LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 2, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1355 by Armbrister (Relating to certain personal
property that is presumed abandoned.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1355, As Introduced: negative impact of $(5,461,000) 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 (5,461,000) *
* 2004 (5,461,000) *
* 2005 (91,000) *
* 2006 (91,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 (5,461,000) *
* 2004 (5,461,000) *
* 2005 (91,000) *
* 2006 (91,000) *
*****************************************************
Fiscal Analysis
Senate Bill 1355 would amend Chapter 72 of the Property Code, relating to
certain personal property that is presumed abandoned. Under provisions
of the bill, money orders would be presumed abandoned if unclaimed seven
years after the issuance date.
The bill would allow holders of abandoned money orders to deduct from the
original value of the money orders for service charges or other changes
incurred, for purposes of determining the value of abandoned money orders
that must be remitted to the Comptroller's Office.
Methodology
According to the Comptroller's office, under current law, money orders
are presumed abandoned after five years and service charges and other
charges may not be deducted from the original value of a money order for
purposes of determining the value of abandoned money orders that must be
remitted to the Comptroller's Office.
According to the Comptroller's office, the bill would reduce the
remittance of unclaimed property from holders of abandoned money orders
for fiscal 2003 and 2004. There will be no estimated loss in 2002
because the effective date of the bill will not preclude the
Comptroller's office from collecting abandoned money orders as set forth
in Chapter 74.301 of the Property Code. The loss would occur from money
orders that would be reported as abandoned and remitted to the
Comptroller in fiscal 2003 and 2004. Under this bill the money orders
would not be considered abandoned for an additional two years. The
Comptroller's office assumes estimated loss by analyzing historical data
on abandoned money orders reported and remitted to the state during the
last three fiscal years. This amount was adjusted for estimated valid
claims to be paid on abandoned money orders to be reported and delivered.
According to the Comptroller's office, this bill would create additional
losses in fiscal 2003 and beyond by allowing service charges and other
charges to be deducted from the original value of money orders. The
Comptroller's estimated loss was determined by multiplying the average
annual number of abandoned money orders reported and remitted to the
state during the last three fiscal years by an estimated service fee of
$21.00 ($0.25 per month for seven years). This amount was adjusted for
estimated valid claims to be paid on abandoned money orders to be
reported and delivered. According to the Comptroller's office, the
actual loss from service charges and other charges could vary and would
depend on the total charges assessed by the holders.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, JO, MF, JC