LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 7, 1995 TO: Honorable Kim Brimer, Chair IN RE: House Bill No. 1425 Committee on Business & Industry By: Brimer House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1425 (relating to business organizations) this office has determined the following: 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 numerous amendments to the Texas Business Corporation Act (TBCA), Texas Non-Profit Corporation Act (TNPCA), Texas Miscellaneous Corporation Laws Act (TMCLA), Texas Limited Liability Company Act (TLLCA), Texas Revised Limited Partnership Act (TRLPA), and the Texas Revised Partnership Act (TRPA). . Amendments to the TBCA include changes to provisions which would impact filings with the Office of the Secretary of State. In addition, the bill would limit the personal liability of members of a limited liability company undergoing a conversion. This limitation on personal liability would increase franchise tax collection costs, limit enforcement actions, and could result in uncollected accounts. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Change in Year of General Number of State Revenue Employees from FY 1995 Fund 001 1995 $7,530 .3 1996 65,302 1.3 1997 41,273 1.3 1998 41,273 1.3 1999 41,273 1.3 2000 41,273 1.3 Similar annual fiscal implications after 2000 cannot be determined. No fiscal implication to units of local government is anticipated. Source: Comptroller of Public Accounts, Secretary of State LBB Staff: JK, JC, RR