COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 270
(By Senators Minard, Jenkins, Barnes and Plymale)
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[Originating in the Committee on Banking and Insurance;
reported February 8, 2006.]
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A BILL to amend and reenact §31A-3-1 of the Code of West
Virginia, 1931, as amended; and to amend said code by adding
thereto a new section, designated §31A-3-5, all relating to
the appointment of members of banking institutions to the
Board of Banking and Financial Institutions; qualifications
of members appointed to represent the public on the board;
and continuing the Board of Banking and Financial
Institutions.
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; and that said code be amended
by adding thereto a new section, designated §31A-3-5, all 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 state banking institutions the commissioner
shall list all state banking institutions according to each
bank's asset size and then divide the list into three groups so
that there is an equal number of banking institutions in each
group. The vacancy shall then be filled 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.
§31A-3-5. Continuation of the West Virginia Board of Banking and
Financial Institutions.
Pursuant to the provisions of article ten, chapter four of
this code, the West Virginia Board of Banking and Financial
Institutions shall continue to exist until the first day of July,
two thousand seven, unless sooner terminated, continued or
reestablished.
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(NOTE: The purpose of this bill is to ensure that the three
members of the board of banking and financial institutions who
are chief executives of the states 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.
Section 31A-3-5 is new; therefore, underscoring and strike-
throughs have been omitted.)