LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 7, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2, As Introduced: negative impact of $(226,738) 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 $(226,738) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $(226,738) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * ***************************************************** 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. The costs of the new programming would be $110,000. Fiscal Analysis The bill would amend campaign finance rules for all candidates and officeholders by requiring the designation of a principal political committee. The bill would amend several sections of the Elections Code dealing with early voting requirements, campaign phone calls, the collection of civil penalties, 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 create the dedicated General Revenue Account - Fair Campaign Spending Fund, within the General Revenue Fund, which consist of damages recovered, civil penalties imposed, and unexpended political contributions, gifts or grants remitted to the Texas Ethics Commission. The bill would also authorize the Secretary of State to publish a voter's guide and produce public service announcements if money is available in the fund. Methodology Based on the Texas Ethics Commission's experience in implementing the electronic filing system, the agency has estimated it would take 1100 hours (about 27.5 weeks) 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, which took more than one year. Additionally, the agency is estimating administrative costs of $116,738 for postage, envelopes, paper, and software reproduction. According to the office of the Secretary of State, the agency has estimated there would be cost to disseminate a candidate's guide through the Texas Press Association, which could be absorbed within the existing agency resources. 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: 302 Office of the Attorney General, 356 Texas Ethics Commission, 304 Comptroller of Public Accounts, 307 Secretary of State LBB Staff: JK, TB, GS, DB