LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 3, 1997
TO: Honorable Barry Telford, Chair IN RE: House Bill No. 8
Committee on Pensions and Investments By: Stiles
House
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 Introduced
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.
Source: Agencies: 781 Higher Education Coordinating Board
304 Comptroller of Public Accounts
LBB Staff: JK ,PE ,LD