LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 6, 1997
         
         
      TO: Honorable Steven Wolens, Chair            IN RE:  House Bill No. 980
          Committee on State Affairs                              By: Junell
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB980 ( Relating 
to the operation and oversight of a regional planning commission, 
council of government, or other similar regional planning agency.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB980-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(289,994) to General Revenue Related Funds 
through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
The bill would amend the Local Government Code relating to the 
operation and oversight of regional planning commissions, councils 
of government, and similar regional planning agencies.  The 
bill would require the Governor to adopt rules relating to the 
operation and oversight of the commissions, receipt and expenditure 
of funds, annual reporting and audit requirements, and the establishment 
and use of standards to measure productivity and performance 
of a commission.   The Governor and state agencies would be 
required to provide technical assistance to a commission to 
ensure compliance with the rules, requirements, and guidelines 
established by the bill. 

The bill would establish new reporting 
requirements for regional planning commissions and establish 
several restrictions on commission costs, employment, and salary 
schedules.  A commission would be required to submit its overall 
salary schedules, including exempt positions, for approval by 
the Governor no later than 45 days before the beginning of its 
fiscal year. 
 
Methodolgy
 
The Office of the Governor has indicated that it would need 
additional resources to implement the oversight and technical 
assistance provisions of the bill.  Two full-time equivalent 
employees (FTEs) would be needed for rule-making and financial 
oversight.  Other support and travel costs associated with these 
two FTEs are also included. 

Any savings to the state due 
to improved accountability for expenditures by regional planning 
commissions are not expected to be significant.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           Change in Number   
            Savings/(Cost)     of State                                                                   
            from General       Employees from                                                             
            Revenue Fund       FY 1997                                                                    
            0001                                                                                           
       1998        ($153,747)               2.0                                                      
       1998         (136,247)               2.0                                                      
       2000         (121,247)               2.0                                                      
       2001         (121,247)               2.0                                                      
       2002         (121,247)               2.0                                                      
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998           ($153,747)
               1999            (136,247)
               2000            (121,247)
               2001            (121,247)
               2002            (121,247)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   308   State Auditor's Office
                                         304   Comptroller of Public Accounts
                                         301   Office of the Governor
                                         
                      LBB Staff:   JK ,JD ,RN