LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 31, 1999
TO: Honorable Debra Danburg, Chair, House Committee on
Elections
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB4 by Gallego (Relating to regulating and reporting
certain political contributions and certain political
expenditures and to regulating certain political
advertising; providing civil penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB4, As Introduced: negative impact of $(178,787) through the *
* biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(99,505) *
* 2001 (79,282) *
* 2002 (79,282) *
* 2003 (79,282) *
* 2004 (79,282) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* 0001 0001 *
* 2000 $(129,505) $30,000 3.0 *
* 2001 (109,282) 30,000 3.0 *
* 2002 (109,282) 30,000 3.0 *
* 2003 (109,282) 30,000 3.0 *
* 2004 (109,282) 30,000 3.0 *
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Technology Impact
According to the Ethics Commission, the bill would require changes to the
agency's computer data base, particularly with regard to the
registration of political consultants.
Fiscal Analysis
The bill would require candidates for statewide office, other than
judicial office, to designate a specific purpose committee as a principal
political committee. The bill would prohibit a candidate from accepting
a contribution, except on behalf of the candidate's principal political
committee. The bill would require principal political committees to file
campaign reports with the commission. The bill would require notices of
intended political expenditures to be filed with the Ethics Commission
and would require the commission to transmit that information to other
candidates in the election.
The bill would establish the Fair Campaign Spending Fund as a dedicated
account within the General Revenue Fund into which damages and civil
penalties assessed for violation of provisions of the Election Code would
be deposited. When the fund has an adequate balance, the Ethics
Commission would be permitted to use moneys from the fund to publish a
voter's guide and make it available to newspapers, post it on the
Internet and post it on the Comptroller's state government electronic
billboard.
The bill would require additional information to appear in political
advertising, including information regarding the failure of a candidate
to pay a civil penalty imposed by the Ethics Commission. The bill would
require the Ethics Commission to adopt rules to implement the
requirement.
The bill requires political consultants to register with the Ethics
Commission and to pay a registration fee of $300. The registration
would be renewed each year and political consultants would pay a $300
renewal fee.
Methodology
The Ethics Commission states that the bill would require the adoption of
new forms, the modification of existing forms and the adoption of new
rules. The agency anticipates that the bill would result in additional
requests for advisory opinions and additional sworn complaints the agency
would have to resolve. The agency also anticipates an increase in its
workload in tracking money deposited in the Fair Campaign Spending Fund
and would have to publish the voting guide when there is an adequate
balance in the fund.
According to the Ethics Commission, the agency would have to employ an
additional programmer, especially for tracking the registration of
political consultants. In addition, the agency anticipates that the
increased work load would require the employment of an attorney and an
administrative technician.
The Ethics Commission does not project anticipated revenue from the
political consultant filing fees. Currently, 1,600 lobbyists are
registered with the Ethics Commission which requires a $300 annual
registration fee. The bill excludes employees of candidates,
officeholders, political committees and political parties from the
political consultant registration requirement so there may be fewer
political consultants required to register under the bill than registered
lobbyists. In the absence of a projection from the Ethics Commission,
this estimate assumes at least 100 political consultants would register
under the bill and annually renew their registration, resulting in a
$30,000 gain in General Revenue each year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, PE, PH, SG