HB 1950 Creates a New Consolidated Fund for Cities Under 100,000 

 On May 29, 2025, Governor Abbott signed House Bill 1950, introducing a new funding structure for municipal courts in cities under 100,000 in population. The bill went into effect immediately and creates the Municipal Court Building Security and Technology Fund, a consolidated account that simplifies how two key portions of the $14 Local Consolidated Fee (LCF) are managed. 

What Changed? 

Previously, the $14 LCF was divided among four different funds, two of which were: 

• Municipal Court Building Security Fund 

• Municipal Court Technology Fund 

HB 1950 consolidates these two into a single fund for eligible cities. The consolidated fund can be used for the same purposes as the separate accounts: enhancing court security and upgrading court technology. 

This gives local governments greater flexibility in managing limited resources while maintaining statutory intent. 

What Hasn’t Changed? 

The Juvenile Case Manager and Court Efficiency fund allocations under the $14 LCF are not affected by HB 1950. 

A Practical Challenge: The Three-Fund Problem 

While future LCF revenue will flow into the new consolidated fund, cities still must manage existing balances in the original security and technology funds under the prior legal restrictions. 

This means that, at least for now, cities under 100,000 will need to maintain three separate accounts: 

1. Security Fund (for pre-HB 1950 revenue) 

2. Technology Fund (for pre-HB 1950 revenue) 

3. Consolidated Security & Technology Fund (for post-HB 1950 revenue) 

Money collected on or after May 29, 2025 must be deposited into the new Consolidated Security and Technology Fund. Money collected May 28, 2025 or earlier must be deposited into the pre-HB 1950 funds (#1 and #2 above) and are subject to the previous usage rules. 

This transitional period may require updates to local financial policies, audit tracking, and fund expenditure practices. 

Why It Matters 

HB 1950 gives small and mid-sized cities the flexibility to use LCF funds where they’re most needed—security or technology—without the rigidity of two separate accounts. But until older funds are exhausted, cities will need to carefully manage multiple accounts to stay compliant.