LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 13, 2015 TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB227 by Guillen (Relating to disposition of certain unclaimed money by local telephone exchange companies.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB227, As Engrossed: a negative impact of ($2,400,000) through the biennium ending August 31, 2017. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 13, 2015
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB227 by Guillen (Relating to disposition of certain unclaimed money by local telephone exchange companies.), As Engrossed
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB227 by Guillen (Relating to disposition of certain unclaimed money by local telephone exchange companies.), As Engrossed
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources & Economic Development
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB227 by Guillen (Relating to disposition of certain unclaimed money by local telephone exchange companies.), As Engrossed
HB227 by Guillen (Relating to disposition of certain unclaimed money by local telephone exchange companies.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB227, As Engrossed: a negative impact of ($2,400,000) through the biennium ending August 31, 2017. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB227, As Engrossed: a negative impact of ($2,400,000) through the biennium ending August 31, 2017.
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 2016 ($1,200,000) 2017 ($1,200,000) 2018 ($1,200,000) 2019 ($1,200,000) 2020 ($1,200,000)
2016 ($1,200,000)
2017 ($1,200,000)
2018 ($1,200,000)
2019 ($1,200,000)
2020 ($1,200,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromLocal Rural Scholarship Fund Probable Revenue Gain/(Loss) fromLocal Rural Economic Development Fund 2016 ($1,200,000) $800,000 $400,000 2017 ($1,200,000) $800,000 $400,000 2018 ($1,200,000) $800,000 $400,000 2019 ($1,200,000) $800,000 $400,000 2020 ($1,200,000) $800,000 $400,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromLocal Rural Scholarship Fund Probable Revenue Gain/(Loss) fromLocal Rural Economic Development Fund 2016 ($1,200,000) $800,000 $400,000 2017 ($1,200,000) $800,000 $400,000 2018 ($1,200,000) $800,000 $400,000 2019 ($1,200,000) $800,000 $400,000 2020 ($1,200,000) $800,000 $400,000
2016 ($1,200,000) $800,000 $400,000
2017 ($1,200,000) $800,000 $400,000
2018 ($1,200,000) $800,000 $400,000
2019 ($1,200,000) $800,000 $400,000
2020 ($1,200,000) $800,000 $400,000
Fiscal Analysis
The bill would amend Chapter 74 of the Property Code, regarding the report, delivery and claims process for unclaimed property. The bill would change the title of Section 74.3011 from "Delivery of Money to Rural Scholarship Fund" to "Delivery of Money to Rural Scholarship Fund and Economic Development Fund." Under current law, Section 74.3011 allows a local telephone exchange company to deliver unclaimed money to a scholarship fund outside the state treasury for needy students from rural areas to attend college, technical school, or another post secondary educational institution. Otherwise, the unclaimed money is delivered to the Comptroller for deposit to the General Revenue Fund. The bill would allow a local telephone exchange company also to deliver unclaimed money to a rural economic development fund to enable rural, low-income areas to promote or support economic development and stimulate infrastructure development in those areas. Under current law, the total amount of money from all local telephone companies that is delivered to a rural scholarship fund cannot exceed $800,000 in a state fiscal year. The bill would increase the maximum annual delivery amounts to $2 million for the two funds. Further, the bill would limit delivery to an economic development fund to the greater of $25,000 or 20 percent of available monies from each telephone company. The bill would take effect September 1, 2015.
Methodology
The bill could reduce the amount of unclaimed money delivered to the Comptroller by up to $1.2 million annually. The two rural funds, both of which are outside the State Treasury, could receive up to $1.2 million in new or additional deliveries of unclaimed money. Due to the provision restricting the amounts delivered to economic development funds to the greater of $25,000 or 20 percent of available monies, this analysis assumes that 20 percent of the $2,000,000 total allowable dollars will flow to economic development funds annually, with the remaining monies being allocated to the scholarship funds.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, SZ, SD, SJS, EMu, AG
UP, SZ, SD, SJS, EMu, AG