LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 16, 1999
  
  
          TO:  Honorable Gary Walker, Chair, House Committee on Land &
               Resource Management
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB 1800 by Eiland (Relating to the transfer by the
               General Land Office to the City of Texas City the state's
               interest in certain real property.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1800, As Introduced:  positive impact of $18,000 through the        *
*  biennium ending August 31, 2001.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                               $9,000  *
          *       2001                                9,000  *
          *       2002                                9,000  *
          *       2003                               10,000  *
          *       2004                               10,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Revenue Gain/(Loss)    Probable Revenue Gain/(Loss)   *
* Year      from Available School Fund      from Permanent School Fund    *
*                      0002                            0044               *
*  2000                            $9,000                        $243,000 *
*  2001                             9,000                               0 *
*  2002                             9,000                               0 *
*  2003                            10,000                               0 *
*  2004                            10,000                               0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would allow the Commissioner of the General Land Office to
transfer the right, title, and interest to two tracts of submerged land
owned by the Permanent School Fund 0044 in Galveston County to the City
of Texas City.  The transfer must be for a cash consideration in an
amount not less than the fair market value of the property as appraised
by the General Land Office (GLO).  Mineral interests would be expressly
reserved for the benefit of the Permanent School Fund.  If the City of
Texas City transfers or attempts to transfer title to all or part of the
property, title to the property would automatically revert back to the
state.
  
  
Methodology
  
According to the GLO, the market value of the land was determined to be
$243,000.  This amount would represent a gain to the Permanent School
Fund 0044 and would result in an annual increase in interest revenues in
the Available School Fund 0002.  According to the Comptroller, the
project gain in interest earnings assumes that the funds would be
transferred to the Permanent School Fund on the first day of fiscal
2000.  To the extent that the sale occurred later, the interest earnings
would be reduced.
  
  
Local Government Impact
  
The City of Texas City would realize a gain of 610.84 acres, with an
appraised market value of $243,000, to their existing property inventory
.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 305   General
                   Land Office and Veterans' Land Board
LBB Staff:         JK, DE, TT