LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 10, 2017 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1449 by Simmons (Relating to prohibiting local governments from imposing certain fees on new construction.), As Engrossed No fiscal implication to the State is anticipated. The bill would amend the Local Government Code to prohibit a political subdivision from imposing, directly or indirectly, a fee on new construction for the purposes of offsetting the cost or rent of any unit of residential housing. Establishes that fees for granting an exemption or waiver to zoning-related height restrictions are not covered by this prohibition. Exempts residential density bonus programs in which a zoning waiver is issued for a voluntary fee payment or the voluntary provision of affordable housing or other defined public benefit. Exempts certain existing property tax abatement programs. Nullifies existing charter provisions, ordinances, orders, or other regulations in conflict with this bill. The provisions of the bill do not apply to agreements entered into before the effective date of the bill.According to the Department of Housing and Community Affairs and the Department of Licensing and Regulation, no fiscal implication to the state is anticipated.The bill would take effect immediately if it receives a vote of two-thirds of all the members elected to each house. If the bill does not receive the vote necessary for immediate effect, it would take effect September 1, 2017. Local Government Impact According to the Department of Housing and Community Affairs and the Department of Licensing and Regulation, no fiscal implication to local government is anticipated.According to the Texas Municipal League, no fiscal implication to municipalities is anticipated. Source Agencies:332 Department of Housing and Community Affairs, 452 Department of Licensing and Regulation LBB Staff: UP, CL, GG, GP, KK, EK LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 10, 2017 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1449 by Simmons (Relating to prohibiting local governments from imposing certain fees on new construction.), As Engrossed TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1449 by Simmons (Relating to prohibiting local governments from imposing certain fees on new construction.), As Engrossed Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB1449 by Simmons (Relating to prohibiting local governments from imposing certain fees on new construction.), As Engrossed HB1449 by Simmons (Relating to prohibiting local governments from imposing certain fees on new construction.), As Engrossed No fiscal implication to the State is anticipated. No fiscal implication to the State is anticipated. The bill would amend the Local Government Code to prohibit a political subdivision from imposing, directly or indirectly, a fee on new construction for the purposes of offsetting the cost or rent of any unit of residential housing. Establishes that fees for granting an exemption or waiver to zoning-related height restrictions are not covered by this prohibition. Exempts residential density bonus programs in which a zoning waiver is issued for a voluntary fee payment or the voluntary provision of affordable housing or other defined public benefit. Exempts certain existing property tax abatement programs. Nullifies existing charter provisions, ordinances, orders, or other regulations in conflict with this bill. The provisions of the bill do not apply to agreements entered into before the effective date of the bill.According to the Department of Housing and Community Affairs and the Department of Licensing and Regulation, no fiscal implication to the state is anticipated.The bill would take effect immediately if it receives a vote of two-thirds of all the members elected to each house. If the bill does not receive the vote necessary for immediate effect, it would take effect September 1, 2017. Local Government Impact According to the Department of Housing and Community Affairs and the Department of Licensing and Regulation, no fiscal implication to local government is anticipated.According to the Texas Municipal League, no fiscal implication to municipalities is anticipated. Source Agencies: 332 Department of Housing and Community Affairs, 452 Department of Licensing and Regulation 332 Department of Housing and Community Affairs, 452 Department of Licensing and Regulation LBB Staff: UP, CL, GG, GP, KK, EK UP, CL, GG, GP, KK, EK