Fiscal Note - SB 0148 - Management of Escrow Accounts By Real Estate
L.R. NO. 0693-03
BILL NO. Truly Agreed To And Finally Passed HCS for SB 148
SUBJECT: Escrow Accounts
TYPE: Original
DATE: May 2, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development (DED)-Professional
Registration (DPR), Division of Finance (DOF) and Division of Credit Unions
(DCU) and the Department of Insurance (INS) assume the proposed legislation
would have either insignificant or no fiscal impact on their agencies.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would change requirements for the management of
escrow accounts controlled by real estate settlement agents. A buyer, seller
or lender which is a financial institution would not be required to convey
certified funds to make payments, disbursements or other transfers to escrow
accounts. The current law prohibits a title insurer, title insurance agency
or title insurance agent from making any payment, disbursement or withdrawal
in excess of $10,000, unless there has been a corresponding deposit at least
ten days prior to such action. This proposal would exempt funds received
from a financial institution from such limitation.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Economic Development-Professional Registration, Division of
Finance, Division of Credit Unions
Department of Insurance
This Fiscal Note is not an official copy and should not be quoted or cited.