Fiscal Note - SB 0297 - Creditors May Purchase Collateral Protection
L.R. NO. 1010-01
BILL NO. SB 297
SUBJECT: Financial Institutions
TYPE: Original
DATE: February 3, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Economic Development - Divisions of Finance
and Credit Unions and the Office of the Attorney General assume that this
proposal would have no fiscal impact on their agencies.
Department of Insurance officials assume the proposal would not have
significant fiscal impact on the department. However, if more than one such
proposal is approved during the legislative session, the department may need
to request an increase in appropriations due to the combined effect of
multiple proposals.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
This proposal could affect small businesses which would not provide evidence
of debt insurance for loans.
DESCRIPTION
The proposal, known as the "Collateral Protection Act," would allow creditors
to purchase collateral protection insurance coverage chargeable to a debtor
when the debtor fails to provide evidence of adequate insurance. The
legislation has an effective date of January 1, 1998.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Economic Development - Divisions of Finance and Credit Unions
Office of the Attorney General
Department of Insurance
This Fiscal Note is not an official copy and should not be quoted or cited.