LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 4, 2009 TO: Honorable Garnet Coleman, Chair, House Committee on County Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3776 by Gallego (Relating to a filing fee imposed on a notice of foreclosure sale to fund civil legal services for indigents.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3776, Committee Report 1st 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 4, 2009 TO: Honorable Garnet Coleman, Chair, House Committee on County Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3776 by Gallego (Relating to a filing fee imposed on a notice of foreclosure sale to fund civil legal services for indigents.), Committee Report 1st House, Substituted TO: Honorable Garnet Coleman, Chair, House Committee on County Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB3776 by Gallego (Relating to a filing fee imposed on a notice of foreclosure sale to fund civil legal services for indigents.), Committee Report 1st House, Substituted Honorable Garnet Coleman, Chair, House Committee on County Affairs Honorable Garnet Coleman, Chair, House Committee on County Affairs John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB3776 by Gallego (Relating to a filing fee imposed on a notice of foreclosure sale to fund civil legal services for indigents.), Committee Report 1st House, Substituted HB3776 by Gallego (Relating to a filing fee imposed on a notice of foreclosure sale to fund civil legal services for indigents.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3776, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011. Estimated Two-year Net Impact to General Revenue Related Funds for HB3776, Committee Report 1st 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) fromBasic Civil Legal Services Account , Judicial Fund573 Probable Revenue Gain/(Loss) fromCounties 2010 $14,957,000 $787,000 2011 $17,051,000 $897,000 2012 $16,198,000 $853,000 2013 $15,388,000 $810,000 2014 $14,619,000 $769,000 Fiscal Year Probable Revenue Gain/(Loss) fromBasic Civil Legal Services Account , Judicial Fund573 Probable Revenue Gain/(Loss) fromCounties 2010 $14,957,000 $787,000 2011 $17,051,000 $897,000 2012 $16,198,000 $853,000 2013 $15,388,000 $810,000 2014 $14,619,000 $769,000 2010 $14,957,000 $787,000 2011 $17,051,000 $897,000 2012 $16,198,000 $853,000 2013 $15,388,000 $810,000 2014 $14,619,000 $769,000 Fiscal Analysis The bill would amend Chapter 118 of the Local Government Code, regarding fees charged by county officers. The bill would require a county clerk to collect a fee of $150 for the filing of the first page of a foreclosure notice filed pursuant to Section 51.002(b)(2) of the Property Code. The county would be able to retain not more than 5 percent of the fees for the county's costs for implementing and administering the section. The county treasurer would remit the state's portion of the fee collections to the Comptroller of Public Accounts for deposit to the Basic Civil Legal Services Fund of the Supreme Court. The bill would take effect immediately if it receives the required two-thirds vote in each house; otherwise, it would take effect September 1, 2009. The bill would amend Chapter 118 of the Local Government Code, regarding fees charged by county officers. The bill would require a county clerk to collect a fee of $150 for the filing of the first page of a foreclosure notice filed pursuant to Section 51.002(b)(2) of the Property Code. The county would be able to retain not more than 5 percent of the fees for the county's costs for implementing and administering the section. The county treasurer would remit the state's portion of the fee collections to the Comptroller of Public Accounts for deposit to the Basic Civil Legal Services Fund of the Supreme Court. The bill would take effect immediately if it receives the required two-thirds vote in each house; otherwise, it would take effect September 1, 2009. Methodology The Comptroller provided information based on calendar year 2008 foreclosure filings, which was obtained through a survey of certain county clerks' offices, and those results were extrapolated to an estimated statewide total. Estimated filings were adjusted to reflect the expectation of the current foreclosure pattern continuing into fiscal 2010, then receding, and adjusted for a September 1, 2009 effective date and projected through fiscal 2014. Local Government Impact The revenue gain to counties is reflected in the above table. The revenue gain to counties is reflected in the above table. Source Agencies: 304 Comptroller of Public Accounts 304 Comptroller of Public Accounts LBB Staff: JOB, DB, JB, KJG JOB, DB, JB, KJG