LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 6, 1999
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 1690 by Bernsen (Relating to coastal erosion.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1690, As Introduced: negative impact of $(15,000,000) 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 $(7,500,000) *
* 2001 (7,500,000) *
* 2002 (7,500,000) *
* 2003 (7,500,000) *
* 2004 (7,500,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Probable *
* Year Savings/(Cost) from Gain/(Loss) from New Savings/(Cost) from *
* General Revenue Fund - GR Dedicated - New - GR Dedicated - *
* 0001 Coastal Erosion Coastal Erosion *
* Response Account Response Account *
* 2000 $(7,500,000) $10,500,000 $(10,500,000) *
* 2001 (7,500,000) 12,500,000 (12,500,000) *
* 2002 (7,500,000) 12,500,000 (12,500,000) *
* 2003 (7,500,000) 12,500,000 (12,500,000) *
* 2004 (7,500,000) 12,500,000 (12,500,000) *
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Technology Impact
If the Legislature appropriates less than $15 million biennially, the
Texas Department of Public Safety (DPS) would need to modify the
Distributed Drivers Licensing System, and develop new and modifications
of existing programs in the host-based Driver License Control System for
collection of the Coastal Erosion Response Fee.
In light of current Y2K efforts and limited staff to develop and support
current applications, DPS would contract for programming services to
develop, test and implement program changes. Once completed, DPS staff
would absorb on-going maintenance for those programs.
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 amend the Local Government Code to allow the county clerk
of any county among the 28 first- and second-tier coastal counties to
collect a $5 Coastal Erosion Response fee for filing and recording in the
real property records in the clerk's office and to be deposited to the
credit of the new CERA.
The bill would amend the Transportation Code to establish a new CERA fee
of $0.75 for each issuance or renewal of a driver's license, a commercial
driver's license, or a commercial driver learner's permit. The DPS
could deduct an amount equal to the department's administrative cost with
the remainder being deposited in the new CERA.
If the Legislature appropriated at least $15 million for coastal erosion
for the state fiscal biennium, the Comptroller would be required to
notify county clerks and the DPS not to impose the above fees for the
fiscal biennium.
Methodology
Funds for the new account could come from a variety of sources including
appropriations; grants from the federal government; fees remitted to the
Comptroller from a county clerk; fees from the issuance or renewal of a
driver's license, a commercial driver's license, or a commercial driver's
learner's permit; money from the sale of dredged material; and all money
received by the Comptroller or commissioner from any other source for
erosion purposes. The fiscal note assumes an annual transfer of $7.5
million from the General Revenue Fund to the CERA. In addition, $3
million to $5 million, annually, in matching federal funds would be
deposited to the CERA.
According to the Comptroller, during fiscal 1998, DPS issued or renewed
approximately 3.8 million driver's licenses, commercial driver's
licenses, or a commercial driver's learner's permits. If each were
charged a fee of $0.75 approximately $2.85 million would be raised
annually. Annual changes for other fiscal years are based on the
2000-2001 Biennial Revenue Estimate. However, this revenue would only be
generated absent the General Revenue transfers.
The Comptroller did not provide an estimate of revenue generated from the
$5 Coastal Erosion Response Fee.
Local Government Impact
According to the General Land Office (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: 305 General Land Office and Veterans' Land Board
LBB Staff: JK, DE, TT, MF