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 reorganized as independent divisions and boards within the executive branch, separate 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 modifies the qualifications for the commissioner and deputy commissioner positions, emphasizing the need for specific banking or regulatory experience. It enhances the commissioner's powers, including the authority to issue subpoenas and conduct investigations, while establishing a Consumer Education Fund to promote awareness in residential mortgage lending. The bill replaces the term "Commissioner of Banking" with "Commissioner of Financial Institutions" to reflect a broader oversight scope and ensures transparency by making orders issued by the commissioner public. It also clarifies the board's authority to regulate its procedures and outlines penalties for non-compliance with established standards. Overall, the bill aims to strengthen regulatory oversight and ensure the effective operation of financial institutions in West Virginia.

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