LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 21, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 555, Committee Report 1st House, Substituted
Committee on Economic Development By: Sibley
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB555 ( Relating
to certain business organizations.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB555-Committee Report 1st House, Substituted FN Revision 2
Implementing the provisions of the bill would result in a net
posititve impact of $283,920 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
This bill would amend various portions of the Texas Business
Corporation Act, the Texas Miscellaneous Corporation Laws Act,
the Texas Limited Liability Company Act, the Texas Revised Limited
Partnership Act, and the Texas Revised Partnership Act. This
bill would add the Business Combination Law as part of the Texas
Business Corporation Act.
This bill would take effect September
1, 1997 and would apply to all entities affected regardless
of the date of formation or incorporation.
Methodolgy
The changes to the business organization statutes would provide
for a business reorganization process to be known as a "conversion,"
in which a combination of two business entities occurs. In
addition, the bill would provide statutory recognition to shareholder
agreements. The bill also would provide for the electronic
filing of documents with the Secretary of State.
The Secretary
of State estimates that amendments to the Texas Revised Partnership
Act would have a positive impact on general revenue from filing
fees for qualification of foreign limited liability partnerships.
The Secretary of State projects that this revenue would be
$136,500 in fiscal year 1998 and increasing amounts in subsequent
years.
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 $136,500
1998 147,420
2000 159,213
2001 171,950
2002 185,706
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 $136,500
1999 147,420
2000 159,213
2001 171,950
2002 185,706
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 ,TH