LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 3, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 657, Committee Report 1st House, Substituted
          Committee on State Affairs                              By: Barrientos
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB657 ( Relating 
to the creation of intermunicipal commuter rail districts; granting 
authority to issue bonds and power of eminent domain.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB657-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated.
         

         
 
This bill would permit the creation of Intermunicipal Commuter 
Rail Districts (districts) to provide commuter service between 
two municipalities with populations of 450,000 or more and located 
no farther than 100 miles apart.  Districts would be supported 
by rates and other compensation for the use of the district 
facilities, grants received by the district and the issuance 
of bonds and notes.  The bill would provide an exemption from 
all state and local taxes on the property, material purchases, 
revenues, and income of a district and on the interest on bonds 
and notes issued by the district.

Because the bill would 
exempt districts from taxes levied by the state, there could 
be some loss of state revenues.
          
Some existing taxable real property could become exempt under 
the bill. Total taxable property value for each school district 
is an element in the state's school funding formula.  Passage 
of this bill could cause a reduction in school district taxable 
values reported to the Commissioner of Education by the Comptroller. 
Depending on a school district's wealth per student, this could 
result in an increased cost to state-funded public education.
          
   Source:            Agencies:   601   Department of Transportation
                                         304   Comptroller of Public Accounts
                                         302   Office of the Attorney General
                                         
                      LBB Staff:   JK ,JD ,ML