Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  May 24, 1997
      TO: Honorable James E. "Pete" Laney            IN RE:  House Bill No. 1239, As Passed 2nd House
          Speaker of the House                By:  Jackson
          House of Representatives
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on HB1239 ( relating 
to the voluntary cleanup program.) this office has detemined 
the following:
         Biennial Net Impact to General Revenue Funds by HB1239-As Passed 2nd House

No significant fiscal implication to the State is anticipated.

The bill would amend Health and Safety Code provisions relating 
to superfund sites, including references to federal brownfield 
cleanup initiatives and assessment of liability for cleanup 

In addition, the Tax Code would be amended to 
allow local government entities to enter into tax abatement 
agreements for cleanup of certain properties.  Tax abatement 
agreements would exempt a declining portion of the property 
value from ad valorem taxation for a period not to exceed four 
years.  Eligible property owners would be required to provide 
the chief appraiser with a certificate of completion relating 
to the cleanup to accompany the application for an exemption. 
 These provisions would apply only to ad valorem taxes imposed 
on or after January 1, 1998.  

Total taxable value, an element 
of the state's school funding formula, could be reduced by passage 
of the bill.  A reduction in school district taxable values 
could increase the state's cost of public education based on 
current law funding formulas.  In addition, there could be a 
loss of property tax revenue to other local units of government. 
 The potential loss to school districts and other local government 
entities would depend upon both the number and value of abatement 
agreements entered into under the provisions of this bill.  

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