LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 8, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB315 by Sibley (Relating to continuation and functions
of the Savings and Loan Department and the regulation of
certain financial institutions and businesses.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB315, As Introduced: positive impact of $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
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 2001 *
* 0001 0001 *
* 2002 $(378,169) $378,169 6.0 *
* 2003 (366,169) 366,169 6.0 *
* 2004 (366,169) 366,169 6.0 *
* 2005 (366,169) 366,169 6.0 *
* 2006 (366,169) 366,169 6.0 *
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Technology Impact
The increase in six Full-time equivalent positions (FTEs) would require
an equal number of laptop computers and printers at a cost of $12,000.
Fiscal Analysis
The provisions of the bill require the Savings and Loan Department (SLD)
to obtain criminal background information on mortgage broker license
applicants from the Federal Bureau of Investigation (FBI). It also
requires the agency to routinely inspect mortgage brokers and to initiate
investigations on its own when reasonable cause exists.
The provisions of the bill establish various rates for renewal fees after
the expiration of the license.
The bill also continues the SLD until September 1, 2013.
Methodology
It is estimated that six additional FTEs would be required to conduct
routine inspections and it is assumed that oversight can be achieved
through examinations every four years. According to the SLD, there are
approximately 10,000 licensed individuals who are part of 2,835 mortgage
broker business units. The inspections would occur on a business
unit-based approach, as opposed to an individual approach. It is
estimated that the six financial examiners would examine 708 units per
year that are based throughout the state.
The provisions of the bill require the SLD to obtain FBI criminal history
records for each mortgage broker license applicant. The FBI requires
that a criminal history check be first run by the Department of Public
Safety (DPS) at $15 each. Once the DPS check is completed, the FBI will
conduct its review for $24 each. The SLD estimates that there would be
1,000 new applicants per year. The total estimated cost for the criminal
history checks is $39,000 per year, which does not include FBI checks
for renewals.
It is assumed the agency would adjust fees to offset any additional costs
to implement the bill.
The effective date of the bill is September 1, 2001.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 449 Finance Commission of Texas, 450 Texas
Savings and Loan Department, 116 Sunset Advisory
Commission
LBB Staff: JK, JO, RT, DE