KRS 286.9-090: Authority to promulgate administrative regulations -- Compliance

examination and fee -- Examination, inspection, and confidentiality of records

-- Powers of commissioner.

(1) The commissioner may adopt reasonable administrative regulations, not

inconsistent with law, for the enforcement of this subtitle.

(2) To assure compliance with the provisions of this subtitle, the commissioner may

examine the business, books, and records of any licensee, and each licensee shall

pay an examination fee sufficient to cover the cost of the examination based upon

fair compensation for time and actual expense as established by order or

administrative regulations.

(3) The affairs of every check cashing and deferred deposit service business licensee

and the records requ ired to be maintained by KRS 286.9 -074 are subject at any

time, or from time to time, to such periodic, special, or other examinations by the

commissioner or an examiner of the commissioner within or without this state and

with or without notice to the lic ensee, as the commissioner deems necessary or

appropriate in the public interest. All books, papers, and records of assets of the

licensee shall be subject to the commissioner's inspection.

(4) Reports of examination, related working papers, or other confidential information in

the possession or control of the commissioner that is provided according to this

subtitle shall be confidential by law and privileged, and shall not be subject to the

Kentucky Open Records Act, KRS 61.870 to 61.884. These reports of examination,

related working papers, or other confidential information shall not be subject to

subpoena, and shall not be subject to discovery or admissible in evidence in any

civil action, unless after notice to the commissioner and a hearing, a court of

competent jurisdiction determines that the commissioner would not be prejudiced.

However, the commissioner may use such reports, working papers, and other

confidential information in the furtherance of any regulatory or legal action brought

as a part of the commissioner's official duties.

(5) Neither the commissioner nor any person who received documents, materials,

reports, or other information while acting under the authority of the commissioner

shall be required to testify in any civil action concerning any reports of examination,

related working papers, or other confidential information subject to subsection (4)

of this section.

(6) In order to assist in the performance of the commissioner duties, the commissioner

may:

(a) Share documents, materials, ann ual reports, reports of examination or other

information, including the confidential and privileged documents, materials,

reports, or information subject to subsections (4) and (5) of this section, with

other state, federal, and international regulatory agencies, and with local, state,

federal, and international law enforcement authorities, if the recipient agrees

to maintain the confidentiality and privileged status of the documents,

materials, reports, or other information;

(b) Receive documents, material s, reports, or other information, including

otherwise confidential and privileged documents, materials, reports, or

information from regulatory and law enforcement officials of other foreign or

domestic jurisdictions, and shall maintain as confidential and privileged any

documents, materials, reports, or information received with notice or the

understanding that they are confidential and privileged under the laws of the

jurisdiction that is the source of the documents, materials, reports, or

information;

(c) Enter into agreements governing the sharing and use of information, including

the furtherance of any regulatory or legal action brought as part of the

recipient's official duties;

(d) Disclose to the public a list of persons licensed under this subtitle or the

aggregate financial data concerning those licensees; and

(e) Disclose to the public any order issued under this subtitle that is the result of

an administrative or legal action against a licensee, agent of a licensee,

responsible individual, key shareholder, executive officer, or director.

(7) No waiver of any applicable privilege or claim of confidentiality in the documents,

materials, reports, or information shall occur as a result of disclosure to the

commissioner under this subsection or as a res ult of sharing as authorized in

subsection (6) of this section.