LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 9, 1997 TO: Honorable Rodney Ellis, Chair IN RE: Senate Bill No. 1417, Committee Report 1st House, Substituted Committee on Jurisprudence By: Ellis Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1417 ( relating to judicial efficiency.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1417-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net positive impact of $7,570,678 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. The bill would establish a Time Payment Fee of $25 which would be assessed by clerks of district, county and justice courts on persons who sought to pay a court fine or court costs or restitution over a period of time. The county would send 50% of the fees collected to the comptroller to deposit in the Judicial Technology Infrastructure Account of the General Revenue Fund. The custodian of the county treasury could retain 40% of the fees collected as reimbursement for collecting the fee. The remaining 10% of the fees collected shall be sent to the comptroller to be deposited into the Office of Court Administration Grant Account. The Office of Court Administration Grant Account shall provide grants to enhance the collections of court costs, fines or restitution ordered. The account may be supplemented by local or federal money and public or private grants. The bill would also create a recruitment program at the Office of Court Administration to recruit individuals for judicial law clerks and staff attorneys. The bill would create the Judicial Law Clerk Student Loan Fund as an account in the General Revenue Fund to assist judicial law clerks to repay law school debts. The fund would be administered by the Texas Judicial Council. The bill would direct the Office of Court Administration (OCA) to establish a program to assist courts in employing judicial law clerks, requires the agency to publish a report regarding the demographic profile of the judicial law clerks and attorneys employed by the courts of the state, directs the agency to adopt rules and forms for collecting performance information, and gives the agency additional responsibilities. The Judicial Committee on Information Technology would be established, and the bill provides that members may receive reimbursement for travel expenses. The bill also would create the Judicial Technology Account in the Judicial Fund and would authorize the Supreme Court to impose a charge for access to information that exists on the computerized electronic judicial information system. The bill provides that money in the judicial technology account may be supplemented by local or federal money and public or private grants. Fiscal Analysis The bill creates 3 funds: Judicial Law Clerk Student Fund and Office of Court Administration Grant Account within the General Revenue Fund, and the Judicial Technology Account within the Judicial Fund. It provides a funding source for the OCA Grant Account, but no funding source for the other two accounts. Methodolgy It is estimated that there will be 816,190 eligible cases at $25 a case or $20,404,738 in time payment fees annually. Fifty percent of the fees, $10,202,369, would go to the general revenue fund. Forty percent, or $8.2 million, remains at the county level for collecting the fee. The remaining 10 percent or $2,040.474, would be deposited into the Office of Court Administration Grant Account in the General Revenue Fund. Costs to OCA would be: $71,860 in FY 98, and $61,160 in FY 99 for Judicial law clerk and staff attorney recruitment; $614,139 in FY 98 and $614,139 in FY 99 for the Judicial Law Clerk Student Loan Fund, $5,000 in each year for the demographic census, $70,200 in FY 98 and $60,500 in FY 99 for court performance standards, $5,451,306 in FY 98 and $5,436,756 in FY 99 for the Judicial Committee on Information Technology and $232,000 in FY 98 and $212,000 in FY 99 for court efficiency requirements. 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 Revenue Probable Revenue Probable Change in Number Gain/(Loss) from Gain/(Loss) from Savings/(Cost) of State General Revenue New GR-Dedicated from General Employees from Fund Account - Office Revenue Fund FY 1997 of Court Administration Grant Account 0001 8021 0001 1998 $10,202,369 $2,040,474 ($6,444,505) 40.0 1998 10,202,369 2,040,474 (6,389,555) 40.0 2000 10,202,369 2,040,474 (6,389,555) 40.0 2001 10,202,369 2,040,474 (6,389,555) 40.0 2002 10,202,369 2,040,474 (6,389,555) 40.0 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 $3,757,864 1999 3,812,814 2000 3,812,814 2001 3,812,814 2002 3,812,814 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. It is expected that counties will receive approximately $8.2 million annually in additional revenue from the new Time Payment Fee collections. Source: Agencies: 212 Office of Court Administration LBB Staff: JK ,BB ,DC