LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 21, 2015 TO: Honorable Donna Campbell, Chair, Senate Committee on Veteran Affairs & Military Installations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB11 by Bonnen, Dennis (Relating to the powers and duties of the Texas Department of Public Safety, military and law enforcement training, and the investigation, prosecution, punishment, and prevention of certain offenses; creating an offense and increasing a criminal penalty; authorizing fees.), Committee Report 2nd House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB11, Committee Report 2nd House, Substituted: a negative impact of ($309,548,434) through the biennium ending August 31, 2017. The bill would authorize the Department of Public Safety (DPS) to set and collect fees associatedwith other entities' usage of the multi-use training facility created by the bill. While revenues fromthese fees are presumed to have a positive impact to DPS, the actual fee revenues would dependon the fee levels set by DPS and the training facility's frequency of usage by entities other thanDPS.The bill would make no appropriation but could provide the legal basis for an appropriation offunds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 21, 2015
TO: Honorable Donna Campbell, Chair, Senate Committee on Veteran Affairs & Military Installations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB11 by Bonnen, Dennis (Relating to the powers and duties of the Texas Department of Public Safety, military and law enforcement training, and the investigation, prosecution, punishment, and prevention of certain offenses; creating an offense and increasing a criminal penalty; authorizing fees.), Committee Report 2nd House, Substituted
TO: Honorable Donna Campbell, Chair, Senate Committee on Veteran Affairs & Military Installations
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB11 by Bonnen, Dennis (Relating to the powers and duties of the Texas Department of Public Safety, military and law enforcement training, and the investigation, prosecution, punishment, and prevention of certain offenses; creating an offense and increasing a criminal penalty; authorizing fees.), Committee Report 2nd House, Substituted
Honorable Donna Campbell, Chair, Senate Committee on Veteran Affairs & Military Installations
Honorable Donna Campbell, Chair, Senate Committee on Veteran Affairs & Military Installations
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB11 by Bonnen, Dennis (Relating to the powers and duties of the Texas Department of Public Safety, military and law enforcement training, and the investigation, prosecution, punishment, and prevention of certain offenses; creating an offense and increasing a criminal penalty; authorizing fees.), Committee Report 2nd House, Substituted
HB11 by Bonnen, Dennis (Relating to the powers and duties of the Texas Department of Public Safety, military and law enforcement training, and the investigation, prosecution, punishment, and prevention of certain offenses; creating an offense and increasing a criminal penalty; authorizing fees.), Committee Report 2nd House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB11, Committee Report 2nd House, Substituted: a negative impact of ($309,548,434) through the biennium ending August 31, 2017. The bill would authorize the Department of Public Safety (DPS) to set and collect fees associatedwith other entities' usage of the multi-use training facility created by the bill. While revenues fromthese fees are presumed to have a positive impact to DPS, the actual fee revenues would dependon the fee levels set by DPS and the training facility's frequency of usage by entities other thanDPS.The bill would make no appropriation but could provide the legal basis for an appropriation offunds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB11, Committee Report 2nd House, Substituted: a negative impact of ($309,548,434) through the biennium ending August 31, 2017.
The bill would authorize the Department of Public Safety (DPS) to set and collect fees associatedwith other entities' usage of the multi-use training facility created by the bill. While revenues fromthese fees are presumed to have a positive impact to DPS, the actual fee revenues would dependon the fee levels set by DPS and the training facility's frequency of usage by entities other thanDPS.The bill would make no appropriation but could provide the legal basis for an appropriation offunds 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 2016 ($236,387,582) 2017 ($73,160,852) 2018 ($73,160,852) 2019 ($73,160,852) 2020 ($73,160,852)
2016 ($236,387,582)
2017 ($73,160,852)
2018 ($73,160,852)
2019 ($73,160,852)
2020 ($73,160,852)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromInteragency Contracts777 Change in Number of State Employees from FY 2015 2016 ($236,387,582) ($372,501) 9.0 2017 ($73,160,852) ($335,481) 9.0 2018 ($73,160,852) ($335,481) 9.0 2019 ($73,160,852) ($335,481) 9.0 2020 ($73,160,852) ($335,481) 9.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromInteragency Contracts777 Change in Number of State Employees from FY 2015 2016 ($236,387,582) ($372,501) 9.0 2017 ($73,160,852) ($335,481) 9.0 2018 ($73,160,852) ($335,481) 9.0 2019 ($73,160,852) ($335,481) 9.0 2020 ($73,160,852) ($335,481) 9.0
