LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 22, 2001
  
  
          TO:  Honorable James E. "Pete" Laney, Speaker of the House,
               House of Representatives
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3172  by Thompson (Relating to the authority of a
               county to establish public improvement districts.), As
               Passed 2nd House
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would allow counties to establish public improvement districts
if petitioned to do so and following required posting notices,
feasibility studies, hearings, and a vote of approval by the majority of
the county's governing body.  Costs would be covered by special
assessments levied against the property in the area of the improvement
district; interest on the assessments, not to exceed 1 percent higher
than the actual interest rate paid on public debt used to finance
improvements; by levying a tax to support the special improvement
district fund; through grant-in-aid; or by issuing temporary notes or
revenue or general obligation bonds.

If within 30 days of a county's action to approve a public improvement
district a home-rule municipality objects to the district's establishment
within the municipality's corporate limits or extraterritorial
jurisdiction, the county may not establish the district.

Under existing statute, only municipalities are authorized to establish a
public improvement district.  The same requirements for a municipality
to establish and fund a public improvement district would apply to
counties under the provisions of the bill.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, DB