LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 3, 1999
TO: Honorable Gary Walker, Chair, House Committee on Land &
Resource Management
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 1690 by Bernsen (Relating to coastal erosion.), As
Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1690, As Engrossed: negative impact of $(12,600,000) 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 Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(6,300,000) *
* 2001 (6,300,000) *
* 2002 (6,300,000) *
* 2003 (6,300,000) *
* 2004 (6,300,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Revenue Savings/(Cost) *
* from General from Coastal Gain/(Loss) to from New - GR *
* Revenue Fund Protection New - GR Dedicated- *
* 0001 Account/ Dedicated- Coastal Erosion *
* GR-Dedicated Coastal Erosion Response Account *
* 0027 Response Account *
* 2000 $(6,300,000) $(1,200,000) $10,500,000 $(10,500,000) *
* 2001 (6,300,000) (1,200,000) 12,500,000 (12,500,000) *
* 2002 (6,300,000) (1,200,000) 12,500,000 (12,500,000) *
* 2003 (6,300,000) (1,200,000) 12,500,000 (12,500,000) *
* 2004 (6,300,000) (1,200,000) 12,500,000 (12,500,000) *
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Fiscal Analysis
The bill would require the General Land Office (GLO) to implement a
program of coastal erosion avoidance, remediation, planning, and public
education to protect the common law rights of the public in public
beaches on the Gulf and bay shorelines.
The bill would establish a new General Revenue Dedicated Account-Coastal
Erosion Response Account (CERA), which only could be appropriated to the
Commissioner of the General Land Office (commissioner) and used for
coastal erosion programs.
The bill would add coastal erosion response projects to the list of
allowable uses of General Revenue Dedicated Account 0027 - Coastal
Protection (Account 0027). The bill would provide that the amount used
for erosion response purposes be at the discretion of the commissioner
but in an amount not to exceed the interest accruing to Account 0027
annually. No reimbursement to Account 0027 would be required.
Methodology
The bill would provide that funds for the new account (CERA) could come
from a variety of sources including appropriations; grants from the
federal government; money from the sale of dredged material; and interest
accruing annually to Account 0027.
According to the Comptroller, revenue for Account 0027 totaled
approximately $6 million for fiscal 1998, and interest revenue from the
fund was approximately $1 million, as reported in the state's 1998 Annual
Cash Report, Volume Two.
According to the GLO, Article VI of House Bill 1 (engrossed) would allow
the GLO to conduct the coastal erosion control program created by the
bill (C.S.H.B. 2560). The program, if fully funded by the Legislature,
would include: 1) $6.3 million in General Revenue funding, of which GLO
assumes $5.2 million would come from the state hotel occupancy tax from
the thirteen coastal counties which would benefit from the bill; and 2)
$1.2 million in interest earned from funds in the Coastal Protection
Account - 0027. According to the GLO, this level of state participation
is estimated to allow the GLO to apply for and obtain $3 million in
federal funds in fiscal year 2000 and $5 million in fiscal year 2001.
The bill takes effect only if a specific appropriation for the
implementation of the bill is provided in House Bill 1 (General
Appropriations Act), Acts of the 76th Legislature, Regular Session,
1999. If no specific appropriation is provided in House Bill 1, the
General Appropriations Act, the bill has no effect.
Local Government Impact
According to the GLO, the bill will help maintain the local sales,
hotel/motel, and property tax basis and will therefore have a positive
fiscal impact overall for units of local governments on the coast. While
projects funded entirely by the state are possible, the bill gives
preference to projects for which there is a local match, so it is
anticipated that coastal local governments will desire to contribute to
the cost of erosion response projects. The GLO anticipates total local
government contributions of approximately $2.5 million per year.
The commissioner, under certain circumstances, could require an appraisal
district and a taxing unit to remove from the appraisal and tax rolls,
land that became submerged by erosion or subsidence.
Source Agencies: 304 Comptroller of Public Accounts, 305 General
Land Office and Veterans' Land Board
LBB Staff: JK, DE, TT