LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 4, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB242 by Shapleigh (Relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB242, 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
May 4, 2009
TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB242 by Shapleigh (Relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction.), As Introduced
TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB242 by Shapleigh (Relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction.), As Introduced
Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB242 by Shapleigh (Relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction.), As Introduced
SB242 by Shapleigh (Relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB242, 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 SB242, 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 ($865,028) $865,028 1.0 2011 ($852,528) $852,528 1.0 2012 ($852,528) $852,528 1.0 2013 ($852,528) $852,528 1.0 2014 ($855,028) $855,028 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 ($865,028) $865,028 1.0 2011 ($852,528) $852,528 1.0 2012 ($852,528) $852,528 1.0 2013 ($852,528) $852,528 1.0 2014 ($855,028) $855,028 1.0
2010 ($865,028) $865,028 1.0
2011 ($852,528) $852,528 1.0
2012 ($852,528) $852,528 1.0
2013 ($852,528) $852,528 1.0
2014 ($855,028) $855,028 1.0
Fiscal Analysis
The bill would amend the Finance Code so that a person who offers or brokers a deferred presentment transaction, including credit service organizations, must be certified and regulated by the Office of Consumer Credit Commissioner (OCCC). The bill would require the OCCC to prescribe a form for certification, and would outline certification fees and bond requirements for a person who offers a deferred presentment transaction. In addition, the OCCC must establish a database that certified persons could submit information required by the bill. The OCCC would have to prescribe an application for certification no later than November 1, 2009. The bill would require the OCCC to select a database provider no later than January 1, 2010. A person who offers, services, or brokers a deferred presentment transaction would be required to be certified and file a bond no later than January 1, 2010. The bill would take effect September 1, 2009.
The bill would amend the Finance Code so that a person who offers or brokers a deferred presentment transaction, including credit service organizations, must be certified and regulated by the Office of Consumer Credit Commissioner (OCCC). The bill would require the OCCC to prescribe a form for certification, and would outline certification fees and bond requirements for a person who offers a deferred presentment transaction. In addition, the OCCC must establish a database that certified persons could submit information required by the bill.
The OCCC would have to prescribe an application for certification no later than November 1, 2009. The bill would require the OCCC to select a database provider no later than January 1, 2010. A person who offers, services, or brokers a deferred presentment transaction would be required to be certified and file a bond no later than January 1, 2010. The bill would take effect September 1, 2009.
Methodology
Based on the information provided by the OCCC, it is assumed that OCCC would require one additional Administrative Assistant at the salary and benefits cost 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 new FTE include operating expenses and consumable supplies, totaling $6,500 each fiscal year. Technology costs include $2,500 in fiscal year 2010 and in 2014 include a computer and software for the new position. OCCC would need an initial $10,000 in 2010 for changes to the proprietary database and $800,000 each fiscal year to contract with a vendor and to implement a database system capable of collecting the data required by the bill. 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.
Based on the information provided by the OCCC, it is assumed that OCCC would require one additional Administrative Assistant at the salary and benefits cost 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 new FTE include operating expenses and consumable supplies, totaling $6,500 each fiscal year. Technology costs include $2,500 in fiscal year 2010 and in 2014 include a computer and software for the new position.
OCCC would need an initial $10,000 in 2010 for changes to the proprietary database and $800,000 each fiscal year to contract with a vendor and to implement a database system capable of collecting the data required by the bill. 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 $2,500 in fiscal years 2010 and 2014 for a computer and software, $10,000 in fiscal year 2010 for a database upgrade, and $800,000 each fiscal year 2010-2015 for a data collection database.
Technology costs include $2,500 in fiscal years 2010 and 2014 for a computer and software, $10,000 in fiscal year 2010 for a database upgrade, and $800,000 each fiscal year 2010-2015 for a data collection database.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 466 Office of Consumer Credit Commissioner
466 Office of Consumer Credit Commissioner
LBB Staff: JOB, JRO, MW, ACa
JOB, JRO, MW, ACa