COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 4229-01

Bill No.: Truly Agreed To And Finally Passed HB 1427

Subject: Secretary of State: Business Services, Corporations

Type: Original

Date: May 8, 2006




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2007 FY 2008 FY 2009
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2007 FY 2008 FY 2009
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.













ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2007 FY 2008 FY 2009
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2007 FY 2008 FY 2009
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials of the Office of Secretary of State- Business Services Division estimate 10 businesses would be administratively dissolved annually under these circumstances. Officials stated the reinstatement fee of $50 would be waived; therefore, the annual loss of revenue to the State's General Revenue Fund would be $50 x 10 transactions or $500. Officials assume that a separation fee of $5 would also be waived. This fee is deposited in the Technology Fund. Officials estimate an annual loss of income to the Technology Fund of $50 ($5 x 10 transactions or $50).



Oversight assumes loss of income to the Secretary of State's Technology Fund and to General Revenue would be insignificant; therefore, Oversight assumes no fiscal impact to state or local funds.

















FISCAL IMPACT - State Government FY 2007

(10 Mo.)

FY 2008 FY 2009
$0 $0 $0



FISCAL IMPACT - Local Government FY 2007

(10 Mo.)

FY 2008 FY 2009
$0 $0 $0



FISCAL IMPACT - Small Business



There will be a positive economic impact of $55 to any small business meeting the requirements of Section 351.488 RSMo.



DESCRIPTION



If a corporation is administratively dissolved for failure to file an annual registration report and the Secretary of State determines that the failure was due to military service, this bill authorizes the Secretary of State to waive the reinstatement fees and other associated penalties, cancel the certificate of dissolution, prepare a certificate of reinstatement, and provide a copy to the corporation.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION



Office of Secretary of State - Business Services Division







Mickey Wilson, CPA

Director

May 8, 2006