COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 121
(By Senator Minard)
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[Originating in the Committee on Finance;
reported March 3, 1994.]
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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 collection of moneys from financial institutions and bank holding companies for assessments, fees and other necessary expenses for the administration of the division of banking; payment of assessments and fees into a special revenue account; setting forth the assessments for various financial institutions; increasing the assessments for state banking institutions; authority of commissioner to collect necessary costs and expenses incurred in connection with an examination for which assessments are not provided; providing for examination of records of an out-of-state institution; and allowing the commissioner to maintain an action for the recovery for all assessments, costs and expenses.

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:

ARTICLE 2. DIVISION OF BANKING.

§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 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 $ 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 codeas 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 as provided for in section five, article eight-a, chapter thirty-one-a of this code. The 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.
(c) The commissioner shall each December and each June 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 industrial loan company, each state credit union and each supervised lender 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 theassessment due.
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 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.
(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.