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F I S C A L I M P A C T R E P O R T
SPONSOR Varela
ORIGINAL DATE
LAST UPDATED
2/18/07
HB 1102
SHORT TITLE CLOSURE OF DFA REVOLVING LOAN FUND SB
ANALYST Propst
REVENUE
Estimated Revenue
Recurring
Fund
FY07
FY08
FY09
or Non-Rec
Affected
100.0
Non-recurring
General Fund
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of Bill
House Bill 1102 proposes to stop loans from the Department of Finance and Administration
Revolving Loan Fund no later than the end of fiscal year 2007, to then revert the Revolving Loan
Fund balance to the General Fund, after outstanding loans have been repaid, and to then close the
Revolving Loan Fund. HB 1102 contains no effective date section..
SIGNIFICANT ISSUES
HB 1102 proposes to stop granting loans from the Revolving Loan Fund, revert the Revolving
Loan Fund balance to the General Fund and then close the Revolving Loan Fund. Loans from the
fund would cease no later than June 30, 2007. Once all outstanding loans have been repaid, HB
1102 proposes that the balance of the Revolving Loan Fund revert to the General Fund. Loans
from the fund have a maximum repayment within thirty days of the loan, so all outstanding loans
would be expected to be fully repaid within FY08.
Apparently, this is a dormant fund and there are no outstanding loans recorded. Reverting the
funds simply brings this pot of money back into use. This is a DFA initiative and has been
approved by the Governor.
The Department of Finance and Administration Office of the Secretary and the Financial Control
Division estimate the proposed expected reversion to the General Fund in FY08 at 100.0.
WEP/mt