LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
April 2, 2013

TO:
Honorable Byron Cook, Chair, House Committee on State Affairs
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB3217 by Price (Relating to authorizing certain real property transactions involving the Department of Public Safety of the State of Texas.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3217, As Introduced: a negative impact of ($3,352,293) 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 $0
2015 ($3,352,293)
2016 ($2,610,212)
2017 ($2,685,111)
2018 ($2,762,257)




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1 		Probable Revenue Gain/(Loss) from
General Revenue Fund
1
2014 $0 $0
2015 ($4,659,295) $1,307,002
2016 ($2,610,212) $0
2017 ($2,685,111) $0
2018 ($2,762,257) $0

Fiscal Analysis

The bill would direct the General Land Office (GLO) to offer to sell certain real property currently used by the Department of Public Safety (DPS) at fair market value to Randall County. The bill would direct that the GLO deposit the property sales procedes into a dedicated account in the General Revenue Fund that may be used only for the purpose of constructing, purchasing, or leasing a new facility for the Amarillo office of DPS. The bill would also authorize DPS to enter into a  build-to-suit lease agreement in Randall County for a new district headquarters, crime lab and driver’s license office facility. The bill would take effect September 1, 2013. 

Methodology

This estimate assumes that the provisions of the bill would be supported by General Revenue. While there are portions of this project that would likely be allowable uses of Fund 6, that is not the case for the entire project. At such time as a determination is made of what portion of the project would appropriately be funded with Fund 6, the General Revenue costs would be reduced proportionally.

The Department of Public Safety's (DPS) estimated costs are based on the following assumptions starting in fiscal year 2015:  utility costs will be $113,592 per year; rent costs will be $2,423,903 in fiscal year 2015, $2,496,620 in fiscal year 2016, $2,517,519 in fiscal year 2017, and $2,648,665 in fiscal year 2018; and a one-time capital expenditure of $2,121,800 for build-to-suit costs and equipment in fiscal year 2015. 

DPS estimates a probable gain in revenue of $1,307,002 in fiscal year 2015 from the sale of the existing DPS facility to Randall County.  This fiscal notes uses this estimated sales revenue to offset the cost of the bill.


Technology

No significant technology-related impact is anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 405 Department of Public Safety
LBB Staff:
UP, AG, AI, JAW, TL