According to the Legislative Budget Board (LBB), HB 16 is projected to have a significant fiscal impact on the state, primarily due to its comprehensive judicial restructuring and expansion. Over the biennium ending August 31, 2027, the bill would result in an estimated negative net impact of $5.7 million to general revenue-related funds. This cost is expected to increase in the following years, reaching nearly $5.7 million annually by fiscal year 2030.

The majority of the fiscal impact stems from the creation of new courts, including over a dozen new judicial districts and appellate court positions, along with new county and probate courts. These additions necessitate new judge and staff salaries, retirement and benefits contributions, and associated expenses such as travel and office accommodations. The LBB estimates staffing increases of 8 to 29 full-time equivalent positions over five years as these new courts come online. The bill also authorizes higher compensation rates for visiting and retired judges, judicial mentors, and other special assignments, further adding to long-term state obligations.

Other fiscal provisions include the development of an annual leadership conference for judges and staff, updates to court data systems, and adjustments to prosecutor reporting responsibilities. While some provisions, such as new filing fees for expunctions, may generate offsetting revenue, these are not expected to fully compensate for the expanded judiciary costs. Additionally, while the bill enhances penalties for certain offenses (e.g., harassment against judges or court employees), the fiscal impact on state correctional facilities cannot be estimated due to lack of data on case volume.

At the local level, counties will share some of the cost burden, particularly in operating new or expanded courts. Counties will be responsible for facilities, operational support, and some salary supplementation. Increased criminal penalties could also place additional demands on local jails and supervision systems. While the state fiscal note does not estimate a dollar figure for local impact, it acknowledges potentially significant downstream effects on county budgets.

HB 16 is an expansive omnibus bill aimed at reorganizing and modernizing the Texas judicial system. It proposes the creation of more than a dozen new district courts, multiple statutory county and probate courts, and new district attorney offices. The bill also updates judicial administrative procedures, clarifies court jurisdiction, increases monetary jurisdiction thresholds for statutory county courts, raises criminal penalties for certain offenses, authorizes additional court fees, and modifies the duties and compensation for visiting and retired judges. Several provisions also address youth diversion, mental health reform, judicial security, and the procedural authority of the Texas Supreme Court.

The stated intent of the bill, to align judicial resources with rising population and caseloads, is reasonable, and many provisions support better access to justice and streamlined court administration. However, the scope and scale of the bill raise substantial concerns regarding the principle of limited government, particularly because it authorizes a permanent structural expansion of the state judiciary without safeguards such as caseload-based activation, phased implementation, or mandatory performance reviews. The bill also carries a significant fiscal burden: according to the Legislative Budget Board, HB 16 would result in a negative impact of approximately $5.7 million to the General Revenue Fund during the 2026–2027 biennium, with annual recurring costs projected to increase to nearly $6 million by FY 2030.

This growth includes permanent state-funded salaries, benefits, and expenses for new judges, prosecutors, and court staff, alongside administrative costs for expanded court functions, judicial training, and court security. Yet nowhere in the bill are these positions conditioned upon objective, data-driven triggers (such as workload thresholds from the Office of Court Administration), nor are there any sunset clauses or performance audits to re-evaluate the continued need for newly created courts over time. Without such fiscal and structural guardrails, the bill poses a long-term risk of bureaucratic inertia and unchecked judicial expansion, even in areas where demand may later decline or never fully materialize.

Additionally, the bill increases certain criminal penalties, including raising harassment charges against judges and court personnel to felony levels, and authorizes new filing and expunction-related fees. While these changes may be intended to protect court officers and recover administrative costs, they also represent a subtle broadening of state power over individuals and potentially increase the cost of access to justice. Without clearer justification or limitations, these measures could conflict with individual liberty and due process considerations, especially in a system already burdened by unequal access.

While HB 16 does include several positive reforms, notably enhanced youth diversion provisions, modernized court record handling, improved security protocols, and expanded mental health pathways, these benefits do not outweigh the structural and fiscal risks posed by unchecked judicial growth. The bill’s long-term commitments are too substantial to support without fundamental revisions.

