LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 10, 1995 TO: Honorable Don Henderson, Chair IN RE: Committee Substitute Committee on Jurisprudence for Senate Senate Bill Austin, Texas No. 1214 By: Ellis FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1214 (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 Chapter 20, Title 132, Revised Statutes by adding Article 9023d, 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 dedicated for use by the Attorney General to administer and enforce the Act. 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 the 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, BR, RR