LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 12, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB257 by Hilderbran (relating to the presumed abandonment of certain unclaimed personal property.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB257, Committee Report 1st House, Substituted: a positive impact of $78,000,000 through the biennium ending August 31, 2013.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 12, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB257 by Hilderbran (relating to the presumed abandonment of certain unclaimed personal property.), Committee Report 1st House, Substituted
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB257 by Hilderbran (relating to the presumed abandonment of certain unclaimed personal property.), Committee Report 1st House, Substituted
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB257 by Hilderbran (relating to the presumed abandonment of certain unclaimed personal property.), Committee Report 1st House, Substituted
HB257 by Hilderbran (relating to the presumed abandonment of certain unclaimed personal property.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB257, Committee Report 1st House, Substituted: a positive impact of $78,000,000 through the biennium ending August 31, 2013.
Estimated Two-year Net Impact to General Revenue Related Funds for HB257, Committee Report 1st House, Substituted: a positive impact of $78,000,000 through the biennium ending August 31, 2013.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $0 2013 $78,000,000 2014 $0 2015 $0 2016 $0
2012 $0
2013 $78,000,000
2014 $0
2015 $0
2016 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2012 $0 2013 $78,000,000 2014 $0 2015 $0 2016 $0
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2012 $0 2013 $78,000,000 2014 $0 2015 $0 2016 $0
2012 $0
2013 $78,000,000
2014 $0
2015 $0
2016 $0
Fiscal Analysis
The bill would implement the recommendation in the report, "Reduce the Unclaimed Property Dormancy Period for Certain Property Types" in the Legislative Budget Board's Government Effectiveness and Efficiency Report, submitted to the Eighty-second Texas Legislature, 2011. The bill would decrease the unclaimed property dormancy period for utility deposits from three years to one year; money orders from seven years to three years; and bank deposits, savings accounts, and matured certificates of deposits from five years to three years. The bill would increase the allowable service, maintenance, or other charges assessed by money order issuers from $0.50 to $1 per month. The bill would take effect September 1, 2011.
The bill would implement the recommendation in the report, "Reduce the Unclaimed Property Dormancy Period for Certain Property Types" in the Legislative Budget Board's Government Effectiveness and Efficiency Report, submitted to the Eighty-second Texas Legislature, 2011.
The bill would decrease the unclaimed property dormancy period for utility deposits from three years to one year; money orders from seven years to three years; and bank deposits, savings accounts, and matured certificates of deposits from five years to three years.
The bill would increase the allowable service, maintenance, or other charges assessed by money order issuers from $0.50 to $1 per month.
The bill would take effect September 1, 2011.
Methodology
The Comptroller based its estimated gain on data gathered from its files for the three property types outlined in the bill. The agency's estimate reflects a one-time gain of $78 million in fiscal 2013. The increase in service, maintenance, and other fees that could be assessed by money order issuers would not affect the projected revenue gain because the dormancy period decrease from seven years to three years would offset any potential losses.
The Comptroller based its estimated gain on data gathered from its files for the three property types outlined in the bill. The agency's estimate reflects a one-time gain of $78 million in fiscal 2013.
The increase in service, maintenance, and other fees that could be assessed by money order issuers would not affect the projected revenue gain because the dormancy period decrease from seven years to three years would offset any potential losses.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, JI, RN
JOB, KK, JI, RN