LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
February 28, 1995
TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 889
Committee on Financial Institutions By: Marchant, etal.
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
889 (relating to interstate banking, branch banking, and bank
holding companies) this office has determined the following:
The bill would prohibit interstate branch banking that otherwise
will be permissible after June 1, 1997 under the federal
Interstate Banking and Branching Efficiency Act (IBBEA).
Under current franchise tax law, the provisions of the IBBEA
would allow some multi-state banks operating in Texas to avoid
some or all of their franchise tax obligations. The proposed
bill would allow Texas to "opt out" of the IBBEA plan thereby
avoiding a future loss in franchise tax collections.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue
Year Gain to the
General Revenue
Fund 001
1996 $0
1997 0
1998 18,000,000
1999 18,000,000
2000 18,000,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No fiscal implication to units of local government is
anticipated.
Source: Department of Banking, Comptroller of Public Accounts
LBB Staff: JK, VS, RR