LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 30, 1997
TO: Honorable Rene Oliveira, Chair IN RE: House Bill No. 365, Committee Report 1st House, Substituted
Committee on Economic Development By: Hunter
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB365 ( relating
to loans to fund motion picture facilities.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB365-Committee Report 1st House, Substituted FN Revision 1
Implementing the provisions of the bill would result in a net
negative impact of $(10,000,000) to General Revenue Related
Funds through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would amend Chapter 481 of the Government Code by
adding Subchapter K to allow the Department of Commerce (TDOC)
to establish a loan program to fund the construction and operation
of motion picture facilities. The bill would allow TDOC to
fund no more than two motion picture facilities with at least
half of the funds required to finance the facilities to be provided
by the borrowers.
This bill would take effect September 1,
1997.
Methodolgy
The fiscal impact of this bill is based on an estimated cost
of $10 million for a backlot and $7 million for a sound stage,
which are the two major types of motion picture facilities addressed
by this bill. The bill would allow TDOC to provide a loan in
the amount of half the cost of a facility with the other half
provided by the borrower. The estimate assumes TDOC would be
appropriated the $10 million in order to provide loans for
two facilities.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable
Savings/(Cost)
from General
Revenue Fund
0001
1998 ($10,000,000)
1998
2000
2001
2002
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($10,000,000)
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Source: Agencies: 465 Department of Commerce
LBB Staff: JK ,TH ,CG