LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 23, 2001 TO: Honorable David Sibley, Chair, Senate Committee on Business & Commerce 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.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB957, Committee Report 1st House, Substituted: 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. * ************************************************************************** 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: ************************************************************************** *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 $(136,111) $136,111 3.0 * * 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 * ************************************************************************** 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. 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