LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 25, 1995 TO: Honorable Kenny Marchant, Chair IN RE: House BillNo. 3007, Committee on Financial Institutions as amended House of Representatives By: Giddings Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 3007 (relating to lending services provided by a bank to small businesses in its local area) 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 require that 25% of loans made by a bank to be for small businesses in its local area as defined by HB 3006. The bill would also require the Department of Banking to hold a hearing to determine whether the bank is violating this section, if so, the Department shall order the bank ineligible to act as a state depository. The bill does not provide for recovery of hearing expenses. 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 Probable Cost Change in Year Gain to Banking Out of Banking Number of State Department Employees from Expense Department Expense FY 1995 Fund 508 Fund 508 GR Consolidated GR Consolidated 1996 $220,850 $383,750 4.0 1997 251,467 378,173 4.0 1998 256,398 382,702 4.0 1999 261,593 387,485 4.0 2000 274,628 400,100 4.0 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 LBB Staff: JK, VS, RR