Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  May 14, 1997
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 3189, 
As Engrossed
          Committee on Finance                              By: Kuempel
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on HB3189 ( relating 
to the authority of the Parks and Wildlife Department to issue 
revenue bonds) this office has detemined the following:
         Biennial Net Impact to General Revenue Funds by HB3189-As Engrossed
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 make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.

Fiscal Analysis
The bill would amend the Parks and Wildlife Code to authorize 
the Texas Parks and Wildlife Department to request the issuance 
of up to $60 million in revenue bonds.  The bonds would be issued 
by the Texas Public Finance Authority and would be used for 
the repair, renovation, improvement, and equipping of parks 
and wildlife facilities.  The bond proceeds would be deposited 
to the credit of the Texas Parks and Wildlife Capital GR-Account 

The bill would take effect September 1, 1997.
The bonds issued by the department would be revenue bonds and 
would thus be supported directly by the revenues of the facilities 
constructed or improved.  Unless otherwise specified in the 
indenture, holders of these revenue bonds would have no claims 
on the issuer's other resources.

The cost of debt service 
in the following table is provided for illustrative purposes 
only as the bill does not specify the increments of the bond 
issuance.  It assumes that the $60 million of bond authority 
that would be granted upon passage of the bill would be issued 
in four $15 million annual installments.  The estimate also 
assumes that the debt service would be paid out of the GR-dedicated 
Texas Parks and Wildlife Capital Account 5004.  The following 
are the total estimated debt service payment amounts (principal 
and interest) that will be incurred on $15 million bond issues, 
each with a 20 year maturity, issued annually for four years. 
 It is assumed that the bonds will be fixed-rate and tax-exempt, 
issued in the 1998 fiscal year, and will remain outstanding 
for 20 years, paying level annual debt service amounts.
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 Debt      
            Service (Cost)                                                                                
            from Texas Parks                                                                              
            and Wildlife                                                                                  
            Capital Account/                                                                              
       1998      ($1,288,998)                                                                        
       1998       (2,581,543)                                                                        
       2000       (3,872,698)                                                                        
       2001       (5,160,813)                                                                        
       2002       (5,160,180)                                                                        
         Net Impact on General Revenue Related Funds:

              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related 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:   802   Parks and Wildlife Department
                                         347   Texas Public Finance Authority
                                         352   Bond Review Board
                                         304   Comptroller of Public Accounts
                      LBB Staff:   JK ,RR ,SM