LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 26, 2001
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1261 by Hardcastle (Relating to delivery of certain
unclaimed property for rural scholarships and economic
development.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1261, As Introduced: negative impact of $(1,010,000) through *
* the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(505,000) *
* 2003 (505,000) *
* 2004 (505,000) *
* 2005 (505,000) *
* 2006 (505,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Probable Revenue *
* Year Savings/(Cost) from Gain/(Loss) from New Gain/(Loss) from New *
* General Revenue Fund Other County Other Rural *
* 0001 Economic Development Scholarship and *
* Fund Economic Development *
* Fund *
* 2002 $(505,000) $(189,000) $694,000 *
* 2003 (505,000) (189,000) 694,000 *
* 2004 (505,000) (189,000) 694,000 *
* 2005 (505,000) (189,000) 694,000 *
* 2006 (505,000) (189,000) 694,000 *
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Fiscal Analysis
The bill would amend the section of Chapter 74 of the Property Code
relating to the amount of abandoned property that eligible nonprofit
cooperative corporations may deliver to a scholarship fund for rural
students or use to stimulate rural economic development by removing the
limitation on the maximum amount of abandoned property that eligible
entities may currently transfer for local purposes.
The bill would take effect on September 1, 2001, and it would apply only
to abandoned property held by nonprofit cooperative corporations on or
after June 30, 2000, and that was required to be delivered to the
Comptroller on or after November 1, 2001.
Methodology
Under current law, the amount of money that may be delivered from all
eligible nonprofit cooperative corporations to a scholarship fund for
rural students, or to stimulate rural economic development, may not
exceed $1 million during a state fiscal year. Any amounts over the $1
million cap must be sent to the Comptroller. From the amount sent to the
Comptroller, counties may request an amount equal to the value of
capital credits received from an electric cooperative for economic
development programs defined under Section 381.004 of the Local
Government Code.
The estimated cost to General Revenue and to county governments (and the
corresponding gain to rural scholarship funds and rural economic
development) from the removal of the $1 million annual cap was based on
the average annual amount over the cap that was delivered to the
Comptroller for the last two years and the average annual amount of
capital credits refunded to counties for economic development programs.
This amount was adjusted for estimated valid claims to be paid on
abandoned property to be reported and delivered.
Local Government Impact
The Comptroller's office estimates that counties would lose $189,000 per
year through fiscal year 2006 in funding for local economic development
programs.
Source Agencies: 480 Department of Economic Development, 304
Comptroller of Public Accounts
LBB Staff: JK, JO, RT, ER, DB