LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 17, 2013 TO: Honorable Tryon D. Lewis, Chair, House Committee On Judiciary & Civil Jurisprudence FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1254 by Thompson, Senfronia (Relating to transactions involving the assignment of rights in an individual's legal claim; authorizing the imposition of a fee.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1254, As Introduced: an impact of $0 through the biennium ending August 31, 2015. 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, 83RD LEGISLATIVE REGULAR SESSION
March 17, 2013
TO: Honorable Tryon D. Lewis, Chair, House Committee On Judiciary & Civil Jurisprudence FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1254 by Thompson, Senfronia (Relating to transactions involving the assignment of rights in an individual's legal claim; authorizing the imposition of a fee.), As Introduced
TO: Honorable Tryon D. Lewis, Chair, House Committee On Judiciary & Civil Jurisprudence
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1254 by Thompson, Senfronia (Relating to transactions involving the assignment of rights in an individual's legal claim; authorizing the imposition of a fee.), As Introduced
Honorable Tryon D. Lewis, Chair, House Committee On Judiciary & Civil Jurisprudence
Honorable Tryon D. Lewis, Chair, House Committee On Judiciary & Civil Jurisprudence
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1254 by Thompson, Senfronia (Relating to transactions involving the assignment of rights in an individual's legal claim; authorizing the imposition of a fee.), As Introduced
HB1254 by Thompson, Senfronia (Relating to transactions involving the assignment of rights in an individual's legal claim; authorizing the imposition of a fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1254, As Introduced: an impact of $0 through the biennium ending August 31, 2015. 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 HB1254, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
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 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2014 ($15,000) $15,000 2015 $0 $0 2016 ($6,000) $6,000 2017 $0 $0 2018 ($6,000) $6,000
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2014 ($15,000) $15,000 2015 $0 $0 2016 ($6,000) $6,000 2017 $0 $0 2018 ($6,000) $6,000
2014 ($15,000) $15,000
2015 $0 $0
2016 ($6,000) $6,000
2017 $0 $0
2018 ($6,000) $6,000
Fiscal Analysis
The bill would amend the Business and Commerce Code relating to transactions involving the assignment of rights in an individual's legal claim. The bill would require TDLR to license Civil Justice Funding companies by January 1, 2014 and require the companies to renew their licenses every two years on September 30. This bill does not allow TDLR to sanction or penalize any violators as the bill is written. The bill would take effect September 1, 2013.
The bill would amend the Business and Commerce Code relating to transactions involving the assignment of rights in an individual's legal claim. The bill would require TDLR to license Civil Justice Funding companies by January 1, 2014 and require the companies to renew their licenses every two years on September 30.
This bill does not allow TDLR to sanction or penalize any violators as the bill is written.
The bill would take effect September 1, 2013.
Methodology
Based on information provided by TDLR, it is assumed that costs assocaited with licensing Civil Justice Funding companies would be $15,000 in the first year and $6,000 in the first year of each subsequent biennium. For the purposes of this analyis, it is assumed that 30 licensees will be licensed with an inital application fee of $500 and a two year renewal fee of $200 in the first year of each subsequent biennium. It is also assumed that revenues from licesning and renewal fees would offset any costs to TDLR while administering the proivsions of the bill because the agency is statutorily required to generate revenues necessary to cover its direct and indirect costs of operation. Based on the information provided by the Comptroller of Public Accounts, State Office of Administrative Hearings, and the Office of the Attorney General, this analysis does not include any costs for these agencies as it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Based on information provided by TDLR, it is assumed that costs assocaited with licensing Civil Justice Funding companies would be $15,000 in the first year and $6,000 in the first year of each subsequent biennium. For the purposes of this analyis, it is assumed that 30 licensees will be licensed with an inital application fee of $500 and a two year renewal fee of $200 in the first year of each subsequent biennium. It is also assumed that revenues from licesning and renewal fees would offset any costs to TDLR while administering the proivsions of the bill because the agency is statutorily required to generate revenues necessary to cover its direct and indirect costs of operation.
Based on the information provided by the Comptroller of Public Accounts, State Office of Administrative Hearings, and the Office of the Attorney General, this analysis does not include any costs for these agencies as it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 360 State Office of Administrative Hearings, 452 Department of Licensing and Regulation
302 Office of the Attorney General, 304 Comptroller of Public Accounts, 360 State Office of Administrative Hearings, 452 Department of Licensing and Regulation
LBB Staff: UP, CL, MW, CWS, JJO
UP, CL, MW, CWS, JJO