FISCAL NOTE
Date Requested: January 11, 2023
Time Requested: 08:41 PM |
| Agency: |
Legislative Auditor |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1262 |
Introduced |
HB2094 |
|
|---|
| CBD Subject: |
Banking and Finance |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill proposes the Legislative Auditor's Office conduct a compliance audit of the Commissioner of Banking and the Board of Banking and Financial Institutions to assess their compliance with the West Virginia Community Reinvestment Act. The audit would cover the previous 5 calendar years and seeks answers to the following four performance measures:
(1) How the commissioner and the board assess the performance and conduct of a banking institution in meeting the credit needs of its entire community, including low-and moderate-income neighborhoods;
(2) How these factors are identified in the evaluation of an institution in the evaluation of an application for a deposit facility or for permission to engage in financially related services by such institution;
(3) The weight given to these factors in these evaluations; and
(4) Whether the commissioner and the board are able to identify benefits to low- and middle-income communities resulting from the procedures and actions of the commissioner and the board pursuant to this article.
The Legislative Auditor shall submit a report of this audit to the Joint Committee on Government and Finance no later than December 31, 2023.
Because HB 2094 does not provide additional resources to complete the audit, existing resources within the Legislative Auditor’s Office must be utilized.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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):
Because HB 2094 does not provide additional resources to complete the audit, existing resources within the Legislative Auditor’s Office must be utilized. All audit work performed as specified by the bill would be conducted with existing staff of the Legislative Auditor's Office. There would be no additional financial costs associated with this activity.
However, given the 5-year scope of work outlined by the bill and a requirement this report be presented to the Joint Committee on Government and Finance no later than December 31, 2023, this audit could require significant staffing resources of the Legislative Auditor's Office to complete in this required time frame, potentially precluding other ongoing audit work or other statutorily required work of the Post Audit Division or the Performance Evaluation and Research Division. Depending on the additional work load with other audit assignments and the desire of the Legislature to have this report and other reports issued throughout the year as currently planned without disruption, there may be a requirement for additional audit staff to be hired within the existing budget of the Joint Committee.
Memorandum
As stated above this bill's provisions can be achieved with no additional cost utilizing existing audit staff within the Legislative Auditors Office, however given the time constraint placed on releasing a report by December 31, 2023, this may interfere with other ongoing assignments and additional assignments that are given by the Legislature or are otherwise statutorily required in the upcoming year. This may require the hiring of additional staff within the existing budget constraints of the Joint Committee.
Person submitting Fiscal Note: Justin Robinson
Email Address: justin.robinson@wvlegislature.gov