LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 14, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 2798, 
As Engrossed
          Committee on Finance                              By: Marchant
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2798 ( relating 
to tax-exempt private activity bonds) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2798-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.
         

         
 
Fiscal Analysis
 
The bill could affect 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 unless they 
are in a position to apply prior to January 2, in which case 
they would have no further restriction than what is found in 
current law.
 
Methodolgy
 
 
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                $0                                                                        
       1998                 0                                                                        
       2000                 0                                                                        
       2001                 0                                                                        
       2002                 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
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,TH ,ML