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F I S C A L I M P A C T R E P O R T

SPONSOR:	Smith		DATE TYPED:	02/20/03		HB
SHORT TITLE:		License Fees For Securities Representatives				SB	596
					ANALYST:		Gilbert

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
$315.0	$630.0	$945.0	Recurring	General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Response Received From

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

Senate Bill 596 permits license fees for securities sales representatives and investment adviser representatives to be increased from $35.00 to $50.00 per year.

July 1, 2003, is the effective date of the fee increase provisions contained in this bill.

FISCAL IMPLICATIONS

The RLD Securities Division currently licenses 63,000 securities sales representatives and investment adviser representatives. Rather than immediately increasing fees the full $15.00 per year as allowed by this bill, RLD intends to increase the fees by $5.00 per year for the next three fiscal years.

ADMINISTRATIVE IMPLICATIONS

According to RLD, this bill will have no administrative impact on RLD.

POSSIBLE QUESTIONS

Why is RLD planning a three fiscal year/ three-step phase in of this fee increase?

RLG/sb