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
  
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*  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.                                                             *
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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:
  
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*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