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In 1931, Colorado began chartering credit unions, when the General Assembly passed the Credit Union Act. Regulation of credit unions, savings and loan institutions and trust companies is conducted by what is now known as the Division of Financial Services. The Division seeks to fulfill this mission in its own areas of statutory responsibility, which are as follows:
Examination and supervision of state-chartered credit unions
Examination and supervision of state-chartered savings and loan associations
Administration and enforcement of the Savings and Loan Public Deposit Protection Act
Regulation of certain financial activities of life care institutions
The Division's eleven-member staff operates under the policy-making and rule-making authority of the Financial Services Board, which consists of five members appointed by the Governor and confirmed by the State Senate. The Financial Services Board issues rules and regulations governing the industries regulated by the Division, may delegate many of its authorities to the State Commissioner of Financial Services, and hears appeals of actions taken by the Commissioner under delegated authority.
The Division is wholly or partially responsible for administering and/or enforcing the following Colorado Revised Statutes (C.R.S.):
Credit Unions: §11-30-101, CRS
Savings and Loan Associations: §11-40-101, CRS
Protection of Deposits of Public Moneys: §11-47-101, CRS
Life Care Institutions: §12-13-101, CRS
Uniform Consumer Credit Code: §5-1-101, CRS
Electronic Funds Transfers: §11-48-101, CRS
State-chartered credit unions operate under the supervision of the Division. The Division is empowered to approve applications to incorporate new state credit unions and to approve mergers between credit unions. State credit unions are examined regularly by the Division staff to evaluate their financial condition and compliance with applicable laws and regulations. The Division's credit union examination and supervision program has been accredited by the National Association of State Credit Union Supervisors for a five-year period ending in October 2006, subject to annual review.
The Division is empowered to approve applications to incorporate new state-chartered savings and loan associations, approve branch office applications for existing associations, approve mergers between associations, and approve changes of ownership. The Division staff examines state savings and loan associations on a regular basis to evaluate their financial condition and compliance with applicable laws and regulations.
For the protection of consumer savings, all state savings and loan associations and all credit unions that serve Colorado citizens are required to maintain federal deposit insurance.
The Division also administers and enforces the Public Deposit Protection Act for savings and loan associations. State and federal savings and loans designated by the Division as eligible public depositories must pledge collateral to secure any deposits in excess of the federally-insured limit accepted from Colorado governmental units.
The Division regulates certain financial activities of life care institutions, which provide long-term residence and care for the elderly. The Division may initiate enforcement action against violations of the law by life care providers.
The Division also handles consumer complaints and information requests regarding the industries it regulates.
The state legislature appropriates the Division's budget for each fiscal year. In state government terminology, the Division is considered a "cash funded" agency because it receives the revenue to fund its budget from the industries it regulates instead of from general tax dollars. Institutions are assessed twice a year, with the amount each institution pays determined for the most part by the amount of its assets.
Revenue will not always equal expenditures. Revenue needs (and assessments) are based on estimated expenses, which normally vary from actual expenses. Revenue collected that exceeds expenditures remains with the agency as a fund balance and is considered when calculating total revenue needs for the following semiannual period. Revenue shortfalls are adjusted for the following period as well.
The Division's actual revenue and expenditures for the last two fiscal years and the current fiscal year estimate are as follows:
The following table shows the sources of revenue for fiscal year 09-10:
Estimated Revenue Fiscal Year 2009-2010
|Business Licenses, Permits, Certifications, Inspections||$15,941|
The following table shows the distribution of expenditures for fiscal year 09-10:
Estimated Expenditures Fiscal Year 2009-2010
|Examine and Monitor Institutions||$1,255,029|
|Chartering, Licensing and Applications||$167,337|
During 2009, the number of state-chartered credit unions decreased from 54 to 51 due to the following changes:
During 2010, the following changes have taken place: