LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 16, 1997 TO: Honorable Kim Brimer, Chair IN RE: House Bill No. 2631, Committee Report 1st House, as amended Committee on Business & Industry By: Brimer House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2631 ( Relating to certain business documents filed and recorded with the secretary of state.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2631-Committee Report 1st House, as amended Implementing the provisions of the bill would result in a net positive impact of $3,558,240 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would amend the Government Code to increase the fees collected by the Secretary of State for expedited handling of a certified record search or expedited filing of a document in the security interest and financing statement records from $5 to $25; expedited processing of a document in the corporation section from $10 to $50; and expedited handling of a request for a certified copy or certificate of fact for a document filed with the corporation section from $5 to $10. The Secretary of State would also be allowed to revoke the filing of any document for which the filing fee has not been paid. Methodolgy The Office of the Secretary of State anticipates that the increase in fees for expedited service would decrease the demand for such service by 50 percent in the first fiscal year and that demand should then level out. A decrease in demand for expedited service would enable the Secretary of State to process non-expedited documents in a more timely turnaround period and reduce the need for overtime or compensatory time to fulfill requests for expedited service. The increase in the fees which could be collected by the Secretary of State would result in an overall gain to general revenue. 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 $1,779,120 1998 1,779,120 2000 1,779,120 2001 1,779,120 2002 1,779,120 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $1,779,120 1999 1,779,120 2000 1,779,120 2001 1,779,120 2002 1,779,120 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 ,JC