LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 26, 1999
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2347 by Brimer (Relating to certain business documents
filed and recorded with the secretary of state), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2347, As Introduced: positive impact of $2,465,970 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $1,232,985 *
* 2001 1,232,985 *
* 2002 1,232,985 *
* 2003 1,232,985 *
* 2004 1,232,985 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $1,232,985 *
* 2001 1,232,985 *
* 2002 1,232,985 *
* 2003 1,232,985 *
* 2004 1,232,985 *
*****************************************************
Fiscal Analysis
The bill would increase fees for the following services in the following
amounts:
expedited certified record search or filing in security interest and
financing statement records, $5 to $15;
expedited filing or reviewing of a document relating to a corporation,
association, partnership or limited liability company, $10 to $25; and
expedited response to a request for a certified copy or certificate of
fact relating to corporations, other business entities, assumed names,
trademarks, and other documents filed for public record with the
corporation section, $5 to $10 per copy or certificate.
The bill would also impose a fee of $25 for the expedited filing or
reviewing of a document relating to an unincorporated nonprofit
association.
Under the bill, the Secretary of State would be permitted to revoke the
filing of a document if the filing fee is not paid or if payment was by
an instrument that was dishonored. Current law permits such revocation
only in cases in which document was filed by or on behalf of a
corporation.
Methodology
The Secretary of State anticipates that the number of requests for
expedited searches and certifications would decline by 25 percent, if
fees specified in the bill were charged. The agency anticipates the
following number of each type of request in fiscal year 1999:
46,176 expedited certified record searches and filings in the security
interest and financing statement records;
51,532 requests for expedited filing or reviewing of documents related to
corporations and other business entities; and
81,848 requests for expedited responses for certified copies or
certificates of fact filed for public record with the corporations
section.
The fiscal implication is determined by multiplying the amount of each
fee increase by the number of requests in fiscal year 1999 reduced by 25
percent:
$10 x 46,176(.75) = $346,320
$15 x 51,532(.75) = $579,735
$5 x 81,848(.75) = $306,930
Total
$1,232,985
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, TH, SD, SG