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: *************************************************************************** *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