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