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