LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 13, 2009 TO: Honorable Yvonne Davis, Chair, House Committee on Urban Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2315 by Patrick (Relating to authorizing municipalities to assess fees on vacant commercial buildings.), As Introduced No fiscal implication to the State is anticipated. The bill would add Subchapter H to Chapter 214, Local Government Code, to authorize a municipality, by ordinance, to assess a fee on a vacant commercial building. The bill establishes the fee levels based on period of time a building is vacant, ranging from $500 to $2,000. Fees collected could be used only to abate a violation of a municipal ordinance regarding a nuisance condition or minimum standard for use and occupancy of a vacant commercial building or a building on property that contains a vacant commercial building.The bill would not apply to a commercial building owned by a governmental entity. The bill would authorize a municipality to obtain a lien against the property on which a fee is assessed unless the property is designated as homestead property. Local Government Impact Any revenue gain would depend on the number of vacant commercial buildings that exist within a municipality, how long the building has been vacant, and a municipality's success in collecting the fees. It is uncertain whether revenue gains would offset costs for implementing provisions. Source Agencies: LBB Staff: JOB, DB LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 13, 2009 TO: Honorable Yvonne Davis, Chair, House Committee on Urban Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2315 by Patrick (Relating to authorizing municipalities to assess fees on vacant commercial buildings.), As Introduced TO: Honorable Yvonne Davis, Chair, House Committee on Urban Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB2315 by Patrick (Relating to authorizing municipalities to assess fees on vacant commercial buildings.), As Introduced Honorable Yvonne Davis, Chair, House Committee on Urban Affairs Honorable Yvonne Davis, Chair, House Committee on Urban Affairs John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB2315 by Patrick (Relating to authorizing municipalities to assess fees on vacant commercial buildings.), As Introduced HB2315 by Patrick (Relating to authorizing municipalities to assess fees on vacant commercial buildings.), As Introduced No fiscal implication to the State is anticipated. No fiscal implication to the State is anticipated. The bill would add Subchapter H to Chapter 214, Local Government Code, to authorize a municipality, by ordinance, to assess a fee on a vacant commercial building. The bill establishes the fee levels based on period of time a building is vacant, ranging from $500 to $2,000. Fees collected could be used only to abate a violation of a municipal ordinance regarding a nuisance condition or minimum standard for use and occupancy of a vacant commercial building or a building on property that contains a vacant commercial building.The bill would not apply to a commercial building owned by a governmental entity. The bill would authorize a municipality to obtain a lien against the property on which a fee is assessed unless the property is designated as homestead property. The bill would add Subchapter H to Chapter 214, Local Government Code, to authorize a municipality, by ordinance, to assess a fee on a vacant commercial building. The bill establishes the fee levels based on period of time a building is vacant, ranging from $500 to $2,000. Fees collected could be used only to abate a violation of a municipal ordinance regarding a nuisance condition or minimum standard for use and occupancy of a vacant commercial building or a building on property that contains a vacant commercial building.The bill would not apply to a commercial building owned by a governmental entity. The bill would authorize a municipality to obtain a lien against the property on which a fee is assessed unless the property is designated as homestead property. Local Government Impact Any revenue gain would depend on the number of vacant commercial buildings that exist within a municipality, how long the building has been vacant, and a municipality's success in collecting the fees. It is uncertain whether revenue gains would offset costs for implementing provisions. Source Agencies: LBB Staff: JOB, DB JOB, DB