TO: | Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | SB1112 by Eltife ( relating to debt management services; providing a penalty.), Committee Report 2nd House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | $0 |
2007 | $0 |
2008 | $0 |
2009 | $0 |
2010 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2005 |
---|---|---|---|
2006 | $96,019 | ($96,019) | 1.5 |
2007 | $91,519 | ($91,519) | 1.5 |
2008 | $91,519 | ($91,519) | 1.5 |
2009 | $91,519 | ($91,519) | 1.5 |
2010 | $96,019 | ($96,019) | 1.5 |
The bill would require the Office of Consumer Credit Commissioner to regulate Consumer Debt Management Service providers, including registration and investigation responsibilities.
The bill would take effect September 1,2005, and would require registration by providers as of January 1, 2006.
It is anticipated that the Office of Consumer Credit Commissioner would require 0.5 Administrative Assistant II position ($14,000 each year in salaries) to process registrations, maintain and track bond requirement information, maintain current address locations, process annual renewal billings and collection, and maintain and review the required annual report submitted by registrants.
The agency would require 1.0 Financial Examiner II position ($39,000 each year in salaries) to investigate registrants and respond to consumer complaints.
The agency would also require $13,000 each year for travel related to investigations, $4,500 in fiscal years 2006 and 2010 for computers and related equipment, $9,900 each year for other operating expenses including consumable supplies, and $15,619 each year for employee benefits associated with the new positions.
It is anticipated that any costs associated with the bill would be offset by an increase in the amount of fee revenue generated from the new population of registrants.
Source Agencies: | 466 Office of Consumer Credit Commissioner, 451 Department of Banking
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LBB Staff: | JOB, CL, JRO, MW, RB
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