LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 2, 1995



 TO:     Honorable David Counts, Chair          IN RE:  House Bill No. 2875
         Committee on Natural Resources                 By: Johnson
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2875 (Relating to the continued eligibility for assistance of
certain areas formerly classified as economically distressed
areas.) this office has determined the following:

This bill would amend the Texas Water Code to change the
eligibility criteria for certain political subdivisions applying
for financial assistance as an economically distressed area.  The
bill would allow the Texas Water Development Board to approve
financial assistance to political subdivisions despite
improvements in economic conditions of the county after an
application for assistance was submitted.


No significant fiscal implication to the State or units of local
government is anticipated.




Source:   Water Development Board
          LBB Staff: JK, CG, DF