Source: https://development.code.dccouncil.us/dc/council/code/titles/31/chapters/1/subchapters/I/
Timestamp: 2019-04-21 00:45:56+00:00

Document:
D.C. Law Library - Subchapter I. Establishment of the Department of Insurance, Securities, and Banking.
↪ Chapter 1. Department of Insurance, Securities, and Banking.
↪ Subchapter I. Establishment of the Department of Insurance, Securities, and Banking.
Chapter 1. Department of Insurance, Securities, and Banking.
Subchapter II. Regulations Under the Gramm-Leach-Bliley Act.
Subchapter I. Establishment of the Department of Insurance, Securities, and Banking.
§ 31–102. Establishment of the Department of Insurance, Securities, and Banking.
§ 31–103. Functions and duties.
§ 31–104. Commissioner of the Department of Insurance, Securities, and Banking.
§ 31–106.01. Student Loan Ombudsman.
§ 31–106.02. Student loan servicer; licensure and reporting requirements.
§ 31–107. Department of Insurance, Securities, and Banking funding.
§ 31–108. Abolition of Insurance Administration.
(1) “Associate Commissioner for Securities and Banking” means the Associate Commissioner of the Securities and Banking Bureau.
(2) “Commissioner” means the Commissioner of the Department of Insurance, Securities, and Banking, who shall be the chief executive officer of the Department of Insurance, Securities, and Banking.
(3) “Department” means the Department of Insurance, Securities, and Banking.
(4) “Deputy Commissioner” means the Deputy Commissioner of the Department of Insurance, Securities, and Banking.
(5) “District of Columbia Banking Code” means the statutory provisions concerning banking and financial institutions codified in Title 26, laws administered by the Commissioner, and rules and regulations promulgated under those statutory provisions and laws.
(6) “Insurance Bureau” means the office overseeing the regulation of insurance, insurers, and health maintenance organizations.
(6A) "Licensee" means the holder of a SLS license.
(6B) "Ombudsman" means the position of Student Loan Ombudsman established within the Department by § 31-106.01.
(7) “Securities and Banking Bureau” means the office administering the District of Columbia Banking Code and overseeing the regulation of securities.
(8) "Student education loan" means a loan obtained for personal use to finance education or other school-related expenses.
(9) "Student loan borrower" means a resident of the District of Columbia who has received or agreed to pay a student education loan, or a person who shares legal responsibility with such a resident for the repayment of a student education loan.
(10) "Student loan servicer" means a person or entity, whether located within or outside the District, responsible for the servicing of a student education loan of a student loan borrower.
(D) Communicating with the student loan borrower regarding the student education loan; and having other interactions to assist a student loan borrower, including activities to help prevent default on obligations arising from a student education loan.
(12) "SLS license" means the business license issued by the Department pursuant to § 31-106.02 that is required for a student loan servicer.
D.C. Law 15-354 validated a previously made technical correction.
D.C. Law 18-223 rewrote the section.
For temporary (90 day) amendment of section, see § 3(a) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
For temporary (90 day) amendment of section, see § 2112(a) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Short title: Section 2111 of D.C. Law 18-223 provided that subtitle K of title II of the act may be cited as the “Department of Insurance, Securities, and Banking Reorganization Amendment Act of 2010”.
The Department, under the supervision of the Commissioner, is established as a cabinet level agency of the District government.
This section is referenced in § 31-1131.02 and § 31-3171.01.
For temporary (90 day) amendment of section, see § 3(b) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
(a) The functions and duties contained and referenced herein are transferred to the Department and shall be performed by the following major organizational components of the Department.
(1) All duties and responsibilities in respect to the regulation of life and health and property and casualty insurance, insurers, and health maintenance organizations that heretofore have been given to the Mayor, the Superintendent of Insurance, or the Insurance Administrator, by virtue of various District of Columbia laws, shall be assumed by the Commissioner of Insurance and Securities who shall exercise those regulatory responsibilities through the Insurance Bureau.
