LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 13, 1995 TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 1587 Committee on Financial Institutions By: Marchant House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1587 (relating to the powers and duties of the Texas Public Finance Authority and to the issuance of bonds for certain state projects; granting the power of eminent domain; validating a prior appropriation) this office has determined the following: The bill would amend the Texas Public Finance Authority Act to clarify certain sections of the act and reorganize existing provisions. The bill would restate the current act through a change in format and merge Article 601d-1 with 601d. The bill would also rededicate the State Lease Fund in the state treasury and exempt it from the Funds Consolidation Act. The State Lease Fund is currently a special account in the General Revenue Fund. The provision of the bill exempting the re-created fund from sections 403.094 and 403.095 of the Government Code concering the revenue dedication removal would not apply to the cash balance in the fund on August 31, 1995 because the effective date of the bill is September 1, 1995. Thus, the cash balance in the special account on Augist 31, 1995 would remain in the General Revenue Fund and would not be transferred to the re-created State Lease Fund. The re-dedication of revenue sources in the General Revenue Fund could further restrict the ablity of the legislature to appropriate revenue for general state operating purposes. The fiscal implication to the State or units of local government cannot be determined. Source: Comptroller of Public Accounts, Texas Public Finance Authority LBB Staff: JK, Bond Review Board, LP, RR