FISCAL NOTE
Date Requested: February 02, 2026
Time Requested: 02:51 PM |
| Agency: |
Financial Institutions, West Virginia Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3444 |
Introduced |
SB702 |
|
|---|
| CBD Subject: |
Banking and Finance |
|---|
|
FUND(S):
3041 Assessment and Examination Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB702 changes the permissible loan amount and interest rate for regulated consumer lenders, a type of license that allows lenders to make loans at a higher interest rate than the default interest rate in West Virginia. The agency anticipates that it will spend additional time reviewing a larger sample size of loans during examinations, which occur every 18 months, to ensure compliance with the statute and monitor the effect of the proposed changes.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
10,000 |
20,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
10,000 |
20,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The agency estimates increased examination expenses of approximately $10,000 per cycle to ensure compliance with statutory changes and subsequent effects of interest rate increases on loan activity and default rates. Each licensee must be reviewed by examination staff every 18 months, which consists of research time, sample selection, on-site review, report writing, and report review. The estimate for examination cost increases was calculated using invoices for the past two examination cycles for Regulated Consumer Lenders. The review sample from the previous two examination cycles was also used to estimate the increased hours necessary for regulatory oversight upon passage of the bill.
The agency is not able to estimate any changes on the revenue side because there is not adequate data to indicate whether an increase or decrease in the assessable loan base will occur. It is also unknown whether such a change may attract additional applicants for this license type.
Memorandum
Person submitting Fiscal Note: Kathy Lawson
Email Address: klawson@wvdob.org