LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 21, 1997 TO: Honorable Ron E. Lewis, Chair IN RE: House Bill No. 2850 Committee on County Affairs By: Williams House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2850 ( Amending Chapters 775 and 794, Health and Safety Code, by adding Sections 775.025 and 794.0526 relating to the exclusion from rural fire prevention districts and emergency services districts of certain territory subject to ad valorem assessments; ratifying the exclusion of land from certain districts and related election proceedings; providing a severability clause; and declaring an emergency.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2850-As Introduced No fiscal implication to the State is anticipated. The cost associated with an election on the question of excluding territory from a district would depend on the number of residents living in the territory to be excluded. The median cost of a local election has been calculated at $.40 per resident, based on data collected in a survey conducted by the Texas Association of Counties in December 1996. A district which excludes territory could experience reduced revenues, depending on the amount of ad valorem taxes collected in an area to be excluded. A district which excludes territory, however, could realize cost savings resulting from the reduction in size of the district's service area. Source: Agencies: LBB Staff: JK ,TL