LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 13, 2021 TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1937 by Pacheco (Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1937, As Introduced : an impact of $0 through the biennium ending August 31, 2023. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2022$02023$02024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromLocal/Not Appropriated Funds8888 Probable Revenue Gain/(Loss) fromLocal/Not Appropriated Funds8888 Change in Number of State Employees from FY 20212022$500,164($500,164)(6.0)2023$550,164($550,164)(6.0)2024$550,164($550,164)(6.0)2025$550,164($550,164)(6.0)2026$551,664($551,664)(6.0) Fiscal AnalysisThe bill would create a 36% maximum annual percentage rate for any loan that a credit access business assists a consumer in obtaining.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 13, 2021
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1937 by Pacheco (Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions.), As Introduced
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1937 by Pacheco (Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions.), As Introduced
Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1937 by Pacheco (Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions.), As Introduced
HB1937 by Pacheco (Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1937, As Introduced : an impact of $0 through the biennium ending August 31, 2023.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1937, As Introduced : an impact of $0 through the biennium ending August 31, 2023.
General Revenue-Related Funds, Five- Year Impact:
2022 $0
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Five-Year Impact:
2022 $500,164 ($500,164) (6.0)
2023 $550,164 ($550,164) (6.0)
2024 $550,164 ($550,164) (6.0)
2025 $550,164 ($550,164) (6.0)
2026 $551,664 ($551,664) (6.0)
Fiscal Analysis
The bill would create a 36% maximum annual percentage rate for any loan that a credit access business assists a consumer in obtaining.
Methodology
The Office of Consumer Credit Commissioner (OCCC) is a self-directed, semi-independent state entity and does not receive appropriated funds. The OCCC is responsible for funding all direct and indirect operational costs and sets the amount of fees, penalties, charges, and revenues required to cover these costs.The OCCC anticipates that the bill would reduce credit access business by 75%, therefore the agency would need to eliminate 75% of the 8 Financial Examiners that help with licensing exams for this type of business. This would total a decrease of 6 FTEs annually and the savings estimated above; it is assumed there would be a reduction in revenue due to these operational savings.
Technology
No fiscal implication to technology is anticipated.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 450 Dept Savings and Mortgage Lending, 466 Consumer Credit Comm
450 Dept Savings and Mortgage Lending, 466 Consumer Credit Comm
LBB Staff: b > td > JMc, AAL, MB, RRE
JMc, AAL, MB, RRE