LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
March 10, 2015

TO:
Honorable Harold V. Dutton, Jr., Chair, House Committee on Juvenile Justice & Family Issues
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB2632 by Dutton (Relating to removing a criminal penalty and authorizing a civil penalty for truancy.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2632, As Introduced: a positive impact of $4,407,776 through the biennium ending August 31, 2017.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016 $2,203,888
2017 $2,203,888
2018 $2,203,888
2019 $2,203,888
2020 $2,203,888




Fiscal Year Probable Revenue Gain from
General Revenue Fund
1
Probable Revenue Gain/(Loss) from
General Revenue Fund
1
Probable Revenue Gain/(Loss) from
General Revenue Dedicated
Probable Revenue Gain/(Loss) from
Judicial Fund
573
2016 $2,344,650 ($140,762) ($880,169) ($140,679)
2017 $2,344,650 ($140,762) ($880,169) ($140,679)
2018 $2,344,650 ($140,762) ($880,169) ($140,679)
2019 $2,344,650 ($140,762) ($880,169) ($140,679)
2020 $2,344,650 ($140,762) ($880,169) ($140,679)

Fiscal Year Probable Revenue Gain/(Loss) from
Other Fund Law Enforcement and Custodial Officer Supplement Retirement Trust Fund
2016 ($104,502)
2017 ($104,502)
2018 ($104,502)
2019 ($104,502)
2020 ($104,502)

Fiscal Analysis

This bill would repeal Section 25.094(e) of the Education Code, which makes the failure to attend school a Class C misdemeanor, and would amend Section 25.094 of the Education Code to make the failure to attend school punishable by a civil penalty payable to the state in an amount not to exceed $200.

Methodology

In fiscal year 2014, there were 93,786 cases filed for failure to attend school. Repeal of failure to attend school would result in loss of court costs assessed and collected for the state of approximately $1.3 million per year. However, this will be more than offset by the collection of civil penalties for the same conduct with an estimated gain to the state of about $2.3 million per year. 
 
Failure to attend school cases generate revenue to the state for court costs collected by justice and municipal courts. It is estimated that 50 percent of the cases filed result in convictions or deferred dispositions where court costs were assessed.  The typical court cost revenue from one of these cases in justice court is $87.  The portion directed to the state is $54, and the portion retained by the county is $33. The typical court cost revenue from one of these cases in municipal court is $86 ($54 to the state; $32 retained by the municipality).  This analysis assumes the same number of offenses would occur annually in the future, with a 50 percent conviction rate and a 50 percent collection rate.  Repeal of the Class C misdemeanor offense for failure to attend school will result in reduction in court costs assessed and collected for the state of about $1.3 million per year.

The Office of Court Administration and the Comptroller estimated that 50 percent of the cases filed will result in a court finding that an individual engaged in failure to attend school conduct, and a typical civil penalty would be $100. This analysis assumes the same number of offenses would occur annually in the future, with a 50 percent conviction rate and a 50 percent collection rate. The collection of civil penalties is estimated to be a gain to the state of $2.3 million per year.

Local Government Impact

County and municipal governments will see reduced revenue from the local portion of courts costs collected for the repealed Class C misdemeanor offense, as well as a reduction in fines collected. Assuming 93,786 failure to attend cases in which court costs are assessed and a collection rate of 50%, there would be a decrease of $770,772 in revenue to local governments per year. Additionally, there may be an indeterminate loss in fine revenue to local governments. The bill would also repeal the expunction statute, along with its $30 fee is collected and retained by local governments; however, the Office of Court Administration anticipates that the fiscal impact would not be significant.


Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 644 Juvenile Justice Department, 701 Central Education Agency
LBB Staff:
UP, ESi, JJ, JQ, KVe, JBi, JPo