COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3555-01
Bill No.: SB 884
Subject: Banks and Financial Institutions; Consumer Protection; Credit and Bankruptcy
Type: Original
Date: January 23, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Economic Development - Division of Finance and Division of Credit Unions as well as officials from the Office of State Courts Administrator stated that the proposed legislation would have no fiscal impact on their agencies.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
There could be an impact on title loan and payday loan businesses that would have to keep rates at or below the level required for enforcement of the provisions of the contracts.
DESCRIPTION
This proposed legislation prohibits any court or state official from enforcing payday loans in the amount of $5,000 or less if the total annual percentage rate charged in connection for such loan exceeds five time the market rate.
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
Office of State Courts Administrator
Mickey Wilson, CPA
Acting Director
January 23, 2002