LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 24, 1997 TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 331, As Passed 2nd House Speaker of the House Danburg House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB331 ( Relating to certain election processes and procedures. ) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB331-As Passed 2nd House Implementing the provisions of the bill would result in a net positive impact of $101,234 to General Revenue Related Funds through the biennium ending August 31, 1999. 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 Election Code. Fiscal Analysis The bill would make various amendments to the Election Code. Methodolgy The Secretary of State's estimated cost to the primary finance account in the general revenue fund for "list notation" by election officials at a place other than the polling place was determined by multiplying the number of polling places as of the 1996 primaries by $5.00 per hour, the current amount paid to election officials by the fund. It was determined that only one official per precinct would provide this function. The cost was estimated at 20,394 polling places x $5.00 = $101,970. The estimated increase in the cost to the primary finance account of election contracts was determined by doubling the cost of the administrative fees for the 1996 primary elections, as the bill would double the authorized fee charged by the county election officer under an election services contract. The cost was estimated at $157,387. Estimated savings from party offices elected by plurality instead of majority and the elimination of runoffs in those party elections were calculated by multiplying the total runoff costs in the 1996 primary election by ten percent, the estimated percentage of primary costs devoted to party office elections. The savings were estimated at $3,242,713 x 10% = $324,271. The Secretary of State estimates that if all 254 counties conducted a joint primary election, the savings to the state could total $1,957,711, which reflects savings resulting from elimination of the number of election clerks and fewer polling place rentals, based on the 1996 primary costs. The Secretary of State notes, however, that the only county currently committed to conducting joint primary elections is Bexar, which could result in a savings to the state of $44,839. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Probable Savings/(Cost) Savings/(Cost) from General from General Revenue Fund Revenue Fund 0001 0001 1998 ($267,876) $369,110 1998 0 0 2000 (271,203) 369,110 2001 0 0 2002 (271,203) 369,110 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $101,234 1999 0 2000 97,907 2001 0 2002 97,907 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Local governments would see increased costs from the fee for election contracts which would be raised to ten percent of the total, and the minimum election contract fee established at $75.00. There would also be potential increased costs from election officials noting registration lists at a place other than the polling place. There would be savings to local governments from simplified partial manual count requirements for jurisdictions with electronic voting systems. Counties could also save primary runoff early voting costs by adopting the authorized plurality requirement for party offices. Source: Agencies: 307 Secretary of State LBB Staff: JK ,JD ,JC