LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 7, 2009 TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB638 by Nichols (Relating to the collateralization of certain public funds; providing administrative penalties.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would provide for the centralized pooled collateralization program of two or more eligible participating institutions' deposits of public funds. The Comptroller would adopt rules to administer the program, post reports from participating institutions on its website, and impose against each participating financial institution a pro rata assessment to cover the program's administrative costs. The Comptroller anticipates a cost of $375,000 in fiscal year 2010 due to contract programming expenses. However, it is assumed that any cost associated with implementation of the bill would be offset by an assessment fee to the participating entities in an amount sufficient to pay the costs associated with implementation of the bill. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts, 451 Department of Banking LBB Staff: JOB, JRO, MS, JM, MN
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 7, 2009
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB638 by Nichols (Relating to the collateralization of certain public funds; providing administrative penalties.), As Engrossed
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB638 by Nichols (Relating to the collateralization of certain public funds; providing administrative penalties.), As Engrossed
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB638 by Nichols (Relating to the collateralization of certain public funds; providing administrative penalties.), As Engrossed
SB638 by Nichols (Relating to the collateralization of certain public funds; providing administrative penalties.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would provide for the centralized pooled collateralization program of two or more eligible participating institutions' deposits of public funds. The Comptroller would adopt rules to administer the program, post reports from participating institutions on its website, and impose against each participating financial institution a pro rata assessment to cover the program's administrative costs. The Comptroller anticipates a cost of $375,000 in fiscal year 2010 due to contract programming expenses. However, it is assumed that any cost associated with implementation of the bill would be offset by an assessment fee to the participating entities in an amount sufficient to pay the costs associated with implementation of the bill.
The bill would provide for the centralized pooled collateralization program of two or more eligible participating institutions' deposits of public funds. The Comptroller would adopt rules to administer the program, post reports from participating institutions on its website, and impose against each participating financial institution a pro rata assessment to cover the program's administrative costs.
The Comptroller anticipates a cost of $375,000 in fiscal year 2010 due to contract programming expenses. However, it is assumed that any cost associated with implementation of the bill would be offset by an assessment fee to the participating entities in an amount sufficient to pay the costs associated with implementation of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 451 Department of Banking
304 Comptroller of Public Accounts, 451 Department of Banking
LBB Staff: JOB, JRO, MS, JM, MN
JOB, JRO, MS, JM, MN