Source: https://development.code.dccouncil.us/dc/council/code/titles/31/chapters/1/
Timestamp: 2019-05-27 07:34:28
Document Index: 241361267

Matched Legal Cases: ['§ 31', '§ 31', '§ 3', '§ 3', '§ 40', '§\u200235', '§ 31', '§ 31', '§ 1', '§\u20023', '§ 1', '§ 1', '§ 5', '§ 3', '§ 40', '§\u200235', '§\u20023', '§\u200235', '§\u20023', '§\u20022112', '§ 31', '§ 7', '§ 7', '§ 2', '§ 31', '§ 31', '§ 7', '§ 2', '§ 31', '§ 8', '§ 3', '§ 2112', '§ 9039', '§ 2262', '§\u200235', '§ 31', '§ 2262', '§ 2262', '§\u20023', '§\u20022112', '§ 3', '§ 3', '§ 31', '§ 31', '§ 9', '§\u200235', '§ 31', '§ 8', '§\u20022']

D.C. Law Library - Chapter 1. Department of Insurance, Securities, and Banking.
§§ 31-101 – 31-108
Subchapter II. Regulations Under the Gramm-Leach-Bliley Act.
§§ 31-121 – 31-121
The Department, under the supervision of the Commissioner, is established as a cabinet level agency of the District government.
(May 21, 1997, D.C. Law 11-268, § 3, 44 DCR 1730; June 11, 2004, D.C. Law 15-166, § 3(b), 51 DCR 2817; Apr. 13, 2005, D.C. Law 15-354, § 40(a), 52 DCR 2638.)
1981 Ed., § 35-122.
This section is referenced in § 31-1131.02 and § 31-3171.01.
D.C. Law 15-166 rewrote the section which had read as follows: “Pursuant to § 1-204.04(b), the Council establishes the Department of Insurance and Securities Regulation as a cabinet level agency of the executive branch of the Government of the District of Columbia, under the supervision of the Commissioner of Insurance and Securities.”
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 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(1) Notwithstanding the provisions of § 1-611.07(c) [repealed], the rate of pay for the Commissioner or for any other position in the Department for which the Mayor deems it necessary, may exceed the rate of pay for the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.
(May 21, 1997, D.C. Law 11-268, § 5, 44 DCR 1730; June 11, 2004, D.C. Law 15-166, § 3(d), 51 DCR 2817; Apr. 13, 2005, D.C. Law 15-354, § 40(c), 52 DCR 2638.)
1981 Ed., § 35-124.
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.
1981 Ed., § 35-126.
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).
D.C. Law 18-223 rewrote subsec. (b)(1); and, in subsec. (b)(2), substituted “Associate Commissioner for Securities and Banking” for “Director of the Bureau of Banking and Financial Institutions”. Prior to amendment, subsec. (b)(1) read as follows: “(b)(1) The Bureau of Banking and Financial Institutions is hereby established to administer the District of Columbia Banking Code under supervision of the Commissioner.”
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) 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.
(b) The following persons and entities shall be exempt from the requirements of subsection (a) of this section:
(1) A bank, trust company, or other loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States that is authorized to transact business in the District;
(2) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in the District;
(3) A savings and loan association, savings bank, or credit union organized under the laws of the District or any other state that is authorized to transact business in the District; or
(4) A public postsecondary educational institution or a private nonprofit postsecondary educational institution servicing a student loan it extended to a student loan borrower.
(c)(1) Except as provided in subsection (b) of this section, a person or entity seeking to operate as a student loan servicer in the District shall apply for a SLS license by submitting to the Department:
(A) A completed application, in a form and manner prescribed by the Commissioner, that is signed under penalty of perjury;
(B) Application fees and other fees as prescribed by the Commissioner;
(C) Three years of audited financial statements prepared in accordance with generally accepted accounting principles and acceptable to the Department that show a net worth of at least $250,000;
(D) A surety bond in an amount determined by the Mayor to be used for the recovery of damages incurred by a student loan borrower as the result of a licensee's noncompliance with the requirements of this subchapter or the recovery of fees or expenses levied against a licensee pursuant to this subchapter; and
(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.
(3) The signed notice of surrender shall provide the:
(A) Location where the records of the licensee will be stored;
(B) Name, address, and telephone number of an individual authorized to provide access to the records; and
(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.
(h)(1) The Commissioner may revoke any license issued pursuant to this subchapter if, after notice and a hearing, the Commissioner finds that the licensee has:
(A) Committed any fraudulent acts, engaged in any dishonest activities, or made any misrepresentation in any business transaction;
(B) Been convicted of a felony under the laws of the District of Columbia, any state, or the United States;
(C) Violated any applicable banking laws of the District of Columbia, or any rules or regulations issued pursuant to any of those laws, or has violated any other law in the course of dealings as a licensee;
(D) Made a material misstatement in the application for a license under this subchapter;
(E) Demonstrated incompetency or untrustworthiness to act as a licensee;
(F) Violated any provision of this subchapter or of any implementing regulation; or
(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.
(May 21, 1997, D.C. Law 11-268, § 7b; May 21, 1997, D.C. Law 11-268, § 7c; as added Feb. 18, 2017, D.C. Law 21-214, § 2(b), 63 DCR 15334.)
§ 31–106.03. Rules.
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.
(May 21, 1997, D.C. Law 11-268, § 7c; as added Feb. 18, 2017, D.C. Law 21-214, § 2(b), 63 DCR 15334.)
§ 31–107. Department of Insurance, Securities, and Banking funding.
(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.
(3) Money in the Fund, in order of priority shall be:
(A) Used for the expenses of the Securities and Banking Bureau in the discharge of its administrative and regulatory duties as prescribed by law; and
(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.
(May 21, 1997, D.C. Law 11-268, § 8, 44 DCR 1730; June 11, 2004, D.C. Law 15-166, § 3(g), 51 DCR 2817; Sept. 24, 2010, D.C. Law 18-223, § 2112(d), 57 DCR 6242; Sept. 14, 2011, D.C. Law 19-21, § 9039, 58 DCR 6226; Oct. 30, 2018, D.C. Law 22-168, § 2262, 65 DCR 9388.)
1981 Ed., § 35-127.
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.
§ 31–108. Abolition of Insurance Administration.
The Insurance Administration in the Department of Consumer and Regulatory Affairs as currently organized is abolished.
(May 21, 1997, D.C. Law 11-268, § 9, 44 DCR 1730.)
1981 Ed., § 35-128.
§ 31–121. Regulations.
The Commissioner may promulgate rules, regulations, and orders as are necessary or appropriate to conform to the Gramm-Leach-Bliley Act, approved November 12, 1999 (113 Stat. 1338; codified in scattered sections of the U.S. Code), or regulations promulgated thereunder.
(Oct. 21, 2000, D.C. Law 13-191, § 8, 47 DCR 7311.)
For temporary (90 day) amendment of section, see § 2 of the Insurer Confidentiality and Information Sharing Emergency Act of 2000 (D.C. Act 13-444, October 24, 2000, 47 DCR 9007).