LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 2, 1997 TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 1617 Committee on Financial Institutions By: Hill House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1617 ( Relating to the allocation and reservation system for tax-exempt private activity bonds.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1617-As Introduced No fiscal implication to the State is anticipated. The bill could effect the programs of the following state agencies: Veterans Land Board (VLB), Texas Higher Education Coordinating Board (HECB), Texas Department of Commerce (TDOC), Texas Department of Agriculture (TDA), Texas Water Development Board (TWDB) and the Texas Department of Housing and Community Affairs (TDHCA). Historically, VLB and HECB have issued private-activity bonds under the state-voted subceiling, with those issues funding land purchase loans to veterans and college student loan bonds, respectively. TDOC, TWDB and TDA have the authority to issue under this subceiling, but do not have current programs. Since the amount of the subceiling will be decreased, those agencies could have less ability to issue tax-exempt debt. TDHCA would be able to issue more bonds under the single family housing category to benefit low to moderate first time homebuyers (by statute, TDHCA receives one third of the total single family housing subceiling amount), and a better opportunity to issue bonds for affordable multi-family housing (apartments). No fiscal implication to units of local government is anticipated. Source: Agencies: 352 Bond Review Board 332 Department of Housing and Community Affairs 304 Comptroller of Public Accounts LBB Staff: JK ,TH ,ML