House Bill 801

AN ACT TO AMEND SECTION 81-1-107, MISSISSIPPI CODE OF 1972, TO REVISE THE MANNER OF ASSESSMENT OF BANKS, TRUST COMPANIES, SAVINGS ASSOCIATIONS, SAVINGS BANKS AND CREDIT UNIONS BY THE DEPARTMENT OF BANKING AND CONSUMER FINANCE; TO AMEND SECTIONS 81-12-193, 81-13-17 AND 81-14-157, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISION; TO CREATE NEW SECTION 81-1-108, MISSISSIPPI CODE OF 1972, TO CREATE IN THE STATE TREASURY TWO REVOLVING FUNDS FOR THE DEPARTMENT OF BANKING AND CONSUMER FINANCE, THE BANKING FUND AND THE CONSUMER FINANCE FUND, WHICH SHALL CONSIST OF ALL MONIES RECEIVED BY THE COMMISSIONER OF BANKING AND CONSUMER FINANCE UNDER THE STATUTES ADMINISTERED BY HIM; TO PROVIDE THAT THE BANKING FUND AND THE CONSUMER FINANCE FUND SHALL BE CONTINUING FUNDS AND NOT SUBJECT TO FISCAL YEAR LIMITATIONS; TO PROVIDE THAT ALL MONIES ACCRUING TO THESE FUNDS ARE APPROPRIATED AND MAY BE BUDGETED AND EXPENDED ONLY BY THE DEPARTMENT, AFTER REVIEW BY THE STATE BOARD OF BANKING REVIEW, SOLELY AND EXCLUSIVELY FOR THE OPERATING EXPENSES OF THE DEPARTMENT; TO PROVIDE THAT FOR THE NEXT THREE FISCAL YEARS, SEVEN PERCENT OF ALL ANNUAL ASSESSMENTS AND FEES CREDITED TO THE BANKING FUND AND THE CONSUMER FINANCE FUND SHALL BE DEPOSITED TO THE STATE GENERAL FUND IN LIEU OF CHARGES TO THE BANKING FUND AND THE CONSUMER FINANCE FUND FOR FURTHER MAINTENANCE OF THE GENERAL FUND; TO AMEND SECTIONS 63-19-51 AND 81-1-109, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 81-1-107, Mississippi Code of 1972, is amended as follows:

81-1-107. Every bank, trust company, savings association, savings bank and credit union organized under the laws of this state engaging in such business as allowed by its charter and under the supervision of the Department of Banking and Consumer Finance is assessed on each One Thousand Dollars ($1,000.00) of assets or fraction thereof at rates established by the Commissioner of Banking and Consumer Finance and approved by the State Board of Banking Review. Notwithstanding any provision of law to the contrary, all money accruing from that assessment shall be deposited into the Banking Fund and shall be used only for the maintenance of the department.

The commissioner shall, during the month of January in each year, or as soon thereafter as practicable, prepare a statement of the assessments due under this section based upon the total assets of the preceding year of each such bank, trust company, savings association, savings bank and credit union, as shown by its last report, which shall be paid as called for by the commissioner. He shall send to each such bank, trust company, savings association, savings bank and credit union a statement of the amount due by it, which shall specify how the same shall be payable. The assessment shall be due and payable in accordance with the statement so furnished and the installments thereof shall be paid within ten (10) days after the date fixed for their payment. The assessment shall constitute a lien on the assets of each bank, trust company, savings association, savings bank and credit union until paid. Any such bank, trust company, savings association, savings bank and credit union failing to make payment within ten (10) days as provided in this section shall be liable to a penalty of ten percent (10%) of the amount in default for each day thereafter. All assessments and penalties provided in this section shall be payable to the commissioner and when collected by him, shall be delivered to the State Treasurer to be placed to the credit of the Banking Fund of the department. The commissioner shall give a receipt for all money received by him and shall take a receipt from the State Treasurer for all money delivered to him. In making any call for the assessment levied by this section, the commissioner shall estimate the cost of maintaining the department, which shall be approved by the State Board of Banking Review, for the next fiscal year. The cash balance remaining in the Banking Fund of the department at the end of any one (1) fiscal year shall be credited to and reduce the assessments of the following fiscal year on a pro rata basis.

Wherever the term "Maintenance Fund" appears in any statute, rule, regulation or document, when referring to the Maintenance Fund of the Department of Banking and Consumer Finance, it shall be construed to mean the Banking Fund of the department.

SECTION 2. Section 81-12-193, Mississippi Code of 1972, is amended as follows:

81-12-193. The department shall charge and collect for:

(a) Filing articles of incorporation and issuing a certificate of incorporation, a minimum fee of Five Hundred Dollars ($500.00) up to a maximum fee of Two Thousand Five Hundred Dollars ($2,500.00) as fixed by the commissioner.

(b) For filing annual reports, the commissioner shall assess every association organized under the laws of this state engaging in the business of an association, and every foreign association qualified to do business in this state under the provisions of Section 81-12-187, in the amounts established under Section 81-1-107.

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(c) Filing articles of merger when the resulting association is a state association, a minimum fee of Five Hundred Dollars ($500.00) up to a maximum fee of Two Thousand Five Hundred Dollars ($2,500.00), as fixed by the commissioner.

(d) Filing an application for conversion from a national association to a state association, a minimum fee of Five Hundred Dollars ($500.00) up to a maximum fee of Two Thousand Five Hundred Dollars ($2,500.00) as fixed by the commissioner.

(e) Filing an application for a branch bank, branch office, or drive-in teller window, a minimum fee of Two Hundred Fifty Dollars ($250.00) up to a maximum fee of One Thousand Five Hundred Dollars ($1,500.00), as fixed by the commissioner.

