LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 7, 1997 TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 1836 Committee on Economic Development By: Shapiro Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1836 ( Relating to the authority of a foreign limited liability partnership to transact business in this state.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1836-As Introduced Implementing the provisions of the bill would result in a net positive impact of $283,920 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis This bill would amend the Texas Revised Partnership Act (TRPA) to provide for the registration of foreign limited liability partnerships. The foreign limited liability partnership would be required to maintain a registered agent and a registered office address in Texas for service of process. The bill would also provide civil penalties for noncompliance and require the foreign limited liability partnership to re-qualify each year in order to maintain its qualified status. Methodolgy The bill would require the Secretary of State to revise forms, instructions, and publications and make minor modifications to computer programs but would not require an increase in staffing. The bill would set the filing fee for a foreign limited liability partnership at $200 per partner residing in Texas or $750, whichever is greater. The Secretary of State estimates that approximately 182 foreign limited liability partnerships would qualify in Texas in fiscal year 1998, and that the average filing fee would be $750, resulting in a gain to general revenue of $136,500 in that year and increasing amounts in subsequent years. 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: 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: 307 Secretary of State LBB Staff: JK ,TH ,JC