Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
John S. O'Brien, Director, Legislative Budget Board
SB2233 by Eltife (Relating to the regulation of debt management service providers and a study regarding the business of consumer debt settlement. ), Committee Report 2nd House, Substituted
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The bill would amend Chapter 394 of the Finance Code so that the Finance Commission could adopt rules to require debt settlement service providers to register and provide information to the Office of Consumer Credit Commissioner (OCCC). Additionally, the bill would create a consumer debt settlement task force to study the business of consumer debt settlement.
The bill would take effect January 1, 2010, except for Section 4, which would take effect September 1, 2009.
The OCCC estimates there are between 900-1,000 debt settlement companies.
Based on the information provided by the Office of Consumer Credit Commissioner (OCCC), it is assumed that OCCC would require 3.5 additional positions, including 1.5 Financial Examiners at the salary and benefits cost of $89,678 each fiscal year for examination and enforcement and 2.0 Administrative Assistants at the salary and benefits cost of $92,056 in each fiscal year to process licenses and track the bond requirements for an increase of approximately 1,000 new licensees. Other costs associated with the 3.5 FTEs include travel costs, other operating expenses, and consumable supplies, totaling $52,750 each fiscal year. Additional technology costs of $10,000 in fiscal year 2010 and 2014 include computers and software for new positions. The agency would need $10,000 in fiscal year 2010 to upgrade the agency’s database and servers.
The OCCC is a self-leveling agency and is statutorily required to generate revenues sufficient to cover all of the agency's direct and indirect costs.
Based on the analysis of the Office of Attorney General, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Technology costs include $10,000 in fiscal years 2010 and 2014 for computers and software for 3.5 FTEs and $10,000 in fiscal year 2010 for a database upgrade.
302 Office of the Attorney General, 466 Office of Consumer Credit Commissioner, 450 Department of Savings and Mortgage Lending, 451 Department of Banking
JOB, JRO, MW, ACa