§ 19-33-9. Examinations.
(a) In addition to any other authority provided under this chapter, the department shall
have the authority to conduct examinations of registrants.
(b) In order to carry out the purposes of this chapter, the department may:
(1) Retain attorneys, accountants or other professionals and specialists as examiners
or auditors to conduct or assist in the conduct of examinations. The costs of these
persons shall be borne by the registrant;
(2) Enter into agreements or relationships with other government officials or regulatory
associations in order to improve efficiencies and reduce regulatory burden by sharing
resources, standardized or uniform methods or procedures, and documents, records,
information, or evidence obtained under this section;
(3) Use, hire, contract, or employ public or privately available analytical systems, methods,
or software to examine the student loan servicer or person subject to the provisions
of this chapter. The costs of these systems shall be borne by the registrant;
(4) Accept and rely on examination reports made by other government officials, within
or outside of the state; and
(5) Accept audit reports made by an independent certified public accountant for the student
loan servicer or person subject to the provisions of this chapter in the course of
that part of the examination covering the same general subject matter as the audit
and incorporate the audit report in the report of examination or other writing of
the department.
(c) The department may at any time examine the student education loans and business and
examine the books, accounts, records, and files used therein, of every registrant
and person who shall be engaged in any activity that requires a registration under
this chapter, whether the person shall act, or claim to act, as principal or agent,
or under or without the authority of this chapter. For that purpose, the department
shall have free access to the offices and places of business, books, accounts, paper,
records, files, and safes, of all such persons. The department shall have authority
to require the attendance of, and to examine under oath, any person whose testimony
may be required relative to the student education loans or the business or to the
subject matter of any examination or hearing.
(d) The department shall make an examination of the affairs, business, office, and records
of each registrant as often as is necessary, based upon all relevant factors, including
the volume of activity within the state. The total cost of an examination made pursuant
to this section shall be paid by the registrant or person being examined and shall
include the following expenses:
(1) One hundred fifty percent (150%) of the total salaries and benefits plus one hundred
percent (100%) of the travel and transportation expenses for the examining personnel
engaged in the examinations. The fees shall be paid to the department to, and for
the use of, the state. The examination fees shall be in addition to any taxes and
fees otherwise payable to the state;
(2) All reasonable technology costs related to the examination process. Technology costs
shall include the actual cost of software and hardware utilized in the examination
process and the cost of training examination personnel in the proper use of the software
or hardware; and
(3) All necessary and reasonable education and training costs incurred by the state to
maintain the proficiency and competence of the examination personnel. All these costs
shall be incurred in accordance with appropriate state of Rhode Island regulations,
guidelines, and procedures.
(e) The authority of this chapter shall remain in effect, whether the student loan servicer
or person subject to the provisions of this chapter acts or claims to act under any
licensing or registration law of this state, or claims to act without such authority.
(f) No student loan servicer or person subject to examination under this section may knowingly
withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer
records, or other information.
(g) The provisions of § 19-4-3 shall apply to investigatory records and examination reports issued by other state
and federal regulatory agencies, and the work papers of examinations or investigations
of registrants created by the department; provided, however, the director or designee
is authorized to make public all consumer complaints and final examination reports
issued by the department as determined by the director or designee.