LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 19, 1995



 TO:     Honorable Rodney Ellis, Chair          IN RE:  Senate BillNo. 1388
         Committee on Intergovernmental                 By: Rosson
         Relations
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1388 (relating to the creation of a county mass transit
authority) this office has determined the following:

The bill would add Article 1118z-1, V.T.C.S., relating to the
creation of a county mass transit authority.  The bill would only
apply to a county containing a municipality with a population of
500,000 or greater that has created a city transit department
under Article 1118z, V.T.C.S.

The bill would allow a county to create a mass transit authority
if the combined rate of the sales and use tax charged by the
authority and all political subdivisions having territory in the
county would not exceed two percent.  The initial tax rate must
be the same rate collected by the city transit department created
by the principal municipality.  The creation of an authority and
the initial tax rate would be subject to approval by the voters
in the county.  The initial tax rate could be changed subject to
voter approval.

The bill would authorize an authority to issue tax exempt revenue
bonds for the acquisition, construction, repair, equipping,
improvement, or extension of its transit system.  Bonds payable
solely from revenues may be issued by resolution of the board. 
Bonds payable from tax revenue would be subject to voter
approval.

It appears that this bill would currently only apply to El Paso
county.    




The fiscal implications cannot be determined as it is not known 
if an authority would be created pursuant to this bill or if the
voters of El Paso county would approve a new, county-wide mass
transit authority.

If, however, an authority were created (and approved by the
voters), and provided the new authority would have a sales tax
with a rate of one-half of one percent, then the new tax would
generate approximately the same amount of revenue as the existing
county sales and use tax.  El Paso county was rebated $20.1
million in county sales and use tax in calendar year 1994.  By
comparison, the El Paso CTD (mass transit authority) was rebated
about $19.5 million in the same year.


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, Natural Resources
Conservation Commission,
                          Department of Transportation
          LBB Staff: JK, SM, RR