Honorable René Oliveira, Chair, House Committee on Business & Industry
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB1716 by Oliveira (Relating to the term for a lease of land owned by certain navigation districts.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend the Water Code to permit certain navigation districts to lease the surface of land for up to 50 years.
Local Government Impact
There would be a fiscal impact on navigation districts in savings of the decreasing cost of legal fees, the drafting of new contracts, and advertisement and filing fees. There would be revenue gain for navigation districts from the increased value of longer term contracts. These amounts would vary depending on the entity and terms of the lease.
The Port Isabel-San Benito Navigation District reported $2,170 savings in renewal requirements of leases and $94,500 in revenue gains from increased lease value to tenants.