February 4, 2016, Introduced by Senator BOOHER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1999 PA 276, entitled
"Banking code of 1999,"
by amending the title and sections 2202 and 2203 (MCL 487.12202 and
487.12203).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to revise and codify the laws relating to banks, out-
of-state banks, and foreign banks; to provide for their regulation
and supervision; to prescribe the powers and duties of banks; to
prescribe the powers and duties of certain state agencies and
officials; to create the state bank regulatory fund; to prescribe
penalties; and to repeal acts and parts of acts.
Sec.
2202. (1) Each institution together with and its
subsidiaries
and service entities shall be are
subject to
examination
of its condition and affairs by the commissioner or the
commissioner's
director or his or her authorized agent not less
frequently
than at least once every 18 months.
(2)
The commissioner director shall examine an institution
under
the commissioner's director's
jurisdiction when requested by
its board of directors. In connection with an examination, the
commissioner,
or the commissioner's director,
or his or her
authorized
agent, may examine on under
oath a director, officer,
agent, employee, or shareholder of an institution concerning the
affairs
and business of the institution. The commissioner director
shall ascertain whether the institution transacts its business in
the manner prescribed by law and the rules promulgated under law.
The
commissioner, or the commissioner's director, or his or her
authorized agent, may make an examination of an affiliate, bank
holding company, subsidiary, or service entity if necessary to
disclose fully the relation between an institution and the
affiliate, holding company, subsidiary, or service entity and the
effect
of the relation upon on the institution.
(3)
The commissioner director may examine the branch or
branches located in this state of an out-of-state bank as permitted
by
under the federal deposit insurance act.
(4) In fulfilling the requirements of subsections (1) and (2),
the
commissioner director may use an examination made under the
federal reserve act, the federal deposit insurance act, or the law
of another state governing the activities of out-of-state banks in
that
state. The commissioner director
may require the institution
to furnish a copy of any report required by a federal or state bank
regulatory agency.
(5) An examination required by this section may include the
fiduciary activities of the institution.
(6)
The commissioner director may contract with other state
bank regulatory agencies to assist in the conduct of examinations
of banks with 1 or more branches located in other states and in
examinations of out-of-state banks with 1 or more branches located
in this state.
(7) The contents of a report of examination of a bank and
examination-related documents prepared or obtained under this
section
remain the property of the bureau. department.
Dissemination of all or part of a bank's report of examination for
purposes other than the legitimate business purposes of the bank or
as
otherwise authorized by this act shall be is a violation of this
act that is
subject to the administrative remedies granted the
commissioner
to the director under sections 2304 through 2314.
(8) In an addendum to a report of an examination under this
section, the director or his or her authorized agent may suggest
best practices or other improvements in the operation of a bank
that are not required by law or regulation or to address safety and
soundness of the bank. The manner in which a bank addresses issues
concerning its operations is within the discretion of the bank in
the exercise of its business judgment, except as required by law or
regulation or to address a concern over safety and soundness. The
director shall not take action against a bank under this act based
on a failure or refusal of a bank to follow a best practice or
other recommended improvement in the operation of the bank that is
suggested informally by an examiner or that is contained in an
addendum to a report of examination.
(9) Within 1 year after the effective date of the amendatory
act that added this subsection, the director shall issue guidance
to promote consistency and due process in the examination process
under this section, including, but not limited to, establishing
guidelines that define the scope of the examination process and
clarify how examination issues will be resolved.
Sec.
2203. (1) The commissioner director
shall periodically
establish a schedule of supervisory fees to be paid by banks.
Except for a minimum fee consistent with subsection (2), the fee
shall not be more than 25 cents for each $1,000.00 of total assets
of the bank as reported by the bank on its report of condition as
of December 31 of the previous year.
(2)
Each bank shall pay an The
annual supervisory fee which
shall
be not less than established
by the director under subsection
(1) shall be at least $1,000.00.
(3)
The commissioner director shall provide an invoice of the
supervisory
fee no later than on or
before July 1 of each year. The
A
bank must pay the annual supervisory
fee shall be paid by on or
before August 15 of that year.
(4) The director shall base the initial supervisory fee for a
bank
that obtained a charter as a result of a conversion shall be
based
on the total assets of the bank as reported in its report of
condition as of December 31 of the previous year under its prior
charter.
(5)
The supervisory fee of a bank which that was not engaged
in the business of banking on December 31 of the previous year
shall be the minimum supervisory fee established by the
commissioner
consistent with subsection director
under subsections
(1) and (2).
(6)
The commissioner director shall periodically establish a
schedule of fees, beyond those charged for normal supervision, to
be paid for applications, special evaluations and analyses, and
examinations.
(7) The director shall base the fees established under
subsection
(6) shall be based on the estimated cost to the bureau
department of conducting the activities for which the fees are
imposed.
(8)
The commissioner director may charge reasonable fees for
furnishing and certifying copies of documents or serving notices
required
by under this act.
(9) To the extent any fees, penalties, or fines assessed under
this
act are unpaid when due, the commissioner director may, upon
after providing proper notice, maintain an action for the recovery
of the fees, penalties, or fines plus interest and costs.
(10) The fees, expenses, compensation, penalties, and fines
collected
under this act are not refundable. and shall be paid into
the
state treasury to the credit of the bureau and used only for
the
operation of the bureau.
(11) The state bank union regulatory fund is established in
the department of treasury. All of the following apply to the state
bank regulatory fund:
(a) The fund shall consist of the following:
(i) Fees, expenses, compensation, penalties, and fines
received or collected under this act.
(ii) Money appropriated to the fund.
(iii) Donations of money made to the fund from any source.
(iv) Interest and earnings from fund investments.
(b) Money in the fund at the close of a fiscal year shall
remain in the fund and shall not revert to the general fund.
(c) Upon appropriation, the department shall use the money in
the fund only for bank regulatory purposes, as determined by the
director.
(d) The state treasurer shall direct the investment of the
fund.
(e) The department is the administrator of the fund for
auditing purposes.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 749.
(b) Senate Bill No. 750.