This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0359 - Increases Exemption Amounts in Bankruptcy Proceedings

L.R. NO.  1163-03
BILL NO.  SB 359
SUBJECT:  Bankruptcy Exemptions
TYPE:     Original
DATE:     February 21, 1997


                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

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

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 from the Office of State Courts Administrator, the Office of the
Attorney General, and the Department of Revenue assume the proposed
legislation would have no fiscal impact on their agencies.

Officials from the Department of Social Services did not respond to our
fiscal impact request.

Oversight assumes the proposal would have little to no fiscal impact on the
Department of Social Services, as child support awards are not dischargeable
in bankruptcy proceedings.  The proposal could result in an increase in the
number of persons who file for bankruptcy, as the exemption amounts would be
increased.  Therefore, the Department of Social Services could experience a
delay in the payment of child support collected in certain situations,
however, the overall fiscal impact would likely be minimal.


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

Small businesses could be impacted by this proposal as the number of persons
filing for bankruptcy could increase based on the increased exemptions that
would be allowed.  The increased exemptions could also result in less funds
available for disbursement to creditors in certain bankruptcy proceedings.


DESCRIPTION

The proposal would increase the caps on personal property, homestead and head
of household exemptions for an individual subject to a bankruptcy proceeding.

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

Office of State Courts Administrator
Office of the Attorney General
Department of Revenue

NOT RESPONDING:  Department of Social Services.