LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                                May 7, 1999
  
  
          TO:  Honorable Ron Lewis, Chair, House Committee on Energy
               Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB 1883 by Harris (Relating to certain rates charged by a
               gas utility or municipally owned utility to a state
               agency.), As Engrossed
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill would provide that the state tax exemption on in-kind gas
consumed by state agencies does not apply to a municipal contract,
franchise or other agreement.  The bill would require state agencies
participating in the state's in-kind gas program to pay these fees,
however no significant fiscal impact to the state is anticipated.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   455   Railroad Commission, 305   General Land Office
                   and Veterans' Land Board
LBB Staff:         JK, DE, MF