FISCAL NOTE
Date Requested: March 18, 2025
Time Requested: 12:37 PM |
| Agency: |
Financial Institutions, West Virginia Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1610 |
Introduced |
HB3269 |
|
|---|
| 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.
The bill reorganizes the Division of Financial Institutions ("DFI"), the Board of Banking and Financial Institutions, and the Lending and Credit Rate Board by removing them from the purview of the Department of Revenue and establishes them as independent divisions within the executive branch, subject to oversight by the Board of Banking and Financial Institutions, beginning January 1, 2026. The bill exempts DFI from Division of Personnel requirements and directs the Board and Commissioner to develop a merit-based personnel policy for DFI. The bill further directs the Commissioner to prepare and propose a budget to the Board. Ten percent of all annual revenue collected by the Commissioner would be deposited to the General Revenue Fund. Finally, the bill requires the Commissioner to establish by rule certain minimum standards and practices for the officers and directors of each financial institution under the jurisdiction of the DFI and collect reports related to such standards from financial institutions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
330,000 |
330,000 |
| Personal Services |
0 |
225,000 |
225,000 |
| Current Expenses |
0 |
105,000 |
105,000 |
| 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):
DFI anticipates that it will require two administrative support positions and one additional examiner to satisfy the requirements of HB3269. The personnel services cost includes salary and benefits for those three positions. The estimate is based upon an average salary and benefits drawn from the Division of Personnel pay scales and a fixed percentage of salary for benefits. DFI also anticipates approximately $35,000 per staff person for equipment, training, and other customary expenses such as travel for examiners.
DFI does not expect to generate any additional revenue through the reorganization created by the bill. However, it does generate adequate revenue to cover any additional expenses but would require a spending authority increase to access those funds.
Memorandum
The bill seeks to reorganize the Division of Financial Institutions and its related boards into an independent division within the executive branch. Any fiscal impact has been noted.
Person submitting Fiscal Note: Kathy Lawson
Email Address: klawson@wvdob.org