GEC S.B. 1837 75(R)BILL ANALYSIS


BUSINESS & INDUSTRY
S.B. 1837
By: Ratliff (Brimer)
5-9-97
Committee Report (Unamended)


BACKGROUND 

Currently, the secretary of state charges $5 for expedited handling of a
certified record search or filing of a document under Chapter 9 or 35,
Business & Commerce Code, or Chapter 14, Property Code, and $10 for other
filings related to business entities. The fees have not been increased
since expedited services were implemented in 1979.  Due to the increase in
demand for these expedited services, an increase in the fees is necessary
to recover costs of these services.  This bill authorizes the secretary of
state to set and collect $25, rather than $5, for expedited filing of a
document in the security interest and financing statement records of the
secretary; deletes a provision relating to Chapter 9 or 35, Business &
Commerce Code, and Chapter 14, Property Code; authorizes the secretary of
state to set and collect $50, rather than $10, for filing or reviewing
certain documents; adds unincorporated nonprofit associations to the list
of business entity records subject to the new fee of $50; and allows the
secretary of state to revoke the filing of a document made by any type of
business entity where the fee has not been paid, instead of only corporate
entities. 

PURPOSE

As proposed, S.B. 1837 authorizes the secretary of state to set and
collect $25, rather than $5, for expedited filing of a document in the
security interest and financing statement records of the secretary;
deletes a provision relating to Chapter 9 or 35, Business & Commerce Code,
and Chapter 14, Property Code; authorizes the secretary of state to set
and collect $50, rather than $10, for reviewing certain documents; adds
unincorporated nonprofit associations to the list of business entity
records subject to the new fee of $50; and allows the  secretary of state
to revoke the filing of a document made by any type of business entity
where the fee has not been paid, instead of only corporate entities. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 405.032(a), Government Code, to authorize the
secretary of state to set and collect $25, rather than $5, for expedited
filing of a document in the security interest and financing statement
records of the secretary.  Deletes a provision relating to Chapter 9 or
35, Business & Commerce Code, and Chapter 14, Property Code.  Authorizes
the secretary of state to set and collect $50, rather than $10, for filing
or reviewing a document related to an unincorporated nonprofit
association, among other business entities. 

SECTION 2. Amends 405.033, Government Code, to delete a provision
authorizing the secretary of state to revoke the filing of a document
filed by or on behalf of a corporation. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.