TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB753 by Shapleigh (Relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction.), 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 | ($863,902) | $863,902 | 1.0 |
2009 | ($861,402) | $861,402 | 1.0 |
2010 | ($861,402) | $861,402 | 1.0 |
2011 | ($861,402) | $861,402 | 1.0 |
2012 | ($863,902) | $863,902 | 1.0 |
The bill would amend the Finance Code relating to the regulation of a person who offers, services, or brokers a deferred presentment transaction. The bill would require the commissioner of the Office of Consumer Credit Commissioner (OCCC) to contract with a person to establish a database for the compilation of certain information from persons who offer, service, or broker deferred presentment transactions. The bill would also require the commissioner to analyze data pertaining to the provisions of this bill and prepare a report for the legislature. This bill would authorize the Finance Commission of Texas to adopt certain rules related to implementing the provisions of the bill.
This bill would take effect September 1, 2007.
It is estimated that OCCC would have a cost associated with regulating and certifying individuals who offer, service, or broker a deferred presentment transaction. Based on the analysis of OCCC, it is assumed that registering facilitators and regulating this industry would necessitate additional resources at a cost of $426,738 through 2009.
OCCC also estimates costs for staff of $35,000 for 1.0 FTE each year from fiscal year 2008 through fiscal year 2012. Other operating expenses, travel, and consumable supplies are estimated at $9,000 in fiscal year 2008, $6,500 in fiscal year 2009 through fiscal year 2011, and $9,000 in fiscal year 2012. Professional services for contracted database services are estimated at $800,000 each fiscal year from 2008 through fiscal year 2012. Estimated costs also include $9,902 each year from fiscal year 2008 through fiscal year 2012 for associated benefits.
This analysis assumes that any increased costs resulting from implementing the provisions of the bill would be offset by an equal increase in fee revenue generated because OCCC is required by statute to adjust fees to generate revenue sufficient to cover all direct and indirect costs. Since OCCC reports that fees provided for in the bill are not sufficient to cover all additional expenses, this analysis assumes any additional revenues would be generated from other application or licensing fee increases.
Source Agencies: | 466 Office of Consumer Credit Commissioner
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LBB Staff: | JOB, JRO, MW, TGl
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