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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to providing information to the legislature regarding | 
      
        |  | state and local fiscal impact of legislative measures. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Chapter 314, Government Code, is amended by | 
      
        |  | adding Sections 314.006 and 314.007 to read as follows: | 
      
        |  | Sec. 314.006.  EFFECT OF MEASURE ON LOCAL GOVERNMENTS.  (a) A | 
      
        |  | fiscal note must indicate whether a bill or resolution will have a | 
      
        |  | substantial effect on units of local government.  If the measure | 
      
        |  | will have a substantial effect, the fiscal note must include: | 
      
        |  | (1)  an estimate of the direct effects on the financial | 
      
        |  | resources of affected classes of local governments; and | 
      
        |  | (2)  estimates of the range of potential indirect | 
      
        |  | long-term economic effects on local governments, including an | 
      
        |  | assessment of whether the measure could result in indirect local | 
      
        |  | mandates, costs, or savings or create conditions that would | 
      
        |  | establish a basis for additional local expenditures. | 
      
        |  | (b)  For purposes of this section, the board shall solicit | 
      
        |  | and consider information provided by representative local | 
      
        |  | governments, organizations representing local governments, and | 
      
        |  | other interested persons regarding the effects of the measure and | 
      
        |  | shall endeavor to include a broad range of potential economic | 
      
        |  | effects, both positive and negative, for which the board can | 
      
        |  | identify a reasonable basis. | 
      
        |  | Sec. 314.007.  INDIRECT EFFECTS OF MEASURE.  (a) In addition | 
      
        |  | to any direct fiscal implications that a bill or resolution will | 
      
        |  | have on state finances, a fiscal note must estimate any indirect | 
      
        |  | economic effects that the measure may have on this state, including | 
      
        |  | whether any direct savings to the state may be offset by | 
      
        |  | expenditures or loss of revenue that the state could incur due to | 
      
        |  | the effects of the measure, such as deferred maintenance costs, | 
      
        |  | loss or gain of federal funding, changes in demand for additional | 
      
        |  | services, or effects on employment, investment, or the environment. | 
      
        |  | (b)  In estimating the indirect effects of a measure, the | 
      
        |  | board shall provide a range of potential effects. | 
      
        |  | (c)  For purposes of this section, the board shall solicit | 
      
        |  | and consider information provided by any interested person | 
      
        |  | regarding the indirect effects of a measure and shall endeavor to | 
      
        |  | include a broad range of potential economic effects, both positive | 
      
        |  | and negative, for which the board can identify a reasonable basis. | 
      
        |  | SECTION 2.  This Act takes effect immediately if it receives | 
      
        |  | a vote of two-thirds of all the members elected to each house, as | 
      
        |  | provided by Section 39, Article III, Texas Constitution.  If this | 
      
        |  | Act does not receive the vote necessary for immediate effect, this | 
      
        |  | Act takes effect September 1, 2013. |