OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5571

AN ACT CONCERNING CONSUMER COLLECTION AGENCIES AND DEBT COLLECTION ACTIONS.

AMENDMENT

LCO No.: 5426

File Copy No.: 417

House Calendar No.: 281

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Banking Dept.

BF - Potential Revenue Gain

Less than $3,5000

Less than $2,0000

Department of Housing

GF - Potential Cost

Up to $25,000

None

Various State Agencies

GF - Potential Cost

Less than $1,000

None

Note: BF=Banking Fund; GF=General Fund

Municipal Impact: None

Explanation

The amendment strikes the underlying bill, its associated fiscal impact, and replaces it with language that results in potential revenue gains to the Banking Fund and potential one-time costs described below.

Section 45 allows the Department of Banking to assess licensed money transmitters and student loan servicers to meet the expenses of the department. Should an assessment be levied, it would result in additional Banking Fund revenue.

Section 47 clarifies that consumer collection agencies are subject to state licensure if they collect federal income tax debt on behalf of the U.S. Department of Treasury from debtors who reside in Connecticut. To the extent that this results in additional collection agencies being licensed, an increase in revenue to the Banking Fund will occur. The initial license cost is $500 ($400 licensing fee and $100 investigation fee) and the annual renewal fee is $400. Approximately two licenses are anticipated, resulting in revenue of $1,000 in FY 17 and FY 18.

Section 63 results in a potential one-time cost of up to $25,000 to the Department of Housing for the establishment of a credit building pilot program in up to three distressed municipalities. This reflects a rent-reporting software expense. However, since the language specifies that the program is established within available appropriations, the cost is described as potential.

Sections 65 - 71 establish an international trade and investment corporation license that may be issued by the Commissioner of Banking. To the extent that this results in new licenses being issued, increased revenue to the Banking Fund will occur. The initial license cost is $2,500 and the renewal cost is $1,000. Approximately one license is anticipated, resulting in potential revenue of $2,500 in FY 17 and $1,000 in FY 18

Section 72 requires the Treasurer, within available appropriations, to report on a mechanism for converting an education saving plan1 to an ABLE account.2 This does not result in a fiscal impact as the Office of the State Treasurer has the necessary expertise to report on this subject.

Section 93 requires the Banking Committee to convene a working group, within available appropriations, to develop recommendations regarding methods to expedite foreclosure of abandoned properties. There may be a cost of less than $1,000 in FY 17 to agencies participating in the working group to reimburse agency staff for mileage expenses.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 As described in Section 529 of the Internal Revenue Code.

2 The 2014 federal ABLE Act (P. L. 113-295) allows states to establish and maintain qualified ABLE (A Better Life Experience) programs.