This bill proposes a comprehensive restructuring of the governance and operational framework for the Board of Banking and Financial Institutions, the Division of Financial Institutions, and the Lending and Credit Rate Board in West Virginia, effective January 1, 2026. The entities will be transitioned to independent divisions and boards within the executive branch, separating them from the Department of Revenue. The Board of Banking and Financial Institutions will act as the chief executive body, overseeing the other divisions and responsible for policy decisions, budgets, and personnel matters. A merit-based personnel system will be established for the Division of Financial Institutions, allowing current employees to opt into a classified-exempt system. The bill also mandates bi-monthly meetings for the Board and requires a portion of the revenue collected by the commissioner to be deposited into the General Revenue Fund.

Additionally, the bill introduces new legal language that enhances the authority of the Board, allowing it to regulate its own procedures and grant permissions to financial institutions. It modifies the qualifications for the commissioner and deputy commissioner positions, increasing age and experience requirements, and emphasizes the importance of maintaining confidentiality regarding financial institution records. The legislation also establishes a Consumer Education Fund funded by civil penalties collected for violations, and it mandates that orders issued by the commissioner for violations be made public. Overall, the bill aims to improve the regulatory framework governing financial institutions in West Virginia, ensuring compliance, promoting consumer protection, and enhancing operational efficiency.

Statutes affected:
Introduced Version: 5F-2-1, 31A-2-2, 31A-2-3, 31A-2-4, 31A-2-4a, 31A-2-4b, 31A-2-5, 31A-2-6, 31A-2-7, 31A-2-8, 31A-2-9, 31A-2-12, 31A-2-14, 31A-3-1, 31A-3-2, 5F-2-1b, 5F-2-9
Engrossed Version: 5F-2-1, 31A-2-2, 31A-2-3, 31A-2-4, 31A-2-4a, 31A-2-4b, 31A-2-5, 31A-2-6, 31A-2-7, 31A-2-8, 31A-2-9, 31A-2-12, 31A-2-14, 31A-3-1, 31A-3-2, 5F-2-1b, 5F-2-9