LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 5, 1997
         
         
      TO: Honorable Bob Hunter, Chair            IN RE:  House Bill No. 2356, Committee Report 1st House, Substituted
          Committee on State, Federal & International Relations                              By: Davis
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2356 ( Relating 
to the administration of state-owned historical parks, structures, 
and sites by the Texas Historical Commission; making a contingent 
appropriation; providing penalties.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2356-Committee Report 1st House, Substituted
         
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.
         

         
   Appropriations:
   
     The bill would appropriate the following amounts:
   
  Fiscal Year Appropriation 
          out of New                                                                         
          - GR                                                                               
          Dedicated -                                                                        
          State                                                                              
          Historical                                                                         
          Areas Account                                                                      
          NEW-DED                                                                             
     1998    $3,500,000                                                                      
     1999     3,500,000                                                                      
 
Fiscal Analysis
 
The bill would amend sections of the Government Code and the 
Parks and Wildlife Code to transfer responsibility for 15 historical 
properties from the Texas Parks and Wildlife Department (TPWD) 
to the Texas Historical Commission (THC).  The bill would establish 
the State Historical Areas Account as a special account in the 
General Revenue Fund to receive revenues from various sources 
related to operation of historic parks and sites, as specified 
in the bill.  Money in the account could be used by the THC 
only for certain purposes related to historical parks, structures, 
and sites. 

The bill would require the Comptroller to transfer 
$3.5 million in each fiscal year from the State Parks Account 
to the new State Historical Areas Account.  If the 1998-1999 
General Appropriations Act does not provide an appropriation 
to the THC for administration of the transferred historic properties, 
the bill would appropriate $3.5 million in each year of the 
biennium from the new account to the THC, and would reduce the 
appropriation to the TPWD from the State Parks Account by an 
equivalent amount.  

On the effective date of the bill, all 
powers, duties, files, equipment, property, and unobligated 
and unexpended appropriations of the TPWD designated for the 
administration of historic sites would be transferred to the 
Historical Commission.  The bill would take effect September 
1, 1997.  
 
Methodolgy
 
The TPWD estimates probable savings at $1,700,608 in each year, 
based on current operational expenditures at the 15 sites.  
The probable revenue loss to the State Parks Account is estimated 
at $405,600 in each year, and is based on the total revenue 
received at the 15 sites.  Overall, the TPWD anticipates that 
implementing the provisions of the bill will result in a loss 
of $2.2 million in each year to the department.  This amount 
represents the total loss to the State Parks Account of $3,905,600 
($3.5 million transferred out plus the estimated revenue loss 
of $405,600) less estimated savings to the account ($1,700,608). 
 In addition, it is estimated that the transfer would result 
in a reduction of approximately 57 FTEs at TPWD.  An estimate 
of the amount of unobligated/unexpended appropriations that 
would be transferred to the Historical Commission was not available. 
 The new State Historical Areas Account would offset the loss 
to State Parks Account, as both the $3.5 million in transferred 
funds and revenues from the operation of historic properties 
would be deposited to the credit of the account. 

It is assumed 
that the transfer of sites to the Historical Commission will 
not result in significant additional costs;  that the THC 's 
costs to administer the sites would be equal to and not exceed 
$3,905,600 in each fiscal year ( $3.5 million transferred plus 
$405,600 in revenues); that the amount of revenues collected 
by THC from the sites would be similar to the amounts collected 
by TPWD; and that the THC could administer and operate the transferred 
sites with the same number of FTEs as the TPWD.  

Since the 
bill involves a transfer of existing funds from one account 
to another and shifts receipt/deposit of existing revenue sources 
from one agency/account to another, no significant fiscal implication 
to the state is anticipated.  The amounts shown in the table 
below reflect only these transfers, and do not reflect any new 
money to the state.  
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           Probable Revenue   Probable           
            Gain/(Loss) from   Savings/(Cost)     Gain/(Loss) from   Savings/(Cost)                       
            State Parks        from State Parks   New - GR           from New - GR                        
            Account/           Account/           Dedicated -        Dedicated- State                     
            GR-Dedicated       GR-Dedicated       State Historical   Historical Areas                     
                                                  Areas Account      Account                              
            0064               0064               NEW-DED            NEW-DED                               
       1998      ($3,905,600)        $1,700,608        $3,905,600      ($3,905,600)                  
       1998       (3,905,600)         1,700,608         3,905,600       (3,905,600)                  
       2000       (3,905,600)         1,700,608         3,905,600       (3,905,600)                  
       2001       (3,905,600)         1,700,608         3,905,600       (3,905,600)                  
       2002       (3,905,600)         1,700,608         3,905,600       (3,905,600)                  
 
 
         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                   $0
               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 fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH ,JA