2023 New York Laws › FIS - Financial Services Law › Article 2 - Organization of the Department of Financial Services › 206 - Assessments to Defray Operating Expenses of the Department.

§  206.  Assessments  to  defray operating expenses of the department.
(a) For each fiscal  year  commencing  on  or  after  April  first,  two
thousand twelve, assessments to defray operating expenses, including all
direct  and  indirect costs, of the department, except expenses incurred
in the liquidation of banking organizations, shall be  assessed  by  the
superintendent  in  accordance  with  this subsection. Persons regulated
under the insurance law shall be assessed by the superintendent for  the
operating  expenses  of  the  department that are solely attributable to
regulating persons under the insurance  law,  which  shall  include  any
expenses  that  were  permissible  to  be  assessed  in  fiscal year two
thousand nine-two thousand ten, with the assessments allocated pro  rata
upon  all  domestic  insurers and all licensed United States branches of
alien insurers domiciled in this state within the meaning  of  paragraph
four  of  subsection (b) of section seven thousand four hundred eight of
the insurance law, in proportion to the gross direct premiums and  other
considerations,  written  or  received  by them in this state during the
calendar year ending December thirty-first immediately preceding the end
of the fiscal year  for  which  the  assessment  is  made  (less  return
premiums  and  considerations  thereon)  for  policies  or  contracts of
insurance covering property or risks resident or located in  this  state
the  issuance of which policies or contracts requires a license from the
superintendent.  Persons  regulated  under  the  banking  law  shall  be
assessed  by  the  superintendent  for  the  operating  expenses  of the
department that are solely attributable to regulating persons under  the
banking  law  in  such proportions as the superintendent shall deem just
and reasonable. Persons regulated under  this  chapter  that  engage  in
"virtual  currency  business  activity,"  as that term is defined by the
department, shall be assessed by the superintendent  for  the  operating
expenses  of  the  department that are solely attributable to regulating
such persons in such proportions as the superintendent shall  deem  just
and  reasonable. Operating expenses of the department not covered by the
assessments set forth above shall be assessed by the  superintendent  in
such  proportions  as  the superintendent shall deem just and reasonable
upon all domestic insurers and all licensed United  States  branches  of
alien  insurers  domiciled in this state within the meaning of paragraph
four of subsection (b) of section seven thousand four hundred  eight  of
the  insurance law, and upon any regulated person under the banking law,
other than mortgage loan originators, and upon persons  regulated  under
this  chapter  that engage in virtual currency business activity, except
as otherwise provided by sections one hundred fifty-one and two  hundred
twenty-eight  of  the  workers' compensation law and by section sixty of
the  volunteer  firefighters'  benefit  law.  The  provisions  of   this
subsection  shall  not  be applicable to a bank holding company, as that
term is defined in article three-A of the banking law. Persons regulated
under the banking law  will  not  be  assessed  for  expenses  that  the
superintendent  deems  to  benefit  solely  persons  regulated under the
insurance law or under this chapter  that  engage  in  virtual  currency
business  activity,  and  persons regulated under the insurance law will
not be assessed for expenses that the superintendent  deems  to  benefit
solely  persons  regulated  under  the banking law or under this chapter
that engage in virtual currency  business  activity.  Persons  regulated
under  this  chapter  that  engage in virtual currency business activity
will not be assessed for  expenses  that  the  superintendent  deems  to
benefit  solely  persons  regulated under the insurance law or under the
banking law.
(b) For each fiscal year commencing  on  or  after  April  first,  two
thousand  twelve, a partial payment shall be made by each entity subject
to this section in a sum equal to twenty-five per centum, or such  other

