Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1884 by Flores (Relating to identification of and sanctions against certain foreign nationals.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1884, As Introduced : a negative impact of ($2,069,378) 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
($1,057,074)
2025
($1,012,304)
2026
($1,013,181)
2027
($1,014,096)
2028
($1,015,051)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2023
2024
($1,057,074)
9.0
2025
($1,012,304)
9.0
2026
($1,013,181)
9.0
2027
($1,014,096)
9.0
2028
($1,015,051)
9.0
Fiscal Analysis
The bill would amend the Government, Education, and Business Organization codes to identify and impose sanctions against certain foreign individuals who have been determined by the Secretary of State (SOS) to have engaged in certain enumerated activities. The SOS would be required to develop a database listing these individuals and to impose sanctions on certain businesses affiliated with them. The SOS would be required to notify the Comptroller of Public Accounts (CPA) of these individuals and request that the comptroller bar them from participation in state contracts. The SOS would be required to revoke business registrations, filed with the SOS, of any foreign entity affiliated with an identified person and impose civil penalties. The SOS would also be required to inform the governing boards of institutions of higher education of these individuals and request that they be barred from attending a state institution and to be expelled if currently enrolled.
Methodology
According to the SOS, the agency does not currently compile, maintain, or otherwise take any action relating to foreign nationals as identified in the bill. The agency has identified a range of new tasks it would be required to fulfill including: researching and investigating information from public records, court filings, and law enforcement resources; notifying foreign nationals of their potential inclusion in any report; and developing administrative rules governing the program. The agency would also be required to produce an annual report containing this information.
The agency anticipates that performing this new function would require nine FTEs: one Project Manager IV ($98,076 in fiscal year 2024 and $102,980 in fiscal year 2025), two Attorney IV ($107,884 in fiscal year 2024 and $113,278 in fiscal year 2025 per FTE), two Investigator IV ($54,584 in fiscal year 2024 and $57,313 in fiscal year 2025 per FTE), one Investigator VII ($81,755 in fiscal year 2024 and $85,843 in fiscal year 2025), two Research Specialist III ($58,382 in fiscal year 2024 and $61,301 in fiscal year 2025 per FTE), and one Information Security Analyst II ($87,462 in fiscal year 2024 and $91,835 in fiscal year 2025).
Associated benefits for these nine FTEs would be $225,673 in fiscal year 2024 and $236,957 in fiscal year 2025 and thereafter. In addition, the new positions would require $71,371 in initial startup costs in fiscal year 2024 and $10,254 in operating expenses in fiscal year 2025 and thereafter.
According to the CPA, no significant fiscal impact to the state is anticipated related to restricting identified individuals from state contracts.
According to Texas systems of higher education, no significant fiscal impact to the state is anticipated related to restricting identified individuals from higher education.
Technology
The SOS estimates that providing information technology equipment and support to the new FTEs would incur technology hardware and software costs of $51,036 in fiscal year 2024 with recurring costs of $20,650 in fiscal year 2025 and increasing at the rate of inflation thereafter.
The agency assumes that the implementation costs associated with a new business process for records maintenance could be handled internally with the addition of an Information Security Analyst position.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 307 Secretary of State, 710 Texas A&M University System Administrative and General Offices, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 783 University of Houston System Administration