LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 23, 1997 TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 3203, As Passed 2nd House Speaker of the House Counts House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3203 ( relating to the disposition of unclaimed funds by nonprofit cooperative corporations) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3203-As Passed 2nd House No fiscal implication to the State is anticipated. The bill would amend the Property Code to authorize nonprofit cooperative corporations to deliver their unclaimed money to a scholarship fund for rural students or to an economic development fund for rural communities, instead of delivering the money to the Comptroller for deposit into the General Revenue Fund. The bill would limit to $1 million the total amount of unclaimed money that could be transferred by all nonprofit cooperative corporations during the state fiscal year. No more than 20 percent of each nonprofit cooperative corporation's unclaimed funds could be used for economic development. The Comptroller has determined that the amount of unclaimed property that would be transferred to rural scholarship and economic development funds, and therefore not deposited into the General Revenue Fund, would be insignificant. Under current law, a county may request that the state transfer to it an amount equal to any unclaimed capital credits from the electric cooperative(s) which serves the county, less anticipated claims, to be used for various county economic development programs. The bill would reduce the amount of unclaimed property, including capital credits, supplied to the state from electric cooperatives -- and thus reduce the amount of unclaimed property that can be used for economic development programs defined under Section 381.004 of the Local Government Code. The amount would vary depending on the value of unclaimed capital credits supplied by electric cooperatives, but could not exceed $1 million. No fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,RR ,TH