LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 26, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB568  by Shapleigh (Relating to the authority of certain
               municipalities to create an industrial development
               district.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would make changes to increase the number of cities eligible to
create an industrial development district. The bill would take effect
immediately if it received a positive vote by two-thirds of both houses;
otherwise, it would take effect September 1, 2001.

The administrative costs for creating an industrial development district
are anticipated to be negligible.  Election costs would depend on whether
a city would choose to hold its election on a uniform election date in
which an election would already be required (i.e. when city officer
elections are held), or through a special election on another uniform
date.

There are currently 325 cities that have held an election to authorize
the creation of an industrial development district and two cities that
developed one without voting for the imposition of a sales tax to fund
it. The provisions of the bill would add another 16 cities to those
eligible to hold an election to create a district.  Of the 16 cities that
would become eligible, 10 are below the sales tax cap; the remaining six
would not be allowed to increase taxes to support a district.

The long term fiscal impact to the city through creation of an industrial
development district and imposition of a corresponding sales tax would
depend on the projects undertaken by the corporations, but is
anticipated to be positive.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB