LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 10, 2001
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB327 by Bosse (Relating to adoption of the Business
Organizations Code; providing penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB327, As Introduced: positive impact of $2,936,125 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 $1,174,450 *
* 2003 1,761,675 *
* 2004 1,761,675 *
* 2005 1,761,675 *
* 2006 1,761,675 *
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All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2002 $1,174,450 *
* 2003 1,761,675 *
* 2004 1,761,675 *
* 2005 1,761,675 *
* 2006 1,761,675 *
*****************************************************
Technology Impact
According to the Secretary of State, the Corporations Section computer
system is currently being developed and will effectively accommodate the
filings under the Act. The new system will be implemented prior to the
effective date of the Act.
Fiscal Analysis
The Act would revise, reorganize and codify various Texas statutes
governing the formation and internal affairs for various for-profit and
nonprofit business entities. According to the Secretary of State, many
filing fees would increase and the agency anticipates a gain to General
Revenue from the increase in fees.
Methodology
The Secretary of State projects gains in General Revenue derived from
filing fee increases. Based on statistical reports the agency maintains
on document filings, the agency projects a gain of $1,174,450 in fiscal
year 2002 (prorated on an eight month basis) and a gain of $1,761,675 in
fiscal year 2003 and each subsequent year from filing fees. The Act
would take effect January 1, 2002.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 307 Secretary of State
LBB Staff: JK, JO, SK