LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 2, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 3178
          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-As Introduced
         

No fiscal implication to the State is anticipated.
         

         
 
          
In a municipality located in whole or in part 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 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.

The City of Corpus Christi 
expects that this bill would restrict the city's ability to 
enter into industrial district agreements in the city's ETJ 
in San Patricio County.  This would limit the city's ability 
to produce revenues for services provided in the city's ETJ 
and impair the city's ability to negotiate to attract economic 
development to the area.  Corpus Christi also anticipates that 
this bill would restrict the city's ability to exercise development 
regulation in the city's ETJ located in neighboring counties, 
reducing the city's ability to impede the growth of improperly 
designed subdivisions in the watershed providing the city's 
water supply, thereby decreasing water quality and increasing 
the cost of providing water for the entire region.  
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,TL