LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

March 23, 2005

TO:	Honorable Frank Corte, Jr., Chair, House Committee on Defense Affairs & State-Federal Relations
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2340 by Corte (Relating to grants and loans for certain economic development projects to assist defense communities affected by the federal military base realignment and closure process.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill authorizes the Military Preparedness Commission to provide loans, from the Texas Military Value Revolving Loan Account, to defense communities for economic development projects that minimize the negative effects of a defense base reduction on the defense community. The bill directs the awarding of defense economic assistance grants.

 

The bill repeals Section 2.03, Chapter 1134, Acts of the 77th Legislature, Regular Session 2001. This repeal would continue to permit a deduction from taxable capital under the franchise tax for defense readjustment projects.

Local Government Impact

The fiscal impact to defense-dependent communities would depend on the funds available for loans or grants, the number of communities that applied, and the number of communities that were awarded loans or grants.

Source Agencies:

304 Comptroller of Public Accounts, 347 Public Finance Authority

LBB Staff:

JOB, SMi, KJG