Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024	($2,338,541)
2025	($3,314,559)
2026	($3,670,041)
2027	($3,686,200)
2028	($3,685,900)

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Probable Savings/(Cost) from Jury Service Fund 328	Change in Number of State Employees from FY 2023
2024	($2,338,541)	($5,311,591)	6.7
2025	($3,314,559)	($5,311,591)	12.1
2026	($3,670,041)	($5,311,591)	13.9
2027	($3,686,200)	($5,311,591)	14.0
2028	($3,685,900)	($5,311,591)	14.0

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 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 amend the Government Code to create new judicial districts in: Denton County, the 477th Judicial District created on January 1, 2025; Harris County, the 486th, 487th, and 488th Judicial Districts created on September 1, 2023; Kaufman County, the 489th Judicial District created on September 1, 2023; Collin County, the 493rd Judicial District created on September 1, 2023, and the 494th Judicial District created on September 1, 2024; Harris County, the 495th, 496th, and 497th Judicial Districts created on September 1, 2024; Bastrop County, the 465th Judicial District created on September 1, 2023; Brazos County, the 472nd Judicial District created on September 1, 2023; Kendall County, the 498th Judicial District created on October 1, 2025; and Edwards, Gillespie, and Kimball Counties, the 499th Judicial District created on January 1, 2025.

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 create Probate Court No. 5 of Harris County on September 1, 2023. The bill would create Probate Court No. 3 of Bexar County on September 1, 2023. The bill would create County Court at Law No. 2 of Waller County on September 1, 2023, and would provide the court's jurisdiction. The bill would create County Court at Law of Wilson County on September 1, 2023. The bill would create the 2nd Multicounty Court at Law composed of Bee, Live Oak, and McMullen Counties on September 1, 2023, with Bee County serving as the administrative county for the court. The bill would set court jurisdictions, clerk assignments, and financial obligations for the court.

The bill would amend various sections of the Government Code related to the salaries of certain judges and prosecutors. For certain judges, district attorneys, and prosecutors, the bill would include years of service as a district attorney, criminal district attorney, or county attorney in determining judicial salary for the groups. 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 would amend 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 require the Office of Court Administration (OCA) to conduct a district court caseload analysis at least once every two years and report the findings as required by the bill.

The bill would increase the reimbursement for jurors for the first day or fraction of the day to $20 and $58 for each day or fraction thereafter. Under current law the amounts are $6 and $58 respectively. In addition, the bill would increase the amount that the state reimburses counties for payments made to persons who report to jury duty from $34 to $52. The bill would require the state to reimburse a county in the amount of $14 for the first day or fraction of the first day for a person who reports for jury service and $52 each day for every day after.

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.

Under the provisions of the bill, the justices of the state appellate courts would be entitled to reimbursement of costs for postage, telegraph, and telephone expenses incurred in the discharge of official duties. This estimate assumes that these costs can be absorbed using available resources.

This estimate uses personnel costs based on the current base salary for a district judge as set forth in the General Appropriations Act, Article IV for determining costs associated with court creation. The state contributes 60.0 percent of a district judge's base pay of $140,000 ($84,000) for a county court at law judge and for each statutory probate court. Fiscal year amounts for select courts with creation dates in the middle of a fiscal year are prorated.

Under current law, state judges and justices and state prosecutors receive state compensation and certain county judge and prosecutor positions receive a state supplement that is determined based on their years of service falling within compensation ranges as defined in the Government Code. These years of service tiers determine the amount of compensation for that position relative to a district judge's base salary of $140,000 by 100.0 percent, 110.0 percent, or 120.0 percent depending on the years of service.

Under various sections of the bill, prior service as certain judges or prosecutor positions would contribute to determining the state compensation tier applicable to compensation and salary supplements for certain state and county judge and prosecutor positions. This estimate assumes a negative indeterminate fiscal impact to General Revenue Funds would be realized because there would be compensation changes for certain judges or prosecutors where prior service time would be counted towards requirements for inclusion in higher compensation tiers; however, the number of judges or prosecutors this would apply to and the related changes in tiers and compensation is unknown.

This estimate assumes any costs related to the district court caseload analysis can be absorbed with existing resources.

Based on expenditures from March 2022 through February 2023 from the Jury Service Fund No. 328 and information provided by OCA, this analysis assumes that changes to juror reimbursement as provided in the bill would increase the state's contribution to jury costs as funded through Jury Service Fund No. 328 (Other Funds) by $5,311,591 each fiscal year.

According to the Office of Court Administration, the cost of the longevity pay for prosecutors provided by the bill would be $403,200 in fiscal year 2024 and $411,600 in fiscal year 2025. This is based on data submitted to the Judicial Compensation Commission by the Texas District and County Attorneys Association for the prosecutors covered under Sec. 46.003. It is estimated that on September 1, 2024, 48 prosecutors will be eligible for the longevity pay under this bill and 49 will be eligible on September 1, 2025. Given an absence of estimated costs for out-years, this analysis holds the $411,600 constant for fiscal years 2026-2028. This analysis also assumes that costs resulting from the provision of longevity pay to associate judges can not be determined at this time due to an insufficient amount of data.

According to the Texas Ethics Commission (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.

The 14 new judges would be members of Judicial Retirement System Plan 2 (JRS-2) administered by the Employees Retirement System (ERS). The cost to JRS-2 is the cumulative state salary of the judges, estimated by the Office of Court Administration to be $944,999 in fiscal year 2024 and $1,691,665 in fiscal year 2025, multiplied by a state contribution of 19.25 percent. The resulting cost is $181,912 in fiscal year 2024 and $325,646 in fiscal year 2025 in General Revenue funds.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION


May 13, 2023

TO:	Honorable Bryan Hughes, Chair, Senate Committee on Jurisprudence

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB3474 by Leach (relating to the operation and administration of and practices and procedures regarding proceedings in the judicial branch of state government, including the service of process and delivery of documents related to the proceedings, the administration of oaths, and the management of the Texas Indigent Defense Commission, and the composition of certain juvenile boards; establishing a civil penalty; increasing certain court costs; authorizing fees.), Committee Report 2nd House, Substituted