LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 13, 1995
TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 1291
Committee on Financial Institutions By: Giddings
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1291 (relating to reports by banks concerning the availability of
capital to certain small businesses; providing a civil penalty)
this office has determined the following:
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 require commercial banks and bank holding
companies to provide the banking commissioner with a report
containing certain loan portfolio information within 30 days of
the ending of each calendar quarter. The bill would also provide
a penalty for each day a bank is not in compliance.
The bill would expand the duties of examiners at the Department
of Banking. The department would have to ensure the accuracy of
the data provided and ensure that each branch is in compliance
with making the report public on the specified date. Since the
bill would require that information be provided for each branch
location, there would be additional administrative expenses
because regulation currently occurs at the corporate level.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue Probable Cost out
Year Gain to Banking of
Department Banking
Department
Expense Account Expense Account
508 508
GR Consolidated GR Consolidated
1996 $296,774 $296,774
1997 241,860 241,860
1998 248,137 248,137
1999 253,061 253,061
2000 260,592 260,592
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No fiscal implication to units of local government is
anticipated.
Source: Department of Banking
LBB Staff: JK, VS, RR