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