2016 ($236,387,582) ($372,501) 9.0
2017 ($73,160,852) ($335,481) 9.0
2018 ($73,160,852) ($335,481) 9.0
2019 ($73,160,852) ($335,481) 9.0
2020 ($73,160,852) ($335,481) 9.0
Fiscal Analysis
The bill would:1) Amend the Government Code to establish within the Office of the Attorney General (OAG) aTransnational and Organized Crime Division with prosecution and human trafficking units thatwould provide assistance to certain law enforcement agencies and prosecutors.2) Amend the Government Code to require the Department of Public Safety (DPS) periodically to review the agency's information technology system.3) Amend the Government Code to authorize DPS to credit up to 4 years of experience as a law enforcement officer in the state as years of service for Schedule C salary purposes. The bill would also stipulate all officers are subject to a one-year probationary period regardless of rank or salary classification.4) Amend the Government Code to provide DPS with the option of defining the daily and weekly hourly work load for DPS commissioned officers assigned to certain border regions to be 10 hours and 50 hours, respectively.5) Amend the Government Code to authorize DPS to admit certain military veterans to the agency's trooper training academy.6) Amend the Government Code to authorize the Public Safety Commission to establish a reserve officer corps and authorize the DPS Director to call the reserve officer corps into service at any time. The bill would also amend the Code of Criminal Procedure to include as "peace officers" members of the reserve officer corps.7) Amend the Government Code to require DPS to implement a strategy for providing federal authorities at international border checkpoints with assistance in the interdiction of weapons, bulk currency, stolen vehicles, and other contraband, and of fugitives, being smuggled from Texas into Mexico. The bill would authorize DPS to share the costs of staffing any such international border checkpoint with relevant federal entities.8) Amend the Government Code to require DPS to establish a goal that each local law enforcement agency to implement an incident-based crime reporting system that meets the reporting requirements of the National Incident-Based Reporting System by September 1, 2019. The bill would require DPS to submit a report by January 1, 2017 detailing the number of law enforcement agencies that have implemented the reporting requirements of the National Incident-Based Reporting System.9) Amend the Government Code to require the Texas Facilities Commission (TFC) to construct amulti-use training facility for use by DPS, Texas Military Department (TMD) and local lawenforcement agencies, and any other military or law enforcement agency, including agencies ofthe federal government. The bill would authorize a municipality to make a donation of realproperty to DPS for purposes of establishing this facility. The bill would require DPS, with theassistance of TFC, to design the training facility. The bill would stipulate that upon completion ofthe facility TFC shall transfer ownership to DPS. The bill would authorize DPS to manage thetraining facility and set and collect fees for the use of the training facility.10) Amend the Government Code to reenact statute pertaining to the Texas Anti-Gang Grant Program. The reenacted statute would require the Office of the Governor's Criminal Justice Division to administer a competitive grant program to support regional and multidisciplinary approaches to combat gang violence.11) Amend the Local Government Code to require a certain sheriff's department and municipal police department to jointly establish and operate the Texas Transnational Intelligence Center. DPS would be required to assist in the establishment and operation of this Center. Each local law enforcement agency in a county located along the Texas-Mexico border or in a county containing a federal checkpoint, as well as the Texas Alcoholic Beverage Commission and Texas Parks and Wildlife Department, would be required to report certain crime information to the Center. The bill would require the information in the Center shall be made available to each law enforcement agency in the state, as well as to the Texas Alcoholic Beverage Commission and Texas Parks and Wildlife Department.12) The bill would amend the Penal Code to prohibit certain behaviors for pecuniary benefitunder the offense of smuggling of persons. The bill would create a certain affirmative defense under the offense of smuggling of persons. The bill would also create the new offense ofcontinuous smuggling of persons and include this offense among other offenses eligible forprosecution under the offense of engaging in organized criminal activity. The bill would enhancethe punishment for certain individuals convicted of engaging in organized criminal activityrelated to continuous smuggling of persons. Except as otherwise noted above, the bill would take effect September 1, 2015.
