LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

May 2, 2025

TO:	Honorable Ken King, Chair, House Committee on State Affairs
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB4283 by LaHood (relating to the penalties imposed on municipalities and counties for violating state law and the state constitution.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would establish a process for the Attorney General to investigate municipal and county laws for violations of state law or the state constitution and would provide a municipality or county 30 days to resolve any identified violations. If the violations are not resolved, the municipality or county would be subject to a civil penalty and funding restrictions. The Office of the Attorney General (OAG) would be authorized to bring an action in district court to enforce the penalties established in the bill.

The revenue impact would be dependent on the number of unresolved violations resulting in a civil penalty. Because the number of violations is unknown, the potential revenue impact of the bill cannot be determined.

The OAG indicates any costs associated with implementation of the bill's provisions could be absorbed using existing resources.

No significant fiscal impact to the state court system is anticipated.

Local Government Impact

A municipality or county that fails to resolve a violation of the provisions of the bill is subject to a civil penalty and funding restrictions. The full fiscal impact on units of local government is unknown.

Source Agencies:

302 Office of the Attorney General, 304 Comptroller of Public Accounts

LBB Staff:

JMc, WP, LCO, JKe