Post-dated checks.

06LSO-0053.L2

FISCAL NOTE

This bill contains an appropriation of $177,708 from the Financial Institutions Administration Account within the EARMARKED REVENUE fund.

This bill contains an authorization of 1 Full-Time position.

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
EARMARKED REVENUE	26,250	53,550	25,250
Anticipated Expenditure Increase:
EARMARKED REVENUE	90,904	86,804	48,962

Source of revenue increase: Revenue generated through receipt of actual examination expenses paid by licensed lenders.

Assumptions: Examination expenses billed at a rate of $52.50/hour to cover direct and indirect costs associated with conducting examinations. An average of 20 hours per exam is used for the one additional FTE position that will be necessary to ensure compliance with the proposed changes. Figures are based upon conducting 25 examinations in FY 2007, 51 examinations in FY 2008, and 25 examinations in FY 2009.

Source of expenditure increase: One FTE position, additional training for the entire examination staff, and training and supervision of lenders operating in the state. The total anticipated expenditure increase in FY 2007-08 is equal to the appropriation in the bill.

Assumptions: Expenditures based on one additional FTE position at the FS03 level to account for training and additional examinations needed to regulate changes in post-dated check lending industry. Estimate for FY 2007 includes additional training for current examination staff and providing outreach seminars at four separate locations (Cheyenne, Casper, Gillette, and Rock Springs) for lenders to train them on the new requirements of the laws to try and minimize violations and excess charges being assessed to Wyoming consumers. It also includes conducting twenty-five (25) examinations, which is one-third of the seventy-six (76) currently licensed locations. FY 2008 estimate includes additional expenses for conducting examinations of the remaining fifty-one (51) licensed lenders.

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FY 2009 estimate includes exams of one-third of the lenders to begin a three-year examination cycle. FY 2009 expenses are lower as the additional FTE position will then be able to also conduct examinations of other industries that the division regulates. As a result, only one-half of the salary for the additional FTE position in FY 2009 is used in the analysis.

Prepared by:   Joe Mulberry, Dept. of Audit Phone:   777-7797

The expenditure increase reflected above could be considered an administrative cost. However, for simplicity and to follow consistent practice on legislation of this type, it is included on the fiscal note.

Prepared by:   Dean Temte, LSO    Phone:   777-7881

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Audit

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