LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 22, 1997
         
         
      TO: Honorable Senfronia Thompson, Chair            IN RE:  House Bill No. 1175
          Committee on Judicial Affairs                              By: Thompson
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1175 ( Relating 
to the appointment of appellate justices and judges, to the 
nonpartisan election of district judges, to the retention or 
rejection of district and appellate judges, and to the creation 
of) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1175-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(27,069,800) to General Revenue Related 
Funds through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
The bill would amend the Election Code and Government Code to 
provide for the retention election of Supreme Court, Court of 
Criminal Appeals and Court of Appeals Justices at the end of 
their terms.  The bill would also provide for the election of 
judges followed by two cycles of retention election.  The election 
of judges would be on a nonpartisan ballot and would be held 
in conjunction with the general election for state and county 
officers.  The Secretary of State would be required to publish 
and mail a candidates guide for candidates running in the nonpartisan 
judicial election.

The bill would also create a new district 
court in Bexar County, three courts in Dallas County, one court 
in Harris County, and three courts in Tarrant County.  The new 
district courts would be created effective January 1, 1998.
 
Methodolgy
 
The Secretary of State estimated the number of judges who would 
no longer run for election, resulting in a loss of revenue in 
the primary finance fund, and the number of district judges 
who would run in the retention election, resulting in a probable 
gain to general revenue.  The Secretary of State assumed that 
two candidates in each of the races would have filed for election 
had the office not been up for retention election or would file 
if the office were up for election.

The Comptroller of Public 
Accounts estimates that the cost for salary and benefits for 
each new district judge would be $105,270 annually.  The cost 
of creating the eight new courts in fiscal year 1998 would be 
$561,440, and the cost of the courts in fiscal year 1999 and 
thereafter would be $842,160 annually.

The Secretary of State 
estimates that the largest cost in the bill would be the cost 
of publishing and mailing a candidates guide to the estimated 
6,365,000 household registered voters in Texas.  If each household 
had a district judge running for election, the Secretary of 
State would be required to mail to all households.  The cost 
of publishing and mailing the candidates guide is estimated 
at $4.00 each x 6,365,000 = $25,460,000 in each general election 
year.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           Probable Revenue   Probable Revenue   
            Savings/(Cost)     Gain/(Loss) from   Gain/(Loss) from                                        
            from General       General Revenue    General Revenue                                         
            Revenue Fund       Fund               Fund                                                    
            0001               0001               0001                                                     
       1998     ($26,021,440)          $290,400        ($496,600)                                    
       1998         (842,160)                 0                 0                                    
       2000      (26,302,160)           243,000         (456,000)                                    
       2001         (842,160)                 0                 0                                    
       2002      (26,302,160)                 0         (793,000)                                    
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998        ($26,227,640)
               1999            (842,160)
               2000         (26,515,160)
               2001            (842,160)
               2002         (27,095,160)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
The four counties which would have new district courts established 
would have additional costs.  Dallas County officials anticipate 
annual cost of $3,300,000 for three district courts.  Harris 
County officials expect a cost of approximately $1,850,000 in 
the first year and $1,400,000 annually thereafter.  Tarrant 
County costs are expected to be about $1,950,000 annually for 
three new courts.  Costs for Bexar County are expected to be 
approximately $254,000 annually.
          
   Source:            Agencies:   212   Office of Court Administration
                                         304   Comptroller of Public Accounts
                                         307   Secretary of State
                                         
                      LBB Staff:   JK ,PE ,JC