§ 206 — Assessments to defray operating expenses of the department

§ 206. Assessments to defray operating expenses of the department.\n(a) For each fiscal year commencing on or after April first, two\nthousand twelve, assessments to defray operating expenses, including all\ndirect and indirect costs, of the department, except expenses incurred\nin the liquidation of banking organizations, shall be assessed by the\nsuperintendent in accordance with this subsection. Persons regulated\nunder the insurance law shall be assessed by the superintendent for the\noperating expenses of the department that are solely attributable to\nregulating persons under the insurance law, which shall include any\nexpenses that were permissible to be assessed in fiscal year two\nthousand nine-two thousand ten, with the assessments allocated pro rata\nupon all domestic insurers and all licensed United States branches of\nalien insurers domiciled in this state within the meaning of paragraph\nfour of subsection (b) of section seven thousand four hundred eight of\nthe insurance law, in proportion to the gross direct premiums and other\nconsiderations, written or received by them in this state during the\ncalendar year ending December thirty-first immediately preceding the end\nof the fiscal year for which the assessment is made (less return\npremiums and considerations thereon) for policies or contracts of\ninsurance covering property or risks resident or located in this state\nthe issuance of which policies or contracts requires a license from the\nsuperintendent. Persons regulated under the banking law shall be\nassessed by the superintendent for the operating expenses of the\ndepartment that are solely attributable to regulating persons under the\nbanking law in such proportions as the superintendent shall deem just\nand reasonable. Persons regulated under this chapter that engage in\n"virtual currency business activity," as that term is defined by the\ndepartment, shall be assessed by the superintendent for the operating\nexpenses of the department that are solely attributable to regulating\nsuch persons in such proportions as the superintendent shall deem just\nand reasonable. Operating expenses of the department not covered by the\nassessments set forth above shall be assessed by the superintendent in\nsuch proportions as the superintendent shall deem just and reasonable\nupon all domestic insurers and all licensed United States branches of\nalien insurers domiciled in this state within the meaning of paragraph\nfour of subsection (b) of section seven thousand four hundred eight of\nthe insurance law, and upon any regulated person under the banking law,\nother than mortgage loan originators, and upon persons regulated under\nthis chapter that engage in virtual currency business activity, except\nas otherwise provided by sections one hundred fifty-one and two hundred\ntwenty-eight of the workers' compensation law and by section sixty of\nthe volunteer firefighters' benefit law. The provisions of this\nsubsection shall not be applicable to a bank holding company, as that\nterm is defined in article three-A of the banking law. Persons regulated\nunder the banking law will not be assessed for expenses that the\nsuperintendent deems to benefit solely persons regulated under the\ninsurance law or under this chapter that engage in virtual currency\nbusiness activity, and persons regulated under the insurance law will\nnot be assessed for expenses that the superintendent deems to benefit\nsolely persons regulated under the banking law or under this chapter\nthat engage in virtual currency business activity. Persons regulated\nunder this chapter that engage in virtual currency business activity\nwill not be assessed for expenses that the superintendent deems to\nbenefit solely persons regulated under the insurance law or under the\nbanking law.\n (b) For each fiscal year commencing on or after April first, two\nthousand twelve, a partial payment shall be made by each entity subject\nto this section in a sum equal to twenty-five per centum, or such other\nper centum or per centums as the superintendent may prescribe, of the\nannual expenses assessed upon it for the fiscal year as estimated by the\nsuperintendent. Such payment shall be made on March tenth of the\npreceding fiscal year and on June tenth, September tenth and December\ntenth of each year, or at such other dates as the superintendent may\nprescribe. The balance of assessments for the fiscal year shall be paid\nupon determination of the actual amount due in accordance with the\nprovisions of this section. Any overpayment of annual assessment\nresulting from complying with the requirements of this subsection shall\nbe applied against the next estimated quarterly assessment, if less than\nor equal to such amount, with any excess refunded to the assessed. As an\nalternative, if the estimated annual assessment for the fiscal year is\nequal to or less than the annual minimum assessment set by the\nsuperintendent, the superintendent may require full payment to be made\non or before September thirtieth or such other date of the fiscal year\nas the superintendent may determine.