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