| TO: | Honorable Rene Oliveira, Chair, House Committee on Land & Resource Management |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3535 by Kleinschmidt (Relating to liability of a political subdivision for a violation of certain laws relating to local permits; providing a penalty.), As Introduced |
The bill would amend Chapter 245 of the Local Government Code to hold a political subdivision liable for damages related to a violation of certain laws relating to local permits. A political subdivision would be liable to the state for a civil penalty of $2,000 per day of violation. The attorney general would be authorized to recover the penalty, and the penalty would be paid to the comptroller for deposit in the General Revenue Fund.
According to the Office of the Attorney General (OAG) a Westlaw search identified 18 reported cases in which the courts were asked to reverse a local government’s application of regulations as being in violation of Chapter 245; approximately one case every year the law was in effect. In three of the cases, the courts found that a local government had violated the statute; in four cases, the courts found that a local government had not violated the statute. The courts decided the remainder of the cases on other grounds. Therefore, the courts found violations in less than half of the cases: three of seven cases (43%); or three of eighteen cases (17%).
The OAG anticipates that any legal work resulting from the provisions of the bill could be reasonably absorbed with current resources.
There would be costs associated with a violation, but the amounts would vary depending on the number of violations committed in a locality.
According to the Texas Municipal League (TML), the provisions of the bill could result in significant costs from fines since a violation could technically exist for years before a municipality would be notified by a challenge, and damages or fines of $2,000 per day could be significant.
| Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, SZ, TP
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