LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 2, 1997 TO: Honorable J.E. "Buster" Brown, Chair IN RE: House Bill No. 2499, As Engrossed Committee on Natural Resources By: Patterson,L.P. "Pete" Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2499 ( Relating to the family farm and ranch finance program.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2499-As Engrossed Implementing the provisions of the bill would result in a net impact of $0 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 The bill would amend provisions relating to the family farm and ranch finance program, administered by the Texas Department of Agriculture, including changing certain lending requirements and loan amounts needed to qualify for participation in the program. The bill would also transfer the balance and income of the Farm and Ranch Loan Security Fund (Fund 474) estimated to be $460,000 to the Farm and Ranch Finance Program Fund (Fund 575) established by Article III, Section 49-f of the Texas Constitution, to be used to administer the farm and ranch finance program. Methodolgy It is assumed that if the bill passes, the transfer of funds would take place on September 1, 1997. The estimated transfer amount is based on current fund balance. 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 Probable Revenue Savings/(Cost) Gain/(Loss) from from Farm and Farm and Ranch Ranch Loan Finance Program Security Fund Fund 0474 0575 1998 ($460,000) $460,000 1998 0 0 2000 0 0 2001 0 0 2002 0 0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 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: 551 Department of Agriculture LBB Staff: JK ,BB ,JH