LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 2, 1997
         
         
      TO: Honorable David Counts, Chair            IN RE:  House Bill No. 2463
          Committee on Natural Resources                              By: Moffat
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2463 ( Amending 
Chapter 51, Texas Water Code; authorizing certain water control 
and improvement districts to divide into more than two districts 
after an election; authorizing certain water control and improvement 
districts, after an election, to adopt road district powers 
and county development district powers; authorizing lease purchase 
contracts; authorizing the addition of lands by certain districts; 
containing other provisions and declaring an emergency.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2463-As Introduced
         

No fiscal implication to the State is anticipated.
         

         
 
          
This bill would allow water districts that operate under Chapter 
51 of the Water Code, have no outstanding bonded debt, and impose 
no property tax to divide into two or more new districts, provided 
voters approve such a division.  Upon voter approval, the bill 
also would allow such districts to adopt a sales and use tax 
and to impose a hotel occupancy tax as a county development 
district.  A district would be authorized to use the tax proceeds 
to repay lease purchase contracts for the purchase of real and 
personal property.  A district would also have the authority 
to add lands adjacent to its boundaries.

The cost of an election 
on the question of dividing a district or creating a tax would 
depend on the number of residents in a district.  Based on data 
from a survey conducted by the Texas Association of Counties, 
the median cost of a local election has been calculated at $0.40 
per resident.

This bill would allow water districts to increase 
revenues significantly through sales and use taxes and hotel 
occupancy taxes.  It would also allow districts to increase 
fee revenues by expanding its service areas.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,TL