Chapter 062
2003—S 0402 Substitute A
Enacted 06/27/03
A N A C T
RELATING
TO REGULATING OVERSIGHT
Introduced
By: Senator David E. Bates
Date
Introduced: February 12, 2003
It
is enacted by the General Assembly as follows:
SECTION
1. Section 19-4-2 of the General Laws in Chapter 19-4 entitled "Regulatory
Oversight"
is hereby amended to read as follows:
19-4-2.
Periodic examinations -- Access to records. -- (a) The director or the
director's
designee
shall, whenever he or she considers it advisable, but at least once in each
year, examine
each
regulated institution. However, the director may extend the examination period
for eligible
financial
institutions to at least once every eighteen (18) months. For the purposes of
this section,
an
eligible financial institution means a financial institution with total assets
of less than two
hundred
fifty million dollars ($250,000,000) which has not experienced a change in
control in the
last
twelve (12) month period and which is:
(1) Well capitalized;
(2) Well managed;
(3) Highly rated by state and federal banking regulatory agencies; and
(4) Not subject to a formal enforcement proceeding or order.
In addition, the director may also consider other factors that may be
considered by
federal
banking regulatory agencies when those agencies determine whether financial
institutions
qualify
for an extended examination cycle. At each examination the director or the
director's
designee
shall have free access to all books, records, papers, assets and any other
information
deemed
necessary by the director or the director's designee to ascertain the regulated
institution's
condition,
its ability to fulfill its obligations, and whether it has complied with the
provisions of
law.
(b) The total cost of an examination made pursuant to this section shall be
paid by the
examined
party, and shall include the following expenses: be
(1)
one One hundred fifty percent (150%) of the salary and benefits
of the examining
personnel
engaged in the examination and shall be paid to the director to and for the use
of the
state.
The assessment shall be in addition to any taxes and fees otherwise payable to
the state. The
total
examination fees under this section payable in any one year shall not exceed
one hundred
thousand
dollars ($100,000) for any one regulated institution.;
(2)
All reasonable technology costs related to the examination process. Technology
costs
shall
include the actual cost of software and hardware utilized in the examination
process and the
cost
of training examination personnel in the proper use of the software or
hardware; and
(3)
All necessary and reasonable education and training costs incurred by the state
to
maintain
the proficiency and competence of the examination personnel. All such costs
shall be
incurred
in accordance with appropriate state of Rhode Island regulations, guidelines
and
procedures.
(c) Expenses incurred pursuant to subsections (b)(2) and (b)(3) of this
section shall be
allocated
equally to each regulated institution no more frequently than annually and
shall not
exceed
an annual average assessment of seven hundred fifty dollars ($750) per
regulated
institution
for any given three (3) calendar year period. All revenues collected pursuant
to this
section
shall be deposited as general revenues. That assessment shall be in addition to
any taxes
and
fees otherwise payable to the state.
(c)
(d) The director or the director's designee is authorized to accept in
his or her
discretion
the report of any examination conducted by any federal banking regulatory or
federal
deposit
insuring agencies or other state banking regulatory agency in lieu of an
examination by
the
director or his or her designee.
SECTION
2. This act shall take effect upon passage.
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LC02141/SUB
A
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