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