LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 16, 1999 TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: SB706 by Ogden ( relating to providing disaster relief to agriculture; providing penalties), As Introduced ************************************************************************** * The bill would have a significant negative fiscal impact on general * * revenue in the event of an agricultural disaster. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** Fiscal Analysis The bill would create an agricultural disaster relief program to provide reimbursement of an eligible person's feed, seed, seedling and fertilizer costs incurred in the year following a federal disaster declaration. A person engaged in agriculture as a commercial endeavor would be eligible to receive reimbursement if they suffer uninsurable economic loss and do not receive federal relief funds to address the loss. Methodology According to a United States Department of Agriculture 1997 Census of Agriculture, Texas had 194,301 farms of which 23,167 farms were 1,000 acres or more. If 1,000 farmers and ranchers were eligible for reimbursement at the maximum $15,000 per individual, there would be a cost of $15,000,000 to the General Revenue fund. If 10,000 farmers and ranchers were eligible, the cost to general revenue would be $150,000,000. Technology Impact None Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, BB, DM