This bill proposes a comprehensive restructuring of the Board of Banking and Financial Institutions, the Division of Financial Institutions, and the Lending and Credit Rate Board in West Virginia, transitioning them to independent entities within the executive branch starting January 1, 2026. 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 amends various sections of the West Virginia Code, including the removal of references to the "Commissioner of Banking" and the insertion of "Commissioner of Financial Institutions." It grants the commissioner enhanced powers, such as issuing subpoenas and conducting hearings, while establishing a Consumer Education Fund to promote awareness in residential mortgage lending. The bill also outlines the responsibilities of financial institutions, including compliance with document requests from the commissioner and the continuation of the "commissioner's assessment and examination fund." Overall, the legislation aims to improve regulatory oversight, operational efficiency, and consumer protection within West Virginia's financial institutions.

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