Honorable René Oliveira, Chair, House Committee on Business & Industry
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2650 by Villalba (Relating to the presumption of membership initiation deposits as abandoned property.), Committee Report 1st House, Substituted
The bill could result in an undetermined loss to the General Revenue Fund depending on the number and value of membership initiation deposits which would no longer be presumed abandoned and remitted to the state due to the provisions of the bill.
The bill would amend Chapter 72 of the Property Code to provide that a membership initiation deposit, as defined by the bill, is not presumed abandoned if the member has forfeited the deposit or the deposit is included as discharge of indebtedness income on federal income tax return of the business that sold the membership.
The bill would take effect immediately upon receipt of a two-thirds vote of all members elected to each house; otherwise, the bill would take effect September 1, 2017.
According to the Comptroller, the bill could reduce the remittance of unclaimed property to the Comptroller, which is deposited to the General Revenue Fund. However, the number and value of membership initiation deposits that would no longer be presumed abandoned is unknown and the fiscal impact cannot be estimated.
Local Government Impact
No fiscal implication to units of local government is anticipated.