LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 26, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 436 Committee on Intergovernmental Relations By: Lucio Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB436 ( Relating to the maintenance and preservation of public records filed with a county clerk and the collection and application of certain user fees.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB436-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(1,481,371) 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 The bill would allow county clerks to set and collect a new $10 records restoration and re-creation fee from any person filing a document with the clerk. The fees are to be deposited into a separate account and may be used only for the restoration, re-creation and preservation of public records and archives. Once the restoration project is complete, the clerk would be required to stop collections of the fee and return any unspent fees to the comptroller. Methodolgy This estimate assumes that the Comptroller's Office would be required to pay the $10 Records Restoration and Re-creation Fee each time the agency files documents with a county, and is based on a projection of the number of liens, lien releases, and abstracts of judgments that Comptroller would file in fiscal year 1998, allowing for a five percent annual increase in the number of filings. The estimate assumes that all counties would collect the fee. The estimated impact to local governments was derived by estimating the amount of revenue that would be generated in nine representative counties and calculating the statewide impact to local governments based on that sample. Estimates of potential revenue were provided by the Travis County Clerk's Office and the State Library and Archives Commission. 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 Savings/(Cost) from General Revenue Fund 0001 1998 ($722,620) 1998 (758,751) 2000 (796,689) 2001 (836,523) 2002 (876,349) 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 ($722,620) 1999 (758,751) 2000 (796,689) 2001 (836,523) 2002 (876,349) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect and until restoration projects are completed, after which county clerks would be required to stop collecting the fee. Assuming that all counties collect the fee, the bill would result in increased revenue to county governments of $40 million to $43 million in fiscal year 1998, and would be likely to continue at approximately the same level for the first five years the provisions of the bill are in effect. Source: Agencies: 304 Comptroller of Public Accounts 306 Library and Archives Commission 302 Office of the Attorney General 307 Secretary of State LBB Staff: JK ,TL ,JA