Methodology
This fiscal note assumes all costs associated with implementing the provisions of the bill would befunded out of the General Revenue Fund, with the exception of certain costs noted for the TexasFacilities Commission, which would be funded out of Inter-Agency Contracts.1) It is assumed the bill's requirement that the OAG establish a Transnational and OrganizedCrime Division would require additional resources. Currently, the OAG provides prosecutorialand investigative assistance to local and state agencies in Texas. Under the bill's provisions, theCriminal Prosecutions Division within the OAG estimates twenty additional cases each fiscal yearrelated to human trafficking, organized crime, and border security. The Human Trafficking Unitestimates an additional four to six operations related to human trafficking, organized crime, andborder security.The OAG estimates the bill provisions would require one Assistant Attorney General III (1.0 FTE),one Assistant Attorney General V (1.0 FTE), one Legal Assistant III (1.0 FTE), three InvestigatorV (3.0 FTEs), and one Information Specialist III (1.0 FTE) with a combined fiscal year cost of$613,302 for salaries ($489,099) and related benefits ($155,203) related to expandedprosecutorial and investigative assistance for border security, organized crime, and humantrafficking.The additional investigators would be commissioned peace officers and require specializedequipment such as weapons, radios, safety equipment, and vehicles. The OAG estimates travelassociated with the bill provisions would be greater than average due to potential investigationsand prosecution assistance. Additionally, the OAG estimates it would not be able house theadditional personnel in existing office space and would be required to lease space.2) It is assumed the bill's requirement that the Department of Public Safety (DPS) periodicallyreview the agency's information technology system can be absorbed within existing resources.3) Depending on the extent to which DPS utilizes the bill's provision allowing DPS to credit up tofour years of experience as a law enforcement officer in the state as years of service for Schedule Csalary purposes state cost would increase. These costs would be realized to the degree the agencyadds these more costly troopers, rather than less costly recruit school graduates. However, whilethese costs could be significant the utilization and scope cannot be determined at this time and thecosts are not included in the tables above. Specifically, probationary troopers graduating from theagency's 6-month recruit school are currently paid a base salary of $43,007 during a one-yearprobationary period following graduation. Assuming current (fiscal year 2014-15) levels ofovertime funding at an additional 3.8 hours per week, the actual annual pay for a probationarytrooper increases to approximately $49,135. Transfer troopers, however, would start at asignificantly higher pay level. The starting pay for a trooper with up to 4 years of experience is atleast $63,336. Assuming current levels of overtime funding at an additional 3.8 hours per week,the actual annual pay for a new transfer trooper increases to approximately $72,361. This $23,226per trooper differential would, for example, equate to a cost of $2.3 million if 100 troopers werehired under this provision, plus another $700,000 in estimated benefits costs. Therefore a transfertrooper presumably would start at a pay level about 47 percent higher than a probationary trooper.This increased pay presumably would represent a significant cost to the agency to the degree theagency opts to hire transfer troopers. The higher level of starting pay for each transfer trooperwould also represent an increased cost to the state in retirement contributions.4) DPS has indicated an annual cost of $71,300,000 to implement a 10-hour work day and 50-hour work week for all the agency's approximately 3,600 commissioned officers across the state.No additional costs associated with benefits, such as retirement contributions, are assumedbecause overtime pay is not subject to benefits contributions.5) This fiscal note assumes the bill's authorization for DPS to admit certain military veterans to the agency's trooper training academy would not result in any fiscal impact.6) This fiscal note assumes the reserve office corps created by this bill would be composed of volunteers, and thus would not represent a significant cost to the agency.7) It is assumed the bill's requirement for DPS to implement a strategy for providing federal authorities at international border checkpoints with assistance in the interdiction of weapons, bulk currency, stolen vehicles, and other contraband, and of fugitives, being smuggled from Texas into Mexico at international border checkpoints could be absorbed within existing resources. The bill would authorize DPS to share the costs of staffing any such international border checkpoint with relevant federal entities.8) This fiscal note assumes there will be local costs associated with the bill's requirement to direct DPS to establish a goal for each local law enforcement agency to implement an incident-based crime reporting system that meets the reporting requirements of the National Incident-Based Reporting System by September 1, 2019. The local costs are indicated below in the Local Government impact section. 