LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Steven Wolens, Chair IN RE: House Bill No. 2600
Committee on State Affairs By: King
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2600 ( Relating
to the collection of delinquent obligations to the state.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2600-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $2,650,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would amend the Government Code to allow the Comptroller
to employ, retain, or contract with a person, other than a full-time
state employee, to collect certain delinquent obligations that
are owed to the Comptroller. The collection efforts would not
be directed at the normal delinquent accounts, but at the small
accounts not reached successfully by routine collection and
too small for referral to the Office of the Attorney General.
A contract could include a collection fee computed on the amounts
collected under the contract.
Methodolgy
The fiscal impact of hiring a collection firm is based on estimates
of commissions and variations in the outstanding volume of certain
delinquent tax accounts. This estimate assumes that all eligible
delinquent debt at the time of the startup would be collected
by a collection firm in fiscal years 1998 and 1999.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue
Savings/(Cost) Gain/(Loss) from
from General General Revenue
Revenue Fund Fund
0001 0001
1998 ($358,000) $1,434,000
1998 (524,000) 2,098,000
2000 (275,000) 1,101,000
2001 (283,000) 1,134,000
2002 (292,000) 1,168,000
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $1,076,000
1999 1,574,000
2000 826,000
2001 851,000
2002 876,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 302 Office of the Attorney General
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,RN