TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB884 by Eltife (relating to the regulation of consumer debt management services. ), Committee Report 1st House, Substituted |
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 | ($54,902) | $54,902 | 1.0 |
2009 | ($51,402) | $51,402 | 1.0 |
2010 | ($51,402) | $51,402 | 1.0 |
2011 | ($51,402) | $51,402 | 1.0 |
2012 | ($53,902) | $53,902 | 1.0 |
The bill would amend the Finance Code relating to the regulation of consumer debt management services by requiring for profit consumer debt management service providers to register with the Office of Consumer Credit Commissioner (OCCC) and requiring the OCCC to regulate this industry. The bill would authorize 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 200 individuals will register as consumer debt management service providers (providers) in FY08, under the provisions of this bill.
It is estimated that OCCC would have costs associated with registering these providers. Based on the analysis of OCCC, it is assumed that registering providers and regulating this industry would necessitate additional resources at a cost of $106,304 through FY09.
OCCC also estimates costs for staff of $35,000 for 1.0 FTEs in FY08 through FY12. Other operating expenses, equipment, and consumable supplies are estimated at $10,000 in FY08, $6,500 in FY09 through FY11, and $9,000 in FY12. Estimated costs also include $9,902 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: | 466 Office of Consumer Credit Commissioner
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LBB Staff: | JOB, JRO, MW, TGl
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