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