LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 28, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3361 by Villarreal (Relating to a study by the comptroller on the use of call options by state government as a hedge against inflation in the cost of commodities purchased by state government.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3361, As Introduced: a negative impact of ($500,000) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 28, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3361 by Villarreal (Relating to a study by the comptroller on the use of call options by state government as a hedge against inflation in the cost of commodities purchased by state government.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3361 by Villarreal (Relating to a study by the comptroller on the use of call options by state government as a hedge against inflation in the cost of commodities purchased by state government.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3361 by Villarreal (Relating to a study by the comptroller on the use of call options by state government as a hedge against inflation in the cost of commodities purchased by state government.), As Introduced
HB3361 by Villarreal (Relating to a study by the comptroller on the use of call options by state government as a hedge against inflation in the cost of commodities purchased by state government.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3361, As Introduced: a negative impact of ($500,000) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3361, As Introduced: a negative impact of ($500,000) through the biennium ending August 31, 2011.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 ($500,000) 2011 $0 2012 $0 2013 $0 2014 $0
2010 ($500,000)
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($500,000) 2011 $0 2012 $0 2013 $0 2014 $0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 ($500,000) 2011 $0 2012 $0 2013 $0 2014 $0
2010 ($500,000)
2011 $0
2012 $0
2013 $0
2014 $0
Fiscal Analysis
This bill would amend the Government Code and require the Comptroller to conduct a study on the feasibility and advisability of state government using call options as a hedge against the possibility of dramatic inflation in the cost of commodity purchases.
Methodology
The Comptroller of Public Accounts indicates that a one-time cost of $500,000 would be required out of the General Revenue Fund in fiscal 2010 to hire consulting services to complete the study on purchasing call options to hedge against inflation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, JM
JOB, MN, JM