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