LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 17, 1997
TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 2352, Committee Report 1st House, Substituted
Committee on Financial Institutions By: Marchant
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2352 ( Relating
to the registration of mortgage brokers.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB2352-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999. The bill would create a special account,
a new General Revenue - Dedicated account, for the collection
of all revenues to be used only to administer the provisions
of the bill.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would require mortgage brokers to register with the
Office of the Consumer Credit Commissioner and requires that
agency to examine registrants and verify compliance with various
educational requirements. The bill would also create a special
General Revenue - Dedicated account for the collection of all
money related to registering mortgage brokers to be used soley
for the same purpose.
Methodolgy
From industry information, the agency estimates that 800 registrations
will occur. The bill would require the agency to perform investigations,
verification of statutory application requirements and registrant
compliance with educational requirements.
It is assumed that
both the application fee and the annual registration fee are
due in the first year, that hearing costs will not be recoverable
from registrants, that examination costs are intended to be
covered by the annual registration fee, and that renewals require
agency approval. To conduct these activities, the agency projects
that it would need to hire additional staff.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from of State
from New - GR New - GR Dedicated Employees from
Dedicated FY 1997
NEW-DED NEW-DED
1998 $156,300 $180,000 4.0
1998 126,300 150,000 4.0
2000 101,300 120,000 3.0
2001 101,300 120,000 3.0
2002 101,300 120,000 3.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
No fiscal implication to units of local government is anticipated.
Source: Agencies:
LBB Staff: JK ,TH ,JA