LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 6, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 1778
          Committee on Finance                              By: Shapleigh
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1778 ( Relating 
to reports on and analyses of tax impacts.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1778-As Introduced
         
Implementing the provisions of the bill would result in a net 
negative impact of $(739,000) 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 403 of the Government Code.  The 
Office of Comptroller of Public Accounts would be required to 
prepare a report for the Legislature and the Governor prior 
to each regular legislative session on the overall incidence 
of each state tax.  In addition, the Legislative Budget Board, 
with the assistance as requested of the Comptroller's Office, 
would be required to prepare an incidence impact analysis for 
bills or resolutions that would increase, decrease, or redistribute 
taxes by more than $20 million, upon request from a Senate or 
House of Representatives committee chair. 

The bill would 
take effect September 1, 1997.
 
Methodolgy
 
The Comptroller's office estimated that the bill would have 
no effect on state or local government revenue.  It would, however, 
require additional Comptroller's Office staff, computer equipment 
and software, and the use of outside consultants to develop 
the databases, assist with computer programming, and assist 
in preparing the biennial tax incidence report. 

The Legislative 
Budget Board office would have similar requirements.
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 General       Employees from                                          
            Revenue Fund -     Revenue Fund -     FY 1997                                                 
            Comptroller        Legislative                                                                
            Administrative     Budget Board                                                               
            Costs              Administrative                                                             
                               Costs                                                                      
            0001               0001                                                                        
       1998        ($219,000)        ($200,000)               4.0                                    
       1998         (220,000)         (100,000)               5.0                                    
       2000         (220,000)         (100,000)               5.0                                    
       2001         (220,000)         (100,000)               5.0                                    
       2002         (220,000)         (100,000)               5.0                                    
 
 
         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           ($419,000)
               1999            (320,000)
               2000            (320,000)
               2001            (320,000)
               2002            (320,000)
 
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:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,BR