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Senate Bill No. 347
(By Senators Minard and Helmick)
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[Introduced March 10, 1993; referred to the Committee
on Banking and Insurance; and then to the Committee on
Finance.]
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A BILL to amend and reenact section eight, article two, chapter
thirty-one-A of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the payment of
the costs and expenses of the division of banking for its
operations and adoption of new schedule of semiannual
assessments for state banking institutions.
Be enacted by the Legislature of West Virginia:
That section eight, article two, chapter thirty-one-A of the
code of West Virginia, one thousand nine hundred thirty-one, 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 ExaminationFund" 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 department of banking and all
incidental costs and expenses necessary for its operations
including employee education and training necessary for the
commissioner to fulfill the statutory obligations created by this
Code. At the end of each fiscal year, after the first day of
July, one thousand nine hundred eight-three, if the fund contains
a sum of money in excess of twenty percent of the appropriated
budget of the department 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 department of
banking assessments as follows:
(1) For each state banking institution, a semiannual
assessment payable on the first day of January and the first day
of July, 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 thirtieth day of June and
the thirty-first day of December respectively as follows:
Total Assets
But Not Of Excess
Over Over This Over
Million Million Amount Plus Million
$ 0 $ 1 $ 0 .001000 0
1 10 1,000 .000125 1
10 50 2,125 .000095 10
50 100 5,925 .000060 50
100 500 8,925 .000050 100
500 1,000 28,925 .000045 500
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 industrial loan company an annual assessment as
provided for in section thirteen, article seven, chapter thirty-
one of this code, as follows:
Total Assets
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 an industrial loan company'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.
(3) For each credit union, an annual assessment as provided
for in section six, article ten, chapter thirty-one of this code
as follows:
Total Assets
Over But Not This Of Excess
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
shall be made as provided for in section five, article eight-a,
chapter thirty-one-a of this code. Such annual assessment shall
not exceed ten dollars per million dollars in deposits rounded
off to the nearest million dollars.
(5) For each supervised lender, an annual assessment as
provided for in section one hundred five, article four, chapter
forty-six-a of this code. Such annual assessment shall not
exceed one hundred dollars on the first twenty-five thousand
dollars of total outstanding loan balances and installment sales
contract balances less unearned finance charges plus forty cents
per thousand dollars on the remaining outstanding balances as of
the preceding calendar year-end.
(6) The commissioner shall, during the month of June, one
thousand nine hundred eight-three, and each December and each
June thereafter, prepare and send to each state banking
institution a statement of the amount of the assessment due. The
commissioner shall, further, during the month of June, onethousand nine hundred eight-three, and each June thereafter,
prepare and send to each industrial loan company, each state
credit union and each supervised lender a statement of the amount
of the assessment due. Such assessments shall be charged for the
first day of July, one thousand nine hundred eighty-three, at the
amounts as scheduled. The commissioner shall, further, during
the month of January, one thousand nine hundred eighty-four, and
January thereafter, prepare and send to each bank holding company
a statement of the amount of the assessment due. Such bank
holding company assessments shall be charged for the last day of
January, one thousand nine hundred eighty-four, at the amounts as
scheduled in this subsection.
Subsequent assessments shall be prescribed annually, not
later than the fifteenth day of June, by written order of the
commissioner, but shall not exceed the maximums as set forth in
this subsection. In setting such assessments the primary
consideration shall be the amount appropriated by the legislature
for the department of banking for the corresponding annual
period. Reasonable notice of such assessments shall be made to
all interested parties. All orders of the commissioner for the
purpose of setting assessments shall not be subject to the
provisions of the West Virginia Administrative Procedures Act,
chapter twenty-nine-a of this code.
(c) 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 collectfrom such other financial institution and pay into the special
revenue account for the department of banking the actual and
necessary costs and expenses incurred in connection therewith, as
fixed and determined by the commissioner.
(d) 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 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 behalf.
(e) The commissioner of banking may maintain an action for
the recovery of all such assessments, costs and expenses in any
court of competent jurisdiction.
NOTE: The purpose of this bill is to clarify the ability of
the Division of Banking to pay education and training expenses
for its employees and to provide for a sufficient assessment
schedule to fund the Division of Banking into the future.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.