LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 7, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 807
          Committee on Finance                              By: Lucio
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB807 ( Relating 
to the allocation of certain sales, excise, and use tax revenue 
to the Parks and Wildlife Department.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB807-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(20,000,000) to General Revenue Related 
Funds through the biennium ending August 31, 1999.
         

         
 
Fiscal Analysis
 
The bill would raise the sporting goods sales tax available 
to Texas Parks and Wildlife Department from $32 million annually 
to $42 million annually for the 1998-99 biennium, $47 million 
annually for the 2000-01 biennium and $52 million annually for 
the 2002-03 biennium.  The State Parks Account (Fund 064) and 
the Texas Recreation and Parks Account (Fund 467) would each 
receive 40% and the Texas Parks and Wildlife Capital Account 
(Fund 5004) would receive 20%.
 
Methodolgy
 
The bill would increase the amount available to local governments 
for local park grants from $15.5 million annually to $19.5 million 
annually in fiscal years 1998 and 1999, $21.5 million annually 
in fiscal years 2000 and 2001, and $23.5 million annually in 
fiscal years 2002 and 2003.

The impact in fiscal year 2002 
would continue through fiscal year 2003 as specified in the 
bill.  Beyond fiscal year 2003, the Department of Parks and 
Wildlife would receive a revenue gain to the full amount of 
the sporting goods sales tax.
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 Revenue   Probable Revenue   
            Gain/(Loss) from   Gain/(Loss) from   Gain/(Loss) from   Gain/(Loss) from                     
            General Revenue    State Parks        Texas Recreation   Texas Parks and                      
            Fund               Account/           and Parks          Wildlife Capital                     
                               GR-Dedicated       Account/           Account/                             
                                                  GR-Dedicated       GR-Dedicated                         
            0001               0064               0467               5004                                  
       1998     ($10,000,000)        $4,000,000        $4,000,000        $2,000,000                  
       1998      (10,000,000)         4,000,000         4,000,000         2,000,000                  
       2000      (15,000,000)         6,000,000         6,000,000         3,000,000                  
       2001      (15,000,000)         6,000,000         6,000,000         3,000,000                  
       2002      (20,000,000)         8,000,000         8,000,000         4,000,000                  
 
 
         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        ($10,000,000)
               1999         (10,000,000)
               2000         (15,000,000)
               2001         (15,000,000)
               2002         (20,000,000)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
   Source:            Agencies:   802   Parks and Wildlife Department
                                         
                      LBB Staff:   JK ,RR ,SM