LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 6, 1997
TO: Honorable Kenny Marchant, Chair IN RE: House Bill No. 2352
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-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(158,000) to General Revenue Related Funds
through the biennium ending August 31, 1999.
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.
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 General General Revenue Employees from
Revenue Fund Fund FY 1997
0001 0001
1998 ($231,000) $120,000 6.5
1998 (227,000) 180,000 6.5
2000 (230,000) 120,000 6.5
2001 (233,000) 120,000 6.5
2002 (235,000) 120,000 6.5
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 ($111,000)
1999 (47,000)
2000 (110,000)
2001 (113,000)
2002 (115,000)
Similar annual fiscal implications These impacts would continue
as long as the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 302 Office of the Attorney General
LBB Staff: JK ,TH ,JA