LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

Revision 1

April 27, 2007

TO:	Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB345 by Flynn (Relating to the collateralization of certain public funds; providing administrative penalties.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend statute to provide for one or more collateral pools for centralized collateralization of two or more identifiable participating institutions' deposits of public funds. The Comptroller indicates that savings, if any, cannot be estimated because the number of work hours that might be saved cannot be quantified.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside of the Treasury, or create a dedicated revenue source. Therefore, the fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

The bill would take effect September 1, 2007.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 451 Department of Banking

LBB Staff:

JOB, SD, JRO, JM