LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 1, 2009 TO: Honorable Chris Harris, Chair, Senate Committee on Economic Development FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1743 by Hinojosa ( Relating to the use of money from the Texas Enterprise Fund to recruit automotive manufacturing facilities.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would authorize municipalities, a development corporation authorized to be created by the municipality, or both, to be eligible to receive grants from the Texas Enterprise Fund to recruit automotive manufacturing facilities. A municipality, including all of the municipality's related development corporations, would be limited to receiving grants not to exceed $50 million in one fiscal year. The bill would take effect September 1, 2009. The Office of the Governor reports that the agency may need to seek assistance from outside legal and financial counsel with expertise in the automotive manufacturing industry when making these grant awards. It is assumed that costs associated with implementation could be absorbed within existing resources. Local Government Impact A municipality or development corporation created by the municipality awarded a grant would experience a revenue gain in an amount that would depend on determination by the Office of the Governor, but not more than $50 million combined in a fiscal year. Source Agencies:301 Office of the Governor LBB Staff: JOB, JRO, MS, BTA, DB
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 1, 2009
TO: Honorable Chris Harris, Chair, Senate Committee on Economic Development FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1743 by Hinojosa ( Relating to the use of money from the Texas Enterprise Fund to recruit automotive manufacturing facilities.), Committee Report 1st House, Substituted
TO: Honorable Chris Harris, Chair, Senate Committee on Economic Development
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB1743 by Hinojosa ( Relating to the use of money from the Texas Enterprise Fund to recruit automotive manufacturing facilities.), Committee Report 1st House, Substituted
Honorable Chris Harris, Chair, Senate Committee on Economic Development
Honorable Chris Harris, Chair, Senate Committee on Economic Development
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB1743 by Hinojosa ( Relating to the use of money from the Texas Enterprise Fund to recruit automotive manufacturing facilities.), Committee Report 1st House, Substituted
SB1743 by Hinojosa ( Relating to the use of money from the Texas Enterprise Fund to recruit automotive manufacturing facilities.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would authorize municipalities, a development corporation authorized to be created by the municipality, or both, to be eligible to receive grants from the Texas Enterprise Fund to recruit automotive manufacturing facilities. A municipality, including all of the municipality's related development corporations, would be limited to receiving grants not to exceed $50 million in one fiscal year. The bill would take effect September 1, 2009. The Office of the Governor reports that the agency may need to seek assistance from outside legal and financial counsel with expertise in the automotive manufacturing industry when making these grant awards. It is assumed that costs associated with implementation could be absorbed within existing resources.
The bill would authorize municipalities, a development corporation authorized to be created by the municipality, or both, to be eligible to receive grants from the Texas Enterprise Fund to recruit automotive manufacturing facilities. A municipality, including all of the municipality's related development corporations, would be limited to receiving grants not to exceed $50 million in one fiscal year. The bill would take effect September 1, 2009.
The Office of the Governor reports that the agency may need to seek assistance from outside legal and financial counsel with expertise in the automotive manufacturing industry when making these grant awards. It is assumed that costs associated with implementation could be absorbed within existing resources.
Local Government Impact
A municipality or development corporation created by the municipality awarded a grant would experience a revenue gain in an amount that would depend on determination by the Office of the Governor, but not more than $50 million combined in a fiscal year.
Source Agencies: 301 Office of the Governor
301 Office of the Governor
LBB Staff: JOB, JRO, MS, BTA, DB
JOB, JRO, MS, BTA, DB