LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 27, 2009

TO:	Honorable Craig Estes, Chair, Senate Committee on Agriculture & Rural Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1988 by Estes (Relating to the Texas Rural Investment Fund.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would create the Texas Rural Investment Fund, to be administered by the Department of Agriculture, to provide grants or loans in rural areas to stimulate local entrepreneurship, job creation or retention, new capital investment, strategic economic development planning, individual economic and community development leadership training, housing development, or innovative workforce education.

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 with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

TDA estimates there would be a minimal cost associated with implementing the provisions of the bill.

The bill would take effect September 1, 2009.

Local Government Impact

If a public entity that is a local government were to receive funds through the Texas Rural Investment Fund, the entity would experience a revenue gain. The amount of revenue gain would depend on the project and the discretion of the Department of Agriculture in making an award.

Source Agencies:

357 Office of Rural Community Affairs, 304 Comptroller of Public Accounts, 551 Department of Agriculture

LBB Staff:

JOB, CH, WK, AH, DB