KRS 286.12-070: Assessment fee -- Renewal report.

(1) As used in this section, "wholly owned subsidiary" means a subsidiary that is

entirely owned or controlled by another person.

(2) (a) A licensee shall pay an annual assessment fee no later than December 1 of

each year.

(b) The assessment fee required under this section shall:

1. Be prescribed by the commissioner by order, which shall be reasonably

adjusted by order five (5) years from July 14, 2022, and every five (5)

years thereafter;

2. Be based on the volume of loans serviced in Kentucky, or for Kentucky

residents, between October 1 through September 30 of the preceding

year; and

3. Cover the renewal fee for the licensee and any examination-related costs

incurred by the department.

(c) An adjustment made pursuant to paragraph (b)1. of this subsection may be

based on the nonseasonally adjusted Consumer Price Index for All Urban

Consumers (CPI-U), U.S. City Average, All Items, as published by the United

States Bureau of Labor Statistics.

(d) The commissioner shall set a minimum and maximum assessment fee to

account for low and high volume licensees.

(3) A licensee shall annually file a written renewal report, in a form prescribed by the

commissioner, which shall include:

(a) A copy of the licensee's most recent audited annual financial statement or, if

the li censee is a wholly owned subsidiary of another corporation, the most

recent audited consolidated annual financial statement of the parent

corporation;

(b) For the most recent quarter for which data is available prior to the date of

filing of the renewal re port, but in no event more than one hundred twenty

(120) days prior to the renewal report filing date:

1. A list of the number of student education loans serviced by the licensee

in this state;

2. The dollar amount of the loans referenced in subparagraph 1. of this

paragraph; and

3. The dollar amount of the loans referenced in subparagraph 1. of this

paragraph that are currently outstanding;

(c) Any material changes to any of the information submitt ed by the licensee on

its original application which have not previously been reported to the

commissioner on any other report required under this subtitle;

(d) A list of the licensee's permissible investments in accordance with this

subtitle, any administrative regulation promulgated pursuant to this subtitle, or

any order of the commissioner issued pursuant to this subtitle;

(e) A certification that the licensee continues to maintain permissible investments

in accordance with this subtitle, any administra tive regulation promulgated

pursuant to this subtitle, or any order of the commissioner issued pursuant to

this subtitle; and

(f) A list of locations, including names, physical addresses, and telephone

numbers, in this state where the licensee is conductin g student education loan

servicing, if any.

(4) (a) The failure of a licensee to pay the annual assessment fee required under

subsection (2) of this section or to file the written renewal report required

under subsection (3) of this section by December 1 s hall result in the

expiration of the licensee's license by operation of law on December 31 of the

same year.

(b) The commissioner may reinstate a license that has expired pursuant to

paragraph (a) of this subsection if, within thirty (30) days of the expir ation of

the license, the licensee:

1. Becomes compliant with this section; and

2. Pays a civil penalty equal to one thousand dollars ($1,000).