LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
June 2, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB700 ( relating
to unclaimed property; providing penalties.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB700-Conference Committee Report FN Revision 1
Implementing the provisions of the bill would result in a net
positive impact of $189,000 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
The bill would make various amendments to the Government Code,
the Insurance Code, the Local Government Code, the Natural Resources
Code, and the Property Code to provide clarification and changes
to publication requirements, penalties and interest, enforcement,
and other miscellaneous topics relating to unclaimed property,
and to conform with state funds consolidation and the abolishment
of statutory dedications enacted in the 71st Legislature, First
Called Session. The bill would correct obsolete statutory references
to the Treasurer and make other non-substantive changes relating
to unclaimed property.
The bill would require cities and
counties to remit unclaimed property valued at $100 or less
to the municipal or county treasurer. This unclaimed property
would be retained by cities and counties and would not be transferred
to the State general revenue fund.
Methodolgy
The provisions relating to enforcement, penalties, and interest
would have a positive fiscal impact on the state. The financial
gain to the state would depend on the actions of individuals
and corporations that violated these provisions.
There would
be a fiscal implication from the requirement that the comptroller
publish in a newspaper notification of unclaimed property having
a value under $100. Over the last four years, claims between
$50 and $100 have accounted for 40 percent of the published
claims. The Comptroller's Office plans to use other methods
of circulating the names of these claimants.
The bill would
slightlyreduce the amount of unclaimed property remitted to
the state by exempting cities and counties from the requirement
of remitting unclaimed property. This estimate assumes that
beginning in fiscal year 1999, the state would no longer receive
unclaimed property valued at $100 or less from cities and counties.
The bill would require the Comptroller to deposit certain
receipts, paid by local exchange companies, into the Texas New
Horizons Scholarship Trust Fund.
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 $125,000 $0
1998 125,000 (61,000)
2000 125,000 (61,500)
2001 125,000 (62,000)
2002 125,000 (62,000)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $125,000
1999 64,000
2000 63,500
2001 63,000
2002 63,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
There would be a probable gain to cities and counties equal
to the anticipated loss to the State.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,TH ,RN