LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 14, 1999
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 3582 by Keffer (Relating to receivers, payors, and
lessees under certain mineral leases.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3582, As Engrossed: negative impact of $(10,627) 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 $(2,657) *
* 2001 (7,970) *
* 2002 (13,284) *
* 2003 (18,597) *
* 2004 (23,911) *
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All Funds, Five-Year Impact:
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*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) *
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Fiscal Analysis
The bill would provide that a district court may appoint a receiver for
the royalty interest owned by a nonresident or absent defendant with
certain provisions.
The bill would also 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 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 significant fiscal implication to units of local government is
anticipated.
Source Agencies: 305 General Land Office and Veterans' Land Board,
304 Comptroller of Public Accounts, 455 Railroad
Commission
LBB Staff: JK, DE, TT