LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 1, 1997
TO: Honorable Fred M. Bosse, Chair IN RE: Senate Bill No. 728, Committee Report 2nd House, Substituted
Committee on Land and Resource Management By: Nelson
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB728 ( Relating
to the management, control, disposition, and status of certain
state land, including land owned or used for the site of the
superconducting super collider research facility.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB728-Committee Report 2nd House, Substituted
Implementing the provisions of the bill would result in a
net negative impact of $(873,000) 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 allow the General Land Office (GLO) to dedicate
roads on the Superconducting Super Collider Research Facility
(SSC) site to a county if such dedication would enhance the
value to the land. The bill would allow the sale of the SSC
surface estate owned by the state to also convey the state's
interest in the subsurface estate. A person from whom the state
acquired a SSC surface tract would be granted a preference right
to reacquire that tract at fair market value. Provisions of
the Tax Code would be amended relating to how chief appraisers
determine land use for land previously owned by the state.
The power and authority to manage, control, market, and dispose
of the SSC property would be transferred to the GLO effective
September 1, 1997.
Methodolgy
The GLO has requested $873,000 to manage, control, market, and
dispose of the SSC property for fiscal years 1998-99. GLO has
estimated that sale of the property would produce sufficient
funds to meet agency needs; this estimate assumes SSC land sales
will begin in fiscal year 1998. Also, if GLO is able to sell
some of the large buildings on the site, GLO estimates that
the costs to manage the site would decrease significantly by
fiscal year 2000. Most of the proceeds derived from sale of
property would be used to retire bond debt incurred by the state
to construct and operate the SSC.
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
Gain/(Loss) from
TPFA GO
Superconducting
Supercollider
Escrow Fund
0781
1998 ($873,000)
1998 (873,000)
2000 (400,000)
2001 (300,000)
2002 (150,000)
Net Impact on General Revenue Related Funds:
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 significant fiscal implication to units of local government
is anticipated. Sale of the SSC land could add revenue to local
governments as the property would be added back to the local
tax base. However, the gain from property tax revenue could
be mitigated by the proposed amendments to the Tax Code.
Source: Agencies: 305 General Land Office and Veterans' Land Board
LBB Staff: JK ,BB ,JH