N.Y. Financial Services Law § 206: Assessments to defray operating expenses of the department

§ 206. Assessments to defray operating expenses of the department.

(a) For each fiscal year commencing on or after April first, two

thousand twelve, assessments to defray operating expenses, including all

direct and indirect costs, of the department, except expenses incurred

in the liquidation of banking organizations, shall be assessed by the

superintendent in accordance with this subsection. Persons regulated

under the insurance law shall be assessed by the superintendent for the

operating expenses of the department that are solely attributable to

regulating persons under the insurance law, which shall include any

expenses that were permissible to be assessed in fiscal year two

thousand nine-two thousand ten, with the assessments allocated pro rata

upon all domestic insurers and all licensed United States branches of

alien insurers domiciled in this state within the meaning of paragraph

four of subsection (b) of section seven thousand four hundred eight of

the insurance law, in proportion to the gross direct premiums and other

considerations, written or received by them in this state during the

calendar year ending December thirty-first immediately preceding the end

of the fiscal year for which the assessment is made (less return

premiums and considerations thereon) for policies or contracts of

insurance covering property or risks resident or located in this state

the issuance of which policies or contracts requires a license from the

superintendent. Persons regulated under the banking law shall be

assessed by the superintendent for the operating expenses of the

department that are solely attributable to regulating persons under the

banking law in such proportions as the superintendent shall deem just

and reasonable. Persons regulated under this chapter that engage in

"virtual currency business activity," as that term is defined by the

department, shall be assessed by the superintendent for the operating

expenses of the department that are solely attributable to regulating

such persons in such proportions as the superintendent shall deem just

and reasonable. Operating expenses of the department not covered by the

assessments set forth above shall be assessed by the superintendent in

such proportions as the superintendent shall deem just and reasonable

upon all domestic insurers and all licensed United States branches of

alien insurers domiciled in this state within the meaning of paragraph

four of subsection (b) of section seven thousand four hundred eight of

the insurance law, and upon any regulated person under the banking law,

other than mortgage loan originators, and upon persons regulated under

this chapter that engage in virtual currency business activity, except

as otherwise provided by sections one hundred fifty-one and two hundred

twenty-eight of the workers' compensation law and by section sixty of

the volunteer firefighters' benefit law. The provisions of this

subsection shall not be applicable to a bank holding company, as that

term is defined in article three-A of the banking law. Persons regulated

under the banking law will not be assessed for expenses that the

superintendent deems to benefit solely persons regulated under the

insurance law or under this chapter that engage in virtual currency

business activity, and persons regulated under the insurance law will

not be assessed for expenses that the superintendent deems to benefit

solely persons regulated under the banking law or under this chapter

that engage in virtual currency business activity. Persons regulated

under this chapter that engage in virtual currency business activity

will not be assessed for expenses that the superintendent deems to

benefit solely persons regulated under the insurance law or under the

banking law.

(b) For each fiscal year commencing on or after April first, two

thousand twelve, a partial payment shall be made by each entity subject

to this section in a sum equal to twenty-five per centum, or such other

per centum or per centums as the superintendent may prescribe, of the

annual expenses assessed upon it for the fiscal year as estimated by the

superintendent. Such payment shall be made on March tenth of the

preceding fiscal year and on June tenth, September tenth and December

tenth of each year, or at such other dates as the superintendent may

prescribe. The balance of assessments for the fiscal year shall be paid

upon determination of the actual amount due in accordance with the

provisions of this section. Any overpayment of annual assessment

resulting from complying with the requirements of this subsection shall

be applied against the next estimated quarterly assessment, if less than

or equal to such amount, with any excess refunded to the assessed. As an

alternative, if the estimated annual assessment for the fiscal year is

equal to or less than the annual minimum assessment set by the

superintendent, the superintendent may require full payment to be made

on or before September thirtieth or such other date of the fiscal year

as the superintendent may determine.

(c) The expenses incurred in making examinations of, or for special

services performed on account of, any bank holding company, as that term

is defined in the banking law, or any regulated person under the banking

law, shall be assessed provided, however, that the superintendent, in

the superintendent's sole discretion, may determine, with respect to

expenses incurred in the making of any specific examination or

investigation, or the performing of any special services, that any such

expense shall be assessed against and paid by the bank holding company

or any other regulated person under the banking law for which they were

incurred or performed.

(d) The expenses incurred in making an examination of any affiliate of

a banking organization pursuant to the banking law, and the expenses

incurred in making an examination, pursuant to the banking law, of a

non-banking subsidiary of a corporation or any other entity that is an

affiliate of a banking organization, shall be assessed against and paid

by such banking organization if the affiliate cannot be assessed

pursuant to the provisions of the banking law.

(d-1) The expenses of every examination of the affairs of any person

regulated pursuant to this chapter that engages in virtual currency

business activity shall be borne and paid by the regulated person so

examined, but the superintendent, with the approval of the comptroller,

may in the superintendent's discretion for good cause shown remit such

charges.

(e) The superintendent may, in the superintendent's sole discretion,

upon notice, suspend the license, registration, certificate or authority

(for purposes of this section, a license) granted to any person pursuant

to this chapter, the banking law or insurance law, upon the failure of

such person to make any payment required by this section within thirty

days after the due date. If the superintendent has suspended any such

license, such license may be reinstated if the superintendent determines

that such person has made any such payments within ninety days after the

date of such notice of suspension. Otherwise, unless the superintendent,

in the superintendent's sole discretion, has extended such suspension,

the license of such person shall be deemed to be automatically

terminated by operation of law at the close of business on such

ninetieth day.

(f) (1) The expenses of every examination of the affairs of any

regulated person subject to the insurance law, including an appraisal of

such regulated person's real property or of any real property on which

such regulated person holds a mortgage, made pursuant to the authority

conferred by any provision of this chapter, the insurance law or the

banking law, shall be borne and paid by the regulated person so

examined, but the superintendent, with the approval of the comptroller,

may in the superintendent's discretion for good cause shown remit such

charges.

(2) (A) For any such examination by the superintendent or a deputy

superintendent personally, the charge made shall be only for necessary

traveling expenses and other actual expenses. In all other cases, the

expenses of examination shall also include reimbursement for the

compensation paid for the services of persons employed by the

superintendent or by the superintendent's authority to make such

examination or appraisal.

(B) Notwithstanding any provisions of this section to the contrary, in

case of an examination or appraisal of a domestic insurer made within

this state, the traveling and living expense of the person or persons

making the examination shall be considered a cost of operation, as

referred to in section three hundred thirty-two of the insurance law and

not an expense of examination.

(3) All charges, including necessary traveling and other actual

expenses, except as hereinabove provided, as audited by the comptroller

and paid on the comptroller's warrant in the usual manner by the

comptroller to the person or persons making the examination or

appraisal, shall be presented to the insurer, or other person whose duty

it is to pay the same, in the form of a copy of the itemized bill

therefor as certified and approved by the superintendent or by any

deputy superintendent or authorized employee of the department. Upon

receiving such certified copy the insurer or other person whose duty it

is to pay such charges shall pay the amount thereof to the

superintendent, to be paid by the superintendent into the state

treasury.