Compendium of Budget Information for the 2009 General Session

Commerce & Workforce Services
Appropriations Subcommittee

Function

The Department of Financial Institutions regulates state-chartered deposit taking institutions including banks, savings and loan associations, credit unions, and industrial loan banks. It also regulates third-party payment providers, independent escrow companies, check cashers, payday lenders, title lenders, and mortgage loan servicers operating in Utah.

The Department of Financial Institutions promotes the availability of sound financial services through chartering, regulating, and supervising. The Department is open to establishing new and enhancing existing financial products.

Financial Institutions regulates 117 institutions including, 26 commercial banks, 58 credit unions, 31 industrial banks, and 2 trust companies. It also regulates 35 travelers check or money order issuers, 4 independent escrow companies, 256 check cashers/payday lenders, 71 title lenders and 233 residential first mortgage loan servicers. The Department employs 54 people.

Two primary Department goals are 1) to do the number of examinations required to maintain the health of the State-chartered banking and credit union systems in Utah and 2) to be accredited by the financial institution peers in an interstate banking environment.

The Department's primary activity is the examination of depository institutions for safety, soundness, and compliance with all state and federal laws and rules. In the case of depository institutions, its statutory charge is to charter, regulate, supervise and safeguard the interest of shareholders, members, depositors, and borrowers, through on site examinations and remedial action orders.

For persons or entities that provide public financial services, the Department's statutory requirement is that consumer credit terms be lawful and easily understood.

Statutory Authority

The following statutory references govern Utah's financial institutions and can be found in the Utah Code Annotated in the following places:

UCA-7-1 through 24,is the Financial Institutions Act which includes depository Institutions, general provisions for regulating commercial banks, trusts, savings and loans, industrial loan corporations, and credit unions.
UCA-22-1 through 6 regulates Fiduciaries and trusts
UCA- 70C, chapters 1 through 8 is the Utah Consumer Credit Code
UCA-70D-1 is the Mortgage Lending and Serving Act

Funding Detail

Financial Institutions is funded primarily through assessments on financial institutions they regulate.

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
GFR - Financial Institutions	$4,789,100	$5,093,100	$5,789,900	$5,989,500	$6,592,300
Beginning Nonlapsing	$30,000	$0	$0	$0	$0
Lapsing Balance	($174,200)	($332,900)	($172,600)	($27,300)	$0
Total	$4,644,900	$4,760,200	$5,617,300	$5,962,200	$6,592,300

Line Items	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Financial Institutions Administration	$4,644,900	$4,760,200	$5,617,300	$5,962,200	$6,592,300
Total	$4,644,900	$4,760,200	$5,617,300	$5,962,200	$6,592,300

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$3,864,900	$4,079,100	$4,779,300	$5,129,300	$5,494,000
In-State Travel	$83,300	$95,100	$109,900	$127,000	$104,100
Out of State Travel	$247,100	$113,600	$190,400	$114,900	$175,900
Current Expense	$377,800	$340,300	$390,900	$450,900	$673,800
DP Current Expense	$59,000	$132,100	$146,800	$140,100	$144,500
DP Capital Outlay	$12,800	$0	$0	$0	$0
Total	$4,644,900	$4,760,200	$5,617,300	$5,962,200	$6,592,300

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	50.0	54.0	54.0	54.0	54.0

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