LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 26, 2001
  
  
          TO:  Honorable Senfronia Thompson, Chair, House Committee on
               Judicial Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB4  by Gallego (Relating to nonpartisan elections for
               statewide judicial office, to the regulation of political
               contributions and expenditures in connection with
               statewide judicial office, and to the public financing
               of campaigns for statewide judicial office; providing
               civil and criminal penalties.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB4, As Introduced:  negative impact of $(22,713,019) through the     *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                        $(20,785,000)  *
          *       2003                          (1,928,019)  *
          *       2004                         (21,036,000)  *
          *       2005                          (1,928,019)  *
          *       2006                         (21,288,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal        Probable         Probable Revenue         Probable        *
* Year    Savings/(Cost) from   Gain/(Loss) from    Savings/(Cost) from  *
*        General Revenue Fund   Judicial Campaign    Judicial Campaign   *
*                0001            Financing Fund       Financing Fund     *
*  2002          $(20,785,000)          $20,785,000        $(20,785,000) *
*  2003            (1,928,019)                    0                    0 *
*  2004           (21,036,000)           21,036,000         (21,036,000) *
*  2005            (1,928,019)                    0                    0 *
*  2006           (21,288,000)           21,288,000         (21,288,000) *
**************************************************************************
  
Technology Impact
  
None.
  
  
Fiscal Analysis
  
This bill would provide for the nonpartisan election of candidates for
the judicial offices of Supreme Court Chief Justice, Supreme Court
Justices, Presiding Judge of the Court of Criminal Appeals, and Court of
Criminal Appeals Justices.

This bill would create the Judicial Campaign Financing Fund (fund) to
provide for public financing of campaigns of candidates running in a
nonpartisan judicial election for offices in the Supreme Court and the
Court of Criminal Appeals.  In even-numbered years, the Comptroller of
Public Accounts would transfer revenue received from the Attorney
Occupation Tax in that calendar year and in the previous calendar year
into the fund.  The bill would also require that a candidate accept and
receive at least $30,000 in campaign donations to be eligible for public
financing.  A candidate would forward any amount above the $30,00 minimum
to the Texas Ethics Commission, which in turn would forward the revenues
to the Comptroller for deposit in the new fund.

The Texas Ethics Commission would certify the funding of eligible
candidates to the Comptroller and determine the amount of campaign
financing available for each category of candidate.  A candidate who
withdrew from candidacy or who became ineligible would have to refund
any unexpended and unobligated money to the Comptroller for deposit into
the fund.  At the end of a campaign, a candidate would be required to
return any unexpended and unobligated money to the Comptroller for
deposit in the fund.  The civil penalty for failure to comply with these
requirements would be a fine not to exceed three times the amount due to
the state.  The bill would also authorize the Secretary of State to
publish a voter's guide on candidates in nonpartisan judicial elections
for offices in the Supreme Court and the Court of Criminal Appeals.
  
  
Methodology
  
The Comptroller of Public Accounts estimates the transfer required by the
bill from the General Revenue Fund to the Judicial Campaign Financing
Fund, based upon the Biennial Revenue Estimate as follows: $20,785,000 in
fiscal year 2002, $21,036,000 in fiscal year 2004, and $21,288,000 in
fiscal year 2006.  The Comptroller's estimate does not included
contributions or refunds of unused campaign funds paid into the fund.

The Secretary of State estimates the cost to prepare and mail a voter
information pamphlets in 2003 and 2005 to be $1,928,019 each year,
assuming a cost of $.23 per pamphlet and the pamphlet is mailed to
8,382,696 households.

According to the Texas Ethics Commission, the agency has estimated they
could absorb any cost for administering the public financing system
within the agency's existing resources.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   212   Office of Court Administration, 302   Office of
                   the Attorney General, 307   Secretary of State, 304
                   Comptroller of Public Accounts, 356   Texas Ethics
                   Commission
LBB Staff:         JK, TB, GS, DB