LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 1, 2015 TO: Honorable Tan Parker, Chair, House Committee on Investments & Financial Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB858 by Sanford (Relating to the presumption of abandonment of an inactive checking or savings account or a matured certificate of deposit.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB858, As Introduced: a negative impact of ($187,904,000) 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
April 1, 2015
TO: Honorable Tan Parker, Chair, House Committee on Investments & Financial Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB858 by Sanford (Relating to the presumption of abandonment of an inactive checking or savings account or a matured certificate of deposit.), As Introduced
TO: Honorable Tan Parker, Chair, House Committee on Investments & Financial Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB858 by Sanford (Relating to the presumption of abandonment of an inactive checking or savings account or a matured certificate of deposit.), As Introduced
Honorable Tan Parker, Chair, House Committee on Investments & Financial Services
Honorable Tan Parker, Chair, House Committee on Investments & Financial Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB858 by Sanford (Relating to the presumption of abandonment of an inactive checking or savings account or a matured certificate of deposit.), As Introduced
HB858 by Sanford (Relating to the presumption of abandonment of an inactive checking or savings account or a matured certificate of deposit.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB858, As Introduced: a negative impact of ($187,904,000) 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 HB858, As Introduced: a negative impact of ($187,904,000) 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 ($91,132,000) 2017 ($96,772,000) 2018 ($102,531,000) 2019 ($108,520,000) 2020 ($114,789,000)
2016 ($91,132,000)
2017 ($96,772,000)
2018 ($102,531,000)
2019 ($108,520,000)
2020 ($114,789,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($91,132,000) 2017 ($96,772,000) 2018 ($102,531,000) 2019 ($108,520,000) 2020 ($114,789,000)
Fiscal Year Probable Revenue (Loss) fromGeneral Revenue Fund1 2016 ($91,132,000) 2017 ($96,772,000) 2018 ($102,531,000) 2019 ($108,520,000) 2020 ($114,789,000)
2016 ($91,132,000)
2017 ($96,772,000)
2018 ($102,531,000)
2019 ($108,520,000)
2020 ($114,789,000)
Fiscal Analysis
The bill would amend the Property Code relating to the presumption of abandonment of an inactive checking or savings account or a matured certificate of deposit. Under current law, if one of these accounts in a financial institution has been inactive for three years it is presumed abandoned and is subject to the state's unclaimed property provisions. The bill would change the inactive period from three to 15 years. The bill would take effect September 1, 2015.
Methodology
To implement the provisions of the bill, any remittances from financial institutions for inactive accounts would be suspended in fiscal year 2016 for 12 years. The Comptroller's Unclaimed Property Division provided historical remittance amounts through fiscal year 2014 from those accounts affected by the bill. The fiscal impact in fiscal years 2016 through 2020 assumes that future remittances from those accounts under current law would have grown at the rate of nominal Texas personal income.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 469 Credit Union Department
304 Comptroller of Public Accounts, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 469 Credit Union Department
LBB Staff: UP, CL, NV, JLi
UP, CL, NV, JLi