LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

April 15, 2005

TO:	Honorable Rodney Ellis, Chair, Senate Committee on Government Organization
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	SB1341 by Madla (Relating to the functions of the Texas Department of Housing and Community Affairs.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend various sections of the Texas Department of Housing and Community Affairs' (TDHCA) enabling statute, Chapter 2306, Government Code. The bill would amend the allocation process certain state and federal housing funds. The bill would repeal statutory provisions for the Regional Development Coordinator function of TDHCA.

The bill would amend Chapter 487, Government Code, to require the Office of Rural Community Affairs (ORCA) to enter into a Memorandum of Understanding with TDHCA to transfer to TDHCA a portion of the federal Community Development Block Grant (CDBG) money allocated under the General Appropriations Act to fund the operation of the colonia self-help centers. The bill would require ORCA to transfer to TDHCA a portion of ORCA's total administrative funds in the same ratio that the portion of CDBG money allocated for the self-help centers bears to the total annual CDBG allocation.

Based on the analysis of TDHCA and ORCA, it is assumed any duties and responsibilities associated within implementing the provisions of the bill could be absorbed within existing resources.

The bill would take effect on September 1, 2005.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

332 Department of Housing and Community Affairs, 357 Office of Rural Community Affairs

LBB Staff:

JOB, LB, TG, KJG