LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 18, 1995



 TO:     Honorable Rene O. Oliveira, Chair      IN RE:  House Bill No. 2492
         Committee on Economic Development              By: Allen
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2492 (relating to industrial development corporations created by
certain cities and the taxes levied for projects of those
corporations) this office has determined the following:

The bill would amend Section 4A of the Development Corporation
Act of 1979 to expand the definition of "eligible city" to
include any city currently eligible under Section 4B of that Act. 
The bill would amend Section 4B of the Act to allow a 4B city
which has levied a sales and use tax that is no longer needed for
a specific project, to hold another election to obtain voter
approval to use the sales tax for other 4B projects.

Currently, Section 4A and 4B cities are allowed to hold a tax
election on a Uniform Election Date, which occurs four times a
year (January, May, August and November).  The bill would allow
them to hold a tax election at anytime.


No significant fiscal implication to the State is anticipated.

The fiscal implication to units of local government cannot be
determined.


Source:   Comptroller of Public Accounts
          LBB Staff: JK, SM, RR