LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 15, 2009 TO: Honorable Burt R. Solomons, Chair, House Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB874 by Callegari (Relating to the abolition of the Texas Incentive and Productivity Commission and the state employee incentive program.), As Introduced No fiscal implication to the State is anticipated. The bill would abolish the Texas Incentive and Productivity Commission (TIPC) and the state employee incentive program by repealing Texas Government Code Section 2108 subchapters A and B. The bill also would apply a conforming amendment to Government Code Section 2113.107 (f), and contains conforming repealers applied to the following codes, acts, and statutes: 1. Agriculture Code;2. Education Code;3. Finance Code;4. Government Code;5. Health and Safety Code;6. Human Resources Code;7. Labor Code;8. Occupations Code;9. Parks and Wildlife Code;10. Property Code;11. Water Code; 12. the Securities Act;13. Texas Local Firefighters Retirement Act; and14. Vernons Texas Civil Statutes. This bill would take effect immediately if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009. During fiscal year 2004, the State Council on Competitive Government released a report finding that the operations of TIPC were not essential state functions and recommending future incentives be provided to employees voluntarily by state agencies. Based on this report, the TIPC governing body voted to cease operations during fiscal year 2005. The agency has been operationally inactive since that time, and, beginning with the 2006 fiscal year, has received no further funding or appropriations. The state employee incentive program has been available to agencies on a voluntary basis since the cessation of operations by TIPC, with payments to employees derived from individual project savings at no additional cost to the state. Because the agency has received no appropriations during the most recent two biennia, and any remaining payments to employees are derived at no additional cost to the state above related agency program appropriations, there is no cost or savings to the state from eliminating the statutory authority for TIPC or the state employee incentive program. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JOB, KJG, MS, KY LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 15, 2009 TO: Honorable Burt R. Solomons, Chair, House Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB874 by Callegari (Relating to the abolition of the Texas Incentive and Productivity Commission and the state employee incentive program.), As Introduced TO: Honorable Burt R. Solomons, Chair, House Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB874 by Callegari (Relating to the abolition of the Texas Incentive and Productivity Commission and the state employee incentive program.), As Introduced Honorable Burt R. Solomons, Chair, House Committee on State Affairs Honorable Burt R. Solomons, Chair, House Committee on State Affairs John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB874 by Callegari (Relating to the abolition of the Texas Incentive and Productivity Commission and the state employee incentive program.), As Introduced HB874 by Callegari (Relating to the abolition of the Texas Incentive and Productivity Commission and the state employee incentive program.), As Introduced No fiscal implication to the State is anticipated. No fiscal implication to the State is anticipated. The bill would abolish the Texas Incentive and Productivity Commission (TIPC) and the state employee incentive program by repealing Texas Government Code Section 2108 subchapters A and B. The bill also would apply a conforming amendment to Government Code Section 2113.107 (f), and contains conforming repealers applied to the following codes, acts, and statutes: 1. Agriculture Code;2. Education Code;3. Finance Code;4. Government Code;5. Health and Safety Code;6. Human Resources Code;7. Labor Code;8. Occupations Code;9. Parks and Wildlife Code;10. Property Code;11. Water Code; 12. the Securities Act;13. Texas Local Firefighters Retirement Act; and14. Vernons Texas Civil Statutes. This bill would take effect immediately if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2009. During fiscal year 2004, the State Council on Competitive Government released a report finding that the operations of TIPC were not essential state functions and recommending future incentives be provided to employees voluntarily by state agencies. Based on this report, the TIPC governing body voted to cease operations during fiscal year 2005. The agency has been operationally inactive since that time, and, beginning with the 2006 fiscal year, has received no further funding or appropriations. The state employee incentive program has been available to agencies on a voluntary basis since the cessation of operations by TIPC, with payments to employees derived from individual project savings at no additional cost to the state. Because the agency has received no appropriations during the most recent two biennia, and any remaining payments to employees are derived at no additional cost to the state above related agency program appropriations, there is no cost or savings to the state from eliminating the statutory authority for TIPC or the state employee incentive program. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JOB, KJG, MS, KY JOB, KJG, MS, KY