LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 22, 2003

TO:	Honorable Kenny Marchant, Chair, House Committee on State Affairs
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB1667 by Jones, Jesse (Relating to a fee imposed on real estate transactions to fund a housing repair program for elderly individuals of low income.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB1667, As Introduced: an impact of $0 through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004	$0
2005	$0
2006	$0
2007	$0
2008	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from New General Revenue - Nonprofit Housing Repair	Probable (Cost) from New General Revenue - Nonprofit Housing Repair
2004	$11,716,000	($11,716,000)
2005	$15,871,000	($15,871,000)
2006	$16,157,000	($16,157,000)
2007	$16,480,000	($16,480,000)
2008	$16,793,000	($16,793,000)

Fiscal Analysis

The provisions of the bill require the Department of Housing and Community Affairs (TDHCA) to administer the new “Nonprofit Housing Repair Program for Elderly Individuals of Low Income” funded through the filing fee.  It also requires county clerks to collect a $4 filing fee for the first page of a real property record for deposit in a housing repair account. Each county treasurer would send the fees received each quarter to the Comptroller no later than the last day of the month following each quarter.  The Comptroller would deposit the money received to the credit of the newly created General Revenue Account—Nonprofit Housing Repair. Money in the account could only be appropriated to the TDHCA to award grants to nonprofit organizations participating the nonprofit housing repair program for elderly individuals of low income.

Methodology

According to the Comptroller, the proposed fee was applied to the number of affected recordings in the state to arrive at the total revenue that would be produced.  An allowance was made in fiscal 2004 for the quarterly lag in remittances, by counties, to the Comptroller.  It was assumed for the purposes of this estimate that the account would be established in the General Revenue Fund 0001.

The provisions would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source.  Legislative policy, implemented as Government Code 403.094, consolidated special funds (except those affected by constitutional, federal, or other restrictions) into the General Revenue Fund as of August 31, 1993 and eliminated all applicable statutory revenue dedications as of August 31, 1995.  Each subsequent Legislature has reviewed bills that affect funds consolidation.  The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

Based on the analysis of TDHCA, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing exiting resources.

The bill takes effect September 1, 2003.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.  County clerks and county treasurers' offices would incur minimal programming and personnel costs to track the fee.

Source Agencies:	304 Comptroller of Public Accounts, 332 Department of Housing and Community Affairs
LBB Staff:	JK, JO, RR, RT, DE, KG