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