LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 9, 2001
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1880  by Swinford (Relating to the creation, operation,
               and administration of agricultural development districts
               and granting the power of eminent domain and the
               authority to issue bonds.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would authorize a county in which an agricultural facility of a
proposed district is to be located, upon petition of at least 10
residents of a proposed district, five of whom must own real property in
the proposed district, to create an agricultural development district.
Creation of the district would require a confirmation election.  The
provisions of the bill would set out the parameters for operating and
funding of the district and projects.

Under the proposed statute, an agricultural development district would
be self-funded through assessments of members of the district, the sale
of revenue bonds, proceeds from projects, grants, or donations. Initial
expenses for the order creating the district would be incurred by the
petitioners for the district. Election costs would be negligible if the
election were to be held in conjunction with a uniform general election.
Election costs would be incurred by the county and would vary by county
size, but an average per registered voter cost for an election is $0.91,
based on the costs from a sample of counties and municipalities across
the state. A district would also incur costs for mailing a notice to each
person that owns land adjacent to a district project if the project was
not included in the district's original creation order and the
commissioners court is to consider project approval.

Although land within the agricultural development district would be
exempt from school taxes, the district would make payments to the school
district that would be equivalent to what would have been the tax amount.

No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   551   Texas Department of Agriculture
LBB Staff:         JK, CL, DB, GS