LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 26, 1997
TO: Honorable Bob Bullock IN RE: Senate Bill No. 266, As Passed 2nd House
Lieutenant Governor Ellis
Senate
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 Passed 2nd House
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.
Methodolgy
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:
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 Probable Revenue
Savings/(Cost) Savings/(Cost) Gain/(Loss) from
from Rural from Texas New - GR Dedicated
Economic Exporters Loan
Development Account/
Account/ GR-Dedicated
GR-Dedicated
0425 0668 NEW-DED
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:
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:
LBB Staff: JK ,TH ,CG