LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                                May 4, 1999
  
  
          TO:  Honorable Carlos Truan, Chair, Senate Committee on
               Veteran Affairs & Military Installations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB313  by Madla (relating to the number of authorized
               defense projects within a defense readjustment zone),
               Committee Report 1st House, as amended
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB313, Committee Report 1st House, as amended: impact of $0           *
*  through the biennium ending August 31, 2001.                          *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                          (1,225,000)  *
          *       2004                          (1,600,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                                       $0 *
         *      2001                                        0 *
         *      2002                                        0 *
         *      2003                              (1,225,000) *
         *      2004                              (1,600,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would increase the maximum number of businesses in a defense
readjustment zone eligible for designation as defense readjustment
projects from two to six.  Businesses designated as defense readjustment
projects are eligible for the refund of state sales or use taxes as well
as franchise tax reductions.

The effective date would be September 1, 2001.
  
  
Methodology
  
The Comptroller of Public Accounts estimates there will be refunds to
three additional businesses in fiscal year 2002,  four businesses in
fiscal year 2003, and five additional businesses in fiscal year 2004.
It is assumed refunds would be paid to eligible firms beginning in 2003.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   480   Department of Economic Development, 304
                   Comptroller of Public Accounts
LBB Staff:         JK, TH, RT, DP