LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 1, 1995 TO: Honorable Don Henderson, Chair IN RE: Senate BillNo. 1214 Committee on Jurisprudence By: Ellis Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1214 (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, per estimate of the Office of the Attorney General: Fiscal Probable Revenue Probable Cost Out Change in Year Gain to General of General Number of State Revenue Fund 001 Revenue Fund 001 Employees from FY 1995 1996 $750,000 $710,053 7.5 1997 750,000 665,605 7.5 1998 750,000 665,605 7.5 1999 750,000 665,605 7.5 2000 750,000 665,605 7.5 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Office of the Attorney General LBB Staff: JK, JC, RR