LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 2, 1997
TO: Honorable Kim Brimer, Chair IN RE: House Bill No. 1633, Committee Report 1st House, Substituted
Committee on Business & Industry By: Solomons
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1633 ( Relating
to the authority of a foreign limited liability partnership
to transact business in this state.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB1633-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $283,920 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
This bill would amend the Texas Revised Partnership Act (TRPA)
to provide for the registration of foreign limited liability
partnerships. The foreign limited liability partnership would
be required to maintain a registered agent and a registered
office address in Texas for service of process. The bill would
also provide civil penalties for noncompliance and require the
foreign limited liability partnership to re-qualify each year
in order to maintain its qualified status.
Methodolgy
The bill would require the Secretary of State to revise forms,
instructions, and publications and make minor modifications
to computer programs but would not require an increase in staffing.
The bill would set the filing fee for a foreign limited liability
partnership at $200 per partner residing in Texas or $750, whichever
is greater. The Secretary of State estimates that approximately
182 foreign limited liability partnerships would qualify in
Texas in fiscal year 1998, and that the average filing fee would
be $750, resulting in a gain to general revenue of $136,500
in that year and increasing amounts in subsequent years.
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 Revenue
Gain/(Loss) from
General Revenue
Fund
0001
1998 $136,500
1998 147,420
2000 159,213
2001 171,950
2002 185,706
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 $136,500
1999 147,420
2000 159,213
2001 171,950
2002 185,706
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 307 Secretary of State
LBB Staff: JK ,TH