LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 4, 2011 TO: Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2346 by Bonnen (Relating to authorized investments for ports and navigation districts.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to authorize a port or a navigation district to purchase, sell and invest its funds or funds under its control in negotiable certificates of deposit issued by a bank that has a commercial paper rating of at least A-1, P-1, or the equivalent by a nationally recognized credit rating agency. Local Government Impact There could be a positive fiscal impact associated with investing in negotiable certificates of deposit; however, those benefits would vary by district and is not anticipated to be significant. The Port of Galveston reported there would be no significant fiscal impact. The port also noted the provisions of the bill would allow the port to have another investment option. The Port of Houston Authority reported the bill would authorize access to the Certificate of Deposit Account Registry Service which could result in more efficient investment operations and potentially higher yields; however, no significant fiscal impact is anticipated. Source Agencies: LBB Staff: JOB, KJG, TP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 4, 2011
TO: Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2346 by Bonnen (Relating to authorized investments for ports and navigation districts.), As Engrossed
TO: Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB2346 by Bonnen (Relating to authorized investments for ports and navigation districts.), As Engrossed
Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB2346 by Bonnen (Relating to authorized investments for ports and navigation districts.), As Engrossed
HB2346 by Bonnen (Relating to authorized investments for ports and navigation districts.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to authorize a port or a navigation district to purchase, sell and invest its funds or funds under its control in negotiable certificates of deposit issued by a bank that has a commercial paper rating of at least A-1, P-1, or the equivalent by a nationally recognized credit rating agency.
Local Government Impact
There could be a positive fiscal impact associated with investing in negotiable certificates of deposit; however, those benefits would vary by district and is not anticipated to be significant. The Port of Galveston reported there would be no significant fiscal impact. The port also noted the provisions of the bill would allow the port to have another investment option. The Port of Houston Authority reported the bill would authorize access to the Certificate of Deposit Account Registry Service which could result in more efficient investment operations and potentially higher yields; however, no significant fiscal impact is anticipated.
There could be a positive fiscal impact associated with investing in negotiable certificates of deposit; however, those benefits would vary by district and is not anticipated to be significant.
The Port of Galveston reported there would be no significant fiscal impact. The port also noted the provisions of the bill would allow the port to have another investment option.
The Port of Houston Authority reported the bill would authorize access to the Certificate of Deposit Account Registry Service which could result in more efficient investment operations and potentially higher yields; however, no significant fiscal impact is anticipated.
Source Agencies:
LBB Staff: JOB, KJG, TP
JOB, KJG, TP