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