LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 26, 2015 TO: Honorable Joan Huffman, Chair, Senate Committee on State Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1969 by Huffman (Relating to ethics of public servants, including the functions and duties of the Texas Ethics Commission; the regulation of political contributions, political advertising, lobbying, and conduct of public servants; and the reporting of political contributions and expenditures and personal financial information; providing civil and criminal penalties.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1969, As Introduced: a positive impact of $676,000 through the biennium ending August 31, 2017. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 26, 2015 TO: Honorable Joan Huffman, Chair, Senate Committee on State Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1969 by Huffman (Relating to ethics of public servants, including the functions and duties of the Texas Ethics Commission; the regulation of political contributions, political advertising, lobbying, and conduct of public servants; and the reporting of political contributions and expenditures and personal financial information; providing civil and criminal penalties.), As Introduced TO: Honorable Joan Huffman, Chair, Senate Committee on State Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE: SB1969 by Huffman (Relating to ethics of public servants, including the functions and duties of the Texas Ethics Commission; the regulation of political contributions, political advertising, lobbying, and conduct of public servants; and the reporting of political contributions and expenditures and personal financial information; providing civil and criminal penalties.), As Introduced Honorable Joan Huffman, Chair, Senate Committee on State Affairs Honorable Joan Huffman, Chair, Senate Committee on State Affairs Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board SB1969 by Huffman (Relating to ethics of public servants, including the functions and duties of the Texas Ethics Commission; the regulation of political contributions, political advertising, lobbying, and conduct of public servants; and the reporting of political contributions and expenditures and personal financial information; providing civil and criminal penalties.), As Introduced SB1969 by Huffman (Relating to ethics of public servants, including the functions and duties of the Texas Ethics Commission; the regulation of political contributions, political advertising, lobbying, and conduct of public servants; and the reporting of political contributions and expenditures and personal financial information; providing civil and criminal penalties.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1969, As Introduced: a positive impact of $676,000 through the biennium ending August 31, 2017. Estimated Two-year Net Impact to General Revenue Related Funds for SB1969, As Introduced: a positive impact of $676,000 through the biennium ending August 31, 2017. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 $338,000 2017 $338,000 2018 $338,000 2019 $338,000 2020 $338,000 2016 $338,000 2017 $338,000 2018 $338,000 2019 $338,000 2020 $338,000 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 $338,000 2017 $338,000 2018 $338,000 2019 $338,000 2020 $338,000 Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 $338,000 2017 $338,000 2018 $338,000 2019 $338,000 2020 $338,000 2016 $338,000 2017 $338,000 2018 $338,000 2019 $338,000 2020 $338,000 Fiscal Analysis The bill would amend Government Code to require personal financial statements to be filed electronically with the Ethics Commission. The bill would also require the Ethics Commission to redact the home addresses on personal financial statements that are provided to the public. The bill would also add certain limitations on lobby registration, as well as reporting of political expenditures and contributions. The Ethics Commission indicates that any costs associated with implementing the bill could be absorbed within existing agency resources. The bill would take effect September 1, 2015. Methodology The bill would amend Election Code to require filers of campaign finance reports to pay an annual document filing fee. The bill would require the Ethics Commission to set an annual fee in rule, not to exceed $100. The Ethics Commission estimates that an average of 3,380 campaign finance report filers would be required to pay the fee. Setting the fee at $100 would generate an additional $338,000 in annual revenue to General Revenue. Technology The bill would require some additional software programming, however the agency indicates that this could be absorbed within existing resources. Local Government Impact A Class A misdemeanor is punishable by a fine of not more than $4,000, confinement in jail for a term not to exceed one year, or both. Costs associated with enforcement, prosecution, and confinement could likely be absorbed with existing resources. Revenue from fines imposed and collected is not anticipated to have a significant fiscal impact. Source Agencies: 356 Texas Ethics Commission 356 Texas Ethics Commission LBB Staff: UP, AG, EP, EMo, KVe UP, AG, EP, EMo, KVe