LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


May 19, 2025

TO:	Honorable Ken King, Chair, House Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2403 by Middleton (Relating to the functions and duties of the Texas Ethics Commission.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for SB2403, As Engrossed: a negative impact of ($84,000) through the biennium ending August 31, 2027.

General Revenue-Related Funds, Five- Year Impact:

All Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($42,000)
2027	($42,000)
2028	($42,000)
2029	($42,000)
2030	($42,000)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($42,000)	1.0
2027	($42,000)	1.0
2028	($42,000)	1.0
2029	($42,000)	1.0
2030	($42,000)	1.0

The bill relates to the function of the Texas Ethics Commission (TEC). It is assumed that costs to the agency related to this bill could be absorbed within existing resources.

Under the provisions of the bill, in certain circumstances, TEC would be required to delegate to the State Office of Administrative Hearings (SOAH) the responsibility of conducting a formal hearing when a respondent in a case requests a formal hearing and is willing to pay certain costs as specified in the provisions of the bill.

According to the Sunset Commission, no fiscal impact is anticipated to the State Office of Administrative Hearings (SOAH) from the provisions of the bill relating to formal hearings because the cost of those formal hearings would be paid by the respondent.

According to SOAH, the bill would require one additional administrative law judge for an anticipated increase in cases. It is presumed that the costs of this additional FTE would be paid by the respondent; however, according to the agency timing issues related to reimbursement for the costs of hiring the new position could result in cash flow constraints.

SOAH estimates that the bill would result in expenses of $42,000 per fiscal year due to required court reporting services. The agency is not permitted to charge these costs to respondents under the provisions of the bill, therefore, this estimate assumes that General Revenue would cover the cost of the required court reporting services.

No additional technology costs beyond normal office expenses are anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.