LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 14, 1997
         
         
      TO: Honorable Bob Bullock            IN RE:  Senate Bill No. 1277, As Passed 2nd House
          Lieutenant Governor                Lucio
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1277 ( Relating 
to powers and duties of emergency services districts.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1277-As Passed 2nd House
         
No fiscal implication to the State is anticipated.
         

         
 
          
The bill would ensure that a district would be fairly compensated 
by a municipality that annexes a portion of the district's territory 
for the district's indebtedness associated with such annexed 
territory.  This could increase a municipality's cost of annexing 
portions of such districts.

The bill would also provide that 
a municipality purchase any real or personal property used to 
provide emergency services in an area disannexed by the district 
at the district's request.  This could require a municipality 
to incur costs, regardless of whether the municipality determines 
such equipment or property to be necessary or useful to the 
municipality.  

Entitling emergency services commissioners 
to receives fees of office could cost emergency services districts 
approximately $15,000 per year in additional expenses.  Such 
an increase could be significant to districts in Kimble and 
Delta County which, according to the Comptroller of Public Accounts, 
each operate on an annual budget of $75,000. However, a district 
would also be able to generate new revenues to offset some of 
the cost increases, if it were to charge fees for services performed, 
as provided by the bill.   

No significant implications are 
anticipated as a result of the bill's proposed changes to competitive 
bidding procedures for emergency services districts.

There 
could be some administrative costs associated with requiring 
districts to file annual reports with the Secretary of State.

The 
requirement that an audit be filed on or before June 1 of each 
year is not anticipated to result in fiscal implications to 
districts.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL