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