LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 28, 1995 TO: Honorable Kenny Marchant, Chair IN RE: Committee Substitute Committee on Financial Institutions for House of Representatives House Bill Austin, Texas No. 2406 FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2406 (relating to debt cancellation contracts offered by banks with certain installment loan transactions) 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 provide for debt cancellation in the event of death on certain retail installment agreements. The Finance Commission, through the Department of Banking, shall adopt debt cancellation rules and rates. 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 Banking Number of State Department Expense Employees from Fund 508 FY 1995 GR Consolidated 1996 $166,861 2.0 1997 155,061 2.0 1998 156,310 2.0 1999 157,607 2.0 2000 166,956 2.0 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: Savings and Loan Department, Department of Banking LBB Staff: JK, VS, RR