TO: | Honorable Burt R. Solomons, Chair, House Committee on Financial Institutions |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2138 by Paxton (Relating to regulation of property tax lenders; providing a penalty.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | $0 |
2010 | $0 |
2011 | $0 |
2012 | $0 |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain from GENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2007 |
---|---|---|---|
2008 | ($81,882) | $81,882 | 1.0 |
2009 | ($74,382) | $74,382 | 1.0 |
2010 | ($74,382) | $74,382 | 1.0 |
2011 | ($74,382) | $74,382 | 1.0 |
2012 | ($76,882) | $76,882 | 1.0 |
The bill would amend the Finance Code relating to regulation of property tax lenders by requiring property tax lenders to register with the Office of Consumer Credit Commissioner (OCCC) and requiring the OCCC to regulate this industry. The bill would authorize the adoption of rules and the establishment of fees pertaining to the provisions of the bill.
This bill would take effect September 1, 2007.
Based on information provided by the Office of Consumer Credit Commissioner (OCCC), this analysis assumes that under the provisions of this bill, fewer than 100 individuals will register as property tax lenders (lenders) in FY08.
It is estimated that OCCC would have costs associated with registering these lenders. Based on the analysis of OCCC, it is assumed that registering lenders and regulating this industry would necessitate additional resources at a cost of $156,264 through FY09.
OCCC also estimates costs for staff of $42,000 for 1.0 FTE each year in FY08 through FY12. Other operating expenses, travel, equipment, and consumable supplies are estimated at $28,000 in FY08, $20,500 each year in FY09 through FY11, and $23,000 in FY12. Estimated costs also include $11,882 each year in FY08 through FY12 for associated benefits.
OCCC is required by statute to adjust fees to generate revenue sufficient to cover all direct and indirect costs. Therefore, this analysis assumes that any increased costs resulting from this bill would be offset by an equal increase in fee generated revenue.
Source Agencies: | 302 Office of the Attorney General, 466 Office of Consumer Credit Commissioner
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LBB Staff: | JOB, JRO, MW, TGl
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