LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 6, 1997 TO: Honorable Fred M. Bosse, Chair IN RE: House Bill No. 2318 Committee on Land and Resource Management By: Hilderbran House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2318 ( Relating to the charge and control of certain state facilities located in Kerrville.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2318-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(517,949) to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would transfer charge and control of a state building and grounds to the Upper Guadalupe River Authority. The bill would also transfer records related to the building and grounds effective September 1, 1997. The building is in Kerrville. Methodolgy The bill would transfer control of a state building currently owned by the Railroad Commission. (Ownership of the building was transferred from the Office of the Comptroller to the Railroad Commission in 1993.) According to the General Land Office, the property was appraised in December 1996, and the market value of the property was estimated to be $681,994. Because the bill would not require the Upper Guadalupe River Authority to pay fair market value or other compensation, it is assumed the state would lose the value of the building. The loss of fair market value of the building would impact the General Revenue Fund, and the loss of value of the land and improvements would affect the Permanent School Fund, which owns the land and improvements. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Revenue Probable Revenue Gain/(Loss) from Gain/(Loss) from General Revenue Permanent School Fund Fund 0001 0044 1998 ($517,949) ($163,993) 1998 0 0 2000 0 0 2001 0 0 2002 0 0 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($517,949) 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 455 Railroad Commission 305 General Land Office and Veterans' Land Board LBB Staff: JK ,BB ,JH