COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0431-01
Bill No.: SB 123
Subject: Housing; Business and Commerce; Attorney General, State; Consumer Protection
Type: Original
Date: January 16, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| Total Estimated
Net Effect on General Revenue Fund* |
(UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
*Expected to be less than $100,000
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Economic Development - Division of Finance and Division of Credit Unions, Department of Insurance, Office of State Courts Administrator, and Office of State Public Defender state that this proposed legislation will have no fiscal impact on their agencies.
Officials from the Office of Attorney General have discussed this proposal with officials from the North Carolina Attorney General's office and, based on that office's experience with a similar measure, believe that the costs of this proposal can be absorbed with existing resources.
Officials from the Office of Prosecution Services indicate there will be no additional costs to prosecutors as a result of this proposal.
Officials from the Department of Corrections (DOC) did not respond to a request for fiscal note; however, in response to a similar proposal from last session, DOC assumed supervision through probation or incarceration would result in additional unknown costs to the department. Eight (8) persons would have to have been incarcerated per fiscal year to exceed $100,000 annually. Due to the narrow scope of this new crime, it was assumed the impact would be less than $100,000 per year for the DOC.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE FUND | |||
| Cost - Department of Corrections
Probation and incarceration expense* |
(Unknown) |
(Unknown) |
(Unknown) |
*Expected to be less than $100,000
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
This proposal could fiscally impact those small businesses that deal with high-cost home loans.
DESCRIPTION
This proposal regulates high-cost home loans and establishes certain lender reporting requirements. The proposal prohibits specific practices with respect to high-cost home loans, including prepayment penalties, issuing high-cost loans stipulating negative amortization, loan flipping, making misleading statements about a residential home loan transaction, and compensating or intimidating appraisers to influence their judgment with regard to the value of the real estate.
The effective date of this proposal is January 1, 2004, with the exception of Sections 408.756 and 408.758 (reporting requirements) that have an effective date of January 1, 2005
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
Division of Finance
Division of Credit Unions
Department of Insurance
Office of Attorney General
Office of State Courts Administrator
Office of Prosecution Services
Office of State Public Defender
NOT RESPONDING
Department of Corrections
Mickey Wilson, CPA
Director
January 16, 2003