Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  May 23, 1997
      TO: Honorable Bob Bullock            IN RE:  Senate Bill No. 1877, As Passed 2nd House
          Lieutenant Governor                Wentworth
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on SB1877 ( relating 
to creating a Texas community investment program to assist certain 
businesses in distressed areas of the state.) this office has 
detemined the following:
         Biennial Net Impact to General Revenue Funds by SB1877-As Passed 2nd House
No significant fiscal implication to the State is anticipated.

This bill amends Chapter 2306 of the Government Code by adding 
Subchapter AA which would require the Department of Housing 
and Community Affairs to establish a community investment program 
out of any funds appropriated for that purpose in which the 
department awards grants to or makes stock purchases in community 
development corporations.  These community development corporations 
would make loans to or invest in businesses located in distressed 
areas and which would not otherwise qualify for a conventional 
bank loan.  The bill establishes guidelines for the program 
and rule-making authority for the department. 

No significant 
fiscal implication to units of local government is anticipated. 
 As businesses in distressed areas become established and multiply, 
local governments would experience increased property and sales 
tax revenue related to the economic growth. 
   Source:            Agencies:   
                      LBB Staff:   JK ,TH ,RA