LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 9, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  Senate Bill No. 679, Committee Report 1st House, Substituted
          Committee on Intergovernmental Relations                              By: Lindsay
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB679 ( Relating 
to the requirement that a portion of the sales and use tax revenue 
collected by certain metropolitan rapid transit authorities 
be used only for county and municipal road and bridge purposes.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB679-Committee Report 1st House, Substituted
         
No fiscal implication to the State is anticipated.
         

         
 
          
This bill would require the Metropolitan Transit Authority of 
Harris County to distribute 25 percent of the total revenue 
from sales and use tax collected during a calendar year to each 
municipality or county in the authority, unless voters approve 
a proposition eliminating the requirement. 

Since the authority 
already distributes these revenues (approximately $68.8 million 
of $268.3 million collected in fiscal year 1996) to the 15 member 
municipalities and Harris County according to the authority's 
own formula, no significant fiscal implication to the authority 
is expected.  However, since the authority currently has the 
ability to distribute less than 25 percent of tax revenues, 
the authority would lose discretionary control over such funds.

The 
fiscal implications to member local governments would depend 
on distribution levels decided by the board of the transit authority 
in consultation with the local governments.
          
   Source:            Agencies:   
                                         Metropolitan Transit Authority of Harris County
                                         Harris County
                                         City of Houston
                      LBB Staff:   JK ,TL