LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 2, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 932
Committee on Economic Development By: Sibley
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 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-As Introduced
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 and
Tourism (TDEDT). 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 be privatized by December 1, 1997 and the TMAC to be
privatized by September 1, 1999.
This bill would transfer
TDOC powers and duties to TDEDT. The bill would also delete
several provisions of the TDOC enabling statues 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:
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 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: 465 Department of Commerce
LBB Staff: TH ,JK ,CG