LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 7, 2013 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1166 by Hegar (Relating to certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1166, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 7, 2013
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1166 by Hegar (Relating to certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act.), As Introduced
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1166 by Hegar (Relating to certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act.), As Introduced
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1166 by Hegar (Relating to certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act.), As Introduced
SB1166 by Hegar (Relating to certain procedures and civil penalties under the Deceptive Trade Practices-Consumer Protection Act.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1166, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1166, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
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 Revenue Gain/(Loss) fromJudicial Fund573 2014 ($2,100,000) 2015 ($2,100,000) 2016 ($2,100,000) 2017 ($2,100,000) 2018 ($2,100,000)
Fiscal Year Probable Revenue Gain/(Loss) fromJudicial Fund573 2014 ($2,100,000) 2015 ($2,100,000) 2016 ($2,100,000) 2017 ($2,100,000) 2018 ($2,100,000)
2014 ($2,100,000)
2015 ($2,100,000)
2016 ($2,100,000)
2017 ($2,100,000)
2018 ($2,100,000)
Fiscal Analysis
The bill would amend the Business and Commerce Code to reduce the amount of civil penalties imposed for violations of the Deceptive Trade Practices - Consumer Protection Act (DTPA) from $20,000 to $10,000. However, the bill also provides that if the finder of fact determines that the defendant intentionally violated the DTPA, the penalty remains at $20,000 per violation. Furthermore, the bill would remove the provision imposing an additional civil penalty of $250,000 if the act or practice targets persons who are 65 years old, or older.
Methodology
According to the Office of the Attorney General (OAG), the agency responsible for litigation and collection of civil penalties under the DTPA, the average amount of revenue collected over the last three fiscal years was $4,200,000. All civil penalties collected by the OAG under the DTPA are deposited to the Judicial Fund Account No. 573 and allocated to the Supreme Court to provide basic civil legal services for eligible low income Texans. The OAG anticipates that the bill would reduce civil penalty collections under the DTPA by 50 percent, resulting in a revenue loss of $2,100,000 per fiscal year to the Judicial Fund Account No. 573. This 50 percent reduction in revenue is based on the OAG assuming that they would be unable to prove that a defendant intentionally violated the DTPA, resulting in the civil penalty being reduced from $20,000 to $10,000. In addition, the OAG indicates that the bill could reduce the number of cases the agency decides to file regarding the DTPA and as a result, fewer attorney fees may be collected by the agency.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 302 Office of the Attorney General
302 Office of the Attorney General
LBB Staff: UP, AG, EP, JM
UP, AG, EP, JM