LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
April 8, 2009

TO:
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB80 by Flynn ( relating to the regulation of credit reporting bureaus; providing penalties.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB80, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable Revenue Gain/(Loss) from
General Revenue Fund
1 		Probable Revenue Gain from
General Revenue Fund
1 		Change in Number of State Employees from FY 2009
2010 ($151,313) $151,313 2.0
2011 ($138,813) $138,813 2.0
2012 ($138,813) $138,813 2.0
2013 ($138,813) $138,813 2.0
2014 ($141,313) $141,313 2.0

Fiscal Analysis

The bill would amend the Finance Code by adding Chapter 158 and would authorize the Finance Commission to adopt and enforce rules requiring the licensing and regulation of credit reporting bureaus. The Office of Consumer Credit Commissioner would be responsible for licensing and enforcement duties associated with the passage of the committee substitute instead of the Department of Banking as written in the introduced bill. The Office of Attorney General would be authorized to file a suit on behalf of claimants on a security bond posted by license applicants.

The bill would take effect on September 1, 2009.


Methodology

This analysis is based on information provided by the Office of Consumer Credit Commissioner and the Office of Attorney General and includes the following assumptions:

The Office of Consumer Credit Commissioner would need 2.0 new FTEs including an Administrative Assistant III with a salary and benefits cost of $46,028 each fiscal year and a Financial Examiner I with a salary and benefits cost of $59,785 each year to handle the increase in the licensee population. An additional $33,000 is needed each fiscal year for travel, operating, and consumable expenses. Technology expenses include $10,000 in fiscal year 2010 to make programming changes to the proprietary database, and $2,500 would be needed in fiscal years 2010 and 2014 for computers and software for the new FTEs. The Office of Consumer Credit Commissioner is self-leveling and is statutorily required to generate revenues sufficient to cover all direct and indirect costs.

Duties and responsibilities for the Office of Attorney General associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.


Technology

Includes $10,000 in fiscal year 2010 to make programming changes to the proprietary database and $2,500 in fiscal years 2010 and 2014 for computers and software for the new FTEs.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
302 Office of the Attorney General, 466 Office of Consumer Credit Commissioner
LBB Staff:
JOB, JRO, MW, ACa