LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 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 for violating state law and the state constitution.), As Introduced No significant fiscal implication to the State is anticipated. The bill would establish a process for the Attorney General to investigate municipal laws for violations of state law or the state constitution and would provide a municipality 30 days to resolve any identified violations. If the violations are not resolved, the municipality would be subject to a civil penalty of up to $3,000, funding restrictions, and the withholding of the municipality's municipal sales tax distribution until the violation is resolved. Any interest earned on the withheld municipal sales tax distribution would be deposited to the General Revenue Fund. The revenue impact would be dependent on the number of unresolved violations resulting in a civil penalty and the amount of interest earned from any withheld municipal sales tax distributions. It is assumed that any costs associated with implementation of the bill's provisions could be absorbed using existing resources. Local Government ImpactA municipality that fails to resolve a violation of the provisions of the bill is subject a civil penalty of up to $3,000 per day, funding restrictions, operational limits, and the Comptroller withholding the municipality's municipal sales tax distribution until the violation is found to be resolved. Source Agencies: b > td > 302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, WP, LCO, JKe
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 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 for violating state law and the state constitution.), As Introduced
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 for violating state law and the state constitution.), As Introduced
Honorable Ken King, Chair, House Committee on State Affairs
Honorable Ken King, Chair, House Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4283 by LaHood (Relating to the penalties imposed on municipalities for violating state law and the state constitution.), As Introduced
HB4283 by LaHood (Relating to the penalties imposed on municipalities for violating state law and the state constitution.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would establish a process for the Attorney General to investigate municipal laws for violations of state law or the state constitution and would provide a municipality 30 days to resolve any identified violations. If the violations are not resolved, the municipality would be subject to a civil penalty of up to $3,000, funding restrictions, and the withholding of the municipality's municipal sales tax distribution until the violation is resolved. Any interest earned on the withheld municipal sales tax distribution would be deposited to the General Revenue Fund. The revenue impact would be dependent on the number of unresolved violations resulting in a civil penalty and the amount of interest earned from any withheld municipal sales tax distributions. It is assumed that any costs associated with implementation of the bill's provisions could be absorbed using existing resources.
Local Government Impact
A municipality that fails to resolve a violation of the provisions of the bill is subject a civil penalty of up to $3,000 per day, funding restrictions, operational limits, and the Comptroller withholding the municipality's municipal sales tax distribution until the violation is found to be resolved.
Source Agencies: b > td > 302 Office of the Attorney General, 304 Comptroller of Public Accounts
302 Office of the Attorney General, 304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, WP, LCO, JKe
JMc, WP, LCO, JKe