LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION

May 19, 2021

TO:	Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB3131 by Cole (Relating to the information required to be included in the certificate of formation of a filing entity.), As Engrossed

No significant fiscal implication to the State is anticipated.

This bill would amend the Business Organizations Code relating to certificates of formation.

The Secretary of State (SOS) indicates the agency would need to modify elements of the certificate of formation forms, make changes to an on-line filing system, and update online guidance.  The agency estimates that additional staff time could be needed to notify customers of the new requirement and expects an increase uptick in rejected filings until the new requirements are well known.

According to SOS, the bill could result in an increased number of entities filing certificates of amendment that would lead to an increase in filing fees collected by SOS; however, the agency is unable to predict the volume of such a fee increase at this time.

SOS anticipates that the agency would be able to implement these required changes using existing resources. 

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

307 Secretary of State

LBB Staff:

JMc, SZ, GP, LCO