LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 3, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2580  by Bosse (Relating to establishing the
               enforcement of land use restrictions as a governmental
               function of a municipality.), As Engrossed
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would amend the Civil Practice and Remedies Code to provide that
a municipality is liable for damages arising from its governmental
functions related to enforcement of land use restrictions under Chapter
230, Local Government Code.  The provisions of the bill would also add to
a municipality's enforcement authority actions filed to enforce a land
use restriction.

The City of Houston was contacted regarding the local fiscal impact of
the bill. The City of Houston relies on recorded covenants or deed
restrictions for planning and development for economic growth within the
community, whereas other cities rely on zoning regulations.  In a recent
court decision against Houston, the court found that enforcement of
covenants or deed restrictions was a proprietary function rather than a
governmental function.  According to city officials, the provisions of
the bill would make Houston's enforcement of restrictions a governmental
function, thus reducing costs to the city associated with litigation.
  
  
Source Agencies:   
LBB Staff:         JK, DB, TB