LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 1, 2009

TO:	Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB638 by Nichols (Relating to the collateralization of certain public funds; providing administrative penalties.), As Introduced

No significant fiscal implication to the State is anticipated.

This bill would provide for the centralized pooled collateralization program of two or more eligible participating institutions' deposits of public funds. The Comptroller would adopt rules to administer the program, post reports from participating institutions on its website, and impose against each participating financial institution a pro rata assessment to cover the program's administrative costs. 

The Comptroller anticipates a cost of $375,000 in fiscal year 2010 due to contract programming expenses. However, it is assumed that any cost associated with implementation of the bill would be offset by an assessment fee to the participating entities in an amount sufficient to pay the costs associated with implementation of the bill.

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, MN, MS, JM