GEC H.B. 2631 75(R)BILL ANALYSIS BUSINESS & INDUSTRY H.B. 2631 By: Brimer 4-8-97 Committee Report (Amended) BACKGROUND Expedited review and processing of documents is provided to mailed in and facsimile transmitted documents, as well as documents hand delivered to the Corporations Section and Uniform Commercial Code Section of the office of the Secretary of State. Expedited documents received by the Corporations Section are to be reviewed and processed by the close of the business day following the date of receipt of the document. The statutory $10 and $5 expedite fees have not been increased since the implementation of the service in 1979. The availability of facsimile filing and the introduction of various levels of courier delivery service by third party providers, together with the nominal fee, have overwhelmingly increased the demand for expedited service. A recent internal study indicates that 77.4% of all initial filings (new articles of formation and qualifications) are processed on an expedited basis in the corporations section. Frequently, expedite requests cannot be handled within the time frame requested. As filings increase, the continuation of this level of service under the present fee structure becomes difficult, straining available resources and adversely affecting the level of service available to others. Currently, Section 405.033 does not authorize the secretary of state to revoke a filing made by business entities on file with the secretary of state, other than corporations. Amendment of the provision is required to allow for uniform treatment of all document submissions failing to satisfy the statutory fee. PURPOSE As filed, House Bill 2631 makes various amendments to Chapter 405 of the Texas Government Code. The bill amends Section 405.032(a), Government Code to increase the expedited handling fees and amends Section 405.033 to authorize the secretary of state to revoke the filing of any document for which the filing fee has not been paid. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS Section 1: Increases the fee for the expedited handling of a certified record search or expedited filing of a document filed in the security interest and financing statement records of the secretary of state from $5 to $25. Increases the expedited review or filing of a document filed by a corporate entity, general or limited partnership, limited liability company, professional association, or cooperative association from $10 to $50. In addition, the section is amended to include filings made by unincorporated nonprofit associations. The Act also generalizes the language regarding the documents and records expedited by the Uniform Commercial Code Section of the Statutory Filings Division. Rather than amend the subsection each time the legislature creates another lien to be filed with the office of the secretary of state, the language has been redrafted to be less specific. Section 2: Amends Section 4.05.033, Government Code to permit the secretary of state to revoke any document failing to satisfy the statutory fee. Section 3: Effective date: September 1, 1997. Section 4: Emergency clause. EXPLANATION OF AMENDMENTS Committee Amendment #1 amends H.B. 2631 on page 2, line 10, strike "$5" and insert $10 between "than" and "a".