(2) All functions and duties assigned to the Public Service Commission in Chapter 36 [repealed] of Title 3 and Chapter 37 [repealed] of Title 3, shall be assumed by the Commissioner, who shall exercise those regulatory responsibilities through the Securities and Banking Bureau.
(3) Pursuant to §§ 26-551.03 and 26-551.05, the Commissioner, through the Securities and Banking Bureau, shall administer the District of Columbia Banking Code, as defined in § 26-551.02(14).
(b) The Mayor, at his or her discretion, may transfer the regulatory functions and duties of other executive offices and agencies to the Department.
D.C. Law 15-166, in subsec. (a), deleted “of Insurance and Securities” following “Commissioner” in par. (2), and added par. (3).
D.C. Law 15-354, in subsec. (a)(3), substituted “Banking Code, as defined in § 26-551.02(14)” for “Banking Code”.
D.C. Law 18-223, in subsec. (a)(2), substituted “Securities and Banking Bureau” for “Securities Bureau”; and, in subsec. (a)(3), substituted “Securities and Banking Bureau” for “Banking Bureau”.
For temporary (90 day) amendment of section, see § 3(c) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
For temporary (90 day) amendment of section, see § 2112(b) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
(a) The Commissioner shall be appointed by the Mayor, with the advice and consent of the Council, pursuant to § 1-204.22(1).
(1) Notwithstanding the provisions of § 1-611.07(c) [repealed], the rate of pay for the Commissioner or for any other position in the Department for which the Mayor deems it necessary, may exceed the rate of pay for the Mayor.
(2) The Mayor shall submit a resolution to the Council for a 45-day period of review, excluding Saturdays, Sundays, holidays, and periods of Council recess, indicating the proposed rate of pay for the Commissioner and for each other employee in the Department. A resolution which has not been approved or disapproved, in whole or part, within the prescribed period of 45 days shall be deemed approved by the Council.
(b) The Commissioner shall employ staff as needed, in accordance with annual appropriations.
D.C. Law 15-166, deleted “of Insurance and Securities” following “Commissioner” throughout the section.
For temporary (90 day) amendment of section, see § 3(d) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
Commissioner of the Department of Insurance and Securities Regulation Salary Approval Resolution of 1998: Pursuant to Resolution 12-582, effective July 7, 1998, the Council approved the rate of pay for the Commissioner of the Department of Insurance and Securities Regulation.
(a) All positions, property, records, and unexpended balances of appropriations, allocations, assessments, and other funds available or to be made available to the Department of Consumer and Regulatory Affairs and the Public Service Commission relating to the duties and functions assigned herein, are transferred to the Department.
(b) All powers, duties, and functions transferred to the Department of Banking and Financial Institutions under § 26-551.03, are hereby transferred to the Department of Insurance, Securities, and Banking.
(c) All positions, property, records, and unexpended balances of appropriations, allocations, assessments, and other funds available or to be made available to the Department of Banking and Financial Institutions under § 26-551.03, are hereby transferred to the Department.
D.C. Law 15-166 designated the existing text as subsec. (a); and added subsecs. (b) and (c).
For temporary (90 day) amendment of section, see § 3(e) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
(a) The Commissioner, as the chief executive officer of the Department is authorized to organize the personnel and property transferred herein within any organizational unit of the Department as the Commissioner deems appropriate.
(b)(1) The Securities and Banking Bureau is established to oversee the regulation of securities under the supervision of the Commissioner and administer the District of Columbia Banking Code.
(2) The position of Associate Commissioner for Securities and Banking is hereby established to administer the Banking Bureau under the supervision of the Commissioner.
D.C. Law 15-166 designated the text of the existing section as subsection (a); in subsec. (a), substituted “Commissioner” for “Commissioner of Insurance and Securities” and substituted “Department” for “Department of Insurance and Securities Regulation”; and added subsec. (b).
For temporary (90 day) amendment of section, see § 3(f) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
For temporary (90 day) amendment of section, see § 2112(c) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
(a) There is established within the Department the position of the Student Loan Ombudsman.
