LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 18, 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.),
               Committee Report 1st House, as amended
  
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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.

The bill would also remove from statute the requirement for an assessment
plan to provide that at least 10 percent of the cost of an improvement
be paid by special assessments against property in the improvement
district. Additionally, provisions of the bill would require delinquent
installments of assessments on property in the improvement area to incur
interest, penalties, and attorneys' fees in the same manner as
delinquent ad valorem taxes.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, DB