LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 28, 2009 TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4072 by Chavez (Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4072, 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 28, 2009
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4072 by Chavez (Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.), 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: HB4072 by Chavez (Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.), 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
HB4072 by Chavez (Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.), As Introduced
HB4072 by Chavez (Relating to the designation of certain areas as banking development districts to encourage the establishment of financial institution branches in those areas.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4072, 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 HB4072, 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 Change in Number of State Employees from FY 2009 2010 ($61,805) $61,805 1.0 2011 ($60,830) $60,830 1.0 2012 ($60,830) $60,830 1.0 2013 ($60,830) $60,830 1.0 2014 ($61,805) $61,805 1.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2009 2010 ($61,805) $61,805 1.0 2011 ($60,830) $60,830 1.0 2012 ($60,830) $60,830 1.0 2013 ($60,830) $60,830 1.0 2014 ($61,805) $61,805 1.0
2010 ($61,805) $61,805 1.0
2011 ($60,830) $60,830 1.0
2012 ($60,830) $60,830 1.0
2013 ($60,830) $60,830 1.0
2014 ($61,805) $61,805 1.0
Fiscal Analysis
The bill would amend the Finance Code by adding Chapter 279, Banking Development Districts, and would allow for the establishment of financial institution branches in areas in need of banking services. The Finance Commission would adopt certain rules regarding the criteria for the designation of banking development districts and review applications for participation. The bill would take effect September 1, 2009, and the Finance Commission would be required to adopt rules no later than January 1, 2010.
The bill would amend the Finance Code by adding Chapter 279, Banking Development Districts, and would allow for the establishment of financial institution branches in areas in need of banking services. The Finance Commission would adopt certain rules regarding the criteria for the designation of banking development districts and review applications for participation.
The bill would take effect September 1, 2009, and the Finance Commission would be required to adopt rules no later than January 1, 2010.
Methodology
Based on the information provided by the Department of Savings and Mortgage Lending (SML), it is assumed that SML would require 1.0 additional FTE, including 0.5 Financial Examiner and 0.5 Administrative Assistant at the total salary and benefits cost of $59,830 each fiscal year to process and review applications. Additional costs include operating expenses of $1,000 each fiscal year and a technology cost of $975 in 2010 and 2014 for a computer. Based on the analysis of the Department of Banking (DOB), duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. SML and DOB are self-leveling agencies and are statutorily required to generate revenues sufficient to cover all of the agency's direct and indirect costs.
Technology
Technology cost of $975 in 2010 and 2014 for computer equipment.
Local Government Impact
It is assumed that a local government would submit an application for the designation of a banking development district only if funding and partnership opportunities were available.
Source Agencies: 301 Office of the Governor, 304 Comptroller of Public Accounts, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner, 469 Credit Union Department
301 Office of the Governor, 304 Comptroller of Public Accounts, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner, 469 Credit Union Department
LBB Staff: JOB, JRO, MW, ACa, TP
JOB, JRO, MW, ACa, TP