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.                                                             *
**************************************************************************
  
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 *
**************************************************************************
  
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