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
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* 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. *
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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 *
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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 *
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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