LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 6, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1044  by Carona (Relating to the ability of a
               development corporation to receive funding from a
               municipality.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would authorize home-rule municipalities with a population of
over 100,000, under a contract with a development corporation created by
the municipality, to grant money to the development corporation. The Act
would take effect immediately upon a vote of two-thirds of all members of
each house or on September 1, 2001 if the requisite vote is not
received.

According to the Texas Municipal League (TML), there are 24 cities that
meet the criteria described in the bill.  If an eligible city was to
provide grant money to the development corporation, the city would incur
a loss and the development corporation would receive a corresponding
revenue gain. TML does not anticipate the amount of such grants to be
significant, although the amounts would vary by each city.
  
  
Source Agencies:   480   Department of Economic Development
LBB Staff:         JK, DB, ER