LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
 
April 5, 2023

TO:
Honorable Jeff Leach, Chair, House Committee on Judiciary & Civil Jurisprudence
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB3474 by Leach (Relating to the operation and administration of and practices and procedures related to proceedings in the judicial branch of state government.), As Introduced


Estimated Two-year Net Impact to General Revenue Related Funds for HB3474, As Introduced : a negative impact of ($2,070,712) through the biennium ending August 31, 2025.

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
2024($910,351)
2025($1,160,361)
2026($1,225,530)
2027($1,225,530)
2028($1,225,530)

All Funds, Five-Year Impact:

Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1

Change in Number of State Employees from FY 2023
2024($910,351)5.0
2025($1,160,361)5.0
2026($1,225,530)5.0
2027($1,225,530)5.0
2028($1,225,530)5.0


Fiscal Analysis

This bill would amend various chapters of the Government Code as it relates to district courts, statutory county courts, multicounty courts, justice courts, and criminal magistrates. The bill would create eight additional courts. The bill would also allow the State to reimburse certain appellate court judges or justices for certain expenses incurred while on official duties in counties other than their county of residence. 

The bill would create the 493rd Judicial District (Collin), 465th Judicial District (Bastrop), 472nd Judicial District (Brazos) on September 1, 2023. The bill creates the 494th Judicial District (Collin) and 477th Judicial District (Denton) County on January 1, 2024, and January 1, 2025, respectively. The bill outlines case preferences for these courts.

The bill would amend various sections of the Government Code related to the salaries of certain judges and prosecutors. For certain judges, the bill would include years of service as a district attorney, criminal district attorney, or county attorney in determining judicial salary for certain judges. For certain prosecutors, the bill would include as years of service any service as a district attorney, criminal district attorney, county attorney, an appellate court justice, district judge, statutory county court judge, multicounty statutory county court judge, or statutory probate court judge or justice. The bill amends Government Code Section 46.003 to include as years of service of the state prosecuting attorney or a state prosecutor any years of service as a county attorney, an appellate court justice, district judge, statutory county court judge, multicounty statutory county court judge, or statutory probate court judge or justice.

The bill would provide that Grayson County Court at Law has concurrent jurisdiction with the district court in family law cases and proceedings. The bill would provide that the district clerk serves as clerk of a county court at law in family law cases and that the county clerk serves as clerk in all other cases. 

The bill would re-designate County Court at Law No. 2 in Montgomery County as Probate Court No. 1 of Montgomery County effective October 1, 2023. The bill would outline court jurisdiction, officeholder, election, docketing, case transfer, and court operation provisions. The bill would add general provisions applicable to a statutory probate court in Montgomery County.

The bill would create Probate Court No. 2 of Travis County on October 1, 2023, and would give the court primary responsibility for mental health matters. The bill would assign the county clerk certain duties related to the statutory probate courts. The bill would create County Court at Law No. 2 of Waller County on January 1, 2023, and would provide the court's jurisdiction. The bill would create the 2nd Multicounty Court at Law composed of Bee, Live Oak, and McMullen Counties. The bill would set court jurisdictions, clerk assignments, and financial obligations for the court.

The bill would require a justice of the peace to submit an annual report to Texas Ethics Commission outlining the total amount of fees, commissions, and payments received during the year. 

The bill would amend Section 92.0563, Property Code, which relates to tenant remedies in certain actions involving a landlord, to cap at $20,000 the amount a justice court may award a tenant, excluding interests and costs. 

The bill would permit the Grayson County Commissioners Court to authorize certain judges to appoint criminal magistrates. The bill would outline appointment requirements, qualifications, compensation, magistrate jurisdiction, and powers and duties.

The bill would permit the presiding judge of an administrative judicial region to assign a visiting associate judge for Title IV-D cases or a visiting judge to perform duties of an associate judge only for certain reasons.

The bill would require a retired or former judge on a list maintained by the presiding judge of an administrative judicial region to file their signed oath statement required by the Texas Constitution with the Secretary of State.

The juvenile board of Montgomery County would be composed of the county judge, Montgomery County district judges, the statutory probate court judges, and county court at law judges.

The bill would add a new section to Government Code Chapter 52, applicable only to a county that provides and maintains certain court reporting equipment, providing that a county official or employee while transacting county business is exempt from fees authorized under Chapter 52. 

The bill would provide that an indigent party is not required to pay costs associated with interpreter services unless the court has ordered the party to do so.

Methodology

Costs assumed by this analysis that are reflected in the table above are based on information provided by the Office of Court Administration and the Texas Ethics Commission (TEC). 

State judicial compensation is traditionally met through a mix of General Revenue and Judicial Fund No. 573 funding, however for the past several fiscal years Judicial Fund No. 573 revenues have not been sufficient to meet all judicial salary obligations. Due to this, General Revenue funding has been used to meet the remaining obligations. Therefore, this estimate assumes General Revenue funding would be needed to cover the full state obligations for these purposes.

This analysis assumes the cost of five district judges and related benefit costs, salary reimbursement for two statutory probate court judges, and costs associated for five visiting judges for the newly created district courts. Fiscal year 2025 prorates the expenses for the 477th Judicial District for eight months and the two probate courts for 11 months. Local governments pay the other operating costs associated with a district court, county court at law, and statutory probate court.

For the purposes of this analysis, personnel costs are based on the current base salary for a district judge as set forth in the General Appropriations Act, Article IV.  The state contributes $40,000 per year for each statutory probate court and 60.0 percent of a district judge's base pay of $140,000 ($84,000) for a county court at law judge. The method of financing distribution is based on information provided by the Judiciary Section, Comptroller's Department.  Fiscal year 2025 is prorated for eight months due to the 477th Judicial District court creation date falling on January 1, 2025 and Probate Court No. 1 of Montgomery County and Probate Court No. 2 of Travis County's court creation date falling on October 1, 2023.

Salary and benefit costs (including employee retirement) total $659,851 in fiscal year 2024, $992,361 in fiscal year 2025, $1,057,530 in fiscal years 2026-2028.

Operating expenses related to the creation of Probate Court 2 of Travis County and Probate Court 2 of Waller County total $168,000 in fiscal years 2024-2028.

According to TEC, the bill would require justices of the peace to file an annual report disclosing the total of all fees, commissions, or payments received for performing marriages, acting as a registrar for the Bureau of Vital Statistics, or acting as an ex officio notary public. Based on information provided by TEC, General Revenue costs of $82,500 in fiscal year 2024, would be necessary for programming changes to the agency's electronic filing system. Programming costs reflect an anticipated 550 hours of work billed at $150 an hour. 


Technology

General Revenue costs of $82,500 in fiscal year 2024, would be necessary for programming changes to TEC's electronic filing system. The costs are based on 550 hours of programming work at $150 an hour. 


Local Government Impact

The fiscal implications of the bill cannot be determined at this time.


Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 356 Texas Ethics Commission
LBB Staff:
JMc, KDw, MW, JPa, CMA