LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 31, 1997
         
         
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 1515
          Committee on Ways & Means                              By: Thompson
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1515 ( Relating 
to the collection of fees for the use of municipal land as a 
utility right-of-way.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1515-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
FISCAL ANALYSIS
The bill would require a city to file a judicial 
proceeding within two years of the original due date to collect 
an unpaid fee charged for the use of municipal land as a utility 
right-of-way.  Current law does not address the time frame and 
procedures to be used in collecting unpaid fees for the use 
of land as a utility right-of-way.
          
LOCAL
The cities of Austin, Houston, Fort Worth and Brownwood 
and the Texas Municipal League were contacted to gather information 
for this estimate.

The City of Austin indicated that public 
utilities are not audited on an annual basis.  Therefore, the 
two year limit on judicial filing would cause a negative fiscal 
impact on the city because all utilities would need to be audited 
annually in order to identify any unpaid fees.  Austin stated 
that, unless auditing were done annually at a substantial cost 
to the city, those unpaid fees not identified in time to file 
a judicial proceeding for collection would be lost.

The City 
of Houston indicated there would not be a direct impact upon 
Houston because they operate through franchise agreements.  
However, they stated that, should franchise agreements be affected 
by the bill, there would be a substantial negative fiscal impact.

The 
City of Brownwood did not anticipate a fiscal impact.

The 
Texas Municipal League indicated the fees referred to in this 
bill are the third largest revenue source for cities.  Therefore, 
the bill would potentially have a significant negative impact 
on local governments.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         City of Austin
                                         City of Houston
                                         City of Brownwood
                      LBB Staff:   JK ,RR ,BR