Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  April 16, 1997
      TO: Honorable Tom Craddick, Chair            IN RE:  House Bill No. 3189
          Committee on Ways & Means                              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 and to the allocation of certain sales, excise, 
and use tax revenue to the Parks and Wildlife Department for 
debt service on revenue bonds.) this office has detemined the 
         Biennial Net Impact to General Revenue Funds by HB3189-As Introduced
Implementing the provisions of the bill would result in a net 
negative impact of $(10,000,000) 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 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 limit the amounts that the State Parks 
GR-Account 0064 and the Texas Recreation and Parks GR-Account 
0467 would receive in state sales tax revenues from the sale 
of sporting goods.

Chapter 151 of the Tax Code would be amended 
to increase the maximum annual credit of sales tax on sporting 
goods to the Parks and Wildlife Department from $32 million 
to $37 million.

The bill would take effect September 1, 1997.
The bill would have no effect on the State Parks Account and 
the Texas Recreation and Parks Accounts because their formulas 
are currently computed using the limit proposed by the bill. 
 The amounts above the current limit of $32 million and up to 
the new $37 million cap would be credited to the Parks & Wildlife 
Capital Account in the General Revenue Fund.    

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 Revenue   Probable Revenue   Probable Debt      
            Gain/(Loss) from   Gain/(Loss) from   Service (Cost)                                          
            General Revenue    Texas Parks and    from Texas Parks                                        
            Fund               Wildlife Capital   and Wildlife                                            
                               Account/           Capital Account/                                        
                               GR-Dedicated       GR-Dedicated                                            
            0001               5004               5004                                                     
       1998      ($5,000,000)        $5,000,000      ($1,288,998)                                    
       1998       (5,000,000)         5,000,000       (2,581,543)                                    
       2000       (5,000,000)         5,000,000       (3,872,698)                                    
       2001       (5,000,000)         5,000,000       (5,160,813)                                    
       2002       (5,000,000)         5,000,000       (5,160,180)                                    
         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
               1998         ($5,000,000)
               1999          (5,000,000)
               2000          (5,000,000)
               2001          (5,000,000)
               2002          (5,000,000)
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:   347   Texas Public Finance Authority
                                         802   Parks and Wildlife Department
                                         352   Bond Review Board
                                         304   Comptroller of Public Accounts
                      LBB Staff:   JK ,RR ,SM