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