LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 17, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 2948, 
As Engrossed
          Committee on Finance                              By: Turner,Sylvester
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2948 ( relating 
to the creation and re-creation of funds and accounts in the 
state treasury, the dedication and rededication of revenue, 
and the exemption of unappropriated money from use for general 
governmental purposes) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2948-As Engrossed
         
The fiscal implications of the bill would depend on other actions 
of the Seventy-fifth Legislature.  A provision of the bill related 
to the disposition of the interest earnings of the Capitol Trust 
Fund could result in a small revenue loss to the General Revenue 
Fund.
         

         
 
The bill would abolish funds, accounts, and revenue dedications 
created by the Seventy-fifth Legislature, Regular Session, unless 
specifically exempted in the bill.  Dedications, funds, and 
accounts created by the Seventy-fifth Legislature that were 
enacted to comply with the constitution or federal requirements 
would be exempt.  Bond funds would also be exempt.

Accounts 
and funds specifically exempted from abolition by the bill  
include: the Capital Access Fund Account; the Real Estate License 
Inactive Status Account; the Groundwater District Loan Assistance 
Fund; the Texas Water Development Fund II; and the Safe Drinking 
Water Revolving Fund.  (These funds would be exempt from abolition 
if they are created by the Seventy-fifth Legislature, Regular 
Session.)

Certain real estate fees rededicated by the Seventy-fifth 
Legislature revenue would be exempt from loss of dedication.

The 
bill would transfer the interest earnings of the Capital Trust 
Fund to the Housing Trust Fund.  Under current law, interest 
earned in the Capitol Trust Fund is deposited to the General 
Revenue Fund.

The bill would prevail over other acts of the 
Seventy-fifth Legislature, Regular Session, that dedicated revenue 
or created a fund or account.    

The bill would allow the 
Comptroller to reduce dedicated accounts balances by the amounts 
by which estimated revenues and un-obligated balances exceeded 
appropriations on August 31, 1999.  Funds outside the State 
Treasury, trust funds, funds created by the constitution or 
a court, and funds for which separate accounting was required 
by federal law would be exempt from this provision.

Except 
for the provision related to Capitol Trust Fund interest earnings, 
the impact of the bill would depend on other legislation enacted 
by the Seventy-fifth Legislature and the level of appropriation 
from General Revenue dedicated accounts.  The provision relating 
to the interest earnings of the Capitol Trust Fund would apparently 
result in a revenue loss to the General Revenue Fund, however 
the Comptroller fiscal note response did not provide an estimate 
of the revenue loss from the provision.  The Comptroller's Biennial 
Revenue Estimate shows estimated interest earnings of $80,000 
per year in the Capitol Trust Fund.

The fiscal implication 
to units of local government would depend on other acts of the 
Seventy-fifth Legislature.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,RS