JD Key Consulting Logo
Signed Into Law
Signed May 29, 2025Effective 2025-05-29
HB1950

Regular Session

Relating to the consolidated municipal court security and technology fund in certain municipalities.

Government Affairs & Regulatory Compliance Analysis

HB1950: Government Affairs Overview

Effective May 29, 2025, HB1950 mandates that Texas municipalities with a population of less than 100,000 must consolidate previously segregated court security and technology revenue into a single "Consolidated Municipal Court Building Security and Technology Fund. " This legislation creates immediate budgetary fungibility for cities, allowing funds to be shifted between physical security and IT infrastructure, but requires immediate accounting restructuring to avoid audit exceptions.

Rep. Giovanni Capriglione·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-05-29
Enforcing Agencies

Municipal Governing Bodies (City Councils) • Municipal Treasurers

Need Help Navigating This Legislation?

JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.

HB1950
Relating to the consolidated municipal court security and technology fund in certain municipalities.
Moderate Urgency
Passed with Opposition
House Vote146 - 1
YEA
99% in favor147 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
1
Total Opposition Votes
Cost Impact
Low
Effective
2025-05-29
Enforcing Agencies
Municipal Governing BodiesMunicipal Treasurers
Primary Author: Rep. Giovanni Capriglione
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 29, 2025 (Immediate effect due to supermajority vote).
  • Compliance Deadline: Immediate. Municipalities must apply the new fund allocation logic to all fees collected on or after May 29, 2025.
  • Agency Rulemaking: No state-level rulemaking is required; however, local City Councils must formally establish the new fund via ordinance or resolution if not automatically triggered by charter.

Immediate Action Plan

  • 1. Municipal Treasurers: Create the new General Ledger code for the Consolidated Fund immediately. Configure software to route collections starting May 29, 2025, to this new code.
  • 2. City Attorneys: Draft a "Notice of Fund Consolidation" for the City Council to ratify, formally closing the old funds to new deposits.
  • 3. Vendors: Audit all active contracts with Texas municipalities under 100k population. Issue contract amendments for any agreement citing a specific, now-defunct fund source.
  • 4. Sales Directors: Instruct teams to pitch "holistic court modernization" packages, as clients can now use a single budget source for both physical security (cameras, metal detectors) and software (case management).

Operational Changes Required

Contracts

  • Source of Funds Clauses: Vendors and City Attorneys must review existing Multi-Year Service Agreements (MSAs) for security or software. If a contract explicitly states payment is derived from the "Municipal Court Technology Fund" (Art. 102.0172), it requires an amendment. The amendment must authorize payment from the new "Consolidated Municipal Court Building Security and Technology Fund" to ensure valid payment processing.

Hiring/Training

  • Sales Teams (Vendors): Train sales staff targeting Tier 2 and Tier 3 cities (<100k pop). Leads previously stalled due to a lack of specific "Technology" or "Security" funds should be reopened; the client now has a single, flexible pool of capital.
  • Finance Staff (Cities): Treasurers must stop allocating the 35% (Security) and 28.57% (Technology) splits of the Local Consolidated Fee into separate ledgers.

Reporting & Record-Keeping

  • Bifurcated Accounting: You must maintain a strict "Before and After" delineation.
  • Pre-May 29, 2025 Collections: Must remain in original, segregated funds and be spent according to pre-HB1950 restrictions.
  • Post-May 29, 2025 Collections: Must be deposited into the new Consolidated Fund.
  • Audit Trail: Commingling "old" restricted funds with "new" consolidated funds will trigger audit findings. Ensure your ERP/Accounting software timestamps collections to route them to the correct GL code automatically.

Fees & Costs

  • Internal Allocation: The total fee amount collected from defendants does not change. However, the internal distribution of the Local Government Code 134.103 fee changes. The aggregate 63.57% of the fee previously split between two accounts now flows to the single Consolidated Fund.

Strategic Ambiguities & Considerations

  • Population Definition: The statute applies to cities with a population of "less than 100,000" but does not define the data source (e.g., 2020 Decennial Census vs. current estimates). Cities near the 100,000 threshold (95k–105k) face legal risk if they consolidate funds while technically over the limit based on updated estimates. Guidance: Adhere to the 2020 Federal Census until the State Comptroller issues clarification.
  • Shift in Spending Authority: Previous statutes gave Municipal Judges significant autonomy over Technology Funds. HB1950 places administration of the Consolidated Fund under the "governing body" (City Council). Vendors must now secure City Council buy-in for expenditures, as the Municipal Judge may lose unilateral purchasing authority.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

Schedule a Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 17, 2025
Passed House
Apr 29, 2025
Passed Senate
May 19, 2025
Signed
May 29, 2025
Effective
May 29, 2025
TopicsCity GovernmentCity Government--financeCourtsCourts--municipal
03

House Authors

Rep. Giovanni CapriglioneRepublican · Primary Author

Senate Sponsor

Sen. Kelly HancockRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Giovanni Capriglione

View all bills by Rep. Giovanni Capriglione

Related by Topic

View more City Government legislation
Quick Reference

Frequently Asked Questions

Common questions about HB1950

Q

What does Texas HB1950 do?

Effective May 29, 2025, HB1950 mandates that Texas municipalities with a population of less than 100,000 must consolidate previously segregated court security and technology revenue into a single "Consolidated Municipal Court Building Security and Technology Fund. " This legislation creates immediate budgetary fungibility for cities, allowing funds to be shifted between physical security and IT infrastructure, but requires immediate accounting restructuring to avoid audit exceptions.

Q

Who authored HB1950?

HB1950 was authored by Texas Representative Giovanni Capriglione during the Regular Session.

Q

When was HB1950 signed into law?

HB1950 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce HB1950?

HB1950 is enforced by Municipal Governing Bodies (City Councils) and Municipal Treasurers.

Q

How significant are the changes in HB1950?

The regulatory priority for HB1950 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB1950?

The cost impact of HB1950 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1950 address?

HB1950 addresses topics including city government, city government--finance, courts and courts--municipal.

Q

What are the key dates for HB1950?

Key dates for HB1950: Effective date is 2025-05-29. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026