LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 6, 1997 TO: Honorable Debra Danburg, Chair IN RE: House Bill No. 331 Committee on Elections By: Danburg House 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 Introduced FN Revision 1 Implementing the provisions of the bill would result in a net positive impact of $ 64,914 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. Fiscal Analysis The bill consists of several "clean-up" amendments to the Election Code. It also authorizes election officials to make changes to the list of registered voters by marking off the names of early voters ("list notation") at a location other than the polling place before it is opened for voting. The bill would double the authorized fee charged by the county election officer for general supervision of an election under an election services contract, from five to ten percent of the total amount of the contract. The bill also contains substantive changes to the current method of selecting election officials and recount procedures. The bill would take effect September 1, 1997. 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 of election contracts to the primary finance fund was determined by the Secretary of State 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 $157,387.39 x 2 = $314,774.78. Estimated savings from party offices elected by plurality instead of majority voter 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 $3,242,713.32 x 10% = $324,271.33. 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 Revenue Savings/(Cost) Gain/(Loss) from from General General Revenue Revenue Fund Fund 0001 0001 1998 ($259,357) $324,271 1998 0 0 2000 (259,357) 324,271 2001 0 0 2002 (259,357) 324,271 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $64,914 1999 0 2000 64,914 2001 0 2002 64,914 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 notating 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 ,PE ,JC