LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 27, 1995
TO: Honorable Kenny Marchant, Chair IN RE: Committee Substitute
Committee on Financial Institutions for
House of Representatives House Bill
Austin, Texas No. 2163
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2163 (relating to loan processing and preparation fees) 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 authorize a loan fee of $25 to be charged on all
consumer loans under Chapters 3, 4, and 5 of the Texas Credit
Code. The bill would remove the prohibition on broker fees
indirectly charged to the borrower and permits charges to the
borrower for brokerage fees, discount fees and other
miscellaneous collection fees to a third party.
The Office of Consumer Credit Commissioner expects an increase in
the number of complaints associated with lender activities.
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 Cost Out Change in
Year of Consumer Number of State
Credit Expense Employees from
Fund 509 FY 1995
GR Consolidated
1996 $48,320 1.0
1997 44,470 1.0
1998 45,471 1.0
1999 46,160 1.0
2000 49,196 1.0
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: Office of Consumer Credit Commissioner
LBB Staff: JK, VS, RR