LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
May 11, 2001
TO: Honorable John T. Smithee, Chair, House Committee on
Insurance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB957 by Brown, J. E. "Buster" (Relating to loss damage
waivers in certain rental-purchase agreements.), As
Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB957, As Engrossed: 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 Net 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 $(98,141) $98,141 2.0 *
* 2003 (118,411) 118,411 3.0 *
* 2004 (118,411) 118,411 3.0 *
* 2005 (118,411) 118,411 3.0 *
* 2006 (118,411) 118,411 3.0 *
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Technology Impact
Computers and software for the additional three Full-time Equivalent
Positions (FTEs) totaling $6,900 in fiscal year 2002.
Fiscal Analysis
The bill amends the Business and Commerce Code and requires the Texas
Department of Licensing and Regulation (TDLR) to register rent-to-own
merchants who offer loss damage waivers and provides for administrative
penalties. The bill provides for authority of the Commissioner and
requires merchants to register annually and to file a copy of each loss
damage waiver agreement form used by the merchant.
The bill allows for the Commissioner to enforce the provisions of the
bill and to investigate any complaint concerning the amount of loss
damage waiver fees.
The effective date of the bill is September 1, 2001.
Methodology
TDLR estimates needing three additional FTEs to implement the provisions
of the bill. Since registration and filing requirements apply on and
after January 1, 2002, only two FTEs would be needed in FY 2002. They
would include an investigator to investigate approximately 1,000
complaints from consumers involving the fee charged for loss damage
waivers and a legal assistant to assist the investigator with
administrative aspects of investigations and also determine the
jurisdiction of all related complaints received. TDLR also anticipates
needing an administrative technician to process the 800 stores offering
loss damage waivers and accompanying forms the agency anticipates
receiving annually.
It is assumed the agency will adjust its fees to cover the cost of
implementing the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 452 Texas Department of Licensing and Regulation
LBB Staff: JK, JO, RT, DE