LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 11, 2025 TO: Honorable Pete Flores, Chair, Senate Committee on Criminal Justice FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1498 by Nichols (Relating to civil asset forfeiture of digital currency or other similar property.), As Introduced The fiscal implications of the bill cannot be determined since the total number and value of forfeitures recovered by the state are unknown. The bill would require law enforcement agencies to transfer seized digital currency, NFTs, and stablecoins to a wallet that is not connected to an exchange or network and only accessible by the law enforcement agency or the attorney representing the state.The bill would make forfeiture proceedings involving property that is a digital currency, NFT, stablecoin, or wallet not connected to an exchange or network, commence in the county of the law enforcement agency that initiated the seizure of the property.The bill would allow regulated financial institutions, at the time the appropriate seizure warrant is served on the institution, to transfer any digital currency, NFT, or stablecoin held by the institution to a secure wallet that is not connected to an exchange or network and is in the possession of a law enforcement agency or an attorney representing the stateAccording to the Comptroller of Public Accounts, the bill could increase revenue to the state; however, since the total number and value of future forfeitures are unknown, the total increase can not be determined.It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant. Local Government ImpactThe fiscal implications of the bill cannot be determined at this time. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, MGol, DA, JPa
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 11, 2025
TO: Honorable Pete Flores, Chair, Senate Committee on Criminal Justice FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1498 by Nichols (Relating to civil asset forfeiture of digital currency or other similar property.), As Introduced
TO: Honorable Pete Flores, Chair, Senate Committee on Criminal Justice
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1498 by Nichols (Relating to civil asset forfeiture of digital currency or other similar property.), As Introduced
Honorable Pete Flores, Chair, Senate Committee on Criminal Justice
Honorable Pete Flores, Chair, Senate Committee on Criminal Justice
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1498 by Nichols (Relating to civil asset forfeiture of digital currency or other similar property.), As Introduced
SB1498 by Nichols (Relating to civil asset forfeiture of digital currency or other similar property.), As Introduced
The fiscal implications of the bill cannot be determined since the total number and value of forfeitures recovered by the state are unknown.
The fiscal implications of the bill cannot be determined since the total number and value of forfeitures recovered by the state are unknown.
The bill would require law enforcement agencies to transfer seized digital currency, NFTs, and stablecoins to a wallet that is not connected to an exchange or network and only accessible by the law enforcement agency or the attorney representing the state.The bill would make forfeiture proceedings involving property that is a digital currency, NFT, stablecoin, or wallet not connected to an exchange or network, commence in the county of the law enforcement agency that initiated the seizure of the property.The bill would allow regulated financial institutions, at the time the appropriate seizure warrant is served on the institution, to transfer any digital currency, NFT, or stablecoin held by the institution to a secure wallet that is not connected to an exchange or network and is in the possession of a law enforcement agency or an attorney representing the stateAccording to the Comptroller of Public Accounts, the bill could increase revenue to the state; however, since the total number and value of future forfeitures are unknown, the total increase can not be determined.It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, MGol, DA, JPa
JMc, MGol, DA, JPa