LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

March 6, 2011

TO:	Honorable Jim Jackson, Chair, House Committee on Judiciary & Civil Jurisprudence
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB1072 by Solomons (Relating to the State Bar of Texas membership dues for an attorney employed by this state's government.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1072, As Introduced: a positive impact of $715,340 through the biennium ending August 31, 2013.

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
2012	$357,670
2013	$357,670
2014	$357,670
2015	$357,670
2016	$357,670

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2012	$357,670
2013	$357,670
2014	$357,670
2015	$357,670
2016	$357,670

Fiscal Analysis

The bill would amend the Government Code to exempt attorneys employed by state government from paying yearly membership dues to the State Bar of Texas. The bill would take effect January 1, 2012.

Methodology

This estimate assumes that the number of attorneys employed by state government for which state agencies and courts pay membership dues to the State Bar will remain constant. Not all state agencies pay membership dues to the State Bar for their attorneys.

According to the State Bar of Texas, membership dues for an attorney employed full-time by the State of Texas are $235 per year. According to the State Bar of Texas, 12 agencies and 6 appellate courts paid membership dues for a total of 1,522 state employed attorneys ($235 membership dues x 1,522 attorneys = $357,670 per year) in 2010. Accordingly, cost savings to the State due to the proposed exemption are estimated to be $357,670 per year. 

The agency that expends the most on member dues is the Office of the Attorney General (OAG). The OAG pays membership dues for an estimated 719 Assistant Attorneys General. If this bill is enacted, it would result in an estimated annual General Revenue savings at the OAG of $168,965. The OAG identified $238,441 in biennial savings for State Bar membership dues for its legal staff as part of the10 percent reduction schedule submitted in its 2012-13 Legislative Appropriations Request. These savings are included in the introduced version of General Appropriations Act for the 2014-15 Biennium.

According to information received from the Comptroller of Public Accounts, as of February 15, 2011, there were 2,778 full-time attorneys paid by the State. Assuming the total number of attorneys employed by the state remains constant, the State Bar of Texas could lose membership dues estimated to total $652,830 per year ($235 membership dues x 2,778 attorneys = $652,830 per year).

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

302 Office of the Attorney General

LBB Staff:

JOB, JT, ZS, JP, TB