[1] NOTE: As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Nunez		DATE TYPED:	01/23/02		HB	116
SHORT TITLE:		Remediation of State Trust Land				SB
					ANALYST:		Valenzuela

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

$998.0

Recurring

Land Office Maintenance Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

(998.0)

Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Report of the Legislative Finance Committee to the Forty-fifth Legislature, Second Session, January 2002 for Fiscal Year 2002-2003.

Department of Game and Fish

Energy, Minerals and Natural Resources Department (ENMRD)

State Land Office (SLO)

Department of Environment (DOE)

SUMMARY

Synopsis of Bill

House Bill 116 appropriates $998.0 to the State Land Office from the Land Maintenance Fund to support watershed restoration, remediate contaminated sites, clean-up unauthorized landfills, stabilize archeological sites, survey cultural resources and manage noxious weeds on state trust land.

Significant Issues

Multiple state and federal agencies have ongoing land improvements projects in progress throughout the state. The LFC has noted in its budget recommendation the need for these agencies to work together to leverage the most amount of funding to the highest priority projects throughout the state. Additionally, the LFC recommended numerous performance measures to begin to track progress and accountability for the State Land Office on these projects. The State Land Office and the LFC have been working together to further develop these recommendations with the intentions to formalize measures during the 2002 interim.

FISCAL IMPLICATIONS

House Bill 116 appropriates $998.0 to the State Land Office from the Land Office Maintenance Fund which receives revenues from oil and gas rental and bonuses, grazing rentals, miscellaneous rentals, interest on cash deposits and other income (from renewable resources).

Funds from the Land Office Maintenance Fund are used to support the administrative costs of the State Land Office with the balance being distributed to beneficiaries. Although the State Land Office receives its revenue from the Land Office Maintenance Fund and not general fund, the Legislative Finance Committee considers the State Land Office a general fund agency because changes in agency expenditures directly affect general fund revenue. The $998.0 appropriation contained within the bill would have a direct impact on the general fund and would decrease distributions to beneficiaries.

ADMINISTRATIVE IMPLICATIONS

The State Land Office has indicated it has the capacity to implement the project utilizing existing personnel and operational resources. The State Land Office has experience managing similar projects and should be able to implement the project with minimal administrative impacts.

MFV/ar