LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 2, 1995 TO: Honorable Kim Brimer, Chair IN RE: Committee Substitute Committee on Business & Industry for House of Representatives House Bill Austin, Texas No. 1601 FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1601 (relating to the registration of and reporting by charitable organizations; providing penalties) 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 amend the Property Code by adding Chapter 124, the Charities Registration and Reporting Act. The purpose of the bill is to obtain sufficient information about those operating as charities to be able to determine which organizations may be violating existing law, so the Attorney General can stop such practices; to provide other civil penalties, such as injunctive relief; and to provide a source of information to the public about charities and their fundraising practices. The bill would require the Attorney General to maintain a register of charitable organizations, and generally to make the information public. Charitable organizations would be required to pay a $75 registration fee. Fees collected pursuant to the chapter would be used to administer and enforce the chapter and provide public education. The Office of the Attorney General anticipates that approximately 10,000 charitable organizations would be required to register each year, each paying $75 for the registration fee, for a total revenue of $750,000 to the state. 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 Revenue Probable Cost Year Gain to Out of General Revenue General Revenue Fund 001 Fund 001 1996 $750,000 $710,053 1997 750,000 665,605 1998 750,000 665,605 1999 750,000 665,605 2000 750,000 665,605 No fiscal implication to units of local government is anticipated. Source: Office of the Attorney General LBB Staff: JK, JC, RR