COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3555-02
Bill No.: SCS for SB 884
Subject: Banks and Financial Institutions; Business and Commerce; Consumer Protection; Credit and Bankruptcy
Type: Original
Date: February 26, 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 state that the proposed legislation imposes no additional duties on either division, therefore there is no fiscal impact.
Officials from the Office of State Courts Administrator stated there would be no fiscal impact on the Courts.
Officials from the Office of Prosecution Services indicated that any costs to prosecutors could be absorbed.
In response to identical legislation from this session, officials from the Office of Attorney General indicated this proposal would have no fiscal impact on their agency.
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
This proposed legislation could have an impact on businesses dealing in payday loans due to restrictions on fee amounts charged on certain unsecured consumer loan transactions in which cash is advanced.
DESCRIPTION
This proposed legislation limits fees to be charged on payday loans to fifteen dollars per one hundred dollars of principal for the first thirty days and three percent per month for any loan extended beyond thirty days. A payday lender cannot have two outstanding loans to the same person at any one time. One payday loan cannot be repaid by the proceeds of another payday loan from the same lender.
DESCRIPTION (continued)
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
Office of Prosecution Services
Office of Attorney General
Mickey Wilson, CPA
Acting Director
February 26, 2002