LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 14, 2001
TO: Honorable Fred M. Bosse, Chair, House Committee on Civil
Practices
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 Introduced
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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, TB, DB