TITLE: CONCERNING LIMITATIONS ON THE AMOUNT A GOVERNMENTAL ENTITY MAY CHARGE AS A RESULT OF THE LATE PAYMENT OF AN AMOUNT DUE AND OWING TO SUCH ENTITY.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues All Funds	Potential decrease
State Expenditures All Funds	Potential increase
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None.
Effective Date: January 1, 2000 unless a referendum petition is filed.
Appropriation Summary for FY 1999-2000: None.
Local Government Impact: May affect local government revenue and expenditures.

This bill prohibits, except as authorized by state law, state and local governments from assessing delinquency charges for fees, fines, and other charges that are paid within 10 days after their scheduled due dates. The bill specifies no delinquency charge shall exceed 25 percent of the amount due, and no interest charge is to exceed an annual percentage rate of 18 percent.

Other provisions of the bill specify: limitations on the number of allowable delinquency charges; how payments are to be applied to the amount due; interest to be assessed on delinquency charges; and the time period when delinquency charges can be assessed.

This bill may affect the amount of delinquency and interest charges that are currently being collected by some state agencies, unless those charges are established by statute. The amount of the revenue impact, if any, for those state agencies has not been estimated.

For example, this bill may require some institutions of Higher Education to re-establish charges for delinquent tuition payments, collection fees, and overdraft bank charges. Each institution employs a unique set of charges.

This bill may require some state agencies to incur additional administrative and computer system reprogramming expenses to re-establish new delinquency and interest charges. The amount of the expenditure impact, if any, for those state agencies has not been estimated.

This bill may affect the amount of delinquency and interest charges that are currently being collected by some local governments, unless those charges are established by statute. The amount of the revenue impact, if any, for those entities has not been estimated.

This bill may require some local governments to incur additional administrative and computer system reprogramming expenses to re-establish new delinquency and interest charges. The amount of the expenditure impact, if any, for those entities has not been estimated.

This fiscal note would imply no new state appropriations are required for FY 1999-2000.