LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 20, 2009 TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3304 by Kent (Relating to the regulation of credit services organizations.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3304, As Introduced: an impact of $0 through the biennium ending August 31, 2011. 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, 81ST LEGISLATIVE REGULAR SESSION
April 20, 2009
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3304 by Kent (Relating to the regulation of credit services organizations.), As Introduced
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3304 by Kent (Relating to the regulation of credit services organizations.), As Introduced
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3304 by Kent (Relating to the regulation of credit services organizations.), As Introduced
HB3304 by Kent (Relating to the regulation of credit services organizations.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3304, As Introduced: an impact of $0 through the biennium ending August 31, 2011. 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 HB3304, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
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 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2010 ($617,024) $617,024 2011 ($589,524) $589,524 2012 ($589,524) $589,524 2013 ($589,524) $589,524 2014 ($607,024) $607,024
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 2010 ($617,024) $617,024 2011 ($589,524) $589,524 2012 ($589,524) $589,524 2013 ($589,524) $589,524 2014 ($607,024) $607,024
2010 ($617,024) $617,024
2011 ($589,524) $589,524
2012 ($589,524) $589,524
2013 ($589,524) $589,524
2014 ($607,024) $607,024
Fiscal Year Change in Number of State Employees from FY 2009 2010 7.0 2011 7.0 2012 7.0 2013 7.0 2014 7.0 Fiscal Analysis The bill would amend the Finance Code so that credit service organizations that obtain, facilitate, or assist a consumer in obtaining an extension of credit must be licensed and regulated by the Office of Consumer Credit Commissioner (OCCC). The bill would require the Finance Commission to adopt rules related to regulation of credit service organizations by October 1, 2009. Credit service organizations would not be required to obtain a license until January 1, 2010. Section 393.1045 would take effect September 1, 2009. Section 393.1046 would take effect January 1, 2010 Methodology Based on the information provided by the Office of Consumer Credit Commissioner (OCCC), it is assumed that OCCC would require 7 additional positions, including 6 Financial Examiners at the salary and benefits cost of $377,996 each fiscal year for examinations and enforcement and one Administrative Assistant at the salary and benefit costs of $46,028 in each fiscal year to process licenses and annual renewal billings for an estimated increase in 1,500 to 2,000 new licensees. Other costs associated with the 7 FTEs include travel costs, other operating expenses, and consumable supplies, totaling $165,500 each fiscal year. Additional technology costs of $17,500 in fiscal year 2010 and 2014 include computers and software for new positions. The agency would need $10,000 in fiscal year 2010 to upgrade the agencys database and servers. The OCCC is a self-leveling agency and is statutorily required to generate revenues sufficient to cover all of the agency's direct and indirect costs. Technology Technology costs include $17,500 in fiscal years 2010 and 2014 for computers and software for 7.0 FTEs and $10,000 in fiscal year 2010 for a database upgrade. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner LBB Staff: JOB, JRO, MW, ACa
Fiscal Year Change in Number of State Employees from FY 2009 2010 7.0 2011 7.0 2012 7.0 2013 7.0 2014 7.0
2010 7.0
2011 7.0
2012 7.0
2013 7.0
2014 7.0
Fiscal Analysis
The bill would amend the Finance Code so that credit service organizations that obtain, facilitate, or assist a consumer in obtaining an extension of credit must be licensed and regulated by the Office of Consumer Credit Commissioner (OCCC). The bill would require the Finance Commission to adopt rules related to regulation of credit service organizations by October 1, 2009. Credit service organizations would not be required to obtain a license until January 1, 2010. Section 393.1045 would take effect September 1, 2009. Section 393.1046 would take effect January 1, 2010
Methodology
Based on the information provided by the Office of Consumer Credit Commissioner (OCCC), it is assumed that OCCC would require 7 additional positions, including 6 Financial Examiners at the salary and benefits cost of $377,996 each fiscal year for examinations and enforcement and one Administrative Assistant at the salary and benefit costs of $46,028 in each fiscal year to process licenses and annual renewal billings for an estimated increase in 1,500 to 2,000 new licensees. Other costs associated with the 7 FTEs include travel costs, other operating expenses, and consumable supplies, totaling $165,500 each fiscal year. Additional technology costs of $17,500 in fiscal year 2010 and 2014 include computers and software for new positions. The agency would need $10,000 in fiscal year 2010 to upgrade the agencys database and servers. The OCCC is a self-leveling agency and is statutorily required to generate revenues sufficient to cover all of the agency's direct and indirect costs.
Technology
Technology costs include $17,500 in fiscal years 2010 and 2014 for computers and software for 7.0 FTEs and $10,000 in fiscal year 2010 for a database upgrade.
Technology costs include $17,500 in fiscal years 2010 and 2014 for computers and software for 7.0 FTEs and $10,000 in fiscal year 2010 for a database upgrade.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner
450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner
LBB Staff: JOB, JRO, MW, ACa
JOB, JRO, MW, ACa