LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 17, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB272  by Carona (Relating to interest charges and other
               costs of certain loans.), As Passed 2nd House
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB272, As Passed 2nd House:  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.                                                             *
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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:
  
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*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