LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 7, 1997
TO: Honorable Kim Brimer, Chair IN RE: House Bill No. 2631
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-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $3,294,240 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; and expedited processing of a document in the corporation
section from $10 to $50. 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 $1,647,120
1998 1,647,120
2000 1,647,120
2001 1,647,120
2002 1,647,120
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 $1,647,120
1999 1,647,120
2000 1,647,120
2001 1,647,120
2002 1,647,120
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