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