LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

May 19, 2011

TO:	Honorable Rodney Ellis, Chair, Senate Committee on Government Organization
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB2004 by Bonnen (Relating to the sale of certain state property in Brazoria County by the Texas Board of Criminal Justice. ), Committee Report 2nd House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB2004, Committee Report 2nd House, Substituted: a positive impact of $5,500,000 through the biennium ending August 31, 2013.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012	$5,500,000
2013	$0
2014	$0
2015	$0
2016	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from General Revenue Fund 1	Probable Savings/(Cost) from Appropriated Receipts 666
2012	$5,500,000	($700,000)
2013	$0	($700,000)
2014	$0	($700,000)
2015	$0	($700,000)
2016	$0	($700,000)

Fiscal Analysis

The bill would require the Texas Board of Criminal Justice to sell property in Brazoria County through the General Land Office if the Board receives a bid of at least $5.5 million. The sale would exclude the mineral interests in and under the property, and the deed shall contain a provision expressly reserving the state's interest in and right to remove all oil, gas, and other minerals in and under the real property. 

Methodology

The General Land Office estimates a one-time General Revenue gain of $5.5 million for the sale of the property. The Department of Criminal Justice estimates a loss of $700,000 in agricultural receipts (Appropriated Receipts) per fiscal year as the result of a reduction in the production of cotton, grain, field crops, edible crops, and cattle. 

Technology

No impact to technology is anticipated.

Local Government Impact

Assuming a sale to a non-state entity, the bill could result in additional local property tax revenue to the benefit of Brazoria and possibly municipal authorities having jurisdiction over all or a portion of the property addressed in the bill.  The GLO has not determined an amount for the potential property tax revenue.

Source Agencies:

LBB Staff:

JOB, KM, GG, AI