LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 12, 1997 TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 266, Committee Report 1st House Committee on Economic Development By: Ellis Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB266 ( ) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB266-Committee Report 1st 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: 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/ 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: 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 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