Arkansas 2023 Regular Session

Arkansas Senate Bill SB418 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 475 of the Regular Session
3	2		ANS309 3/14/2023 11:03:35 AM ANS309
4	3
5	4		State of Arkansas 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 SENATE BILL 418 3
8	7		4
9	8		By: Senator J. Dismang 5
10	9		By: Representative Maddox 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO TRANSFER T HE ADMINISTRATIVE FU NCTIONS OF 9
14	13		THE STATE SECURITIES DEPARTMENT TO THE ST ATE BANK 10
15	14		DEPARTMENT; TO AMEND THE LAW CONCERNING T HE 11
16	15		ORGANIZATION OF THE STATE SECURITIES DEP ARTMENT; AND 12
17	16		FOR OTHER PURPOSES. 13
18	17		14
19	18		15
20	19		Subtitle 16
21	20		TO TRANSFER THE ADMINISTRATIVE FUNCTIONS 17
22	21		OF THE STATE SECURITIES DEPARTMENT TO THE 18
23	22		STATE BANK DEPARTMENT; AND TO AMEND THE 19
24	23		LAW CONCERNING THE ORGANIZATION OF THE 20
25	24		STATE SECURITIES DEPARTMENT. 21
26	25		22
27	26		23
28	27		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
29	28		25
30	29		SECTION 1. DO NOT CODIFY. Transfer of administrative functions of 26
31	30		State Securities Department to State Bank Department. 27
32	31		(a) The administrative functions of the State Securities Department 28
33	32		are transferred within the Department of Commerce to the Sta te Bank 29
34	33		Department. 30
35	34		(b) The statutory authority, powers, duties, functions, records, 31
36	35		personnel, property, and unexpended balances of appropriations, allocations, 32
37	36		and other funds, including the functions of budgeting or purchasing of the 33
38	37		State Securities Department remain with the State Securities Department 34
39	38		subsequent to the transfer under subsection (a) of this section. 35
40	39		(c)(1) The transfer under subsection (a) of this section does not 36 SB418
41	40
42	41		2 3/14/2023 11:03:35 AM ANS309
43	42
44	43
45	44		affect the orders, rules, directives, registration, licensing, or st andards 1
46	45		made or promulgated by the State Securities Department before or after the 2
47	46		effective date of this act. 3
48	47		(2) The orders, rules, directives, registration, licensing, or 4
49	48		standards of the State Securities Department shall continue to be in effect 5
50	49		until they are amended or repealed under authority given by law. 6
51	50		7
52	51		SECTION 2. Arkansas Code § 4 -30-207(a), the authority of the 8
53	52		Securities Commissioner over certain cooperative banks, is amended to read as 9
54	53		follows: 10
55	54		(a)(1) Every cooperative bank organized u nder this chapter prior to 11
56	55		March 22, 1937, which is not situated in a city, town, or community in which 12
57	56		there is also situated a state or national bank or a teller's window branch 13
58	57		thereof is declared to be an investment company and shall be placed under th e 14
59	58		regulation and supervision of the State Securities Department, in the same 15
60	59		manner as now provided by law for other investment companies. 16
61	60		(2) The Securities Commissioner, in consultation with the 17
62	61		Secretary of the Department of Commerce and the Bank Commissioner, is 18
63	62		authorized, empowered, and directed to make and promulgate all such rules not 19
64	63		inconsistent herewith as shall be necessary or convenient for the 20
65	64		administration and carrying out of this subchapter and for the supervision 21
66	65		and control of all such organizations. 22
67	66		23
68	67		SECTION 3. Arkansas Code § 15 -4-1228 is amended to read as follows: 24
69	68		15-4-1228. Investigations by Bank Commissioner or and Securities 25
70	69		Commissioner — Injunctions. 26
71	70		(a) The Bank Commissioner may investigate, either upon complaint or 27
72	71		otherwise, when it appears that a county or regional industrial development 28
73	72		company is conducting its business in an unsafe and injurious manner or in 29
74	73		violation of this subchapter or the rules promulgated under this subchapter 30
75	74		by the Bank Commissioner or when it appears that any person is engaging in 31
76	75		the business without being approved under the provisions of this subchapter. 32
77	76		(b) The Securities Commissioner , in consultation with the Bank 33
78	77		Commissioner, may investigate, either upon complaint or otherwise, when it 34
79	78		appears that a county or regional industrial development company is offering 35
