LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 3, 2001 TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: HB1840 by Junell (Relating to authorizing the comptroller to waive penalties and interest relating to the delivery of certain delinquent unclaimed property.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1840, As Engrossed: positive impact of $18,200,000 through the * * biennium ending August 31, 2003. * ************************************************************************** The following table assumes an effective date of June 1, 2001. All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2001 $4,550,000 * * 2002 13,650,000 * * 2003 0 * * 2004 0 * * 2005 0 * ***************************************************** The following table assumes an effective date of September 1, 2001. ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $18,200,000 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * ***************************************************** Fiscal Analysis The bill would implement recommendation AFM-5 section F from the Comptroller's e-Texas report to allow the Comptroller to waive penalty and interest charges imposed on certain delinquent unclaimed property. The bill would take immediate effect if it receives a vote of two-thirds of all the members of each house. Otherwise, the bill would take effect September 1, 2001. Methodology The Comptroller's office established two unclaimed property amnesty periods in the last three years allowing waivers of penalties and interest due for unreported unclaimed property. Each amnesty period generated $26 million in unclaimed property. The Comptroller's office estimates the state would raise $18.2 million from eliminating penalty and interest provisions for the disclosure of certain unclaimed property. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, SD