LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 31, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB932 ( Relating
to abolishing the Texas Department of Commerce and transferring
its powers and duties to the newly created Texas Department
of Economic Development and to certain other economic development
programs in the state.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB932-Conference Committee Report
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
This bill would abolish the Texas Department of Commerce (TDOC)
and create the Texas Department of Economic Development (TDED).
This bill would transfer TDOC powers and duties to TDED and
replace the existing policy board with a governing board. The
bill would also transfer some travel-related programs from the
Texas Department of Transportation tothe new agency. The bill
would privatize two TDOC programs; the Texas Manufacturing Assistance
Centers (TMAC) and the Capital Certified Development Corporation
(CCDC). The bill requires the CCDC to be privatized by December
1, 1997 and the TMAC to be privatized by September 1, 1999.
The bill would also delete several provisions of the TDOC enabling
statutes which were never funded by the legislature.
This
bill would take effect September 1, 1997.
Methodolgy
It has been determined that the new agency would carry out its
duties to a large extent within the funding level currently
appropriated to the Department of Commerce. The fiscal impact
of the bill is estimated by calculating savings derived from
transferring the Capital Certified Development Corporation and
the Texas Manufacturing Institute programs to the private sector
without providing the current level of state funds for the operation
of the programs. The analysis assumes the state matching funds
for the Texas Manufacturing Institute would be raised by the
private entity and there would be a savings of 15 FTEs beginning
in 2000 from the two programs.
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 Change in Number
Savings/(Cost) Savings/(Cost) of State
from General from Rural Employees from
Revenue Fund Economic FY 1997
Development
Account/
GR-Dedicated
0001 0425
1998 $0 $0 0.0
1998 0 0 0.0
2000 2,962,257 195,196 (15.0)
2001 2,962,257 195,196 (15.0)
2002 2,962,257 195,196 (15.0)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 2,962,257
2001 2,962,257
2002 2,962,257
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