LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 13, 1995
TO: Honorable Rene O. Oliveira, Chair IN RE: Committee Substitute
Committee on Economic Development for
House of Representatives House Bill
Austin, Texas No. 1997
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1997 (relating to the guarantee of certain loans under the linked
deposit program) this office has determined the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill would provide that loan guarantees, up to 50% of total
project costs and subject to the availability of appropriations,
shall be offered to lenders making loans under the subchapter.
The bill further provides that the Commerce Policy Board by rule
shall adopt a guarantee-to-reserve ratio that determines the
amount of loan guarantees that may be made that exceed the amount
available in the fund. The ratio of guarantees to the amount of
money available in the fund may not exceed five to one. The
state auditor shall review the loan guarantee program and payment
activity and make a recommendation about the level of the
guarantee-to-reserve ratio. Other sections have been either
amended or added to provide for legislative authority regarding
matters pertaining to making loan guarantees
The probable fiscal implication of implementing the provisions of
the bill would require a deposit of funds with an "eligible
lending institution" for which to guarantee the loans.
Administrative costs to the Department of Commerce during each of
the first five years following passage is estimated as follows:
Fiscal Probable Cost Probable Revenue Change in
Year Out of Gain to Number of State
General Revenue General Revenue Employees from
Fund 001 Fund 001 FY 1995
1996 $89,776 $89,776 2.0
1997 72,884 72,884 2.0
1998 26,543 26,543 1.0
1999 14,249 14,249 .5
2000 14,249 14,249 .5
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 Commerce
LBB Staff: JK, RR