LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 24, 1997 TO: Honorable Steven Wolens, Chair IN RE: House Bill No. 1691 Committee on State Affairs By: Eiland House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1691 ( Relating to enforcement of the Texas Fair Housing Practices Act.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1691-As Introduced Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. 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 Section 301.131(a) of the Texas Property Code, the Texas Fair Housing Act (TFHA) which provides a cause of action for certain discriminatory acts and practices relating to housing. Fiscal Analysis The bill would delete the requirement that the Attorney General "shall" file cases referred for litigation by the Texas Commission on Human Rights (TCHR) under the Texas Fair Housing Act. The bill would give the Attorney General discretion to file cases based on the merits of a case, rather than the current requirement than such cases be filed. Methodolgy The bill would not create a new workload for the Office of the Attorney General which currently handles referrals from the Texas Commission on Human Rights. The Commission on Human Rights states that the bill would remove the agency's current authority to enforce the Texas Fair Housing Act, resulting in a loss of "deferral status" under the federal fair housing law and a loss of funds from the federal Department of Housing and Urban Development. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Revenue Change in Number Gain/(Loss) from of State Federal Funds Employees from FY 1997 0555 1998 ($680,000) (5.0) 1998 (680,000) (5.0) 2000 (680,000) (5.0) 2001 (680,000) (5.0) 2002 (680,000) (5.0) Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 302 Office of the Attorney General 344 Commission on Human Rights LBB Staff: JK ,JD ,JC