LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
April 18, 2005

TO:
Honorable Jim Pitts, Chair, House Committee on Appropriations
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
HB2345 by Luna (Relating to the imposition of a fee for a currency transmission sent to a destination outside the United States.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2345, As Introduced: a positive impact of $254,200 through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 $68,900
2007 $185,300
2008 $213,300
2009 $235,300
2010 $255,300




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1
Probable Savings/(Cost) from
GENERAL REVENUE FUND
1
Probable Revenue Gain/(Loss) from
Counties
2006 $235,000 ($166,100) $10,925,000
2007 $344,000 ($158,700) $16,023,000
2008 $372,000 ($158,700) $17,304,000
2009 $394,000 ($158,700) $18,343,000
2010 $414,000 ($158,700) $19,260,000



Fiscal Year Change in Number of State Employees from FY 2005
2006 3.0
2007 3.0
2008 3.0
2009 3.0
2010 3.0

Fiscal Analysis

The bill would impose a one-half of one percent fee on certain currency transmissions to a destination outside the United States. The fees would be collected by the Comptroller and deposited to a trust account. The Comptroller would transfer two percent of collections to the General Revenue Fund as a service fee. Interest earnings would be deposited to the General Revenue Fund.

After setting aside a portion of the fees to pay refunds, the Comptroller would distribute from the trust fund to each county its share of the fees. The fees would be dedicated for the use and benefit of the counties or hospital districts for indigent health care.


Methodology

The estimates were produced by the Comptroller's office using the following  sources and methods.  The estimated fiscal impact was based on data from the February 2005 Texas Business Review, Banking Across Borders for the dollar amount of "money sent to Latin America via remittances from Texas 2004," from data provided by the Texas Department of Banking, and from Migrant Remittances to Latin America: Reviewing the Literature, a working paper from the Thomas Rivera Policy Institute.

Where appropriate, allowances were made for remittances to other locations outside the United States and for various methods used to send remittances to arrive at the dollar amount of currency transmissions that would be subject to the fee.

The fees to be sent to the counties were adjusted for the three-month lag in remittances in the first year and reduced by the state service fee and the five percent that the Comptroller would be permitted to retain in the counties' suspense accounts.


Technology

Technology costs to the Comptroller's Office are estimated to be $5,658 each year.

Local Government Impact

The Comptroller of Public Accounts provided an estimate of revenue to the 254 Texas counties from the new currency transmission fee. Additional revenues would total $10,925,000 in fiscal year 2006, $16,023,000 in fiscal year 2007, $17,304,000 in fiscal year 2008, $18,343,000 in fiscal year 2009, and $19,260,000 in fiscal year 2010.


Source Agencies:
302 Office of the Attorney General, 304 Comptroller of Public Accounts
LBB Staff:
JOB, KJG, SD, WP, RS