LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 3, 2001 TO: Honorable Juan Hinojosa, Chair, House Committee on Criminal Jurisprudence FROM: John Keel, Director, Legislative Budget Board IN RE: HB2696 by Hinojosa (Relating to certain provisions in civil asset forfeiture.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2696, As Introduced: positive impact of $0 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * Attorney General Law Enforcement * * Account/ GR-Dedicated * * 5006 * * 2002 $(200,000) * * 2003 (200,000) * * 2004 (200,000) * * 2005 (200,000) * * 2006 (200,000) * ***************************************************** Fiscal Analysis This bill would amend certain provisions in the Code of Criminal Procedure, relating to civil asset forfeiture. Under this bill, currency in a person's possession would no longer be considered contraband if it totaled $10,000 or less at the time of seizure. This bill would establish a statute of limitations for forfeiture proceedings. Final judgment on a forfeiture could not be entered until all associated criminal proceedings were resolved, or, in cases where there were no criminal charges, one year. The Comptroller, at the request of the Office of the Attorney General (OAG), would be required to audit agencies that had failed to file on time forfeiture reports with the OAG. The Comptroller would deduct the costs of the audit from the forfeitures. Methodology The Office of the Attorney General estimates there will be a $200,000 revenue loss each year to the state. Current revenues from forfeitures are approximately $300,000 per year. The OAG estimates that revenues would be reduced or eliminated in 2/3 of the cases because of the new defenses and the exemption of the first $10,000 in currency seized, resulting in a projected loss of $200,000 annually. The Comptroller estimates that the costs related to the additional audits required would not be significant. Local Government Impact Local law enforcement agencies retain a portion of the assets seized and forfeited. These agencies would also experience a revenue loss. Source Agencies: 304 Comptroller of Public Accounts, 302 Office of the Attorney General, 301 Office of the Governor LBB Staff: JK, JC, SC