HCS HB 379 -- COMPENSATION FOR FINANCIAL INSTITUTION REGULATORS

SPONSOR:  Cunningham, 145 (Cooper, 120)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Financial Institutions by a vote of 12 to 0.

This substitute exempts, from merit system rules, those positions
in the divisions of Finance and Credit Unions in the Department
of Economic Development which are compensated through a dedicated
fund obtained from assessments and license fees used for the
examination and regulation of banks, trust companies, and credit
unions.

The directors of these divisions will prepare a salary schedule
for those positions.  A comparison with similar positions at
federal regulatory agencies will be completed, and in no instance
will the compensation for state examiners be more than 90% parity
for the corresponding federal positions in similar geographic
locations as determined by the directors.  Personnel will be
compensated according to the schedule.

Costs incurred in the regulation of any bank, trust company, or
other corporation will be reviewed at least annually by the
Division of Finance to determine whether regulatory costs are
offset by the fees and charges collected.  The director will
revise the fees to the extent allowed by law or recommend to the
General Assembly the necessary statutory changes to fully recover
the costs.

Any interest earned in the dedicated funds will be used, upon
appropriation, for the expenditures of the divisions in the
succeeding fiscal year and will be applied to reduce the amount
of the annual assessment an institution is charged.

FISCAL NOTE:  Estimated Income on General Revenue Fund of $68,751
in FY 2006, $102,020 in FY 2007, and $104,571 in FY 2008.  No
impact on Other State Funds in FY 2006, FY 2007, and FY 2008.

PROPONENTS:  Supporters say that the bill will help the state
retain qualified examiners.  It takes three or four years to
train examiners; and often after examiners are trained, they
leave to go to higher paying jobs in the private sector or the
federal government.  Because of the high turnover, there is a
risk of losing national accreditation.  Missouri's banks and
credit unions support this legislation.  Fully trained examiners
can perform their audits more quickly and efficiently saving time
and money.

Testifying for the bill were Representative Cooper (120);
Commissioner of the Division of Finance; Director of the Division
of Credit Unions; Missouri Bankers Association; Missouri
Independent Bankers Association; Missouri Credit Union System;
Mortgage Bankers Association of Missouri; Missouri Financial
Services Association; and Farm Credit Services of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm