Committee hears bill to let Division of Finance set capped licensing fees to shore up oversight funding
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Summary
Vice chair Philip Olrking presented HB 2423 to let the director of the Division of Finance set consumer‑credit licensing fees within a capped range (max $5,000 initial, $1,000 subsequent locations) to address a funding shortfall and retain examiners. The division and industry groups generally supported the change; the state public advocate opposed new fees as regressive.
Representative Philip Olrking presented House Bill 2423 as a measure to correct a funding deficit in the Division of Finance’s consumer credit section by moving to a fee structure the director could adjust within set caps.
Olrking said the division is 100% fee funded and that many licensing fees are statutorily fixed and outdated; the proposal would create a consumer licensing fund, cap initial location fees at $5,000 and subsequent locations at $1,000, and allow the director to set fees within that range to meet oversight needs. The sponsor said the director would likely set initial fees well under the cap (an illustrative starting point mentioned was about $2,500) and that fees would be reduced if they generated excess revenue.
Mick Campbell, commissioner of the Division of Finance, testified the agency supports the bill because staffing and personnel costs have risen while the number of brick‑and‑mortar license locations has declined; the change would help retain experienced examiners who are sometimes hired away by industry. Campbell told the committee the proposal would keep Missouri’s fees competitive with neighboring states while addressing oversight workload.
Industry witnesses (Missouri Bankers Association, Missouri Installment Lenders Association) also expressed support, saying stronger oversight and stable examiner staffing benefits both consumers and regulated entities. Consumer lenders’ representatives said they value in‑state examiners for working relationships.
Arnie C, the state public advocate, opposed the bill as an additional fee burden on Missouri residents, arguing banks will pass increased costs to consumers and citing fiscal note estimates that ranged from roughly $475,000 up to about $1.1 million in potential revenue increases. The hearing closed with no committee vote recorded during the session.