For these reasons, Texas Policy Research recommends that lawmakers vote NO on SB 17 unless amended to:

• Require that new courts or judicial offices only become operational when specified caseload metrics or population thresholds are met, as verified by the Office of Court Administration.
• Stagger implementation based on demonstrated need, with periodic reports to the legislature to justify continued roll-out of courts or administrative changes.
• Mandate that new courts, judicial offices, and administrative structures undergo performance audits after a set term (e.g., 6–8 years) and sunset unless reauthorized by the legislature based on objective evaluation.
• Require impact assessments or legislative findings to support increases in criminal penalties and newly authorized court fees.

These changes would preserve the bill’s efficiency and access-to-justice benefits while maintaining fiscal discipline and preventing unnecessary long-term government growth. As written, however, the bill’s structural expansion outweighs its benefits, warranting opposition unless significant amendments are adopted.

• Individual Liberty: The bill supports individual liberty in several ways by improving access to timely justice and strengthening procedural protections. The creation of new district and county courts in growing jurisdictions can reduce case backlogs and ensure faster resolution of civil, family, probate, and criminal matters. These improvements help citizens exercise their right to a fair trial and timely legal redress. However, the bill also increases criminal penalties, including enhancing harassment offenses against court personnel to felony levels. While these penalties may be justifiable in some contexts, such expansions of state criminal authority can raise concerns about proportionality and due process, particularly without clear evidence showing current penalties are inadequate. Additionally, newly authorized court filing and expunction fees could create financial barriers to justice for low-income individuals, potentially impeding liberty rather than enhancing it.
• Personal Responsibility: The bill does not directly change personal accountability standards, but it reinforces the expectation that individuals respect lawful authority. Raising penalties for threatening or harassing court staff and judges promotes consequences for misconduct in and around the justice system. Reforms to specialty courts and youth diversion programs also reflect a system that values alternative forms of accountability, like community service or rehabilitation, instead of defaulting to incarceration. These provisions show an interest in balancing justice with opportunities for rehabilitation, a reflection of both responsibility and fairness.
• Free Enterprise: Raising the monetary jurisdiction cap for statutory county courts (from $250,000 to $325,000) allows more civil and commercial disputes to be resolved in less costly, more accessible courts. This benefits small and medium-sized businesses by reducing litigation costs and potentially expediting the enforcement of contracts or the recovery of damages. However, the bill’s significant fiscal cost and permanent expansion of the judiciary may lead to increased long-term obligations on the state budget. This could pressure lawmakers to raise taxes or divert funds from other priorities—an indirect burden on enterprise and taxpayers. Without cost-containment mechanisms, this growth in public spending conflicts with the principle of minimal economic interference.
• Private Property Rights: Efficient and properly resourced courts enhance private property rights by allowing faster and more predictable resolution of legal disputes. These can include matters like probate, eminent domain, title conflicts, and civil litigation over contracts or ownership. The bill’s modernization of court records, jurisdictional procedures, and docket preferences may lead to reduced procedural delays and greater certainty for property owners. Importantly, nothing in the bill appears to diminish or infringe upon property rights. Instead, by improving judicial capacity and reducing bureaucratic inefficiencies, it supports this principle indirectly through enhanced dispute resolution mechanisms.
• Limited Government: This is where the bill most clearly conflicts with liberty principles. The bill significantly expands the size and cost of the Texas state government by creating at least 13 new district courts, several new statutory county and probate courts, two new appellate judgeships, multiple new district attorney offices, and new administrative mandates, data systems, and judicial training requirements. This expansion comes with a projected $5.7 million cost to General Revenue over the first biennium and growing recurring costs through FY 2030. Yet the bill lacks sunset provisions, does not condition new courts on caseload thresholds, and does not require periodic performance audits. In effect, it authorizes permanent, large-scale judicial growth without built-in mechanisms to ensure that the expansion remains justified. This unchecked expansion violates the limited government principle by permanently increasing the scope, cost, and reach of the state judiciary, without ensuring that such growth is necessary, efficient, or reversible.

• SB 17 (Similar To)