Collection agencies.

11LSO-0017.C1

FISCAL NOTE

	FY 2012	FY 2013	FY 2014
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
EARMARKED REVENUE	$117,300	$189,250	$210,250

Source of revenue increase:

Revenue will be generated through the receipt of license fees and examination expenses paid by collection agencies.

Assumptions:

License renewal fees for 391 existing main offices and 200 anticipated branch offices.  Renewal fees are $300 for the main office and $50 for branch offices.

Examination expenses are billed at a rate of $52.50/hour to cover the direct and indirect costs associated with conducting examinations of 591 licenses.  Figures are based upon conducting 118 examinations in FY 2013 and 158 examinations in FY 2014 at an average of 10 hours per exam.

Of the above listed revenue increase, it is anticipated that approximately $9,737 per year or $19,474 over the biennium will be expended to cover the collection agency board salary and travel expenses.  The additional revenue will be transferred back to the Banking Division of the Department of Audit to fund the direct and indirect costs of administering the regulatory provisions required for collection agencies as provided in the legislation.  Additionally, the collection agency board shall transfer to the Banking Division of the Department of Audit any unappropriated or unexpended funds not otherwise obligated.

Prepared by:   Kelley Shepp, LSO Phone: 777-7881

(Information provided by: Marlene Aitchison, Dept. of Audit 

Phone: 777-7792)