COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0080-01

Bill No.: SB 131

Subject: Credit & Bankruptcy, Banks & Financial Institutions, Consumer Protection

Type: Original

Date: December 15, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Economic Development-Division of Finance and Division of Credit Unions assume the proposal would have no fiscal impact on their agencies.



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



The proposal could have a negative effect on financial institutions classified as small businesses, as it lowers the maximum penalties consumers must pay for late payments on certain credit transactions.



DESCRIPTION



This act modifies the maximum penalties a consumer must pay for late payments on certain credit transactions. Under the act, a lender may charge a late payment of 2% of the minimum payment due or $15, whichever is less, on a small loan payment which is fifteen days or more in default.



This act also modifies the late charge on retail credit sales. Under the act, the maximum late charge that can be charged is $5 (reduced from $10) or $2 (reduced from $5) when the monthly installment due is less than $25.



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









Jeanne Jarrett, CPA

Director

December 15, 2000