LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 6, 1995



 TO:     Honorable Bill Sims, Chair             IN RE:  Senate BillNo. 1282
         Committee on Natural Resources                 By: Rosson
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1282 (Relating to the authority of the School Land Board to
dedicate permanent school fund land for public uses in exchange
for non-monetary consideration:) this office has determined the
following:

The bill would amend Chapter 51 of the Natural Resources Code to
allow the School Land Board to dedicate Permanent School Fund
(PSF) land to a governmental entity for public purposes such as
roads, utilities, etc. without receiving a monetary consideration
from the entity.  Under this bill, the board could convey a plot
of land, by plat or deed, for a public use in return for a non-
monetary consideration, provided that the consideration is
reasonably equivalent to the value of the dedicated land, as
determined by land office appraisal.  If the asset management
division of the General Land Office(GLO) determines that a road
or other public use would sufficiently enhance the value of the
land  for a potential buyer, the amount of that enhanced value
could be accepted as a non-monetary consideration.

The GLO indicates that such a tool would enhance the value and
marketability of PSF land, facilitate sales and result in a net
overall positive fiscal impact.  However, the amount of any
positive fiscal impact cannot be accurately estimated.


No fiscal implication to units of local government is
anticipated.

The fiscal implication to  the State cannot be determined.    




 
Source:   Comptroller of Public Accounts, General Land Office and
Veterans' Land Board
          LBB Staff: JK, KW, DF