LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 9, 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.), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2, Committee Report 2nd House, Substituted: negative impact of * * $(195,313) 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 $(195,313) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $(195,313) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * ***************************************************** Technology Impact The bill would require programming modifications to 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 $78,575. Fiscal Analysis The bill would amend the Elections Code and required additional information for certain contributors which would require the Texas Ethics Commission to revise all campaign finance filing guides and instructions, prescribe new forms, change existing forms, make modifications to the existing electronic filing software and provide the new software to Texas Ethics Commission filers, as well as providing notice to candidates, officeholders, and political committees. Methodology Based on the Texas Ethics Commission's experience in implementing the electronic filing system, the agency has estimated it would take 785.75 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. Additionally, the agency has 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. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 356 Texas Ethics Commission LBB Staff: JK, RB, GS