LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 28, 1999
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2681 by Bosse (Relating to adoption of the Texas
Business Organizations Code; providing penalties.), As
Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2681, As Introduced: positive impact of $1,304,130 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 *
* 2001 $1,304,130 *
* 2002 2,349,463 *
* 2003 2,784,433 *
* 2004 3,120,304 *
* 2005 3,376,160 *
****************************************************
All Funds, Five-Year Impact:
**************************************************************************
*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 *
* 2001 $0 $1,304,130 0.0 *
* 2002 (223,457) 2,572,920 1.0 *
* 2003 (528,457) 3,312,890 3.0 *
* 2004 (710,571) 3,830,875 4.0 *
* 2005 (817,275) 4,193,435 4.0 *
**************************************************************************
Fiscal Analysis
The bill would require corporations, excluding non-profit corporations,
and limited liability companies to file an annual report with the
Secretary of State. Corporations and limited liability companies would
pay a $15 filing fee if the report is filed on paper or a $5 filing fee
if the report is filed electronically. Under the bill, the Office of the
Secretary of State would review the annual reports for statutory
compliance.
The bill would increase 25 filing fees currently applied to business
entities. For example, the Secretary of State estimates that the
following fees are affected by the Act in the manner indicated below:
Existing
Fee Code
Certificate of formation for a Professional Association:
$300 $750
Certificate of formation for a Limited Liability Company [LLC]:
$200 $300
Certificate of Registration of a Foreign LLC:
$500 $750
Methodology
The Secretary of State projects gains in General Revenue derived from fee
increases (listed above) based upon statistical reports it maintains on
document filings. The agency projects gains of $1,304,130 in fiscal year
2001 and a gain of $1,956,195 in fiscal year 2002 from filing fees.
The Secretary of State anticipates increased workload resulting from
provisions that require annual reports to be filed. The agency projects
that it will require four additional employees. The agency anticipates
that the cost of generating reports and notices and out-sourcing mailing
and procedures relating to the report would cost $5 per document. To
handle the increasing workload, the agency anticipates the bill will
require one additional employee in fiscal year 2002, three additional
employees in fiscal year 2003 and a total of four additional employees
in fiscal year 2004.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TH, PH, SG