TO: | Honorable John Davis, Chair, House Committee on Economic & Small Business Development |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB2493 by Torres (Relating to authorizing enterprise project half designations and quarter designations under the enterprise zone program.), Committee Report 1st House, Substituted |
Estimated Two-year Net Impact to General Revenue Related Funds for HB2493, Committee Report 1st House, Substituted: a negative impact of ($996,000) through the biennium ending August 31, 2013.
Because each project with a fractional designation can receive up to the maximum amount a full project can receive, the amount refunded each year can substantially exceed the amount refunded under current law. Therefore, a revenue loss to the state cannot be determined but could be significantly negative.
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | ($507,000) |
2013 | ($489,000) |
2014 | ($489,000) |
2015 | ($489,000) |
2016 | ($489,000) |
Fiscal Year | Probable (Cost) from General Revenue Fund 1 |
Change in Number of State Employees from FY 2011 |
---|---|---|
2012 | ($507,000) | 6.0 |
2013 | ($489,000) | 6.0 |
2014 | ($489,000) | 6.0 |
2015 | ($489,000) | 6.0 |
2016 | ($489,000) | 6.0 |
The GR cost estimate in the above table reflects the funds that would be necessary for the Comptroller's Office to hire 6 FTEs for fiscal year 2012-2016 to handle the increased workload of enterprise zone refund verifications for implementation of the bill.
The bill would not change the total number of enterprise projects that could be designated in any biennium, but does provide for fractional designations. With respect to double jumbo and triple jumbo projects, the bill does not change the annual maximum refund that could be paid under Section 2303.4071 of the Government Code for projects divided into half- or quarter-designations—each half-designation could receive no more than half the maximum for an undivided jumbo project, and each quarter-designation could receive no more than one-fourth the maximum for an undivided jumbo project.
However, with respect to enterprise projects subject to Section 2303.407(b)(1)-(4) of the Government Code that are subject to the annual maximum refund under Section 2303.407(a), the bill does not amend Section 2303.407 to reduce the maximum proportionally for projects receiving only half- or quarter-designations. The result could be construed to mean that each enterprise project, whether designated full, half, or quarter, is individually subject to the maximum under Section 2303.4071(a). If each project with a fractional designation can receive up to that maximum, the amount refunded each year can substantially exceed the amount refunded under current law. Therefore, the fiscal implications cannot be determined but could be significantly negative.
Source Agencies: | 300 Trusteed Programs Within the Office of the Governor, 301 Office of the Governor, 304 Comptroller of Public Accounts
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LBB Staff: | JOB, AG, SD, KK
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