LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 27, 2001
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1655  by Sibley (Relating to the creation,
               administration, powers, duties, operation, and financing
               of the Middle Trinity Groundwater Conservation
               District.), Committee Report 1st House, Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would create the Middle Trinity Groundwater Conservation
District which would encompass the eight counties of Bosque, Callahan,
Comanche, Coryell, Eastland, Erath, Hamilton and Somervell.  The district
would have the powers of water districts formed under Chapter 36 of the
Water Code.  The district would be authorized to assess a property tax of
five cents per $100 of valuation.  A temporary board of directors would
be charged with calling an election to confirm the establishment of the
district.

The bill would take effect on September 1, 2001.  If the district is not
confirmed by an election prior to September 1, 2003, the act would
expire on that date.
  
Local Government Impact
  
County clerks in the eight counties were contacted about the costs of
holding elections in their counties.  Eastland County estimated an
election in their county would cost $30,000.  Coryell County estimated
election costs at $20,000.  In Callahan County, the costs of the most
recent countywide election was $8,700.  The Comanche County Clerk said
election costs in that county would be approximately $8,000.  Bosque
County estimated election costs in their county at $6,200.  Erath County
election costs would run about $5,000.  Hamilton and Somervell counties
said elections in their counties would cost $3,000 each.

The Texas Natural Resource Conservation Commission (TNRCC) estimates the
costs of establishing and operating a groundwater conservation district
would range from $70,000 to $150,000 per year depending on the size of
the district.  TNRCC assumes that revenues from fees and taxes set by the
directors would cover the costs to establish and operate the districts.

According to the Comptroller's most recent report on property taxes,
these eight counties have property values in excess of $13 billion.

The costs of a confirmation election in the eight counties could total
$83,900.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   304   Comptroller of Public Accounts
LBB Staff:         JK, CL, DB