9) This fiscal note assumes the bill's requirement that the Texas Facilities Commission (TFC)construct a multiuse training facility would have a total project cost of $154,163,846. While thiscost is shown in fiscal year 2016, the project financing would presumably require some provisionof unexpended balances authority.The $154,163,846 cost is based on facility requirements provided to TFC by DPS and TMD. TFChas indicated that based on discussions with DPS and TMD, the new training facility wouldrequire the following: a minimum land space of 5,000 acres; a 3,000 square foot administrativebuilding; a 6,000 square foot enclosed pavilion/instructional area; a 500 bed dormitory; parkingfor 500 vehicles; an 11,000 square foot medical clinic; a 16,000 square foot dining facility; a 75square yard tactical training area; a 1,000 yard rifle shooting range; a 50 yard pistol shootingrange; a 30,000 square foot staging and storage area; site lighting; and considerable developmentof site infrastructure, including establishment of access to basic utilities.Based on these requirements, TFC has provided the following project cost components: land($7,031,100); technical services ($17,377,500); site improvements ($25,282,784); constructionand testing ($87,332,071); furniture, fixtures and equipment ($5,080,000); contingency($7,061,691); and other costs ($4,998,700).This fiscal note assumes TFC would require the following positions to manage this project: oneProject Manager IV ($90,000), one Project Manager II ($67,000), one Inspector V ($47,000), andone Administrative Assistant IV ($42,000). Benefits costs associated with these salaries areestimated to be $83,345 per fiscal year. Other costs to support these positions are assumed to be$43,156 in fiscal year 2016 and $6,136 in fiscal year 2017 and beyond.10) This fiscal note assumes the bill's reenactment of the statute pertaining to the Texas Anti-Gang Grant Program would result in costs associated with providing anti-gang grants to localities. This fiscal note assumes historical costs for these grants. Specifically, in the last 4 years, the Office of the Governor's Criminal Justice Division (CJD) provided grants to two anti-gang centers (Houston and Dallas area), which averaged $1.5 million for establishment costs and $0.1 million for ongoing costs each. The Office of the Governor indicates that to administer the program enacted by the bill, CJD would expand current operations in Houston and Dallas and establish five new anti-gang centers ($1.5 million x 5 new centers = $7.5 million in 2016). This fiscal note assumes that to expand the operations, current ongoing costs would double for each center from $0.1 million to $0.2 million per year ($0.2 million x 2 centers = $0.4 million in 2016). In 2017 and beyond, the ongoing operational expenses would be for the seven established anti-gang centers around Texas ($0.2 million x 7 centers = $1.4 million). Thus:Fiscal Year 2016 ($1.5 million x 5 centers) + ($0.2 million x 2 centers) = $7,900,000Fiscal Years 2017+ ($0.2 million x 7 centers) = $1,400,000 per fiscal year11) This fiscal note assumes the bill's requirement that DPS establish the Texas Transnational Intelligence Center in a certain county if the county's sheriff and municipality's police department agree jointly to establish and operate the Center would entail costs both to the state and to certain local entities. The potential local impact is noted below in the Local Government Impact section. It is assumed DPS would be required to provide computing, networking, and support applications to establish the Center. One-time start-up costs for fiscal year 2016 are assumed to be $2,132,000 for computers, network hardware, and other IT equipment, as well as $298,812 for an IT contractor to assist in establishing the Center's network in fiscal year 2016 only. It is assumed any ongoing technology costs associated with DPS' assistance in operating the Center can be absorbed within existing resources. It is also assumed that the bill's requirement that the Texas Alcoholic Beverage Commission and Texas Parks and Wildlife Department provide certain criminal record data to the Center can be accomplished within each agency's existing resources. 12) The probable impact of implementing the bill's provisions which would amend the Penal Code is not assumed to be significant.
Technology
It is assumed DPS would be required to provide computing, networking, and support applicationsto fulfill the mission of the Texas Transnational Intelligence Center. One-time start-up costs forfiscal year 2016 are assumed to be $2,132,000 for computers, network hardware, and other ITequipment, as well as $298,812 for an IT contractor to assist in establishing the Center's networkin fiscal year 2016 only. It is assumed any ongoing costs associated with DPS' assistance inoperating the Center can be absorbed within existing resources.It is assumed the OAG would incur a technology impact related to computer hardware, software,telecommunications equipment, and network storage estimated to be $35,905 in fiscal year 2016and $16,380 in subsequent years.
Local Government Impact
The bill's goal that each local law enforcement agency in the state implement an incident-based crime reporting system that meets the reporting requirements of the National Incident-Based Reporting System (NIBRS) by September 1, 2019 could constitute a significant fiscal impact to local law enforcement agencies. Assuming each law enforcement agency takes steps to implement NIBRS in order to meet the goal of the bill, the impact to each law enforcement agency would depend on a given's agency's resources and whether the agency has already initiated a shift to an incident-based crime reporting system. The City of El Paso reported that the fiscal impact to implement the provisions of the bill is not anticipated to be significant. The Houston Police Department reported that conversion to the NIBRS would have a significant fiscal impact on the department, as it may require a significant rewrite of the current Records Management System. The bill's requirement to establish and operate the South Texas Crime Information Center presumably would result in costs to the two affected law enforcement agencies as well as the affected municipality, to the degree the municipality opts to provide resources for the Center.There may be costs to local governments associated with prosecution, confinement, enforcement of a new offense. Harris County reported that the creation of a new offense related to the smuggling of persons may create an additional 3,000 jail bookings per year; the cost for county jail bed stays, averaging 30 days per inmate, and processing fees would be $5,130,000 per year.
Source Agencies: 405 Department of Public Safety, 212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 327 Employees Retirement System
405 Department of Public Safety, 212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 327 Employees Retirement System
LBB Staff: UP, JAW, ESi, FR, AI, JHa, KVe
UP, JAW, ESi, FR, AI, JHa, KVe