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: HB3391 by Turner, Chris (Relating to fees paid to a third party in connection with certain extensions of consumer credit.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3391, 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 Revenue Gain/(Loss) fromLocal/Not Appropriated Funds8888 Probable Savings/(Cost) fromLocal/Not Appropriated Funds8888 Change in Number of State Employees from FY 20212022($630,052)$630,052(8.0)2023($680,052)$680,052(8.0)2024($680,052)$680,052(8.0)2025($680,052)$680,052(8.0)2026($681,552)$681,552(8.0) Fiscal AnalysisThe bill would prohibit third-party fees for transacting, arranging, guaranteeing, or negotiating consumer loans.
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: HB3391 by Turner, Chris (Relating to fees paid to a third party in connection with certain extensions of consumer credit.), As Introduced
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3391 by Turner, Chris (Relating to fees paid to a third party in connection with certain extensions of consumer credit.), 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
HB3391 by Turner, Chris (Relating to fees paid to a third party in connection with certain extensions of consumer credit.), As Introduced
HB3391 by Turner, Chris (Relating to fees paid to a third party in connection with certain extensions of consumer credit.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3391, As Introduced : an impact of $0 through the biennium ending August 31, 2023.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3391, 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 ($630,052) $630,052 (8.0)
2023 ($680,052) $680,052 (8.0)
2024 ($680,052) $680,052 (8.0)
2025 ($680,052) $680,052 (8.0)
2026 ($681,552) $681,552 (8.0)
Fiscal Analysis
The bill would prohibit third-party fees for transacting, arranging, guaranteeing, or negotiating consumer loans.
The bill would prohibit third-party fees for transacting, arranging, guaranteeing, or negotiating consumer loans.
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 this amendment would likely eliminate 90% of credit access business, which would reduce the agency's staffing needs by eight FTEs and other costs in the amount of $630,052 in FY 2022 and $680,052 in FY 2023-2025. These operational savings are reflected above; it is assumed that revenue would also be reduced in like amounts to reflect reduced operations.
The OCCC anticipates that this amendment would likely eliminate 90% of credit access business, which would reduce the agency's staffing needs by eight FTEs and other costs in the amount of $630,052 in FY 2022 and $680,052 in FY 2023-2025. These operational savings are reflected above; it is assumed that revenue would also be reduced in like amounts to reflect reduced operations.
The OCCC anticipates that this amendment would likely eliminate 90% of credit access business, which would reduce the agency's staffing needs by eight FTEs and other costs in the amount of $630,052 in FY 2022 and $680,052 in FY 2023-2025. These operational savings are reflected above; it is assumed that revenue would also be reduced in like amounts to reflect reduced operations.
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 > 466 Consumer Credit Comm
466 Consumer Credit Comm
LBB Staff: b > td > JMc, AAL, MB, RRE
JMc, AAL, MB, RRE