LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 22, 2025 TO: Honorable Ken King, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5182 by Zwiener (Relating to civil penalties imposed by the Texas Ethics Commission, including the collection of and eligibility for public elective office of persons liable for those penalties.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB5182, As Introduced: a negative impact of ($293,419) through the biennium ending August 31, 2027.The extent to which any additional state revenue would offset costs related to the bill cannot be determined. 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 toGeneral Revenue Related Funds2026($148,114)2027($145,305)2028($145,305)2029($145,305)2030($145,305)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($148,114)1.02027($145,305)1.02028($145,305)1.02029($145,305)1.02030($145,305)1.0 Fiscal AnalysisThe bill would amend the Government Code relating to the assessment of civil penalties by the Texas Ethics Commission (TEC) for certain missed reporting deadlines and would authorize TEC to contract with a person other than a full-time state employee to collect delinquent obligations owed the agency under certain conditions. According to TEC, the average amount of late-filing penalties over the last four fiscal years was $279,547 and the existing amount of unpaid civil penalties referred to the Office of the Attorney General for collection is $3,229,522.The bill would establish that penalties so collected would be deposited to the General Revenue Fund but could only be appropriated to TEC for the purpose of collecting civil penalties for a violation of a law the commission administers and enforces.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 22, 2025
TO: Honorable Ken King, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5182 by Zwiener (Relating to civil penalties imposed by the Texas Ethics Commission, including the collection of and eligibility for public elective office of persons liable for those penalties.), As Introduced
TO: Honorable Ken King, Chair, House Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5182 by Zwiener (Relating to civil penalties imposed by the Texas Ethics Commission, including the collection of and eligibility for public elective office of persons liable for those penalties.), As Introduced
Honorable Ken King, Chair, House Committee on State Affairs
Honorable Ken King, Chair, House Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5182 by Zwiener (Relating to civil penalties imposed by the Texas Ethics Commission, including the collection of and eligibility for public elective office of persons liable for those penalties.), As Introduced
HB5182 by Zwiener (Relating to civil penalties imposed by the Texas Ethics Commission, including the collection of and eligibility for public elective office of persons liable for those penalties.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB5182, As Introduced: a negative impact of ($293,419) through the biennium ending August 31, 2027.The extent to which any additional state revenue would offset costs related to the bill cannot be determined. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB5182, As Introduced: a negative impact of ($293,419) through the biennium ending August 31, 2027.The extent to which any additional state revenue would offset costs related to the bill cannot be determined. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The extent to which any additional state revenue would offset costs related to the bill cannot be determined.
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:
2026 ($148,114)
2027 ($145,305)
2028 ($145,305)
2029 ($145,305)
2030 ($145,305)
All Funds, Five-Year Impact:
2026 ($148,114) 1.0
2027 ($145,305) 1.0
2028 ($145,305) 1.0
2029 ($145,305) 1.0
2030 ($145,305) 1.0
Fiscal Analysis
The bill would amend the Government Code relating to the assessment of civil penalties by the Texas Ethics Commission (TEC) for certain missed reporting deadlines and would authorize TEC to contract with a person other than a full-time state employee to collect delinquent obligations owed the agency under certain conditions. According to TEC, the average amount of late-filing penalties over the last four fiscal years was $279,547 and the existing amount of unpaid civil penalties referred to the Office of the Attorney General for collection is $3,229,522.The bill would establish that penalties so collected would be deposited to the General Revenue Fund but could only be appropriated to TEC for the purpose of collecting civil penalties for a violation of a law the commission administers and enforces.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Methodology
According to TEC, fulfilling new statutory requirements related to collections would require an Attorney III ($110,000 per year) to manage the collections program, with an additional $35,305 in associated benefits and other costs per fiscal year. In addition, the agency anticipates $2,809 in in fiscal year 2026 for startup expenses.According to the Comptroller of Public Accounts, as the number, timing, and amounts of future civil penalty assessments, as well as the collection rate, are unknown, the revenue impact cannot be determined.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 356 Texas Ethics Commission
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 356 Texas Ethics Commission
LBB Staff: b > td > JMc, WP, LCO, GP
JMc, WP, LCO, GP