LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 9, 1997
         
         
      TO: Honorable Rene Oliveira, Chair            IN RE:  Senate Bill No. 932, Committee Report 2nd House, Substituted
          Committee on Economic Development                              By: Sibley
          House
          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 Tourism 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-Committee Report 2nd House, Substituted
         
No significant fiscal implication to the State is anticipated. 
 
         
This bill would abolish the Department of Commerce and the Agricultural 
Finance Authority and create the Texas Economic Development 
Agency.  The bill would combine the staff of the two abolished 
agencies to form the new agency.  In addition, the bill would 
transfer program staff and funding involved in economic development 
activity from several different agencies to the new agency.

In 
addition, the bill would establish the Office of Small Business 
Assistance and the Office of Rural Affairs.  The bill would 
also place restrictions on grants awarded by the new agency 
for the Smart Jobs Program.

The net impact of transferring 
existing agency functions to the Texas Economic Development 
Agency would have a $0 fiscal impact on the state.  Establishing 
an Office of Small Business Assistance and the Office of Rural 
Affairs would have no fiscal impact because the Department of 
Commerce would provide funding to these functions out of existing 
appropriation authority.  This estimate assumes no additional 
appropriation authority would be provided to the new agency.
         
 
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