LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 25, 1995



 TO:     Honorable Rodney Ellis, Chair          IN RE:  Senate BillNo. 1663
         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.
1663 (relating to the creation, administration, powers, duties,
operation, and financing of the Paseo del Este Municipal Utility
District, and the extraterritorial jurisdiction of certain
municipalities) this office has determined the following:

The bill would create a municipal utility district in El Paso
County which would coordinate the provision of water, wastewater,
and drainage services for a specific territory and would have
exclusive authority to control and abate water pollution within
the district.   The district would  have the authority to sue for
and receive penalties assessed for violations of the act of not
less than $50 or more than $1000 for each violation or day. The
district could also establish fees and charges in the amounts
necessary to fulfill its obligations and could issue bonds or
other obligations. It could not issue bonds or otherwise encumber
Permanent School Fund land within its boundaries, however.  The
bill would also exclude territory in the district from the
extraterritorial jurisdiction of a particular municipality as
specified in the bill.

There would be little or no fiscal impact for the General Land
Office and the Texas Natural Resource Conservation Commission,
the two agencies directly involved.  However, the Land Office
indicates that implementation of the bill would enhance the
ability of the agency  to market Permanent School Fund land,
which could result in a gain for that fund. The agency could not
estimate the amount of any gain, however.    




No significant fiscal implication to the State is anticipated.
 
The fiscal implication to units of local government cannot be
determined.


Source:   General Land Office and Veterans' Land Board, Natural
Resource
                          Conservation Commission
          LBB Staff: JK, KW, RR