LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 8, 2015 TO: Honorable Angie Chen Button, Chair, House Committee on Economic & Small Business Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1037 by Simpson (Relating to abolishing the Texas emerging technology fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1037, As Introduced: a negative impact of ($8,457,800) through the biennium ending August 31, 2017. 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, 84TH LEGISLATIVE REGULAR SESSION
April 8, 2015
TO: Honorable Angie Chen Button, Chair, House Committee on Economic & Small Business Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1037 by Simpson (Relating to abolishing the Texas emerging technology fund.), As Introduced
TO: Honorable Angie Chen Button, Chair, House Committee on Economic & Small Business Development
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1037 by Simpson (Relating to abolishing the Texas emerging technology fund.), As Introduced
Honorable Angie Chen Button, Chair, House Committee on Economic & Small Business Development
Honorable Angie Chen Button, Chair, House Committee on Economic & Small Business Development
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1037 by Simpson (Relating to abolishing the Texas emerging technology fund.), As Introduced
HB1037 by Simpson (Relating to abolishing the Texas emerging technology fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1037, As Introduced: a negative impact of ($8,457,800) through the biennium ending August 31, 2017. 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 HB1037, As Introduced: a negative impact of ($8,457,800) through the biennium ending August 31, 2017.
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 2016 $36,100 2017 ($8,493,900) 2018 ($2,393,900) 2019 ($8,493,900) 2020 ($8,137,913)
2016 $36,100
2017 ($8,493,900)
2018 ($2,393,900)
2019 ($8,493,900)
2020 ($8,137,913)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromNew GR Dedicated - Border Security Operations Probable Revenue Gain/(Loss) fromEmerging Technology5124 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 ($9,100,000) $90,618,000 ($90,618,000) $9,136,100 2017 ($9,100,000) $0 $0 $606,100 2018 ($9,100,000) $0 $0 $6,706,100 2019 ($9,100,000) $0 $0 $606,100 2020 ($9,100,000) $0 $0 $962,087
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromNew GR Dedicated - Border Security Operations Probable Revenue Gain/(Loss) fromEmerging Technology5124 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2016 ($9,100,000) $90,618,000 ($90,618,000) $9,136,100 2017 ($9,100,000) $0 $0 $606,100 2018 ($9,100,000) $0 $0 $6,706,100 2019 ($9,100,000) $0 $0 $606,100 2020 ($9,100,000) $0 $0 $962,087
2016 ($9,100,000) $90,618,000 ($90,618,000) $9,136,100
2017 ($9,100,000) $0 $0 $606,100
2018 ($9,100,000) $0 $0 $6,706,100
2019 ($9,100,000) $0 $0 $606,100
2020 ($9,100,000) $0 $0 $962,087
Fiscal Analysis
The bill would amend Government Code to abolish the Emerging Technology Fund (ETF) and transfer the proceeds into a new General Revenue dedicated account to only be used for the Department of Public Safety (DPS) for border security operations. Although the ETF would be abolished effective September 1, 2015, agreements in place before that date would not be affected. All money in the fund on that date and received in the future would be deposited into the new General Revenue dedicated account, except for money obligated for existing agreements and money deposited in the fund as a gift, grant or donation under specific terms of use. The bill would abolish Regional Centers of Innovation and Commercialization. This legislation would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Methodology
Using the Comptroller of Public Account's (CPA) Biennial Revenue Estimate, $90.6 million in unexpended balances would be transferred from the General Revenue - Dedicated Emerging Technology Fund Account No. 5124 to a new General Revenue dedicated account for the purpose of funding border security at the Department of Public Safety. The Office of the Governor indicates there would be on-going revenues from investments in entities that received Emerging Technology Funds of $9.1 million in 2016, $0.6 million in 2017, $6.7 million in 2018, $0.6 million in 2019 and $1.0 million in 2020 that would be deposited to General Revenue. The Office of the Governor estimates there would be a cost for the management of the ETF portfolio by an outside firm with the appropriate expertise. The portfolio's size is estimated to be $455 million and the cost is estimated to be 2% of funds under management, or approximately $9.1 million per fiscal year.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 301 Office of the Governor, 304 Comptroller of Public Accounts
301 Office of the Governor, 304 Comptroller of Public Accounts
LBB Staff: UP, CL, EP, LBe, SD
UP, CL, EP, LBe, SD