(C) Experienced in consumer finance, including student loan servicing and debt collection.
(2) If a vacancy in the position of Ombudsman occurs as a consequence of removal, resignation, disability, death, or other reason, the Commissioner shall appoint an Ombudsman to fill the vacancy within 90 days of the occurrence of the vacancy.
(13) Take any other action required by the Commissioner.
(d) Beginning March 1, 2018, and by March 1 of each year thereafter, the Commissioner shall submit an annual report to the Mayor and the Council on the Ombudsman's activities, as required or authorized by this section, of the previous year, which shall include the number of educational presentations held across the city, the number of residents in attendance for the educational presentations, and the number of complaints received and the action taken to resolve the complaints.
(4) Be held personally liable for the good-faith performance of his or her responsibilities or duties under this section or rules issued pursuant to this section; except, that no immunity shall extend to criminal acts, or other acts that violate District or federal law.
(a) Except as provided in subsection (b) of this section, no person or entity shall operate as a student loan servicer in the District, directly or indirectly, without first obtaining a SLS license pursuant to this section.
(4) A public postsecondary educational institution or a private nonprofit postsecondary educational institution servicing a student loan it extended to a student loan borrower.
(E) Any other information the Commissioner considers necessary and appropriate as prescribed by rules issued pursuant to § 31-106.03.
(2) An applicant shall notify the Department in writing of any change in the information provided in the applicant's application for an initial SLS license or a renewal within 10 business days of the change having occurred. The failure to timely notify the Department of a change in the accuracy of the application may result in the denial of the application.
(d) The Commissioner shall issue a SLS license if the application meets all the requirements for licensure prescribed this subchapter and by the Commissioner by rule.
(e)(1)(A) A SLS license issued pursuant to this section before November 1 of a given year shall expire on December 31 of that same year, unless renewed or earlier surrendered, suspended, or revoked.
(B) A SLS license issued pursuant to this section on or after November 1 of a given year shall expire on December 31 of the following year, unless renewed or earlier surrendered, suspended, or revoked.
(2) No later than 15 days after a licensee ceases to engage in the business of being a student loan servicer, the licensee shall surrender the SLS license to the Commissioner, along with a signed notice of the surrender.
(C) Reason for the cessation of business.
(f) The surrender of a SLS license does not toll or eliminate a licensee's civil or criminal liability arising from acts or omissions occurring before the surrender of the SLS license, including any administrative actions undertaken by the Commissioner to revoke or suspend the SLS license.
(g)(1)(A) A SLS license may be renewed for a term prescribed by the Commissioner upon the timely filing of an application, along with all required documents and the payment of fees, as required by this section, or rules issued pursuant to this section.
(B) If an application for a renewal of a SLS license has been filed with the Department on or before the date the current SLS license expires, the current SLS license shall continue in full force and effect until the Commissioner issues a renewal or notifies the licensee in writing that the licensee's application for renewal has been denied, including the grounds for the denial.
(C) The Commissioner may deny an application for renewal of a SLS license on any ground that the Commissioner may deny an application for an initial SLS license.
(2) A SLS license shall not be transferable or assignable.
(G) Failed to satisfy any of the criteria for obtaining a license as set out in this subchapter.
(2) Whenever the Commissioner revokes a license issued pursuant to this subchapter, the Commissioner shall issue a written order setting forth the grounds for revocation, with a copy to be served on the licensee either personally or by mail to the last known address of the licensee.
(i) Pending the hearing required by subsection (h) of this section, the Commissioner may suspend the license for a period not to exceed 30 days if the Commissioner determines that the suspension is in the public interest and that one or more grounds for revocation of a license, as set forth in subsection (h) of this section, exist. Whenever the Commissioner suspends a license pursuant to this subsection, the Commissioner shall issue a written notice to the licensee setting forth, with particularity, the grounds for suspension and the licensee's right to a hearing, with a copy to be served on the licensee either personally or by mail to the last known address of the licensee.
