Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB503 by Perry (Relating to the establishment of an electronic registry of livestock marks and brands.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB503, As Introduced: a negative impact of ($3,890,748) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($2,595,374)
2027
($1,295,374)
2028
($1,295,374)
2029
($1,045,374)
2030
($1,045,374)
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($2,595,374)
5.0
2027
($1,295,374)
5.0
2028
($1,295,374)
5.0
2029
($1,045,374)
5.0
2030
($1,045,374)
5.0
Fiscal Analysis
The bill would amend the Agriculture Code to establish an electronic registry of marks and brands. The Texas Animal Health Commission (TAHC) would be required to maintain the brand registry and provide that information on its website in a searchable format with access specifications for both the public and law enforcement entities as required by the bill.
TAHC would be required to adopt all rules and procedures necessary to implement the provisions of the bill. These include processes for persons to record marks or brands with county clerks and for county clerks to deliver a record of marks or brands recorded by county clerks to TAHC electronically within deadlines required by the bill.
Methodology
Based on the information provided by TAHC, it is assumed that five new positions (5.0 FTEs) would be required with salary costs totaling $446,716 beginning in fiscal year 2026 and continuing in each subsequent fiscal year. These positions would include one Project Management Specialist III ($80,421), one Programmer IV ($102,980), one Data Architect ($124,606), one Web Administrator III ($80,421), and one Information Technology Support Specialist III ($58,288). Costs reflected in the table above also include employee related startup costs totaling $50,000 in fiscal year 2026 for furniture, employee computers, and software; $36,701 beginning in fiscal year 2026 and continuing in each subsequent fiscal year for travel, operating costs, and employee payroll contributions; and of $126,957 beginning in fiscal year 2026 and continuing in each subsequent fiscal year for employee benefit costs.
Based on the information provided by TAHC, this analysis assumes necessary technology related costs totaling $1,935,000 in fiscal year 2026, $685,000 in fiscal years 2027 and 2028, and $435,000 in fiscal years 2029 and 2030. This would include $1,500,000 in fiscal year 2026 and $250,000 in fiscal years 2027 and 2028 for Department of Information Resources vendor implementation contract costs and $435,000 for annual ongoing software costs beginning in fiscal year 2026 and continuing each fiscal year. The ongoing costs would include software and 180 full user access licenses for TAHC employees, 254 external user licenses for county clerks, and 1,500 external user licenses for law enforcement agencies.
Technology
Technology costs related to the development of an additional web-based software system would include $1,935,000 in fiscal year 2026, $685,000 in fiscal years 2027 and 2028, and $435,000 in fiscal years 2029 and 2030.
Local Government Impact
The fiscal impact to local governments cannot be determined. The bill would require county clerks to record mark or brand registrations electronically in a format required by TAHC and to transmit those records to the TAHC in addition to any such records previously recorded with county clerks prior to the establishment of the electronic registry by deadlines required by the bill. The increased cost for the additional records processing and transmission requirements required to implement the provisions of the bill cannot be determined at this time.