LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 8, 2009 TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB80 by Flynn ( relating to the regulation of credit reporting bureaus; providing penalties.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB80, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 8, 2009
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB80 by Flynn ( relating to the regulation of credit reporting bureaus; providing penalties.), Committee Report 1st House, Substituted
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB80 by Flynn ( relating to the regulation of credit reporting bureaus; providing penalties.), Committee Report 1st House, Substituted
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
HB80 by Flynn ( relating to the regulation of credit reporting bureaus; providing penalties.), Committee Report 1st House, Substituted
HB80 by Flynn ( relating to the regulation of credit reporting bureaus; providing penalties.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB80, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB80, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011.
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 Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2009 2010 ($151,313) $151,313 2.0 2011 ($138,813) $138,813 2.0 2012 ($138,813) $138,813 2.0 2013 ($138,813) $138,813 2.0 2014 ($141,313) $141,313 2.0
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2009 2010 ($151,313) $151,313 2.0 2011 ($138,813) $138,813 2.0 2012 ($138,813) $138,813 2.0 2013 ($138,813) $138,813 2.0 2014 ($141,313) $141,313 2.0
2010 ($151,313) $151,313 2.0
2011 ($138,813) $138,813 2.0
2012 ($138,813) $138,813 2.0
2013 ($138,813) $138,813 2.0
2014 ($141,313) $141,313 2.0
Fiscal Analysis
The bill would amend the Finance Code by adding Chapter 158 and would authorize the Finance Commission to adopt and enforce rules requiring the licensing and regulation of credit reporting bureaus. The Office of Consumer Credit Commissioner would be responsible for licensing and enforcement duties associated with the passage of the committee substitute instead of the Department of Banking as written in the introduced bill. The Office of Attorney General would be authorized to file a suit on behalf of claimants on a security bond posted by license applicants. The bill would take effect on September 1, 2009.
The bill would amend the Finance Code by adding Chapter 158 and would authorize the Finance Commission to adopt and enforce rules requiring the licensing and regulation of credit reporting bureaus. The Office of Consumer Credit Commissioner would be responsible for licensing and enforcement duties associated with the passage of the committee substitute instead of the Department of Banking as written in the introduced bill. The Office of Attorney General would be authorized to file a suit on behalf of claimants on a security bond posted by license applicants.
The bill would take effect on September 1, 2009.
Methodology
This analysis is based on information provided by the Office of Consumer Credit Commissioner and the Office of Attorney General and includes the following assumptions: The Office of Consumer Credit Commissioner would need 2.0 new FTEs including an Administrative Assistant III with a salary and benefits cost of $46,028 each fiscal year and a Financial Examiner I with a salary and benefits cost of $59,785 each year to handle the increase in the licensee population. An additional $33,000 is needed each fiscal year for travel, operating, and consumable expenses. Technology expenses include $10,000 in fiscal year 2010 to make programming changes to the proprietary database, and $2,500 would be needed in fiscal years 2010 and 2014 for computers and software for the new FTEs. The Office of Consumer Credit Commissioner is self-leveling and is statutorily required to generate revenues sufficient to cover all direct and indirect costs. Duties and responsibilities for the Office of Attorney General associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
This analysis is based on information provided by the Office of Consumer Credit Commissioner and the Office of Attorney General and includes the following assumptions:
The Office of Consumer Credit Commissioner would need 2.0 new FTEs including an Administrative Assistant III with a salary and benefits cost of $46,028 each fiscal year and a Financial Examiner I with a salary and benefits cost of $59,785 each year to handle the increase in the licensee population. An additional $33,000 is needed each fiscal year for travel, operating, and consumable expenses. Technology expenses include $10,000 in fiscal year 2010 to make programming changes to the proprietary database, and $2,500 would be needed in fiscal years 2010 and 2014 for computers and software for the new FTEs. The Office of Consumer Credit Commissioner is self-leveling and is statutorily required to generate revenues sufficient to cover all direct and indirect costs.
Duties and responsibilities for the Office of Attorney General associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Technology
Includes $10,000 in fiscal year 2010 to make programming changes to the proprietary database and $2,500 in fiscal years 2010 and 2014 for computers and software for the new FTEs.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 466 Office of Consumer Credit Commissioner
302 Office of the Attorney General, 466 Office of Consumer Credit Commissioner
LBB Staff: JOB, JRO, MW, ACa
JOB, JRO, MW, ACa