Honorable Ken King, Chair, House Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1743 by Little (Relating to the holding or acquisition of an interest in real property by or on behalf of certain foreign individuals or entities; establishing an agricultural intelligence office; creating a criminal offense.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1743, As Introduced: a negative impact of ($998,836) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($518,234)
2027
($480,602)
2028
($480,602)
2029
($480,602)
2030
($480,602)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($518,234)
6.0
2027
($480,602)
6.0
2028
($480,602)
6.0
2029
($480,602)
6.0
2030
($480,602)
6.0
Fiscal Analysis
The bill would establish a reporting requirement to the Office of the Attorney General (OAG) for certain individuals and entities regarding real property interests in Texas. The bill would establish the Agricultural Intelligence Office within the Texas Department of Agriculture (TDA) to administer and enforce the provisions of Subchapter H, Chapter, 5 Property Code as added by the bill, with respect to agricultural land; collect and analyze information concerning the holding or acquisition of agricultural land in violation of Subchapter H; and to report to the OAG a violation of Subchapter H with respect to agricultural land. The bill would also establish a criminal offense for violations of the bill.
Methodology
TDA anticipates 6.0 new FTEs would be required to staff the Agriculture Intelligence Office established by the bill. This would include 4.0 Inspector IV, 1.0 Attorney II, and 1.0 Program Specialist II. The Inspector positions would collect and analyze information and determine if a violation has occurred. The Attorney and Program Specialist would enforce the program, determining violations of the rules and statutes and handling hearings if necessary. The total salaries, wages, employee benefits, travel and other operating expenses are estimated to be $480,602 per fiscal year. There would be an estimated onetime cost of $37,632 in fiscal year 2026.
The OAG anticipates an increased volume of cases as a result of the bill; however, the agency assumes any additional costs can be absorbed using existing resources.
The impact on state correctional populations or on the demand for state correctional resources cannot be determined due to a lack of data to estimate the prevalence of conduct outlined in the bill's provisions that would be subject to criminal penalties.
Technology
No technology impact is anticipated as a result of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 551 Department of Agriculture