LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 19, 2001
TO: Honorable Senfronia Thompson, Chair, House Committee on
Judicial Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3224 by Madden (Relating to notaries public; providing
a penalty.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3224, As Introduced: negative impact of $(689,270) 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(356,905) *
* 2003 (332,365) *
* 2004 (317,987) *
* 2005 (295,495) *
* 2006 (311,627) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(535,859) $178,954 8.0 *
* 2003 (490,581) 158,216 8.0 *
* 2004 (490,581) 172,594 8.0 *
* 2005 (490,581) 195,086 8.0 *
* 2006 (490,581) 178,954 8.0 *
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Technology Impact
Notebook computers for five FTEs and personal computers for two FTEs at a
cost of $17,500.
Fiscal Analysis
The bill would make several substantive changes to the Notary Public Act,
Chapter 406, Title 4 of the Government Code. The bill would require an
notary applicant to complete a training course and pass a test at the
end of the course. It would require the Secretary of State to review and
approve the test. The bill also requires that the person providing the
course collect a $2.00 fee from each individual taking the course which
would be remitted to the Secretary of State to be used only for the
office of notary certification and inspection. This office will be
responsible for overseeing the training and testing of notary public
applicants, conducting inspections of individual notaries public,
enforcing the referenced employer agreements, and serving as an
ombudsman concerning notary public matters. The bill will require the
Secretary of State to inspect notary public training and testing
conducted throughout Texas. It would require the inspection of the
books, records, and notary procedures of each Texas notary public.
Methodology
According to the Secretary of State's Office, the number of new notaries
public commissioned during the last 4 fiscal years have ranged from a low
of 52,158 in FY 1998 to a high of 55,988 in FY 1997. The number of
renewals for that period ranged from a low of 26,950 in FY 1998 to a high
of 44,117 in FY 1996. The total of new notaries and renewals for that
period ranged from a low of 79,108 to a high of 97,543.
The Secretary of State estimates that one full time investigator,
traveling 80% of the time, would be required to inspect the training and
testing that is provided to new and renewal applicants and to assist with
inspecting individual notaries public. It is also estimated that the
travel expenses for that investigator would be $29,550.
There are currently 352,057 notaries public located within the 254 Texas
Counties. If only 20% of the currently commissioned notaries public's
offices were inspected it is estimated that it would take 7,041
person-days or 27.08 person-years to complete such inspection. The
Secretary of State assumes that one person inspects 10 notary public
offices per day, it would take 7,041.14 person-days to inspect 70,411
notaries public (.20 x 352,057= 70,411.4). Based on 260 working days in a
year, it would take 27.08 years to complete the inspection of 20% of the
current number of notaries. It is estimated that four investigators,
traveling 90% of the time would be required to inspect the offices of the
individual notaries public. In addition, it is estimated that travel
expenses for these investigators would be $132,600 per year. This figure
is based on [(260 working days per year x .90) x $150.00/day]. The
salary costs for the investigators is estimated to be $137,000 per year
plus benefits.
The Secretary of State assumes that an Auditor II, at a cost of $29,232
plus benefits, would be required to inspect the books and records of the
entities collecting the $2.00 filing fee to insure all such fees are
being forwarded to the Secretary of State. It is also anticipated that
each of the investigators and the auditor will need a cellular telephone.
The estimated cost for such service is based on equipment cost of
$600.00 ($100/phone) and a monthly fee of $25.00/phone. Also each
investigator and the auditor will need a notebook computer based on an
equipment cost of $17,500 ($2,500/computer). It is estimated that the
auditor will travel 80% of the time, and the auditor's travel expense
will be $29,550 per year. The new Office of Notary Certification and
Inspection will require a Manager I, at a cost of $42,214 plus benefits,
to oversee the operations of such Office as well as a administrative
technician at a cost of $25,932 per year plus benefits.
Additional operating expenses and rent in the amount of $25,000 per year
would be required.
The estimated probable revenue gain is based on the additional $2.00
added to the filing fee for new and renewal notary public applications.
The number of new and renewal applications used was based on the total
applications received for the previous four year period. (A notary term
of office is for four years.)
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 307 Secretary of State
LBB Staff: JK, TB, SK