\n (c) The expenses incurred in making examinations of, or for special\nservices performed on account of, any bank holding company, as that term\nis defined in the banking law, or any regulated person under the banking\nlaw, shall be assessed provided, however, that the superintendent, in\nthe superintendent's sole discretion, may determine, with respect to\nexpenses incurred in the making of any specific examination or\ninvestigation, or the performing of any special services, that any such\nexpense shall be assessed against and paid by the bank holding company\nor any other regulated person under the banking law for which they were\nincurred or performed.\n (d) The expenses incurred in making an examination of any affiliate of\na banking organization pursuant to the banking law, and the expenses\nincurred in making an examination, pursuant to the banking law, of a\nnon-banking subsidiary of a corporation or any other entity that is an\naffiliate of a banking organization, shall be assessed against and paid\nby such banking organization if the affiliate cannot be assessed\npursuant to the provisions of the banking law.\n (d-1) The expenses of every examination of the affairs of any person\nregulated pursuant to this chapter that engages in virtual currency\nbusiness activity shall be borne and paid by the regulated person so\nexamined, but the superintendent, with the approval of the comptroller,\nmay in the superintendent's discretion for good cause shown remit such\ncharges.\n (e) The superintendent may, in the superintendent's sole discretion,\nupon notice, suspend the license, registration, certificate or authority\n(for purposes of this section, a license) granted to any person pursuant\nto this chapter, the banking law or insurance law, upon the failure of\nsuch person to make any payment required by this section within thirty\ndays after the due date. If the superintendent has suspended any such\nlicense, such license may be reinstated if the superintendent determines\nthat such person has made any such payments within ninety days after the\ndate of such notice of suspension. Otherwise, unless the superintendent,\nin the superintendent's sole discretion, has extended such suspension,\nthe license of such person shall be deemed to be automatically\nterminated by operation of law at the close of business on such\nninetieth day.\n (f) (1) The expenses of every examination of the affairs of any\nregulated person subject to the insurance law, including an appraisal of\nsuch regulated person's real property or of any real property on which\nsuch regulated person holds a mortgage, made pursuant to the authority\nconferred by any provision of this chapter, the insurance law or the\nbanking law, shall be borne and paid by the regulated person so\nexamined, but the superintendent, with the approval of the comptroller,\nmay in the superintendent's discretion for good cause shown remit such\ncharges.\n (2) (A) For any such examination by the superintendent or a deputy\nsuperintendent personally, the charge made shall be only for necessary\ntraveling expenses and other actual expenses. In all other cases, the\nexpenses of examination shall also include reimbursement for the\ncompensation paid for the services of persons employed by the\nsuperintendent or by the superintendent's authority to make such\nexamination or appraisal.\n (B) Notwithstanding any provisions of this section to the contrary, in\ncase of an examination or appraisal of a domestic insurer made within\nthis state, the traveling and living expense of the person or persons\nmaking the examination shall be considered a cost of operation, as\nreferred to in section three hundred thirty-two of the insurance law and\nnot an expense of examination.\n (3) All charges, including necessary traveling and other actual\nexpenses, except as hereinabove provided, as audited by the comptroller\nand paid on the comptroller's warrant in the usual manner by the\ncomptroller to the person or persons making the examination or\nappraisal, shall be presented to the insurer, or other person whose duty\nit is to pay the same, in the form of a copy of the itemized bill\ntherefor as certified and approved by the superintendent or by any\ndeputy superintendent or authorized employee of the department. Upon\nreceiving such certified copy the insurer or other person whose duty it\nis to pay such charges shall pay the amount thereof to the\nsuperintendent, to be paid by the superintendent into the state\ntreasury.\n