LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 31, 1997
         
         
      TO: Honorable Fred Hill, Chair            IN RE:  House Bill No. 2446
          Committee on Urban Affairs                              By: Greenberg
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2446 ( Relating 
to performance audits of certain metropolitan transit authorities.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2446-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(200,000) to General Revenue Related Funds 
through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
The bill would amend Chapter 451 of the Transportation Code 
to allow the Comptroller to conduct a performance audit of any 
metropolitan transit authority (MTA) whose board members were 
confirmed before July 1, 1985, and in which the principal municipality 
had a population of less than 750,000.  In performing the audit, 
the Comptroller would examine any budgets and operations of 
the MTA, determine whether the MTA was effectively and efficiently 
providing the services it was created to provide, and make appropriate 
recommendations to the Legislature.  

The bill would allow 
the Comptroller to initiate the performance audit at the Comptroller s 
discretion.  The bill would require the Comptroller to conduct 
the audit at the request of the Governor, the Lieutenant Governor, 
the Speaker of the House of Representatives, or the presiding 
officer of the committee of the Senate or the House of Representatives 
responsible for approving legislation governing the MTA.  The 
bill also would restrict the performance audit from being conducted 
more than once every two years.
 
Methodolgy
 
The bill would allow the Comptroller to conduct a performance 
audit of the Austin metropolitan transit authority once every 
two years.  The Comptroller has estimated that it would cost 
$200,000 in consulting services costs to conduct the review.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           
            Savings/(Cost)                                                                                
            from General                                                                                  
            Revenue Fund                                                                                  
            0001                                                                                           
       1998        ($200,000)                                                                        
       1998                                                                                          
       2000                                                                                          
       2001                                                                                          
       2002                                                                                          
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998           ($200,000)
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications could continue as long as 
the provisions of the bill are in effect.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL ,RN