LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB446 by Flores (Relating to workplace heat illness prevention, including the creation of a heat illness prevention advisory board; imposing administrative penalties; providing a private cause of action.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB446, As Introduced: a negative impact of ($8,277,549) 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 toGeneral Revenue Related Funds2026($5,277,549)2027($3,000,000)2028($3,000,000)2029($3,000,000)2030($3,000,000)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($5,277,549)14.92027($3,000,000)0.02028($3,000,000)0.02029($3,000,000)0.02030($3,000,000)0.0 Fiscal AnalysisThis bill would amend the Labor Code by adding Chapter 53,Workplace Heat Safety, to establish the Heat Illness Prevention Advisory Board (board) to assist the Texas Workforce Commission (TWC) in adopting heat illness prevention standards. TWC would be required to adopt heat illness prevention standards, giving consideration to any recommendations made by the board. The bill would require employers to provide training about the standards.The bill would make it an unlawful employment practice for an employer to retaliate or discriminate against an employee who experiences heat illness in the workplace or commits certain actions relating to reporting of a violation. TWC would assess an administrative penalty not less than $1,000 for a violation of the bill or of a rule adopted under the chapter. Each day a violation continues would be a separate violation for purposes of the penalty. An employer would also be liable in a civil action related to death or injury caused by an employer's violation of the bill.The bill would take effect immediately upon enactment, if it receives the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2025. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB446 by Flores (Relating to workplace heat illness prevention, including the creation of a heat illness prevention advisory board; imposing administrative penalties; providing a private cause of action.), As Introduced TO: Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB446 by Flores (Relating to workplace heat illness prevention, including the creation of a heat illness prevention advisory board; imposing administrative penalties; providing a private cause of action.), As Introduced Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB446 by Flores (Relating to workplace heat illness prevention, including the creation of a heat illness prevention advisory board; imposing administrative penalties; providing a private cause of action.), As Introduced HB446 by Flores (Relating to workplace heat illness prevention, including the creation of a heat illness prevention advisory board; imposing administrative penalties; providing a private cause of action.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB446, As Introduced: a negative impact of ($8,277,549) 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. Estimated Two-year Net Impact to General Revenue Related Funds for HB446, As Introduced: a negative impact of ($8,277,549) 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. 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: 2026 ($5,277,549) 2027 ($3,000,000) 2028 ($3,000,000) 2029 ($3,000,000) 2030 ($3,000,000) All Funds, Five-Year Impact: 2026 ($5,277,549) 14.9 2027 ($3,000,000) 0.0 2028 ($3,000,000) 0.0 2029 ($3,000,000) 0.0 2030 ($3,000,000) 0.0 Fiscal Analysis This bill would amend the Labor Code by adding Chapter 53,Workplace Heat Safety, to establish the Heat Illness Prevention Advisory Board (board) to assist the Texas Workforce Commission (TWC) in adopting heat illness prevention standards. TWC would be required to adopt heat illness prevention standards, giving consideration to any recommendations made by the board. The bill would require employers to provide training about the standards.The bill would make it an unlawful employment practice for an employer to retaliate or discriminate against an employee who experiences heat illness in the workplace or commits certain actions relating to reporting of a violation. TWC would assess an administrative penalty not less than $1,000 for a violation of the bill or of a rule adopted under the chapter. Each day a violation continues would be a separate violation for purposes of the penalty. An employer would also be liable in a civil action related to death or injury caused by an employer's violation of the bill.The bill would take effect immediately upon enactment, if it receives the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2025. Methodology The establishment of a Heat Illness Prevention Advisory Board, the development and implementation of statewide heat illness prevention standards, the creation and dissemination of employer and employee resources, and the enforcement of the new provisions would require additional personnel based on the assessment from TWC. To meet this workload increase and based on the analysis of TWC, this estimate assumes the agency would require an 14.9 additional full time equivalents (FTE) positions in fiscal year 2026 to implement the provision of the bill. An additional 12.9 FTEs would be needed in the agency's Information Technology division to develop and build a system to house the heat illness complaints submitted by individuals. These positions include: 3.9 Programmer V ($124,607 per year with estimated benefits of $35,413), 2.0 Program Manager IV ($102,980 per year with estimated benefits of $29,267), 2.0 System Administrator V ($91,836 per year with estimated benefits of $26,100), 2.0 System Analyst IV ($80,421 per year with estimated benefits of $22,856), 1.5 Database Administrator IV ($113,278 per year with estimated benefits of $32,194) and lastly 1.5 Manager IV ($91,836 per year with estimated benefits of $26,100). An additional 2.0 FTEs would be needed for the development of the heat illness standards and training through the advisory board, rulemaking, compliance monitoring, investigations, and appeals. These positions include: 0.2 Training and Development Specialist III ($11,658 per year with estimated benefits of $3,313), 0.3 Project Manager II ($22,613 per year with estimated benefits of $6,427), 0.1 Creative Media Designer I ($5,373 per year with estimated benefits of $1,527), 0.1 Administrative Assistant II ($3,985 per year with estimated benefits of $1,133), 0.4 Investigator I ($16,728 per year with estimated benefits of $4,754), 0.1 Hearing Officer I ($6,214 per year with estimated benefits of $1,766), 0.1 Attorney I ($7,538 per year with estimated benefits of $2,142), 0.1 Accounts Examiner I ($4,392 per year with estimated benefits of $1,248), 0.1 Program Supervisor V ($7,067 per year with estimated benefits of $2,008), 0.4 Accountant III ($23,316 per year with estimated benefits of $6,626), and lastly a 0.1 Manger I ($7,538 per year with estimated benefits of $2,142).Other associated costs include $401,935 per year for payroll contributions, rent, utilities, indirect costs, travel, consumable supplies and other operating expenses.Based on the analysis of the Comptroller of Public Accounts and the Office of Court Administration , this estimate assumes no significant fiscal impact to the state for the agencies to implement the bill's provision. Technology TWC anticipates information technology expenditures of $3,000,000 each fiscal year for Data Center Services provided by the Department of Information Resources, to modify the Wage and Hour computer system to include a new section to process heat illness complaints and to develop an online portal to allow for the submission of heat illness complaints. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 320 Texas Workforce Commission 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 320 Texas Workforce Commission LBB Staff: b > td > JMc, RStu, GDZ, JBel JMc, RStu, GDZ, JBel