LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

March 30, 2003

TO:	Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB1021 by Madla (Relating to the conversion of all rural fire prevention districts to emergency services districts.), As Introduced

No fiscal implication to the State is anticipated.

The provisions of the bill would convert all rural fire prevention districts to emergency services districts. The bill would take effect September 1, 2003.

Consolidation of the rural fire prevention districts and emergency services districts would alleviate duplication of effort and standardize services provided. Additionally, the allowable ad valorem tax rate for an emergency services district is higher than that of a rural fire prevention district, which would result in better funding of services.

According to the State Association of Fire and Emergency Districts, the fiscal impact to the districts would be insignificant, although the association estimates a cost of about $5,000 per district if the district opts to hold an election to adopt a new tax cap.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:	304 Comptroller of Public Accounts
LBB Staff:	JK, DLBa