KRS 286.1-013: Financial Institutions Board -- Duties.

(1) There is created a Financial Institutions Board whose duties shall be to advise the

commissioner and the Governor as provided in this section. The board shall consist

of:

(a) Twelve (12) voting members appointed by the Governor, who shall serve

terms of four (4) years; and

(b) The commissioner as a nonvoting ex officio member, who shall serve as chair

of the board.

(2) The voting board member appointments made by the Governor shall consist of:

(a) Three (3) members selected from the banking industry regulat ed by the

department with appropriate recognition as to bank size and geographic

diversity;

(b) Three (3) members selected from the securities industry regulated by the

department;

(c) One (1) member selected from the credit union industry regulated by the

department;

(d) One (1) member selected from the consumer finance industry regulated by the

department;

(e) One (1) member selected from an industry regulated by the department that is

not represented in another capacity on the board; and

(f) Three (3) me mbers selected from the public at large who are residents of

Kentucky and knowledgeable concerning financial institutions, the legislative

process, and consumer interests, two (2) of whom are not employees, officers,

or directors of any financial institution.

(3) All members of the board from an industry regulated by the department shall be

persons:

(a) With practical experience in the industry so represented; and

(b) Currently serving at the executive level of that industry at the time of their

appointment.

(4) (a) Vacancies in the membership of the board shall be filled in the same manner

as original appointments.

(b) Appointments to fill vacancies occurring before th e expiration of a term shall

be for the remainder of the unexpired term.

(5) No member of the board, other than the commissioner, shall serve more than two

(2) consecutive terms on the board.

(6) (a) The board shall meet at the call of the Governor or chai r, at a time and place

determined by the Governor or chair.

(b) The board may elect other officers for the conduct of its business.

(c) A majority of voting board members shall constitute a quorum.

(d) If a quorum is present, a decision of the board shall require the majority vote

of those present.

(e) Each voting board member shall have one (1) vote, and voting by proxy is

prohibited.

(7) Voting board members shall:

(a) Receive one hundred dollars ($100) per diem for each board meeting they

attend; and

(b) Be reimbursed for other reasonable and necessary expenses incurred while

engaged in carrying out the duties of the board.

(8) The board shall:

(a) Prepare and submit, at the Governor's request, the following

recommendations:

1. A list of candidates qualified to serve as commissioner;

2. A proposed salary for each nomination for commissioner; and

3. A proposed salary structure for other department staff in order to

provide competitive salaries for recruitment and retention of staff;

(b) Receive and comment on various reports relating to the department and its

activities as submitted to the board by the commissioner or the Governor; and

(c) Review, consider, and make recommendations to the commissioner on any

matters referred to the board by the commissioner or the Governor.

(9) In no event shall the board or its members interfere with the statutory duties of the

commissioner, whose decisions shall be governed by law.