LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 30, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 3178, Committee Report 1st House, as amended
          Committee on Land and Resource Management                              By: Lewis,Ron
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3178 ( Relating 
to limiting the area that may be included within the extraterritorial 
jurisdiction of certain municipalities.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB3178-Committee Report 1st House, as amended
         

No fiscal implication to the State is anticipated.
         

         
 
          
In a municipality, the majority of which is located within a 
county with a population of 240,000 or less, this bill would 
remove from that municipality's extraterritorial jurisdiction 
(ETJ) land located outside the county in which a majority of 
the land area of the municipality is located if that area is 
separated from the municipality's corporate boundaries by a 
navigable stream.  

The bill could limit a municipality's 
ability to enter into industrial district agreements in its 
ETJ, thereby limiting the municipality's ability to produce 
revenues for services provided in the ETJ and to negotiate to 
attract economic development.  

The City of Port Arthur anticipates 
that this bill could reduce revenues to the city associated 
with an area in Orange County which would be removed from the 
city's ETJ.  This area currently produces $909,025 per year 
in "in lieu of tax" payments, and the city estimates that this 
revenue could be lost if this bill is enacted.

          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,TL