LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 24, 1995



 TO:     Honorable Kim Brimer, Chair            IN RE:  House Bill No. 1601
         Committee on Business & Industry               By: Coleman
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1601 (relating to the registration and reporting by charitable
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 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