According to the Legislative Budget Board (LBB), HB 4739 is expected to have no significant fiscal impact on the state. The bill repeals a provision in the Texas Finance Code that currently requires a portion of the delinquency fees collected on retail charge agreements (i.e., credit card-style retail installment contracts) to be deposited into the state’s General Revenue Fund. The amount of revenue generated from these remitted delinquency fees in recent fiscal years has been minimal, and projections indicate that future revenue from this source would also remain negligible.

Because the state has not relied on this revenue stream in any significant way, the repeal of this remittance requirement does not materially affect the state budget or operations of the Comptroller of Public Accounts. This move simplifies administrative processes for both private creditors and the state, without undermining the financial stability of the General Revenue Fund.

Additionally, there are no expected fiscal implications for local governments. The measure pertains solely to state-level revenue and compliance processes, and it imposes no mandates or revenue changes for local jurisdictions. The bill, therefore, represents a targeted reduction in state involvement in private financial transactions, with a negligible budgetary footprint.

HB 4739 eliminates a largely obsolete state fee remittance requirement by repealing Section 345.157(d) of the Texas Finance Code. This provision had required creditors to remit $0.50 from every delinquency charge over $10 on retail charge agreements (such as department store credit cards) to the Texas Comptroller for deposit into the General Revenue Fund. Historically, these funds supported financial education and research administered through the Finance Commission of Texas and the Office of Consumer Credit Commissioner. However, because the commission has operated as a self-directed, semi-independent agency since 2009 and no revenue from the fee has been collected since fiscal year 2019, the fee mechanism is no longer functional or necessary.

The repeal is projected to have no significant fiscal impact on the state, as confirmed by the Legislative Budget Board. The fee has not generated meaningful revenue in recent years, and its elimination would neither create a new financial burden on the state nor impact local government budgets. Additionally, the bill has no criminal justice implications and does not require any new rulemaking authority, reinforcing that it is a narrow cleanup measure aimed at government efficiency rather than policy overhaul.

For these reasons, Texas Policy Research recommends that lawmakers vote YES on HB 4739. The bill promotes the liberty principles of limited government and free enterprise by eliminating a dormant and unnecessary fee, reducing administrative burden for both the state and creditors, and aligning with longstanding goals of fiscal efficiency and regulatory simplification.

• Individual Liberty: Although this bill does not directly expand civil liberties, it does remove a minor yet symbolic instance of state intrusion into voluntary economic arrangements. It respects the autonomy of individuals and private entities to structure their agreements without having their transactions partially taxed or siphoned for outdated bureaucratic purposes.
• Personal Responsibility: Delinquency fees serve to encourage timely repayment of debts, and the full retention of those fees by creditors reinforces the idea that individuals should bear responsibility for the terms of their credit agreements. It removes the appearance that the state benefits from personal financial mismanagement and instead returns the full consequence, and the associated incentive structure, to the private agreement between lender and borrower.
• Free Enterprise: The bill enhances the free market by allowing businesses, specifically creditors managing retail charge agreements, to retain 100% of delinquency fees they collect, rather than sharing a portion with the state. This reform removes a hidden cost of doing business in Texas, thereby improving the financial environment for credit providers. The change supports an enterprise system free of arbitrary redistribution mechanisms that disrupt pricing and market behavior.
• Private Property Rights: Under current law, a portion of a legally earned fee (the delinquency charge) is redirected to the state. The bill corrects this by ensuring that creditors may retain the full value of charges contractually agreed upon with consumers. This protects the fruits of one’s labor and reinforces the right to contract and earn income without government taking a cut, absent a clear public purpose.
• Limited Government: The bill repeals a state-mandated fee remittance that served little purpose in recent years, as the recipient agency (the Finance Commission of Texas) no longer relies on appropriated funds and the fee has gone uncollected since 2019. By eliminating this outdated and functionally obsolete provision, the bill rolls back unnecessary state interference in private financial agreements, aligning with the principle that government powers should be restrained and focused solely on essential functions.