What is “dedicated funding?”
“Dedicated
funding” is a term used to describe the way that the Division of
Banking within the New Jersey Department of Banking and Insurance is
funded. As of July 1, 2006, a state law changed the way the
Division of Banking is funded. Under the dedicated funding system, the
Division's funds are segregated from the State General Fund, and
regulated depositories and licensees will be assessed for actual
expenses incurred by the Division. Each individual assessment is
predicated on the annual business volume of each licensee in proportion
to the total annual business volume of all licensees.
Explanation of the law
In
August 2005, the Legislature and Governor enacted a law to fund the
Division of Banking on a dedicated basis, the same way that the
Division of Insurance, Real Estate Commission, and Bureau of Securities
are funded. Rather than paying fees to the State for general purposes,
the Division of Banking will recoup its actual expenses by billing all
regulated depositories and licensees after the expenses have
been incurred and placing the receipts in a segregated account.
However, the Division's billings are still limited by the budgeted
amount allotted to it by the Treasurer, Legislature, and Governor
through the State's annual budget process.
When did Dedicated Funding take effect?
The law took effect on July 1, 2006.
Who is affected?
All state-chartered depositories (banks, savings banks, savings and loan associations, and credit unions) and all licensees (residential
mortgage brokers, residential mortgage lenders, correspondent
residential mortgage lenders, consumer lenders, sales finance
companies, debt adjusters, high cost home loan credit counselors, home
repair contractors, home repair finance agencies, insurance premium
finance companies, money transmitters, foreign money transmitters,
motor vehicle installment sellers, check cashers and pawn brokers.)
More assessment, annual report information for Depositories
More assessment, annual report information for Licensees |
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Regulations |
Dedicated Funding Bill (A3176) (2004)
PDF - HTML
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Important Dates |
February 2022
Electronic Annual Reports Available for All Licensees |
May 2, 2022
All Annual Reports Due |
October 2022
Annual Assessment Bills to be Mailed |
November 2022
Annual Assessments Due |
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