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