LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 6, 2009

TO:	Honorable Yvonne Davis, Chair, House Committee on Urban Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4635 by Lucio III (Relating to an optional additional fine for the violation of a municipal rule, ordinance, or police regulation to be used to support municipal parks.), Committee Report 1st House, Substituted

No fiscal implication to the State is anticipated.

The bill would amend the Local Government Code to authorize a municipality to assess an additional fine for each violation of a municipal rule, ordinance, or police regulation in an amount of 10 percent of the fine originally assessed, but not less than $10. The additional fine must be used to support municipal parks.

While the substitute is permissive and would allow the municipality to assess an additional fine, our analysis assumes the municipality will implement the provision and this potential fiscal impact is reflected in the section below.

The change in law made by the bill would apply only to a violation committed on or after the effective date of the bill, which would be September 1, 2009.

Local Government Impact

Municipal Court Administration (MCA) for Houston reports that when a fine or fee is added to a violation, not only do processes and printed materials have to be changed (initial costs of $75,000 for printing and $30,000 for system reconfiguration, and annual operational costs of $1,200), but staff must file regular reports, update records, and manage the reconciliation processing for distributing the fee. The Houston MCA reports that the city has greater need of warrant collection fees than for park fees. Although Houston estimates costs of $126,200 the first year and from $21,800 to $23,450 the next four fiscal years, the estimated revenue gain would be from $195,260 in fiscal year 2010 to $210,314 by fiscal year 2014.

Although the City of Garland estimates a revenue gain of $373,770, the city was uncertain how the provisions of the bill would apply in circumstances where fines are "maxed out," where dismissals for proof are concerned, and in juvenile cases where community service is usually imposed rather than a cash fine.

The cities of Port Isabel, South Padre Island, and Harlingen reported to the Comptroller of Public Accounts estimated revenue gains of $640, $730, and $28,330 respectively, based on the number of violations of municipal rules, ordinances, or police regulations in 2008.

The fiscal impact would vary by municipality depending on the number of violations that occur and variables related to processing systems.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, DB, SD, TP