LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 27, 1997
         
         
      TO: Honorable Fred Hill, Chair            IN RE:  House Bill No. 776
          Committee on Urban Affairs                              By: Tillery
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB776 ( Relating 
to a municipal drainage utility system.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB776-As Introduced   FN Revision 1
         
No fiscal implication to the State is anticipated.
         

         
 
          
This bill would extend the definition of a "benefitted property" 
to include commercial parking lots that receive other municipal 
services.  It would also remove provisions for a municipality 
with a population over 1 million that includes under "benefitted 
property" any lot or tract which drains into part of the municipality's 
drainage system.

The broadening of the definition of "benefitted 
property"  to include lots receiving other services would allow 
municipalities to levy drainage fees on some commercial parking 
lots, provided those lots have either water, wastewater, or 
electric utility service provided by the municipality.  Because 
only the largest cities have a significant number of parking 
lots that would be affected by this bill, and because the typical 
annual drainage fee applicable to these lots would likely be 
less than $200 per lot, no significant fiscal implication to 
municipalities is anticipated as a result of this bill's expansion 
of the definition of "benefitted property."

The removal of 
the special definition of "benefitted property" for municipalities 
with a population over 1 million would not affect Houston because 
that city does not operate a drainage utility.  However, the 
City of Dallas estimates a negative fiscal impact of approximately 
$950,000 per year, based on fees currently being assessed on 
unimproved lots which receive no municipal water, wastewater, 
or electric services.

  
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         582   Natural Resources Conservation Commission
                                         
                      LBB Staff:   JK ,TL