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