LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
April 16, 2013

TO:
Honorable Tracy O. King, Chair, House Committee on Agriculture & Livestock
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB3037 by Anderson (Relating to restricting the sale of state-owned longhorn cattle in state natural areas.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3037, As Introduced: a negative impact of ($346,628) through the biennium ending August 31, 2015.

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 Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2014 ($220,784)
2015 ($125,844)
2016 ($125,844)
2017 ($125,844)
2018 ($125,844)




Fiscal Year Probable (Cost) from
Sporting Good Tax-State
400 		Probable Revenue (Loss) from
State Parks Acct
64 		Change in Number of State Employees from FY 2013
2014 ($220,784) ($27,900) 0.5
2015 ($125,844) ($16,200) 0.5
2016 ($125,844) ($16,200) 0.5
2017 ($125,844) ($16,200) 0.5
2018 ($125,844) ($16,200) 0.5

Fiscal Analysis

The bill would amend the Parks and Wildlife Code relating to the sale of longhorns on state natural areas. Under bill provisions, the Texas Parks and Wildlife Department (TPWD) would not be able to reduce the size of state-owned longhorn cattle herds located in a state natural area through the sale of cattle. The bill would make exceptions for the sale of calves and heifers provided the breeding stock is not reduced, or if the sale of cattle to replace breeding stock is necessary to maintain herd size.  
 
TPWD anticipates that implementation of bill provisions would have fiscal implications for the department, including increased operating costs and a minor revenue loss.

 

The bill would take immediate effect if the bill receives two-thirds the vote in both houses.  Otherwise, the bill would take effect September 1, 2013.


Methodology

TPWD currently manages longhorn cattle in three locations: San Angelo State Park, LBJ State Park, and Big Bend Ranch State Park.  According to the agency, bill provisions would result in larger herd sizes and as a consequence additional expenditures for food, water, fencing, veterinary services, and an additional part-time employee would be required to maintain these herds.


TPWD estimates additional costs of $5,550 each year associated with food and veterinary services at San Angelo and LBJ State Parks. Due to dry climate and sensitive ecosystem, TPWD estimates they will incur greater expenses to maintain a growing herd at Big Bend Ranch State Park.  Additional costs at this location include the following:  (1)$78,750 for 22.5 miles of fencing and $17,190 for water pumps and lines in fiscal year 2014 and $1,000 each fiscal year thereafter for maintenance;  (2) $98,780 per fiscal year  for food and veterinary services; and (3) $15,600 per fiscal year for an additional part-time position (0.5 FTE Maintenance Technician) with corresponding benefits costs of $4,639 per fiscal year and $275 per fiscal year for operating supplies.

 
According to TPWD, ninety-three (93) longhorn cattle would have been sold in fiscal year 2014 and fifty-four (54) cattle would have been sold in each fiscal year thereafter. At an average estimated cattle price of $300 per head, the total revenue loss to General Revenue-Dedicated State Parks Account No. 64 would be $27,900 in fiscal year 2014 and $16,200 in fiscal year 2015 and each fiscal year thereafter.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
802 Parks and Wildlife Department
LBB Staff:
UP, SZ, ZS, TB