| TO: | Honorable Tan Parker, Chair, House Committee on Investments & Financial Services |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | HB3824 by Capriglione (Relating to the regulation of certain short-term consumer loans; imposing an assessment and fees; adding provisions subject to a criminal penalty; requiring an occupational license.), As Introduced |
The bill would amend the Finance Code relating to the regulation of certain short-term consumer loans; imposing an assessment and fees; adding provisions subject to a criminal penalty; requiring an occupational license.
The bill would require regulation of a new type of licensee authorized to make short-term installment loans by the Office of Consumer Credit Commissioner (OCCC). The bill adds an application fee of up to $200, a license fee that would be set by rule, and an annual assessment of up to $200. Annual assessment fees would be deposited to a Financial Literacy Fund held with Texas Treasury Safekeeping Trust Company (TTSTC) to improve consumer credit, financial education, and asset-building opportunities in this state.
As the OCCC is a self-directed, semi-independent agency, none of the fees which are apportioned or raised are deposited to the State Treasury, but rather to the account of the OCCC at the TTSTC.
The bill would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in the bill would be subject to funds consolidation review by the current Legislature.
Based on information provided by the OCCC and Office of the Attorney General, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
| Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 466 Office of Consumer Credit Commissioner
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| LBB Staff: | UP, CL, NV, JLi, TBo
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