(j)(1) Beginning January 30, 2018, and by January 30th, each year thereafter, a licensee shall file an annual report with the Commissioner, which shall include the number of loans that were sold, assigned, or transferred in the preceding calendar year and any other information that the Commissioner reasonably requires concerning the business operations conducted by the licensee during the preceding calendar year.
(2) The Department shall provide a copy of each report to the Mayor and the Council and make the reports available to the public by publishing them on the Department's website.
Within 180 days of February 18, 2017, the Mayor, pursuant to subchapter I of Chapter 5 of Title 2, shall issue rules to implement of provisions of §§ 31-106.01 and31-106.02.
(a) Control of the Insurance Regulatory Trust Fund, and all monies required to be deposited therein, pursuant to Chapter 7 of this title, is transferred to the Department.
(b-2)(1) There is established within the General Fund of the District of Columbia a trust fund designated as the Securities and Banking Regulatory Trust Fund ("Fund"), which shall be administered by the Mayor, through the Commissioner.
(2) All licensing fees, fines, and any other fees imposed, assessed, and collected for securities regulation and banking regulation shall be deposited into the Fund.
(B) Beginning October 1, 2018 and on October 1 of each year thereafter, converted to local funds revenue in the amount of $11.1 million.
(c) The administrative costs of the Department, including the compensation of the Commissioner and the Department’s central administrative staff, shall be charged on a pro-rata basis to each of the respective Bureau trust funds in a manner reflecting the central administrative costs associated with the operation of each Bureau. In no circumstances shall monies collected and deposited pursuant to the statutory funding requirements of the District of Columbia Securities Act, the Investment Advisors Act, and the Insurance Regulatory Trust Fund Act, be commingled or used to fund the regulatory activities of a bureau other than the bureau regulating the activities for which the respective funds were established.
(d) The Mayor shall submit to the Council, as part of the annual budget, a budget for the Department and a request for an appropriation for expenditures from the Insurance Regulatory Trust Fund and the Securities and Banking Regulatory Trust Fund. The Mayor’s request shall be based on an estimated projection of the expenditures necessary to perform the administration and regulatory functions of the Department. This estimate shall include, but not be limited to, expenditures for salaries, fringe benefits, overhead charges, travel, training, supplies, technical, professional, and any and all other services necessary to discharge the duties and responsibilities of this subchapter.
This section is referenced in § 31-5041.02.
D.C. Law 15-166, in subsec. (a), substituted “Department” for “Department of Insurance and Securities Regulation”; added subsec. (b-1); and, in subsec. (d), substituted “, the Security Regulatory Trust Fund, and the Banking Regulatory Trust Fund” for “and the Security Regulatory Trust Fund”.
D.C. Law 18-223 repealed subsecs. (b) and (b-1); added subsec. (b-2); and, in subsec. (d), substituted “and the Securities and Banking Regulatory Trust Fund” for “, the Securities Regulatory Trust Fund, and the Banking Regulatory Trust Fund”.
D.C. Law 19-21, in subsec. (b-2), substituted “all proceeds from licensure and any funds” for “all funds”.
For temporary (90 days) amendment of this section, see § 2262 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).
For temporary (90 days) amendment of this section, see § 2262 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).
For temporary (90 day) amendment of section, see § 3(g) of Consolidation of Financial Services Emergency Amendment Act of 2004 (D.C. Act 15-381, February 27, 2004, 51 DCR 2653).
For temporary (90 day) amendment of section, see § 2112(d) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
The “District of Columbia Securities Act”, referred to in (c), is the Act of August 30, 1964, 78 Stat. 620, Pub. L. 88-503, which is codified primarily as § 3-3601 et seq.
The “Investment Advisors Act”, referred to in (c), is D.C. Law 9-216, which is codified as § 3-3701 et seq.
The “Insurance Regulatory Trust Fund Act”, referred to in (c), is D.C. Law 10-40, which is codified as § 31-1201 et seq.
The Insurance Administration in the Department of Consumer and Regulatory Affairs as currently organized is abolished.

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