LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 17, 1997 TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 2335, As Passed 2nd House Speaker of the House Smith House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2335 ( Relating to certain crime control and prevention districts.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2335-As Passed 2nd House No fiscal implication to the State is anticipated. This bill would add municipalities located in counties with populations between 5,000 and 1 million to the list of entities eligible to create a crime control and prevention district. Such municipalities choosing to create a district could incur costs associated with the creation of a district. However, the municipality would be reimbursed by the district for actual expenses incurred. A district created as a result of this bill's passage could incur costs associated with personnel, administration, expansion, enhancement, and capital expenditures, pursuant to the limitation on expenditures described in Section 5.01, Article 2370c-4, Vernon's Texas Civil Statutes. A district would be expected to be funded through a sales and use tax ranging from one-eighth of one percent to one-half of one percent. The municipality creating the district would be expected to receive a portion of such sales and use taxes if it applies to the district for funding under programs described in Section 5.01. The bill's provision allowing a portion of a crime control and prevention district's sales and use tax collections to be dedicated to the renovation or expansion of convention center built before 1969, upon approval of voters, could result in increased revenues to a municipality or county owning the facility. The amount of revenue increase such an entity would experience would depend on the portion of a district's sales and use tax dedicated to the facility and the level of sales and use tax collections within the crime control and prevention district. Source: Agencies: LBB Staff: JK ,TL