Enrolled Version - Final Version House Bill 2882 History

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H. B. 2882

(By Delegates Perry, Moore, Reynolds, Hall,

              Walters, Hartman, J. Miller, Azinger

and Ashley)

[Passed February 22,2011; in effect ninety days from passage.]


AN ACT to amend and reenact §31A-2-8 of the Code of West Virginia, 1931, as amended, relating to the Commissioner’s Assessment and Examination Fund; allowing the Commissioner of Banking to assess state banking institutions quarterly rather than on a semiannual basis by establishing additional assessment dates on April 1 and October 1; and providing that the Commissioner of Banking shall prepare and send bank assessments by March 15 and September 15.

Be it enacted by the Legislature of West Virginia:

    That §31A-2-8 of the Code of West Virginia, 1931, as amended, be amended and reenacted, to read as follows:


§31A-2-8. Commissioner’s assessments and examination fund; assessments, costs and expenses of examinations; collection.

    (a) All moneys collected by the commissioner from financial institutions and bank holding companies for assessments, examination fees, investigation fees or other necessary expenses incurred by the commissioner in administering such duties shall be paid to the commissioner and paid by the commissioner to the treasurer of the state to the credit of a special revenue account to be known as the “commissioner’s assessment and examination fund” which is hereby established. The assessments and fees paid into this account shall be appropriated by law and used to pay the costs and expenses of the Division of Banking and all incidental costs and expenses necessary for its operations. At the end of each fiscal year, if the fund contains a sum of money in excess of twenty percent of the appropriated budget of the Division of Banking, the amount of the excess shall be transferred to the General Revenue Fund of the state. The Legislature may appropriate money to start the special revenue account.

    (b) The commissioner of banking shall charge and collect from each state banking institution or other financial institution or bank holding company and pay into a special revenue account in the State Treasury for the Division of Banking assessments as follows:     (1) For each state banking institution, a quarterlyassessment payable on January 1, April 1, July 1, and October 1 each year, computed upon the total assets of the banking institution shown on the report of condition of the banking institution filed as of the preceding June 30, September 30, December 31 and March 31, respectively, as follows:

    Total Assets

                   But Not                             Of Excess

       Over Over This                    Over

     Million       Million     Amount      Plus     Million

     $    0      $ 2     $ 0     .001645020       0

           2        20      3,290     .000205628         2

          20        100      6,991     .000164502        20

         100       200     20,151     .000106926    100

         200        1,000     30,844     .000090476    200

       1,000        2,000    103,225     .000074026    1,000

       2,000        6,000    177,251     .000065801    2,000

       6,000        20,000    440,454     .000055988    6,000

      20,000        40,000 1,224,292    .000052670    20,000

    (2) For each regulated consumer lender, an annual assessment payable on July 1, each year, computed upon the total outstanding gross loan balances and installment sales contract balances net of unearned interest of the regulated consumer lender shown on the report of condition of the regulated consumer lender as of the preceding thirty-first day of December, respectively, as follows:

    Total Outstanding Balances

              But Not        This                    Of Excess

   Over      Over        Amount     Plus           Over

$ 0 $ 1,000,000    800      -         -

   1,000,000   5,000,000    800     .000400       1,000,000

   5,000,000   10,000,000   2,400     .000200       5,000,000

   10,000,000   -  4,200     .000100      10,000,000

    If a regulated consumer lender’s records or documents are maintained in more than one location in this state, then eight hundred dollars may be added to the assessment for each additional location.

    In addition to the assessment provided in this subdivision, the commissioner shall charge and collect from each regulated consumer lender the actual and necessary costs and expenses incurred in connection with any examination of a regulated consumer lender.

    (3) For each credit union, an annual assessment as provided for in section eight, article one, chapter thirty-one-c of this code as follows:

    Total Assets

                  But Not     This                   Of Excess

     Over Over Amount     Plus       Over

$ 0    $ 100,000  100       -         -

    100,000        500,000  300       -         -

    500,000        1,000,000  500       -         -

  1,000,000        5,000,000  500    .000400       1,000,000

  5,000,000     10,000,000  2,100    .000200       5,000,000

 10,000,000        -  3,100    .000100      10,000,000

    (4) For each bank holding company, an annual assessment as provided for in section eight, article eight-a of this chapter. The annual assessment may not exceed ten dollars per million dollars in deposits rounded off to the nearest million dollars.

    (c) The commissioner shall each December March, June and September prepare and send to each state banking institution a statement of the amount of the assessment due. The commissioner shall further, each June, prepare and send to each regulated consumer lender and each state credit union a statement of the amount of the assessment due. The commissioner shall annually, during the month of January, prepare and send to each bank holding company a statement of the amount of the assessment due.

    State banking institution assessments may be prescribed every three months, not later than June 15 September 15, December 15 and March 15 by written order of the commissioner, but shall not exceed the maximums as set forth in subsection (b) of this section. In setting the assessments the primary consideration shall be the amount appropriated by the Legislature for the Division of Banking for the corresponding annual period. Reasonable notice of the assessments shall be made to all interested parties. All orders of the commissioner for the purpose of setting assessments are not subject to the provisions of the West Virginia administrative procedures act under chapter twenty-nine-a of this code.

    (d) For making an examination within the state of any other financial institution for which assessments are not provided by this code, the commissioner of banking shall charge and collect from such other financial institution and pay into the special revenue account for the Division of Banking the actual and necessary costs and expenses incurred in connection therewith, as fixed and determined by the commissioner. Banks that provide only trust or other nondepository services, nonbanking subsidiaries of bank holding companies that provide trust services, nonbanking subsidiaries of banks that provide trust services and any trust entity that is jointly owned by federally insured depository institutions may be assessed for necessary costs and expenses associated with an examination pursuant to this subsection.

    (e) If the records of an institution are located outside this state, the institution at its option shall make them available to the commissioner at a convenient location within the state or pay the reasonable and necessary expenses for the commissioner or his or her representatives to examine them at the place where they are maintained. The commissioner may designate representatives, including comparable officials of the state in which the records are located, to inspect them on his or her behalf.

    (f) The commissioner of banking may maintain an action for the recovery of all assessments, costs and expenses in any court of competent jurisdiction.

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