The commissioner shall publish a schedule of fees applicable to all associations within his jurisdiction.

SECTION 3. Section 81-13-17, Mississippi Code of 1972, is amended as follows:

81-13-17. Each credit union shall be examined at least once per eighteen-month period by the Commissioner of Banking and Consumer Finance. The commissioner may conduct other examinations and the commissioner or examiners of the Department of Banking and Consumer Finance shall at all times be given free access to all the books, papers, securities and other sources of information in respect to the credit union. For that purpose he shall have the power to subpoena and examine personally or through one (1) of his deputies, or examiners, duly authorized, witnesses on oath and documents pertaining to the business of the credit union. The fees for examination shall be determined by the commissioner by assessing the association according to the cost based on the average daily cost of all examiners of the department, plus actual and necessary expenses. * * *

If the commissioner's office, because of work load or other good sufficient cause, is unable to conduct an annual examination of a credit union as provided for in this section, the commissioner is * * * authorized to accept the examination of any credit union performed by the National Credit Union Administration or by any succession thereto. However, in no case shall the commissioner be authorized to accept any such examination of any credit union performed by the NCUA or its successor for any two (2) consecutive eighteen-month periods.

SECTION 4. Section 81-14-157, Mississippi Code of 1972, is amended as follows:

81-14-157. (1) Every state savings bank, including savings banks in the process of voluntary liquidation, or a holding company thereof, shall pay into the office of the commissioner an annual supervisory fee and fees for various activities in the same amounts and in the same manner as charged to savings associations under Sections 81-1-107 and 81-12-193.

(2) All funds and revenue collected by the department under the provisions of this section and all other sections of this chapter that authorize the collection of fees and other funds, except for the civil penalties provided in Sections 81-14-203 and 81-14-205, shall be deposited with the State Treasurer to the credit of the department and expended solely to defray expenses incurred by the office of the commissioner in carrying out the supervisory and auditing functions. The civil penalties provided in Sections 81-14-203 and 81-14-205 shall be deposited into the State General Fund, unless the penalty is appealed to a court of competent jurisdiction as provided in Section 81-14-213, in which case the penalty shall then be deposited with the State Treasurer to the credit of the department until the appeal is resolved. If the appeal is resolved in favor of the department, then the commissioner shall notify and direct the State Treasurer to transfer the amount of the fine from the credit of the department to the credit of the State General Fund.

(3) Notwithstanding any of the provisions of this section, whenever the commissioner under the provisions of Section 81-14-155 appoints a suitable and competent person, other than a person employed by the commissioner's office, to make an examination and investigation of the business of a state savings bank, all costs and expenses relative to the examination and investigation shall be paid by the savings bank.

SECTION 5. The following shall be codified as Section 81-1-108, Mississippi Code of 1972:

81-1-108. (1) Notwithstanding any provision of law to the contrary, there is created in the State Treasury two (2) revolving funds for the Department of Banking and Consumer Finance, the Banking Fund and the Consumer Finance Fund. The Banking Fund shall consist of all monies received by the commissioner under the provisions of Title 81 of the Mississippi Code of 1972, which includes banks, credit unions, savings associations, savings banks, trust companies and international banks or branches. The Consumer Finance Fund shall consist of all monies received by the commissioner under Sections 63-19-1 et seq., 75-15-1 et seq., 75-67-101 et seq., 75-67-201 et seq., 75-67-301 et seq., 75-67-401 et seq., 75-67-501 et seq., 81-18-1 et seq., 81-19-1 et seq., 81-21-1 et seq., and 81-22-1 et seq. Wherever the term "Maintenance Fund" appears in any statute, rule, regulation or document, when referring to the Maintenance Fund of the Department of Banking and Consumer Finance, it shall be construed to mean the Banking Fund of the department.

(2) The Banking Fund and the Consumer Finance Fund shall be continuing funds and not subject to fiscal year limitations. All monies accruing to these funds are appropriated and may be budgeted and expended only by the department, after an exclusivereview by the State Board of Banking Review, solely and exclusively for the operating expenses of the department. Expendituresfrom these funds, as exclusively reviewed by the State Board of Banking Review, shall be made under the laws of this state and the statutes relating to the department. The State Board of Banking Review shall send annuallyto the Secretary of the Senate and the Clerk of the House of Representatives a report of therevenues and expenditures that it has reviewed under thissection.

(3) Effective July 1, 2005, and each year thereafter through June 30, 2008, seven percent (7%) of all annual assessments and fees credited to the Banking Fund and the Consumer Finance Fund shall be deposited to the State General Fund in lieu of charges to the Banking Fund and the Consumer Finance Fund for further maintenance of the General Fund. However, the amount of this deposit shall never be less than the amount of the initial deposit of July 1, 2005.

SECTION 6. Section 63-19-51, Mississippi Code of 1972, is amended as follows:

63-19-51. The commissioner is authorized to employ the necessary examiners and other personnel required to administer the provisions of this chapter and to fix their compensation commensurate with their duties. All salaries, travel and other expenses incident to the administration of this chapter shall be paid by the commissioner * * *. All salaries, travel and other expenses incident to the administration of this chapter shall be paid monthly. All travel, subsistence and other expenses shall be audited by the commissioner or his duly authorized agent. All payments made under the provisions of this section shall be paid by the State Treasurer out of the "Consumer Finance Fund" created by Section 63-19-27.

SECTION 7. Section 81-1-109, Mississippi Code of 1972, is amended as follows:

81-1-109. All monies paid out of the Banking Fund shall be paid by the Treasurer as directed by the commissioner * * *.

SECTION 8. This act shall take effect and be in force from and after July 1, 2005.