NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
|
SPONSOR: |
Miera |
DATE TYPED: |
|
HB |
526 |
||
|
SHORT TITLE: |
Deferred Deposit Loan Reporting Requirements |
SB |
|
||||
|
|
ANALYST: |
Gilbert |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
|
$35.0 |
Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB 225, HB 427
Duplicates SB 433
LFC Files
Response
Received From
Regulation
and Licensing Department (RLD)
SUMMARY
Synopsis
of Bill
House Bill 526 amends the Small Loan Act of 1955
to require specific annual reporting requirements for small loan companies that
make deferred deposit loans. The annual
reports must be filed with the Regulation and Licensing Department (RLD) Financial
Institutions Division on an annual basis.
According to RLD,
implementation of this bill would require one additional FTE.
Clerk @ $20,000 + 30%
benefits $ 26,000
Office space 1
additional employee @ 150 sf per employee@ $20 per sf $ 3,000
2 filing cabinet
expansions @ $3,000 each
$ 6,000
$ 35,000
RLD states that a clerk would be needed for filing, follow up with the small loan companies to ensure that RLD receives the required reports, and compiling the data received from the annual reports.
TECHNICAL ISSUES
RLD makes the following technical observations regarding this bill:
q On page 2 line 2, the word “licensure” should be defined.
q On page 2 line 3, the word “volume” should be defined. Does this mean loan volume on a specific date, or the total volume of loans originated during the calendar year referred to on page 1 lines 21 and 22.
q On page 2 lines 5 and 6, the word “number” should be defined. Does this mean the total number of loans as of a specific date, or the total number of loans originated during the calendar year referred to on page 1 lines 21 and 22.
q On page 3 line 2 and 3, the word “other” should be defined.
q On page 3 lines 6 and 7, the word “action” should be defined. For example, action could be all collection calls and written notices, or actions taken in a court of competent jurisdiction.
q On page 3 lines 10 and 11, the word “type” should be defined. Type could mean complaints about being put on hold for an extended period or type could mean valid complaints against the licensee.
OTHER SUBSTANTIVE ISSUES
Information provided by the licensee in the annual report
might be incomplete the first year the report is required. If passed, this bill would become effective
in June 2003. In March 2004, the
licensee would be required to submit data that covers the retroactive period
AMENDMENTS
According to RLD, the incomplete data collection issue discussed above could be resolved by specifying an effective date to begin the data collection process, thus allowing the licensee time to have procedures in place to meet the data collection requirements specified in the bill.
RLG/prr