (relating to an interim study of the municipal regulation of short-term rental properties and residential amenity rental properties.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB2665, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2025.
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
2024
$0
2025
$0
2026
$0
2027
$0
2028
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Probable Revenue Gain from General Revenue Fund 1
Change in Number of State Employees from FY 2023
2024
($395,098)
$395,098
4.0
2025
($99,242)
$99,242
1.2
2026
$0
$0
0.0
2027
$0
$0
2028
$0
$0
Fiscal Analysis
The bill would require the Texas Department of Licensing and Regulation (TDLR) to establish an interim task force to study, review, and report to the Legislature on the impact of municipal regulation of short-term rental properties and residential amenity rental properties.
Methodology
This analysis assumes that TDLR would require additional staffing in fiscal year 2024 and a portion of fiscal year 2025 to implement the provisions of the bill. TDLR would require these additional full-time equivalent (FTE) positions: An Administrative Assistant III FTE to provide administrative support to the task force and carrying out data collection/analysis, a Research Specialist IV FTE to design the data collection methods and assist in data analysis, a Data Analyst III FTE to lead the data analytics, and an Economist I FTE to lead the econometric analyses included in the report. The salaries and benefits of these FTEs will cost $290,478 in fiscal year 2024 and $87,143 in fiscal year 2025. Additionally, there will be a cost of $104,620 in fiscal year 2024 and $12,099 in fiscal year 2025 for travel, equipment, furniture, and operating expenses to accommodate the new staffing positions.
This analysis assumes that any increased cost to TDLR would be offset by an increase in fee-generated revenue because TDLR is statutorily required to generate sufficient revenue to cover the cost of its operation.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.