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: HB206 by Bernal (Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB206, As Introduced : an impact of $0 through the biennium ending August 31, 2023. 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 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($291,585)$291,5853.02023($282,985)$282,9853.02024($282,985)$282,9853.02025($282,985)$282,9853.02026($286,585)$286,5853.0 Fiscal AnalysisThe bill would limit the number of refinances and number of installments for payday and title loans. The bill would also require a Credit Access Business (CAB) to review documentation establishing a consumer's income. CABs would be prohibited from assisting a consumer in obtaining loans other than payday or title loans, and be prohibited from transferring its license.
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: HB206 by Bernal (Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.), As Introduced
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB206 by Bernal (Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.), 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
HB206 by Bernal (Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.), As Introduced
HB206 by Bernal (Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB206, As Introduced : an impact of $0 through the biennium ending August 31, 2023. 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 HB206, As Introduced : an impact of $0 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2022 $0
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Five-Year Impact:
2022 ($291,585) $291,585 3.0
2023 ($282,985) $282,985 3.0
2024 ($282,985) $282,985 3.0
2025 ($282,985) $282,985 3.0
2026 ($286,585) $286,585 3.0
Fiscal Analysis
The bill would limit the number of refinances and number of installments for payday and title loans. The bill would also require a Credit Access Business (CAB) to review documentation establishing a consumer's income. CABs would be prohibited from assisting a consumer in obtaining loans other than payday or title loans, and be prohibited from transferring its license.
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 it would need to add three Financial Examiners along with other costs for a total of $291,585 in FY 2022, $282,985 in FY 2023-2025, and $286,585 in FY 2026. The agency will recover its cost through assessment of CABs.
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.
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 > 452 Dept of License & Reg, 466 Consumer Credit Comm, 608 Department of Motor Vehicles
452 Dept of License & Reg, 466 Consumer Credit Comm, 608 Department of Motor Vehicles
LBB Staff: b > td > JMc, AAL, MB, RRE
JMc, AAL, MB, RRE