LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 22, 1999
TO: Honorable Ron Lewis, Chair, House Committee on Energy
Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 1911 by Cuellar (relating to payments to be made under
certain leases for the exploration and production by
surface mining of certain minerals), Committee Report
1st House, Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1911, Committee Report 1st House, Substituted: negative impact *
* of $(10,627) through the biennium ending August 31, 2001. *
* *
* No significant fiscal implication to the State is anticipated. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(2,657) *
* 2001 (7,970) *
* 2002 (13,284) *
* 2003 (18,597) *
* 2004 (23,911) *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) *
* Year from Permanent School Fund from Available School Fund *
* 0044 0002 *
* 2000 $(144,000) $(2,657) *
* 2001 (144,000) (7,970) *
* 2002 (144,000) (13,284) *
* 2003 (144,000) (18,597) *
* 2004 (144,000) (23,911) *
***************************************************************************
Fiscal Analysis
The bill would increase the percentage of certain surface-mined mineral
bonuses and royalties paid to the owner of the surface, under a lease, on
Permanent School Fund (PSF) lands. The percentage paid to the state
would decrease by the amount of the increase to the surface owner.
The bill would apply to leases executed only on or after September 1,
1999 for the exploration and production by surface mining of coal,
lignite, potash, sulfur, thorium, or uranium.
Methodology
Based on information previously provided by the General Land Office, the
proposed bonus and royalty percentages were applied to the estimated
total royalties available to be shared between the state and the surface
owners. These amounts were compared to the division of the royalties
under the current percentages to arrive at the loss to the PSF.
According to the Comptroller, this loss was then subjected to the fair
value yield on the PSF to arrive at an annual cumulative decrease in
earnings to the Available School Fund.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 305 General Land Office and Veterans' Land Board,
304 Comptroller of Public Accounts
LBB Staff: JK, DE, TT