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