LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 27, 1997 TO: Honorable Bill Ratliff, Chair IN RE: House Bill No. 8, As Engrossed Committee on Finance By: Stiles Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB8 ( relating to the extension of the full faith and credit of the state to support the Texas tomorrow fund) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB8-As Engrossed No fiscal implication to the State is anticipated. The bill would amend Section 54.619 of the Education Code to require the Comptroller to transfer to the fund the first money that came into the State Treasury that was not otherwise appropriated by the Constitution. The bill would take effect on the date the constitutional amendment proposed by HJR 8, 75th Legislature, Regular Session would take effect. In the event that the proposed amendment was not approved by voters, this bill would have no effect. The bill would provide an additional degree of financial assurance to contract purchasers. Both the Texas Veterans Land Board loan programs and the Hinson-Hazelwood student loan programs have the full faith and credit guarantee of the state. These guarantees have never been used. The fund was designed to be and is operating in a self supporting manner. The fund has sufficient safeguards to prevent the guarantee from being used. By creating the fund and allowing contracts to be written the Legislature has, in effect, already created an implied state guarantee. No fiscal implication to units of local government is anticipated. No fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,RR ,PE