LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 25, 1995



 TO:     Honorable Rodney Ellis, Chair          IN RE:  Senate BillNo. 1335
         Committee on Intergovernmental                 By: Barrientos
         Relations
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1335 (relating to the waiver of, moratorium on, or alternate use
of municipal impact fees) this office has determined the
following:

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 bill would amend Chapter 395 of the Local Government Code to
allow municipalities to waive impact fees and would allow
applicants for state or federal housing funds to claim the amount
of impact fees waived as local matching funds.  This provision
could result in a loss of revenue to municipalities, but only for
those municipalities that elect to grant the waiver.

The bill would allow a county with a population of 500,000 or
more to place a moratorium of up to one year on the collection of
impact fees by a municipality in the county.  This provision
could result in a loss of revenue to municipalities, but the
precise amount of revenue loss cannot be determined.

The bill would allow municipalities to dedicate proceeds from
impact fees to establish a program to provide funds for down
payments for potential purchasers of single-family homes.  This
provision would provide municipalities the option to re-direct
existing funds.    




No significant fiscal implication to the State is anticipated.

 The fiscal implication to units of local government cannot be
determined.


Source:   Department of Housing and Community Affairs
          LBB Staff: JK, PVT, RR