83(R) SB 1293 - Introduced version

The bill would amend the Transportation Code to authorize the Texas Transportation Commission (TTC) by rule to establish a program to assist disadvantaged businesses identified in the under the Texas Department of Transportation’s current disadvantaged business program required by Section 201.702, Transportation Code. The bill would allow the Texas Department of Transportation (TxDOT) to establish an account in the State Highway Fund (Fund 6) to use as a revolving fund to provide financing, including loans, to foster the development of such businesses. The revolving fund may be composed of financing application fees, loan repayments, appropriations from the Legislature, donations, interest earnings on money in the fund, and other sources specified by the bill. The bill would require the TTC to adopt rules governing the terms and conditions for financing and loans from the revolving fund.

Based on the information provided by TxDOT, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within existing resources. For the purposes of this analysis, it is assumed a disadvantaged business program established by the TTC under the provisions of the bill would provide short-term loans to qualifying businesses that would be repaid within a year of origination and would not result in a significant impact to the cash flow of Fund 6.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION


April 2, 2013

TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation

FROM:	Ursula Parks, Director, Legislative Budget Board

IN RE:	SB1293 by West (Relating to creating a disadvantaged business assistance program to be operated by the Texas Department of Transportation.), As Introduced