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".