LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 2, 2001
TO: Honorable Debra Danburg, Chair, House Committee on
Elections
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.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2, Committee Report 1st House, Substituted: negative impact of *
* $(313,636) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(257,849) *
* 2003 (55,787) *
* 2004 (55,787) *
* 2005 (55,787) *
* 2006 (55,787) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(257,849) 2.0 *
* 2003 (55,787) 2.0 *
* 2004 (55,787) 2.0 *
* 2005 (55,787) 2.0 *
* 2006 (55,787) 2.0 *
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Technology Impact
The bill would require programming modifications to all parts of the
software and the Texas Ethics Commission's database. All filers who
file electronically will have some changes in reporting requirements
that require modifications in the electronic filing software. It will
require modification to the Commission's web database in order to
display the street address for contributors. Additionally, the Texas
Ethics Commission will have to maintain an index of information about
persons making political contributions. The costs of the new
programming would be $94,300.
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. The bill would require the
Texas Ethics Commission to compile and maintain an index of information
about persons making political contributions.
Methodology
Based on the Texas Ethics Commission's experience in implementing the
electronic filing system, the agency has estimated it would take 943
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 is estimating administrative costs of $107,762 for postage,
envelopes, paper, and software reproduction to mail forms and
instructions to 3,400 Commission filers and 5,000 local filing
authorities. Also, it is estimated it would take 2 data entry operators
(FTEs) for performing data entry for contributions filed on paper
reports to maintain an index of information about persons making
political contributions.
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: 307 Secretary of State, 302 Office of the
Attorney General, 304 Comptroller of Public
Accounts, 356 Texas Ethics Commission
LBB Staff: JK, TB, GS