LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 7, 2001
  
  
          TO:  Honorable Kim Brimer, Chair, House Committee on Business
               & Industry
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2084  by Counts (Relating to delivery by local
               telephone exchange companies to scholarship funds for
               rural students of money that is presumed to be
               abandoned.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2084, As Introduced:  negative impact of $(669,000) through the     *
*  biennium ending August 31, 2003.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(223,000)  *
          *       2003                            (446,000)  *
          *       2004                            (446,000)  *
          *       2005                            (446,000)  *
          *       2006                            (446,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                               $(223,000) *
         *      2003                                (446,000) *
         *      2004                                (446,000) *
         *      2005                                (446,000) *
         *      2006                                (446,000) *
         *****************************************************
  
Fiscal Analysis
  
This bill would amend Section 74.3011(g) of the Property Code, relating
to the amount of abandoned property that local telephone exchange
companies and telecommunications utility companies may deliver to
scholarship funds.

The bill would increase the maximum amount of abandoned property that
could be transferred from local telephone exchange companies to rural
scholarship funds.  The maximum amount transferred from all local
telephone exchange companies would increase to $1,000,000 from $400,000.
Pursuant to Section 74.3012(a), the maximum amount transferred from all
telecommunications utility companies to urban scholarship funds also
would increase to $1,000,000 from $400,000.

This bill would take effect on September 1, 2001.
  
  
Methodology
  
The estimated cost to the General Revenue Fund 0001, and the
corresponding gain to rural scholarship funds and urban scholarship
funds, from increasing the annual cap was based on the average annual
amount over the current cap that was delivered to the Comptroller for the
last three years.  This amount was adjusted for the estimated valid
claims paid on abandoned property reported and delivered.

Since the maximum amount of money delivered to urban scholarship funds is
based on the amount delivered by all local telephone exchange companies
to scholarship funds for rural students during the previous fiscal year,
there would be no gain to urban scholarship funds the first year that
this bill would become effective.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated. Universities and colleges would see additional
contributions to scholarship funds from local telephone exchange
companies
  
  
Source Agencies:   475   Office of Public Utility Counsel, 473   Public
                   Utility Commission of Texas, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, JO, RT, KM