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