per  centum  or  per centums as the superintendent may prescribe, of the
annual expenses assessed upon it for the fiscal year as estimated by the
superintendent. Such payment  shall  be  made  on  March  tenth  of  the
preceding  fiscal  year  and on June tenth, September tenth and December
tenth of each year, or at such other dates  as  the  superintendent  may
prescribe.  The balance of assessments for the fiscal year shall be paid
upon determination of the actual  amount  due  in  accordance  with  the
provisions  of  this  section.  Any  overpayment  of  annual  assessment
resulting from complying with the requirements of this subsection  shall
be applied against the next estimated quarterly assessment, if less than
or equal to such amount, with any excess refunded to the assessed. As an
alternative,  if  the estimated annual assessment for the fiscal year is
equal to  or  less  than  the  annual  minimum  assessment  set  by  the
superintendent,  the  superintendent may require full payment to be made
on or before September thirtieth or such other date of the  fiscal  year
as the superintendent may determine.
(c)  The  expenses  incurred in making examinations of, or for special
services performed on account of, any bank holding company, as that term
is defined in the banking law, or any regulated person under the banking
law, shall be assessed provided, however, that  the  superintendent,  in
the  superintendent's  sole  discretion,  may determine, with respect to
expenses  incurred  in  the  making  of  any  specific  examination   or
investigation,  or the performing of any special services, that any such
expense shall be assessed against and paid by the bank  holding  company
or  any other regulated person under the banking law for which they were
incurred or performed.
(d) The expenses incurred in making an examination of any affiliate of
a banking organization pursuant to the banking  law,  and  the  expenses
incurred  in  making  an  examination, pursuant to the banking law, of a
non-banking subsidiary of a corporation or any other entity that  is  an
affiliate  of a banking organization, shall be assessed against and paid
by such  banking  organization  if  the  affiliate  cannot  be  assessed
pursuant to the provisions of the banking law.
(d-1)  The  expenses of every examination of the affairs of any person
regulated pursuant to this chapter  that  engages  in  virtual  currency
business  activity  shall  be  borne and paid by the regulated person so
examined, but the superintendent, with the approval of the  comptroller,
may  in  the superintendent's discretion for good cause shown remit such
charges.
(e) The superintendent may, in the superintendent's  sole  discretion,
upon notice, suspend the license, registration, certificate or authority
(for purposes of this section, a license) granted to any person pursuant
to  this  chapter, the banking law or insurance law, upon the failure of
such person to make any payment required by this section  within  thirty
days  after  the  due date. If the superintendent has suspended any such
license, such license may be reinstated if the superintendent determines
that such person has made any such payments within ninety days after the
date of such notice of suspension. Otherwise, unless the superintendent,
in the superintendent's sole discretion, has extended  such  suspension,
the  license  of  such  person  shall  be  deemed  to  be  automatically
terminated by operation  of  law  at  the  close  of  business  on  such
ninetieth day.
(f)  (1)  The  expenses  of  every  examination  of the affairs of any
regulated person subject to the insurance law, including an appraisal of
such regulated person's real property or of any real property  on  which
such  regulated  person holds a mortgage, made pursuant to the authority
conferred by any provision of this chapter, the  insurance  law  or  the
banking  law,  shall  be  borne  and  paid  by  the  regulated person so

examined, but the superintendent, with the approval of the  comptroller,
may  in  the superintendent's discretion for good cause shown remit such
charges.
(2)  (A)  For  any  such examination by the superintendent or a deputy
superintendent personally, the charge made shall be only  for  necessary
traveling  expenses  and  other actual expenses. In all other cases, the
expenses  of  examination  shall  also  include  reimbursement  for  the
compensation   paid   for  the  services  of  persons  employed  by  the
superintendent  or  by  the  superintendent's  authority  to  make  such
examination or appraisal.
(B) Notwithstanding any provisions of this section to the contrary, in
case  of  an  examination or appraisal of a domestic insurer made within
this state, the traveling and living expense of the  person  or  persons
making  the  examination  shall  be  considered  a cost of operation, as
referred to in section three hundred thirty-two of the insurance law and
not an expense of examination.
(3) All  charges,  including  necessary  traveling  and  other  actual
expenses,  except as hereinabove provided, as audited by the comptroller
and paid on the  comptroller's  warrant  in  the  usual  manner  by  the
comptroller   to  the  person  or  persons  making  the  examination  or
appraisal, shall be presented to the insurer, or other person whose duty
it is to pay the same, in the form  of  a  copy  of  the  itemized  bill
therefor  as  certified  and  approved  by  the superintendent or by any
deputy superintendent or authorized employee  of  the  department.  Upon
receiving  such certified copy the insurer or other person whose duty it
is  to  pay  such  charges  shall  pay  the  amount   thereof   to   the
superintendent,  to  be  paid  by  the  superintendent  into  the  state
treasury.