LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 2, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2  by Gallego (Relating to the regulation of certain
               political contributions, political expenditures, and
               political advertising; providing civil and criminal
               penalties.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2, As Engrossed:  positive impact of $205,313 through the           *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  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                *
          *       2002                             $205,313  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                                 $205,313 *
         *      2003                                        0 *
         *      2004                                        0 *
         *      2005                                        0 *
         *      2006                                        0 *
         *****************************************************
  
Technology Impact
  
The bill would require programming modifications the Texas Ethics
Commission's database and software.  All electronic filers will
experience some changes in reporting requirements that require
modifications in the electronic filing software.  The costs for new
programming would be $88,575.
  
  
Fiscal Analysis
  
The bill would amend the Elections Code to impose certain restriction on
political contributions, repayment of loans, and expenditures in
connection with judicial, legislative, and executive offices.  The bill
would also amend several sections of the Election Code dealing with the
collection of civil penalties, political advertising, the content of
campaign contribution reports, reports by political and federally
registered committees, the disposition of unexpended political
contributions, and campaign advertising.
  
  
Methodology
  
Based on the Texas Ethics Commission's experience in implementing the
electronic filing system, the agency has estimated it would take 885.75
hours at $100 per hour to make the required programming changes.  This
estimate is based on the current agency's maintenance cost for the
electronic filing system and the agency's experience in implementing the
current electronic filing system.

The agency estimated administrative costs of $116,738 for postage,
envelopes, paper, and software reproduction to mail forms and
instructions to 3,400 Commission filers and 5,000 local filing
authorities.

Although the bill allows for civil penalties, the Comptroller of Public
Accounts could not provide an estimate on the amounts which might be
imposed or collected.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 356   Texas
                   Ethics Commission, 307   Secretary of State, 302
                   Office of the Attorney General
LBB Staff:         JK, RB, GS