LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 5, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3181  by Danburg (Relating to information concerning
               registered voters.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would require a county registrar that has not contracted with
the Secretary of State for electronic data services under the
registration service program to deliver once a week to the Secretary of
State, canceled registration a list containing each new registration and
all changes in registration information that occurred in the county since
the previous list was submitted.  Under current statute, the list must
be submitted quarterly.

The bill would also authorize the Secretary to place into a special fund
any lapsed funds after the expiration of the period in which those funds
would be disbursed to registrars and issue those moneys to counties that
have limited technological resources to upgrade voter registration
technology. The lapsed funds are from those funds already appropriated
and earmarked for disbursement to voter registrars statewide. Under the
provisions of the bill, the Secretary would also be required to give
preference to counties with limited resources for technology improvements
when transferring surplus computer equipment.

The bill would also require the Secretary of State's Office to perform a
feasibility study on updating voter registration information via digital
transmission.  If the results of this study are positive,  local voter
registrars will be directed by the Secretary of State's Office to begin
accepting corrected voter registration information via digital
transmission.  Voters would not be required to submit a written document
accompanied by the voter's signature.  Local registrars reported that
accepting information via digital transmission would not have a
significant fiscal impact.

According to the Texas Association of Election Administrators,
approximately 120 of the 254 counties contract with the Secretary of
State for use of the electronic Texas Voter Registration System (TVRS).
Contacted counties with a population over 200,000 that do not contract
with the Secretary estimate the requirements under the provisions of the
bill would increase their annual operating costs by approximately
$96,000.

Some counties with populations under 80,000 indicated they contract with
a vendor to keep their voter databases current.  The vendors charge an
average of $175 per report generated. If reporting
requirements were to increase from quarterly to weekly, the counties
anticipate that the vendors would charge a one-time programming fee that
would adjust the system to generate weekly instead of quarterly reports.
The programming cost is estimated to range from $6,000 to $7,000. The
annual cost for the reports would increase from $700 a year for four
reports to $9,100 per year for 52 reports.  Switching to a contract with
the Secretary, rather than continuing with existing systems, would result
in a cost for any computer equipment and software necessary to interface
with the TVRS.

Those counties that have limited technology resources and that would be
eligible for the surplus computer equipment and special funds to assist
in upgrading their technology systems from the Secretary of State would
have a positive fiscal impact.  The fiscal benefit would vary by
eligible county and would depend on the level of lapsed funds available,
which would change annually.  According to the Secretary of State,
lapsed funds totaled $17,000 in fiscal year 1997, and $400,000 in fiscal
year 1998. These funds are already earmarked to assist voter registrars
and vary depending on each county's annual needs.
  
  
Source Agencies:   313   Department of Information Resources, 307
                   Secretary of State
LBB Staff:         JK, RB, SK, DW