LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 6, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1044 by Carona (Relating to the ability of a development corporation to receive funding from a municipality.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would authorize home-rule municipalities with a population of over 100,000, under a contract with a development corporation created by the municipality, to grant money to the development corporation. The Act would take effect immediately upon a vote of two-thirds of all members of each house or on September 1, 2001 if the requisite vote is not received. According to the Texas Municipal League (TML), there are 24 cities that meet the criteria described in the bill. If an eligible city was to provide grant money to the development corporation, the city would incur a loss and the development corporation would receive a corresponding revenue gain. TML does not anticipate the amount of such grants to be significant, although the amounts would vary by each city. Source Agencies: 480 Department of Economic Development LBB Staff: JK, DB, ER