LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 30, 2009 TO: Honorable Joe Deshotel, Chair, House Committee on Business & Industry FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB311 by Leibowitz (Relating to certain fees authorized by the Texas Residential Construction Commission Act.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB311, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 30, 2009 TO: Honorable Joe Deshotel, Chair, House Committee on Business & Industry FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB311 by Leibowitz (Relating to certain fees authorized by the Texas Residential Construction Commission Act.), As Introduced TO: Honorable Joe Deshotel, Chair, House Committee on Business & Industry FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB311 by Leibowitz (Relating to certain fees authorized by the Texas Residential Construction Commission Act.), As Introduced Honorable Joe Deshotel, Chair, House Committee on Business & Industry Honorable Joe Deshotel, Chair, House Committee on Business & Industry John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB311 by Leibowitz (Relating to certain fees authorized by the Texas Residential Construction Commission Act.), As Introduced HB311 by Leibowitz (Relating to certain fees authorized by the Texas Residential Construction Commission Act.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB311, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for HB311, As Introduced: an impact of $0 through the biennium ending August 31, 2011. 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 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2010 ($50,000) $50,000 2011 ($50,000) $50,000 2012 ($50,000) $50,000 2013 ($50,000) $50,000 2014 ($50,000) $50,000 Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2010 ($50,000) $50,000 2011 ($50,000) $50,000 2012 ($50,000) $50,000 2013 ($50,000) $50,000 2014 ($50,000) $50,000 2010 ($50,000) $50,000 2011 ($50,000) $50,000 2012 ($50,000) $50,000 2013 ($50,000) $50,000 2014 ($50,000) $50,000 Fiscal Analysis The bill would amend the Property Code to remove the authority of the Texas Residential Construction Commission (TRCC) to charge a fee for a homeowner to submit a request for a state-sponsored home inspection or to file a complaint, request, or other proceeding. The bill would take effect on September 1, 2009. The bill would amend the Property Code to remove the authority of the Texas Residential Construction Commission (TRCC) to charge a fee for a homeowner to submit a request for a state-sponsored home inspection or to file a complaint, request, or other proceeding. The bill would take effect on September 1, 2009. Methodology Based on the analysis of TRCC, it is assumed the provisions of the bill would result in a loss of approximately $50,000 in each fiscal year from inspection fees that would have been paid by homeowners under current law. Currently, the agency has an estimated appropriation to accommodate the costs of third-party inspections, which is supported by revenues collected from homeowner inspection fees, fee reimbursements from builders, and home registration fees. It is assumed the agency would assess or collect fees from home registrations in an amount sufficient to offset the loss of homeowner inspection fee revenue. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 370 Residential Construction Commission 304 Comptroller of Public Accounts, 370 Residential Construction Commission LBB Staff: JOB, JRO, MW, TG JOB, JRO, MW, TG