LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 24, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB838 by Shapleigh (Relating to a program of grants and
loans to provide capital for community development and
economic development institutions in economically
distressed and low-income areas.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB838, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(114,545) $114,545 2.0 *
* 2003 (114,163) 114,163 2.0 *
* 2004 (114,163) 114,163 2.0 *
* 2005 (116,245) 116,245 2.0 *
* 2006 (116,245) 116,245 2.0 *
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Fiscal Analysis
The bill would amend the Finance Code by adding Subchapter C to require
the Department of Banking (DOB) to establish and administer a new program
in which the agency would make grants or loans to eligible institutions
in a manner approved by the agency. Institutions participating in the
program would also have to file an annual report with the agency that
states in detail the status of each investment or loan made under the
program.
The bill takes effect September 1, 2001.
Methodology
The Department of Banking estimates two additional Full-time equivalent
positions to implement the provisions of the bill. The agency estimates
that it would need a program administrator and an administrative
technician to administer the newly created community investment program.
It is assumed that the agency would adjust its assessment rates to cover
the costs of implementing the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 449 Finance Commission of Texas, 451 Department
of Banking
LBB Staff: JK, JO, RT, DE