Supplement: TX HB4177 | 2023-2024 | 88th Legislature | Fiscal Note (Introduced)
For additional supplements on Texas HB4177 please see the Bill Drafting List
Bill Title: Relating to the acquisition of park land by the Texas parks and wildlife department: making an appropriation
Status: 2023-04-20 - Left pending in committee [HB4177 Detail]
Download: Texas-2023-HB4177-Fiscal_Note_Introduced_.html
Bill Title: Relating to the acquisition of park land by the Texas parks and wildlife department: making an appropriation
Status: 2023-04-20 - Left pending in committee [HB4177 Detail]
Download: Texas-2023-HB4177-Fiscal_Note_Introduced_.html
| TO: |
Honorable Trent Ashby, Chair, House Committee on Culture, Recreation & Tourism |
| FROM: |
Jerry McGinty, Director, Legislative Budget Board
|
| IN RE: |
HB4177 by Walle (Relating to the acquisition of park land by the Texas parks and wildlife department: making an appropriation), As Introduced |
Estimated Two-year Net Impact to General Revenue Related Funds for HB4177, As Introduced : an impact of $0 through the biennium ending August 31, 2025.
Appropriations:
| Fiscal Year | Appropriation out of Economic Stabilization Fund 599 |
|---|---|
| 2024 | $1,000,000,000 |
| 2025 | $0 |
General Revenue-Related Funds, Five- Year Impact:
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2024 | $0 |
| 2025 | $0 |
| 2026 | $0 |
| 2027 | $0 |
| 2028 | $0 |
All Funds, Five-Year Impact:
| Fiscal Year | Probable (Cost) from Economic Stabilization Fund 599 | Probable Revenue Gain/(Loss) from State Park Lands Acquisition Trust Fund |
|---|---|---|
| 2024 | ($1,000,000,000) | $1,000,000,000 |
| 2025 | $0 | $0 |
| 2026 | $0 | $0 |
| 2027 | $0 | $0 |
| 2028 | $0 | $0 |
Fiscal Analysis
The bill would amend the Parks and Wildlife Code by adding Section 11.048, related to the State Park Lands Acquisition Trust Fund (“Fund”). The bill would establish the Fund outside of the Treasury and define it as held by the Texas Treasury Safekeeping Trust Company (TTSTC) and administered by the Comptroller as trustee to generate earnings on money in the Fund to acquire real property to expand or create state parks. The bill would specify sources of money that would comprise the Fund.
The bill would direct and permit the TTSTC to hold, manage, and invest the fund and determine amounts available from the Fund for distribution to Texas Parks and Wildlife Department (TPWD) in accordance with a distribution policy adopted by the Comptroller. Under the provisions of the bill, expenses for the management of the Fund and its assets would be paid by the Fund itself. The bill would require TPWD to provide cash flow forecasts to the TTSTC at least once per year and to provide a report on each acquisition funding using money from the Fund during the two-year periods proceeding the submission of its Strategic Plans submitted under Section 2056.002 of the Government Code.
The bill would allow TPWD to request a distribution from the Fund from the TTSTC to acquire property for creating or expanding publicly accessible state parks. The bill would require TPWD to submit a request to the Legislative Budget Board (LBB) for approval of a proposed acquisition of real property before the property is acquired. The will would consider a request submitted to the LBB as being approved on the 30th day after the date the request was submitted unless the request was either approved or disapproved before that date. The bill would specify that money from the Fund could not be used by TPWD to pay salaries; employee benefits; administration, operating, or program costs; or for maintenance or operation of state parks.
The bill would direct and permit the TTSTC to hold, manage, and invest the fund and determine amounts available from the Fund for distribution to Texas Parks and Wildlife Department (TPWD) in accordance with a distribution policy adopted by the Comptroller. Under the provisions of the bill, expenses for the management of the Fund and its assets would be paid by the Fund itself. The bill would require TPWD to provide cash flow forecasts to the TTSTC at least once per year and to provide a report on each acquisition funding using money from the Fund during the two-year periods proceeding the submission of its Strategic Plans submitted under Section 2056.002 of the Government Code.
