COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0645-01

Bill No.: Perfected SB 179

Subject: Banks & Financial Institutions, Mortgages & Deeds, Property-Real & Personal

Type: Original

Date: March 6, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None $0 $0 $0
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 $0 $0 $0
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 at the Department of Economic Development-Divisions of Finance, Credit Unions, and Insurance, and the Department of Insurance 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



This proposal would allow mortgage brokers to substitute a surety bond for the required annual audit. The Department of Economic Development notes that it is possible that some brokers will be able to obtain the bond at a lower cost than the audit.



Oversight notes that some CPA firms currently providing the required audit services likely may be classified as small businesses, and may be adversely affected by the proposal.



DESCRIPTION



This act exempts residential mortgage brokers from filing annual audits if they have posted a surety bond in an amount of $100,000.



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

Division of Professional Registration

Department of Insurance







Jeanne Jarrett, CPA

Director

March 6, 2001