LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 9, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1716  by Van de Putte (Relating to the authority of a
               county to establish public improvement districts.), As
               Introduced
  
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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.

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