Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  February 27, 1997
      TO: Honorable Rene Oliveira, Chair            IN RE:  Senate Bill No. 266, As Engrossed
          Committee on Economic Development                              By: Ellis
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on SB266 ( Relating 
to the establishment of a program in the Texas Department of 
Commerce to secure certain loans made to small and medium-sized 
businesses and nonprofit organizations.) this office has detemined 
the following:
         Biennial Net Impact to General Revenue Funds by SB266-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 Chapter 481 of the Government Code to create 
the Capital Access Program and the Capital Access Fund as a 
new dedicated account in the General Revenue Fund.  The bill 
would transfer funds from the Rural Economic Development Fund 
Account No. 0425 and the Texas Exporters Loan Fund Account No. 
0668, which are both dedicated General Revenue Fund accounts, 
to the Capital Access Fund.

The bill would require the TDOC 
to establish the Capital Access Program.  The program would 
require the TDOC to deposit funds from the Capital Access Fund 
into the reserve account of financial institutions to secure 
the prinicipal of and interest on each Capital Access Loan made 
by an eligible financial institution.  The loans would be made 
to small or medium-sized businesses or to nonprofit organizaitons 
for projects that fosters economic activity.
The estimate assumes that the unobligated balances as of September 
1, 1997 in the Rural Economic Development Fund Account No. 0425 
and the Texas Exporters Loan Fund Account No. 0668 would be 
transferred to the newly-created Capital Access Fund within 
the General Renvenue Fund and that the estimated future revenues 
for the two replaced accounts would accrue to the fund.
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 Revenue   Probable Revenue   Probable Revenue   
            Gain/(Loss) from   Gain/(Loss) from   Gain/(Loss) from                                        
            Rural Economic     Texas Exporters    New GR-Dedicated                                        
            Development        Loan Account/      Account -                                               
            Account/           GR-Dedicated                                                               
            0425               0668               8021                                                     
       1998      ($3,934,000)      ($2,074,000)        $6,008,000                                    
       1998         (277,000)         (104,000)           381,000                                    
       2000         (246,000)         (104,000)           350,000                                    
       2001         (239,000)         (104,000)           343,000                                    
       2002         (233,000)         (104,000)           337,000                                    
         Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related 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:   
                      LBB Staff:   JK ,TH