OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-5533

AN ACT CONCERNING THE TIME PERIOD FOR FUNDS TO ESCHEAT TO THE STATE.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Treasurer

GF - Revenue Impact

20.6 million

20.6 million

Treasurer

GF - Revenue Loss

Potential

Potential

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill extends, from three years to seven years, the period of time before which certain assets are escheated to the state as unclaimed property. This shifts the timing of receipt of certain escheated assets to the General Fund from FY 17, FY 18, FY 19, and FY 20 to FY 21, FY 22, FY 23 and FY 24, respectively. It is estimated that the annualized revenue impact of this shift is approximately $20.6 million.1

To the extent that an extended dormancy period results in claims on property prior to it being escheated to the state, this could result in a General Fund revenue loss.

The Out Years

The shift of timing in the receipt of revenue is limited to FY 17 through FY 24.

Sources:

Core-CT Financial Accounting System Revenue Actuals

1 The estimate is based on the average annual amount of revenue collected from escheated assets from banks or financial institutions using the current three-year dormancy period from FY 05 through FY 15.