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