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