LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 24, 1997
TO: Honorable Rene Oliveira, Chair IN RE: House Bill No. 365
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 grants to fund motion picture facilities.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB365-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(17,000,000) 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 grant 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 grantees.
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 components of a motion picture facility.
The bill would allow TDOC to provide a grant in the amount
of half the cost of a facility with the other half provided
by the grantee. The estimate assumes TDOC would be appropriated
the maximum level of funds required to provide grants for two
facilities.
It is assumed TDOC will award grants for the
construction of the motion picture facilities during the first
year of the biennium and would have sufficient appropriation
authority to cover any cost associated with awarding and monitoring
these grants.
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 ($17,000,000)
1998 0
2000 0
2001 0
2002 0
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 ($17,000,000)
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.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 465 Department of Commerce
LBB Staff: JK ,TH ,CG