LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session February 17, 1995 TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 947 Committee on Financial Institutions By: Pitts House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 947 (Relating to loans secured by liens on agricultural or open- space land.) this office has determined the following: The bill would not allow a lender to require a borrower to waive rights to an agricultural or open space appraisal as a condition of obtaining a loan. However, a lender may require the borrower to establish an escrow account and to deposit an amount equal to the additional taxes and interest that would be due if a sale or change of use occurred on January 1 of the year in which the loan is granted or amended. On request of the borrower, the assessor for each taxing unit would be required to compute the additional taxes and interest. No fiscal implication to the State is anticipated. The fiscal implication to units of local government cannot be determined. Source: LBB Staff: JK, BR, RR