LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 6, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 1961
          Committee on Land and Resource Management                              By: Howard
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1961 ( Relating 
to the transfer of certain state property from the Texas Department 
of Transportation to certain governmental entities.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1961-As Introduced   FN Revision 1
         

Implementing the provisions of the bill would result in a 
net impact of $0 to General Revenue Related Funds through the 
biennium ending August 31, 1999.  
         
The bill would provide for the conveyance of real property owned 
by the Texas Department of Transportation (TxDOT) to the Board 
of Regents of the University of Houston System and the City 
of Sugarland.  

The bill would transfer 248 acres to the 
University of Houston System and 421 acres to the City of Sugarland. 
 The TxDOT estimates the appraised value of the land to be transferred 
at $5975.22 per acre.  The department further estimates that 
the total value of the property to be transferred would be $1,481,854 
to the University and $2,515,568 to the City of Sugarland.  
If the two tracts of land were to be sold for its current estimated 
value ($3,997,422) the State Highway Fund 6 would realize a 
loss of that amount.  However, the estimated value of the land 
transferred to the University ($1,481,854) would represent no 
net change in value to the state since the exchange is between 
two state entities.  

TxDOT states that a portion of the 
tract to be transferred to the City of Sugarland (approximately 
70 acres) might need to be reacquired to widen US 59 South. 
 According to the department, the re-purchase price would be 
approximately $418,000. 

The City of Sugarland could realize 
a revenue gain if the tract of land needed for US 59 South widening 
were to be re-purchased at a later date by the state.  
         
 
          
   Source:            Agencies:   783   University of Houston System Administration
                                         601   Department of Transportation
                                         
                      LBB Staff:   JK ,BB ,ML