LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 30, 2001
  
  
          TO:  Honorable James E. "Pete" Laney, Speaker of the House,
               House of Representatives
  
        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 Passed 2nd House
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1840, As Passed 2nd House: 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