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 ************************************************************************** * 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: ************************************************************************** *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