LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 1, 2001
  
  
          TO:  Honorable Gary Walker, Chair, House Committee on Land &
               Resource Management
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB517  by Lucio (Relating to authorizing certain counties
               to regulate land development; providing a penalty.),
               Committee Report 2nd House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would grant regulatory authority to a county located within 50
miles of an international border for residential land development in the
unincorporated areas of the county. If the county adopts a residential
building code, it must be the International Residential Code as it
existed on May 1, 2001 and the code must apply to all construction,
alteration, remodeling, enlargement, and repair of residential structures
in the unincorporated area of the county. The county would be allowed to
charge a reasonable fee for issuing building permits and all fees
collected from building permits could be used only for the purpose of
administering the building permit program.

Under the provisions of the bill, if the Texas Department of Housing and
Community Affairs classifies a household as a low-income household, a
penalty may not be assessed against the owner-occupant of the residential
dwelling for a building standards or building code violation relating to
the dwelling unless the county makes available to the owner-occupant
housing rehabilitation assistance in an amount sufficient to cure the
violation. The assistance would be required to be in the form of a grant
or loan with payment terms that would not cause the housing expenses of
the owner-occupant to exceed 30 percent of their net income.

Two of the counties that would be affected by the provisions of the bill
were contacted.  The Webb County Treasurer indicated the fees would cover
costs for the building permit program and since any loans made by the
county would have to be repaid, they anticipated little or no fiscal
impact.  The Val Verde County Auditor anticipates their county would
likely add a full-time building inspector and a secretary to that
position to implement the provisions of the bill; the language of the
bill specifies the qualifications of the inspector, but does not indicate
the inspector must be an employee of the county.  It is assumed a county
could also contract for an inspector's services.

No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, CL, DB