LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 26, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  Senate Bill No. 1017
          Committee on Intergovernmental Relations                              By: Patterson, Jerry
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1017 ( Relating 
to training for members of appraisal review boards and to the 
qualifications of the members of certain appraisal review boards.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1017-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $307,222 to General Revenue Related Funds 
through the biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
The bill would amend Chapter 5 and 6 of the Tax Code to require 
the Comptroller to assume responsibility for training appraisal 
review board (ARB) members by:  (1) providing standards for 
training and educating ARB members; (2) approving curricula 
and materials for training ARB members; and (3) establishing 
standards for a certificate of training and issuance of a certificate 
for successfully completing required training and education.

The 
Comptroller would be required to implement these provisions 
by January 1, 1998.  The bill would prohibit ARB members in 
counties having a population of 50,000 or more from participating 
in an ARB hearing unless they had successfully completed required 
training and education and had been issued a certificate of 
completion.  Appraisal districts and taxing units would be prohibited 
from providing ARB training and education.

The bill would 
make the following persons ineligible to serve on an ARB:  (1) 
former appraisal district or taxing unit officers or employees, 
(2) former appraisal district board members, and (3) former 
members of taxing unit governing bodies.

The bill would take 
effect September 1, 1997 and only apply to an ARB member appointed 
on or after the effective date.  The bill would not prohibit 
current ARB members from being reappointed if those persons 
met the qualifications otherwise established by this bill for 
new members.
 
Methodolgy
 
The bill would require the Comptroller to assume a central role 
in training and educating ARB members.  There could be some 
costs to local governments for expenses associated with providing 
training and education to ARB members.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           Change in Number   
            Savings/(Cost)     of State                                                                   
            from General       Employees from                                                             
            Revenue Fund       FY 1997                                                                    
            0001                                                                                           
       1998        ($158,831)               3.0                                                      
       1998         (148,391)               3.0                                                      
       2000         (148,391)               3.0                                                      
       2001         (148,391)               3.0                                                      
       2002         (148,391)               3.0                                                      
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998           ($158,831)
               1999            (148,391)
               2000            (148,391)
               2001            (148,391)
               2002            (148,391)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL ,BR