LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 12, 1997 TO: Honorable Debra Danburg, Chair IN RE: House Bill No. 3332, Committee Report 1st House, Substituted Committee on Elections By: Gallego House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3332 ( Relating to regulating and reporting certain political contributions and certain political expenditures and to regulating certain political advertising, providing criminal penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3332-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net negative impact of $(223,262) 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. The bill would amend the Elections Code to provide restrictions on certain political contributions and expenditures and to provide additional requirements relating to political advertising. Fiscal Analysis The Ethics Commission would administer and enforce most of the new provisions of the bill. Campaign finance rules would be altered for statewide offices, other than judicial offices, legislative offices, and members of the State Board of Education, by requiring the designation of a principal campaign committee. The bill would limit contributions from a child, require filing of documents before certain direct campaign expenditures are made, and establish the Fair Campaign Spending Fund, a special account in the general revenue fund. It would also require political consultants to register with the Ethics Commission and to file semiannual reports. The Ethics Commission would be required to revise filing guides and instructions, to prescribe new forms, and to prescribe a voters guide if funds were available. The Ethics Commission would adopt rules to implement the new provisions. Methodolgy The Ethics Commission estimates that it would be required to create new forms, adopt new rules, and process increased amounts of advisory opinion requests and sworn complaints. The Commission would also be required to publish a voters guide if money were available in the special fund created by the bill called the Fair Campaign Spending Fund. The Commission also estimates that changes to its computer database would need to be programmed. The Ethics Commission estimates that in order to implement the provision of this bill, it would need to hire one additional attorney, one Administrative Technician III, and one Programmer I. 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 Change in Number Savings/(Cost) of State from General Employees from Revenue Fund FY 1997 0001 1998 ($121,741) 3.0 1998 (101,521) 3.0 2000 (101,521) 3.0 2001 (101,521) 3.0 2002 (101,521) 3.0 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 ($121,741) 1999 (101,521) 2000 (101,521) 2001 (101,521) 2002 (101,521) 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: LBB Staff: JK ,PE ,JC