LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 22, 1999 TO: Honorable David Sibley, Chair, Senate Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: SB1339 by Carona (Relating to the regulation of deferred presentment transactions.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1339, As Introduced: positive impact of $165,000 through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $25,000 * * 2001 140,000 * * 2002 140,000 * * 2003 140,000 * * 2004 140,000 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss)from State Employees from * * General Revenue Fund General Revenue Fund FY 1999 * * 0001 0001 * * 2000 $(425,000) $450,000 9.0 * * 2001 (450,000) 590,000 9.0 * * 2002 (450,000) 590,000 9.0 * * 2003 (450,000) 590,000 9.0 * * 2004 (450,000) 590,000 9.0 * ************************************************************************** Fiscal Analysis The bill would authorize deferred presentment transaction loan agreements and require a license from the Office of Consumer Credit Commissioner (OCCC) to engage in making this type of loan. The bill would take effect September 1, 1999. Methodology OCCC estimates a need for nine additional FTEs and associated operating costs to license and regulate 1,000 deferred presentment loan companies. Revenue estimates are based on the agency projections of collections of the statutory annual license fee of $200 and examination fees. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TH, RT, DP