The bill would allow TPWD to request a distribution from the Fund from the TTSTC to acquire property for creating or expanding publicly accessible state parks. The bill would require TPWD to submit a request to the Legislative Budget Board (LBB) for approval of a proposed acquisition of real property before the property is acquired. The will would consider a request submitted to the LBB as being approved on the 30th day after the date the request was submitted unless the request was either approved or disapproved before that date. The bill would specify that money from the Fund could not be used by TPWD to pay salaries; employee benefits; administration, operating, or program costs; or for maintenance or operation of state parks.
The bill would establish that all expenditures by TPWD under the section created by the bill would be subject to audit by the State Auditor.
The bill would direct the Comptroller of Public Accounts (CPA) to transfer $1,000,000,000 from the Economic Stabilization Fund (ESF) to the State Park Lands Acquisition Trust Fund on January 1, 2023.
The bill would direct the Comptroller of Public Accounts (CPA) to transfer $1,000,000,000 from the Economic Stabilization Fund (ESF) to the State Park Lands Acquisition Trust Fund on January 1, 2023.
Methodology
The tables above reflect the transfer of $1,000,000,000 from the ESF to the State Park Lands Acquisition Trust Fund (“Fund”) on the effective date of the bill September 1, 2023, due to the required transfer date of January 1, 2023, having already passed. As a result, the tables reflect the transfer occurring in fiscal year 2024.
The analysis provided by the Comptroller of Public Accounts is based on the 2024-25 Biennial Revenue Estimate and the fiscal implications of Senate Bill 30, Eighty-eighth Legislature, Regular Session, as engrossed.
The $1 billion appropriation from the ESF for deposit to the BIF would decrease the ESF balance and result in a larger severance tax transfer to the ESF in fiscal 2026 and fiscal 2027 than assumed in the BRE, as adjusted for the effects of SB 30 on the ESF balance. General Revenue Fund implications in fiscal 2025 shown below represent the increase in reserves for severance taxes to be transferred to the ESF, and in 2026 represent a reduction in ESF interest earnings allocable to general revenue, as a result of a decrease in the ESF balance.
Implications to the ESF represent the net difference between appropriations from the ESF and increased severance taxes transferred to the fund in fiscal 2026 -27, and consequent changes to ESF interest and investment earnings.
It is assumed that costs associated with implementing the provisions of the bill could be absorbed using existing resources. However, it is anticipated that these costs will fluctuate based upon the availability of property and the timing of purchases. Based on information provided by the CPA, administrative costs would not be incurred but there could be challenges regarding investment objectives included in the bill given that the proposed Fund cannot be invested in a manner that simultaneously preserves purchasing power, provides a stable stream of distributions, and provides for liquidity needs. Additional fiscal implications of the bill cannot be determined because other appropriations, transfers, deposits, investment and interest earnings, gifts, grants, or donations to the credit of the Fund are unknown.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
The analysis provided by the Comptroller of Public Accounts is based on the 2024-25 Biennial Revenue Estimate and the fiscal implications of Senate Bill 30, Eighty-eighth Legislature, Regular Session, as engrossed.
The $1 billion appropriation from the ESF for deposit to the BIF would decrease the ESF balance and result in a larger severance tax transfer to the ESF in fiscal 2026 and fiscal 2027 than assumed in the BRE, as adjusted for the effects of SB 30 on the ESF balance. General Revenue Fund implications in fiscal 2025 shown below represent the increase in reserves for severance taxes to be transferred to the ESF, and in 2026 represent a reduction in ESF interest earnings allocable to general revenue, as a result of a decrease in the ESF balance.
Implications to the ESF represent the net difference between appropriations from the ESF and increased severance taxes transferred to the fund in fiscal 2026 -27, and consequent changes to ESF interest and investment earnings.
It is assumed that costs associated with implementing the provisions of the bill could be absorbed using existing resources. However, it is anticipated that these costs will fluctuate based upon the availability of property and the timing of purchases. Based on information provided by the CPA, administrative costs would not be incurred but there could be challenges regarding investment objectives included in the bill given that the proposed Fund cannot be invested in a manner that simultaneously preserves purchasing power, provides a stable stream of distributions, and provides for liquidity needs. Additional fiscal implications of the bill cannot be determined because other appropriations, transfers, deposits, investment and interest earnings, gifts, grants, or donations to the credit of the Fund are unknown.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
| Source Agencies: | 304 Comptroller of Public Accounts, 802 Parks and Wildlife Department |
| LBB Staff: | JMc, MW, EJ, CMA, SD |
