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Program A: Financial Institutions

Program Authorization: R.S. 6:1-138; 6:201-550; 6:641 et seq.; 6:701-950.8; 6:970-974; 6:1031-1053; 6:1081 et seq.; 6:1111; 6:1121 et seq.; 6:1131 et seq.; 9:2130; 9:3510 et seq.; 36:101(c); 36:108(c); 37:1781-1809; 51:361-371; 51:701-724; 51:1921 et seq.; 51:2386 et seq.

PROGRAM DESCRIPTION

The mission of the Financial Institutions Program is to charter, license, and supervise those entities under its jurisdiction in order to protect the public interest and enhance confidence in the financial services industry.

The goals of the Financial Institutions Program are:

  1. Provide effective, efficient, proactive supervision to all entities under OFI’s jurisdiction.
  2. Provide effective, efficient support, direction, and management to various OFI division and external constituents.

The Financial Institutions Program includes the following activities:

  1. Executive Administration – The management arm of the agency, providing direction to the three other activities. Overall agency management, human resources, information systems, and other support functions reside in this activity. Through, the Executive Administration Activity, the Office of Financial Institutions encourages the economic growth and the expansion of commerce and industry.
  2. Depository Institutions – Through the Depository Institutions Activity, the program regulates all state-chartered depository institutions including banks, savings banks, savings and loan associations, their respective holding companies, and credit unions. OFI’s banking division has been accredited by the Conference of State Bank Supervisors since 1989; the 14th of 43 state banking departments to receive accreditation. Credit Unions – The credit union division is 1 of only 19 state credit union regulatory departments accredited by the National Association of State Credit Union Supervisors; accreditation was received in 1995.
  3. Non-Depository Institutions – Through the Nondepository Institutions Activity, the program is responsible for registering, licensing, and regulating licensed lenders, pawn brokers, collection agencies, loan brokers, credit repair service organizations, bond for deed escrow agents, sellers of checks, and retail sales finance businesses which are required to file notification with OFI.
  4. Securities – Through the Securities Activity, all securities offerings, agents, broker dealers, and investment advisors are also regulated through the Securities Activity.

GENERAL PERFORMANCE INFORMATION

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

 

 

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with Fees and Self-Generated revenues and Statutory Dedications. Fees and Self-Generated revenues are derived from fees charged to businesses and corporations of the financial industry, such as banks and branch application fees, reservation of a name, holding company assessments, special examinations, trust and transfer agent examinations, thrift mergers, branch applications, credit union assessments, investigations, corporate credit union examination, consumer credit fees, licensed lender fees, sale of checks fees, collection agency fees, consumer loan broker fees, securities, and small business administration fees, etc. (Per R.S. 39:32B.(8), see table below for a listing of expenditures out of each statutory dedicated fund.) The Statutory Dedications are derived from civil penalties and overcharge violations paid to the Commissioner of Financial Institutions by regulated consumer credit entities. The penalties and overcharge payments provide funding for the Statutory Dedication Louisiana Consumer Credit Education Fund. The Louisiana Consumer Credit Education Fund will be used to finance education programs for consumers and lenders concerning the provisions of the consumer credit laws.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$0

$7,040,920

117

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$0

$7,040,920

117

 

EXISTING OPERATING BUDGET - November 20, 1998

 

 

 

 

 

$0

$37,200

0

 

Annualization of FY 1998 - 1999 Classified State Employees Merit Increase

$0

$49,311

0

 

Classified State Employees Merit Increases for FY 1999 - 2000

$0

($16,454)

0

 

Risk Management Adjustments

$0

$90,438

0

 

Acquisitions and Major Repairs

$0

($96,064)

0

 

Nonrecurring Acquisitions and Major Repairs

$0

($141,456)

(4)

 

Personnel Reductions

$0

$80,449

0

 

Salary Base Adjustment

$0

($11,245)

0

 

Attrition Adjustment

$0

$332

0

 

Legislative Auditor Fees

$0

$137

0

 

UPS Fees

$0

$484

0

 

Civil Service Fees

$0

$5,505

0

 

Other Adjustments - Indirect Cost for services from the Office of the Secretary

$0

$16,580

0

 

Other Adjustments - Software for office computer systems

$0

$34,600

0

 

Other Adjustments - Server replacement for Y2K Compliance

 

 

 

 

 

$0

$7,090,737

113

 

GRAND TOTAL RECOMMENDED

 

 

 

 

 

$0

$49,817

(4)

 

DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 100.7% of the existing operating budget. It represents 96.2% of the total request ($7,368,880) for this program. The major changes reflected in the analysis of recommendation include: decreased funding due to the elimination of unnecessary vacant positions (4); and increased funding for a Replacement Server for Y2K compliance $34,600.

 

PROFESSIONAL SERVICES

$135,000

 

Legal services - La. Sheriff's Association v. Commissioner of Financial Institutions regarding self help repossession activities by certain regulated creditors

$2,072

 

Expert witness fees

$3,000

 

Training - Providing presentations on topics related to banking, thrifts, examinations, and other regulatory areas etc.

 

 

 

$140,072

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$10,680

 

Legislative Auditor expenses

 

 

 

$10,680

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$15,715

 

Pro-rata share of cost of operations of the Department of Civil Service

$1,474

 

Pro-rata share of cost of the Comprehensive Public Training Program

$3,164

 

Pro-rata share of cost of the operations of the Uniform Payroll Systems

$207,875

 

Reimbursement of costs for Support Services provided by the Office of the Secretary, Economic Development

$7,213

 

Investigatory fees for the Background checks (completed by the Office of State Police) for licensed lenders, pawnbrokers, collection agencies, and bank board members

$9,875

 

Department of Civil Service, Division of Administrative Law, Hearing Officers

 

 

 

$245,316

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$125,038

 

Replacement of software, computer equipment necessary to meet department standards; and replacement furniture and typewriters.

 

 

 

$125,038

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS

05 DEPARTMENT OF ECONOMIC DEVELOPMENT


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