LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 19, 2009 TO: Honorable Tommy Williams, Chair, Senate Committee on Administration FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3637 by Hughes (Relating to filing fees for civil actions or proceedings in a district, county, justice, or small claims court.), Committee Report 2nd House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3637, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 19, 2009
TO: Honorable Tommy Williams, Chair, Senate Committee on Administration FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3637 by Hughes (Relating to filing fees for civil actions or proceedings in a district, county, justice, or small claims court.), Committee Report 2nd House, Substituted
TO: Honorable Tommy Williams, Chair, Senate Committee on Administration
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3637 by Hughes (Relating to filing fees for civil actions or proceedings in a district, county, justice, or small claims court.), Committee Report 2nd House, Substituted
Honorable Tommy Williams, Chair, Senate Committee on Administration
Honorable Tommy Williams, Chair, Senate Committee on Administration
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3637 by Hughes (Relating to filing fees for civil actions or proceedings in a district, county, justice, or small claims court.), Committee Report 2nd House, Substituted
HB3637 by Hughes (Relating to filing fees for civil actions or proceedings in a district, county, justice, or small claims court.), Committee Report 2nd House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3637, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3637, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2011.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromJudicial Fund573 Probable Revenue Gain/(Loss) fromCounties 2010 $1,037,819 $51,891 2011 $1,556,728 $81,933 2012 $1,556,728 $81,933 2013 $1,556,728 $81,933 2014 $1,556,728 $81,933
Fiscal Year Probable Revenue Gain/(Loss) fromJudicial Fund573 Probable Revenue Gain/(Loss) fromCounties 2010 $1,037,819 $51,891 2011 $1,556,728 $81,933 2012 $1,556,728 $81,933 2013 $1,556,728 $81,933 2014 $1,556,728 $81,933
2010 $1,037,819 $51,891
2011 $1,556,728 $81,933
2012 $1,556,728 $81,933
2013 $1,556,728 $81,933
2014 $1,556,728 $81,933
Fiscal Analysis
The bill would amend numerous sections of the Local Government Code and the Government Code increasing the additional filing fees for the filing of any civil action or proceedings requiring a filing fee, including an appeal, and on the filing of any counterclaim, cross-action, intervention, interpleader, or third party action requiring a filing fee, to fund civil legal services for the indigent in a district, county, justice or small claims court. A county may retain 5 percent of the money collected as a service fee on the basic civil legal service for indigents filing fee. This fee would increase from $5 to $10 for statutory and county courts. This fee would increase from $2 to $6 for justice courts. The other portions of the bill would make conforming changes and would have no fiscal impact to the state or to units of local government. The effective date of this bill is September 1, 2009.
The bill would amend numerous sections of the Local Government Code and the Government Code increasing the additional filing fees for the filing of any civil action or proceedings requiring a filing fee, including an appeal, and on the filing of any counterclaim, cross-action, intervention, interpleader, or third party action requiring a filing fee, to fund civil legal services for the indigent in a district, county, justice or small claims court.
A county may retain 5 percent of the money collected as a service fee on the basic civil legal service for indigents filing fee. This fee would increase from $5 to $10 for statutory and county courts. This fee would increase from $2 to $6 for justice courts.
The other portions of the bill would make conforming changes and would have no fiscal impact to the state or to units of local government.
The effective date of this bill is September 1, 2009.
Methodology
The Office of Court Administration expects that the bill would result in an annual increase of $1,556,728 to the States basic civil legal services account. (In the first year of the increased filing fee, OCA anticipates 8/12 of the annual amount would be realized - $1,037,819). The anticipated increase is the sum of $1,147,419 from the justice courts and $409,309 from the county-level courts. The anticipated increase from the justice courts is determined as follows: (1) 464,542 justice court cases filed in FY 2008 x $4 filing fee increase = $1,858,168 (2) x 65% collection rate = $1,207,809 (3) x 95% sent to State = (4) $1,147,419. The anticipated increase from the county-level courts is determined as follows: (1) 215,426 county-level court cases filed in FY 2008 x $5 filing fee increase = $1,077,130 (2) x 40% collection rate = $430,852 (3) x 95% sent to State = (4) $409,309
The Office of Court Administration expects that the bill would result in an annual increase of $1,556,728 to the States basic civil legal services account. (In the first year of the increased filing fee, OCA anticipates 8/12 of the annual amount would be realized - $1,037,819).
The anticipated increase is the sum of $1,147,419 from the justice courts and $409,309 from the county-level courts.
The anticipated increase from the justice courts is determined as follows:
(1) 464,542 justice court cases filed in FY 2008 x $4 filing fee increase = $1,858,168
(2) x 65% collection rate = $1,207,809
(3) x 95% sent to State =
(4) $1,147,419.
The anticipated increase from the county-level courts is determined as follows:
(1) 215,426 county-level court cases filed in FY 2008 x $5 filing fee increase =
$1,077,130
(2) x 40% collection rate = $430,852
(3) x 95% sent to State =
(4) $409,309
Local Government Impact
The revenue gain to each county would vary depending on the number of cases filed. The table above shows the estimated increase in the county's portion of the fees in the statewide aggregate.
Source Agencies: 304 Comptroller of Public Accounts, 212 Office of Court Administration, Texas Judicial Council
304 Comptroller of Public Accounts, 212 Office of Court Administration, Texas Judicial Council
LBB Staff: JOB, DB, MN, SD
JOB, DB, MN, SD