Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

This bill would increase the costs of the Division of Banking because it imposes requirements to register refund anticipation loan facilitators (section 3), investigate and take enforcement actions for violations of the article (section 10), and publish consolidated annual reports based upon the annual reports filed by registrants (section 13). The bill provides no source of funding, such as a registration fee, for increased revenues to the Division of Banking to defray the additional costs.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2009 Increase/Decrease (use"-")	2010 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	62,000	62,000
Personal Services	0	57,000	57,000
Current Expenses	0	5,000	5,000
Repairs and Alterations	0	0	0
Assets	0	20,000	0
Other	0	0	0
2. Estimated Total Revenues	0	0	0

Explanation of above estimates (including long-range effect):

The personal services amount is based upon an estimate that the program would take approximately 1/4 of an FTE for clerical, 1/4 of an FTE for registration, and 1/2 of an FTE for enforcement, examination, and supervision. Assets anticipated in the initial year are the purchase of a new computer and funding a modification to the existing licensing database. Since the division of Banking is a special revenue agency, there must be some fee or assessment that could be used as a source of funding.

Memorandum

It is unclear precisely how many facilitators will be registered, especially since section 8 exempts persons facilitating for or doing business as a bank, thrift or credit union. Although 8(b) recognizes federal peremption of interest rate caps, it is not clear who in the marketplace would be impacted by the bill.

Person submitting Fiscal Note: Robert Lamont
Email Address: blamont@wvdob.org