LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 8, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  Senate Bill No. 20
         Committee on State Affairs                     By: Ellis
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
20 (Relating to transferring all powers and duties of the state
treasurer to the comptroller of public accounts except for
certain powers and duties transferred to the Texas Public Finance
Authority.) this office has determined the following:

The bill would transfer all the statutory powers and duties of
the state treasury to the comptroller of public accounts, except
those relating to the issuance of tax and revenue anticipation
notes which would be transferred to the Texas Public Finance
Authority. However, the powers and duties of the state treasury
identified under Government Code 404, Subchapter H, relating to
the transfer and investment of  proceeds from tax and revenue
anticipation notes, would be transferred to the comptroller.

The bill would allow the comptroller to outsource activities
previously performed by the treasurer, unless the activity is a
sovereign function of the state.

The bill would transfer the all powers, duties,obligations,
rights, contracts, records, employees, property, and unspent and
unobligated appropriations and other funds of the state treasurer
to the comptroller, except those under Subchapter H, Chapter 404
which would be transferred to the Texas Public Finance Authority.

The bill would continue the rules, policies, and procedures and
decisions of the state treasurer until superseded by an action of
the comptroller.    




 The bill would transfer any action or proceeding before the
state treasurer to the comptroller, or Texas Public Finance
Authority  without a change in status.

The Act would take effect on August 31, 1996, if the
constitutional amendment which abolishes the treasury is passed
by the voters.













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  Net Savings to the      Change in   
             Year      General Revenue   Number of State
                          Fund 001       Employees from 
                                             FY 1995    
                                                        
          1996                       $0                 
          1997                  160,000           (43.0)
                                                        
          1998                5,000,000          (133.0)
                                                        
          1999                7,417,000          (164.0)
          2000                7,479,000          (164.0)
                                                        
                                                        
                                                        

       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:   Comptroller of Public Accounts, Treasury Department,
                        Texas Public Finance Authority
          LBB Staff: JK, MS, DF