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