H. B. 4250
(By Delegates Ron Thompson, Frich,
Hrutkay, Perry and H. White)
[Introduced January 30, 2006; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §31A-3-1 of the Code of West Virginia,
1931, as amended, relating to the appointment of members of
banking institutions to the Board of Banking and Financial
Institutions and to the qualification of members appointed to
represent the public on the board.
Be it enacted by the Legislature of West Virginia:
That §31A-3-1 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 3. BOARD OF BANKING AND FINANCIAL INSTITUTIONS.
§31A-3-1. Board created; appointment, qualifications, terms, oath,
etc., of members; quorum; meetings; when members
disqualified from participation; compensation;
records; office space; personnel; continuation.
(a) There is hereby created the West Virginia Board of Banking and Financial Institutions which shall consist of six members and
the commissioner, who shall be chairman. The six members shall be
appointed by the Governor by and with the advice and consent of the
Senate. Three of the members shall be executive officers of state
banking institutions. of whom one shall be truly representative of
such state banking institutions having assets not greater than
seventy-five million dollars, one shall be truly representative of
such state banking institutions having total assets greater than
seventy-five million dollars but not greater than two hundred
million dollars, and one shall be truly representative of such
banking institutions having total assets greater than two hundred
million dollars. After the first day of July, two thousand six,
when a vacancy occurs among the executive officers of banking
institutions, the commissioner shall divide all state banking
institutions into three equal groups according to asset size, and
the replacement shall be selected from the appropriate group to
ensure that each group has a representative on the board. One
member shall be an executive officer of a financial institution
other than a banking institution. Two members shall represent the
public, neither of whom shall be an employee, officer, trustee,
director or stockholder owner of five percent or more of the
outstanding shares of any financial institution. No member shall
hold any other office, employment or position with the United
States, any state, county, municipality or other governmental entity, any instrumentality or agency of any of the foregoing or
with any political party.
(b) The members of the board shall be appointed for
overlapping terms of six years, except that of the original
appointments, two members shall be appointed for a term of two
years, two members shall be appointed for a term of four years and
two members shall be appointed for a term of six years, and in
every instance until their respective successors have been
appointed and qualified. Any member appointed for a full six-year
term may not be reappointed until two years after the expiration of
such term. Any member appointed for less than a full six-year term
shall be eligible for reappointment for a full term. Before
entering upon the performance of his or her duties, each member
shall take and subscribe to the oath required by section five,
article IV of the Constitution of this State. The Governor shall,
within sixty days following the occurrence of a vacancy on the
board, fill the same by appointing a person for the unexpired term
of, and meeting the same requirements for membership as, the person
vacating said office. Any member may be removed by the Governor in
case of incompetency, neglect of duty, gross immorality or
malfeasance in office.
(c) A majority of the members of the board shall constitute a
quorum. The board shall meet at least once in each calendar
quarter on a date fixed by the board. The commissioner may, upon his or her own motion, or shall upon the written request of three
members of the board, call additional meetings of the board upon at
least twenty-four hours' notice. No member shall participate in a
proceeding before the board to which a corporation, partnership or
unincorporated association is a party, and of which he or she is,
or was at any time in the preceding twelve months, a director,
officer, owner, partner, employee, member or stockholder. A member
may disqualify himself or herself from participation in a
proceeding for any other cause deemed by him or her to be
sufficient. Each member shall receive fifty dollars for each day
or portion thereof spent in attending meetings of the board and
shall be reimbursed for all reasonable and necessary expenses
incurred incident to his or her duties as a member of the board.
(d) The board shall keep an accurate record of all its
proceedings and make certificates thereupon as may be required by
law. The commissioner shall make available necessary office space
and secretarial and other assistance as the board may reasonably
require.
Pursuant to the provisions of section four, article ten,
chapter four of this code, and following a preliminary performance
audit review conducted through the joint committee on government
operations, the West Virginia board of banking and financial
institutions shall continue to exist until the first day of July,
two thousand five.
NOTE: The purpose of this bill is to ensure that the three
members of the board of who are chief executives of state banks are
each chosen from an equal number of banks. It is also intended to
allow the public members of the board to own a minority interest in
financial institutions.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.