LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
May 4, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor, Senate
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB243 by Harris (Relating to financing capital
improvements and facility expansions through the
assessment of impact fees; providing a civil penalty.),
As Passed 2nd House
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* No significant fiscal implication to the State is anticipated. *
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The bill would change the methodology for determining the maximum impact
fee a city could charge to include calculation of a credit or discount.
Provisions of the bill would allow a political subdivision that lacks
authority to issue building permits in the area where the impact fee
applies to collect the fees at the time an application is filed for an
individual meter connection to the political subdivision's water or
wastewater system.
The bill would require a city to project the total amount of ad valorem
tax and utility service revenue that would be generated by new
development that would be used to pay for facilities contained in the
capital improvements plan. This amount would be subtracted from the
total projected cost of the capital improvements plan prior to
calculating the maximum fee. Alternatively, the bill would permit a city
to reduce the total cost of the capital improvements plan by 50 percent.
The bill would also amend public hearing and reporting requirements.
The bill would take effect on September 1, 2001.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, CL, DB