LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 20, 1999
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB803 by Ellis, Rodney (Relating to the sale or lease of
underused lands by the state.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB803, As Introduced: negative impact of $(5,385,000) 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 Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(2,692,500) *
* 2001 (2,692,500) *
* 2002 (2,692,500) *
* 2003 (2,692,500) *
* 2004 (2,692,500) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2000 $(2,692,500) *
* 2001 (2,692,500) *
* 2002 (2,692,500) *
* 2003 (2,692,500) *
* 2004 (2,692,500) *
*****************************************************
Fiscal Analysis
The bill would require that each state agency that owns real property
maintain certain information and annually report to the Asset Management
Division at the General Land Office (GLO) the total acreage owned or
managed by the agency. The bill would require agencies to provide the
fair market value of each property and buildings and other improvements,
if any. The bill would also require a description of the agency's
procedures for selling or leasing property.
The bill would authorize agencies to comment on the findings or
recommendations contained in the draft real property evaluation reports
prepared by GLO's Asset Management Division and GLO's final real
property evaluation report would address any comments received from
state agencies. The final report would include the most recent fair
market value estimates for the potential sale or lease of any property.
Methodology
The bill would require several state agencies that own real property to
annually report to the GLO the fair market value of each real property it
owns. Unlike the GLO, most state agencies do not have the ability to
conduct in-house appraisals, and as such would require to contract for
appraisals at an estimated average cost of $2,500 per real property
appraisal. Of the 22 state agencies that own a total of 1,152 pieces of
real property state-wide, 14 should be able to reasonably absorb any
additional costs. The remaining agencies are estimated to spend annually
$2.7 million on appraisals in the following amounts:
Texas Department of Criminal Justice - $185,000;
General Services Commission - $132,500;
Mental Health and Mental Retardation - $217,500;
Texas Military Facilities Commission - $185,000;
Parks and Wildlife Department - $425,000;
Department of Public Safety - $255,000;
Texas Department of Transportation - $1,097,500; and
Texas Workforce Commission - $195,000.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 655 Texas Department of Mental Health and Mental
Retardation, 305 General Land Office and Veterans'
Land Board, 802 Parks and Wildlife Department, 696
Department of Criminal Justice, 601 Department
of Transportation, 304 Comptroller of Public
Accounts, 303 General Services Commission, 405
Department of Public Safety
LBB Staff: JK, SD, NS