Fiscal Note & Local Impact Statement

125 th General Assembly of Ohio

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43215-6136 ² Phone: (614) 466-3615

² Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Sub. S.B. 151

DATE:

May 25, 2004

STATUS:

As Reported by House Banking, Pensions, and Securities

SPONSOR:

Sen. Austria

LOCAL IMPACT STATEMENT REQUIRED:

No —

No local cost

 


CONTENTS:

Prohibits consumer reporting agencies from disclosing certain information obtained from insurer inquiries

 

State Fiscal Highlights

 

STATE FUND

FY 2005

FY 2006

FUTURE YEARS

General Revenue Fund

     Revenues

- 0 -

- 0 -

- 0 -

     Expenditures

- 0 -

- 0 -

- 0 -

Consumer Protection Enforcement Fund (Fund 631)

     Revenues

Potential minimal gain

Potential minimal gain

Potential minimal gain

     Expenditures

Potential minimal increase

Potential minimal increase

Potential minimal increase

Note:  The state fiscal year is July 1 through June 30.  For example, FY 2005 is July 1, 2004 – June 30, 2005.

 

·        The Attorney General’s Office may require more resources to enforce existing consumer protection laws, as applied to consumer reporting agencies.  Any such additional resources would be expected to be minimal, with accompanying minimal increases in expenditures and in revenues from civil penalties.

Local Fiscal Highlights

 

·        No direct fiscal effect on political subdivisions.

 


 


 

 

Detailed Fiscal Analysis

 

S.B. 151 would prohibit a consumer reporting agency from releasing information about a consumer's insurance coverage that it may have obtained as a result of an insurance company's inquiry into that consumer's credit history.  Exceptions to the prohibition are made for releasing such information to the insurance agent that supplied the information or to the insurance carrier that that agent represented.  The bill requires an insurance company to hold harmless an insurance agent that incurs any liability due to collecting credit information about a consumer, if the agent follows procedures established by the company.

 

Fiscal effects

 

The Attorney General’s Office (AGO) has oversight authority over other types of consumer fraud under existing law.  The effect of the bill, by subjecting consumer reporting agencies to these new requirements, is to create the potential for new violations of consumer protection law.  Any such violations, should they occur, would require the AGO to become involved in response to consumer complaints.  The bill therefore creates the potential for an increase in resources needed by the AGO.  To the extent that there was such an increase in needed resources, there would be an accompanying increase in revenue from civil penalties.  Resources for the purpose of protecting consumers are funded through the Consumer Protection Enforcement Fund (Fund 631).

 

Legislative Service Commission staff believestaff believes that any such increase in resources and revenue would be minimal.  An official with AGO confirms that they also expect a minimal fiscal effect from the bill.  There would be no fiscal effect on local governments.

 

 

 

LSC fiscal staff:  Ross Miller, Economist

 

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