LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 23, 2001 TO: Honorable Kip Averitt, Chair, House Committee on Financial Institutions FROM: John Keel, Director, Legislative Budget Board IN RE: SB272 by Carona (Relating to interest charges and other costs of certain loans.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB272, As Engrossed: positive impact of $199,000 through the * * biennium ending August 31, 2003. * * * * 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 * * 2002 $95,000 * * 2003 104,000 * * 2004 105,000 * * 2005 115,000 * * 2006 127,000 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from General Revenue Fund * * 0001 0001 * * 2002 $(100,000) $195,000 * * 2003 (100,000) 204,000 * * 2004 (100,000) 205,000 * * 2005 (100,000) 215,000 * * 2006 (100,000) 227,000 * *************************************************************************** Fiscal Analysis The provisions of the bill amend the Finance Code by requiring the Finance Commission to instruct the Office of Consumer Credit Commissioner (OCCC) to study high cost mortgage loans, as well as other duties. The provisions of the bill would no longer require the Finance Commission to perform an annual study on the availability of credit and would change the amount of an administrative fee from 50 cents to $1 that the Comptroller collects on behalf of the Finance Commission. The effective date of the bill is September 1, 2001. Methodology Currently, the Finance Commission is appropriated up to $100,000 to perform an annual study on the availability of credit. The OCCC estimates the new study would cost the same amount as the current annual study performed by the Finance Commission. The Comptroller estimates an increase in revenue, as shown above related to carrying out the Finance Commission's responsibilities. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 466 Office of Consumer Credit Commissioner LBB Staff: JK, JO, RT, DE