Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1065 by Dorazio (Relating to the classification of employees of a company license holder under the Private Security Act.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1065, As Introduced: a negative impact of ($4,450,859) through the biennium ending August 31, 2027.
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
2026
($2,914,918)
2027
($1,535,941)
2028
($1,535,941)
2029
($1,535,941)
2030
($1,535,941)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($2,914,918)
17.0
2027
($1,535,941)
17.0
2028
($1,535,941)
17.0
2029
($1,535,941)
17.0
2030
($1,535,941)
17.0
Fiscal Analysis
The bill would direct the Department of Public Safety (DPS) to inspect employment records to approve of the classification of employees before issuing a private security license to a company or issuing a renewal.
Methodology
According to DPS, the review of company employee records would create longer application processing times due to the number of licensed individuals. At the end 2024, DPS oversaw 195,657 active private security registrations associated with 7,115 companies, whose licenses must be reviewed annually. DPS estimates that the Private Security Licensing Team would take 10 minutes to review an employment status document; therefore DPS estimates that the employee classification review would require 16.0 additional License and Permit Specialists III and 1.0 Program Specialist V to comply with the provisions of the bill.
This analysis includes $1,152,450 in fiscal year 2026 and $1,152,451 in fiscal year 2027 for salary and benefits. Other costs including consumables supplies, travel, fuel, rent, and other operating expenses would total $535,418 in fiscal year 2026 and $383,490 in fiscal year 2027.
Technology
According to the Department of Information Resources (DIR) there would be a cost of $1,227,050 in fiscal year 2026 only to update the Texas Online Private Security application maintained within Texas.gov to implement the provisions of the bill. There are no ongoing software maintenance costs for DIR.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
313 Department of Information Resources, 405 Department of Public Safety