80	79		its securities in violation of § 15 -4-1220 or is otherwise violating the 36 SB418
81	80
82	81		3 3/14/2023 11:03:35 AM ANS309
83	82
84	83
85	84		provisions of Arkansas law that come under the jurisdiction of the Securities 1
86	85		Commissioner. 2
87	86		(c)(1) Subject to the jurisdictional provisions of subsections (a) and 3
88	87		(b) of this section, whenever it appears upon sufficient grounds or evidence 4
89	88		satisfactory to the Bank Commissioner or the Securities Commissioner , in 5
90	89		consultation with the Bank Commissioner, that any county or regional 6
91	90		industrial development company has engaged in or is about to engage in any 7
92	91		act or practice in violation of this subchapter or any rule or order under 8
93	92		this subchapter, or the assets or capital of any county or regional 9
94	93		industrial development company is impaired or the county or regional 10
95	94		industrial development company's affairs are in an unsafe condition, the Bank 11
96	95		Commissioner or the Securities Commissioner , in consultation with the Bank 12
97	96		Commissioner, may: 13
98	97		(A) Refer the evidence which is available concerning 14
99	98		violations of this subchapter or any rule or order under this subchapter to 15
100	99		the appropriate agency, which may institute the appropriate corrective action 16
101	100		or proceedings with or without the reference; or 17
102	101		(B)(i) Summarily order the county or regional industrial 18
103	102		development company to cease and desist from the act or practice during the 19
104	103		time the Bank Commissioner or the Securities Commissioner , in consultation 20
105	104		with the Bank Commissioner, may apply to the Pulaski County Circui t Court to 21
106	105		enjoin the act or practice and to enforce compliance with this subchapter or 22
107	106		any rule or order under this subchapter. 23
108	107		(ii) However, the Bank Commissioner or the 24
109	108		Securities Commissioner , in consultation with the Bank Commissioner, may 25
110	109		apply directly to the Pulaski County Circuit Court for injunctive relief 26
111	110		without issuing a cease and desist order. 27
112	111		(2) Upon a proper showing, a permanent or temporary injunction, 28
113	112		restraining order, or writ of mandamus shall be granted and a receiver or 29
114	113		conservator may be appointed for the county or regional industrial 30
115	114		development company or its assets. 31
116	115		(3) The court may not require the Bank Commissioner or the 32
117	116		Securities Commissioner , in consultation with the Bank Commissioner, to post 33
118	117		a bond. 34
119	118		(4) In addition to any other remedy provided in this subchapter 35
120	119		or under applicable law, the costs of the Bank Commissioner or the Securities 36 SB418
121	120
122	121		4 3/14/2023 11:03:35 AM ANS309
123	122
124	123
125	124		Commissioner, in consultation with the Bank Commissioner, incurred in 1
126	125		successfully prosecuting violations of this subchapter may be imposed by the 2
127	126		court as additional damages payable by the company. 3
128	127		(d) A copy of all reports of the investigation or other proceedings 4
129	128		conducted pursuant to this section shall be forwarded to the Secretary of the 5
130	129		Department of Finance and Administration. 6
131	130		7
132	131		SECTION 4. Arkansas Code § 18 -50-102(a)(2), concerning the authority 8
133	132		of the Bank Commissioner or the Securities Commissioner to foreclose on a 9
134	133		mortgage or deed of trust, is amended to read as follows: 10
135	134		(2) A state-chartered bank, nationally chartered bank, state -11
136	135		chartered or federally chartered savings and loan association, state -12
137	136		chartered or federally chartered credit union, or a mortgage loan company 13
138	137		subject to licensing, supervision, and auditing by a federal agency, a 14
139	138		government-sponsored enterprise, and the Bank Commissioner or Securities 15
140	139		Commissioner, in consultation with the Bank Commissioner, as applicable, as 16
141	140		an approved mortgage loan servicer authorized to do business under the laws 17
142	141		of the State of Arkansas if the state -chartered bank, nationally chartered 18
143	142		bank, state-chartered or federally chartered savings and loan association, 19
144	143		state-chartered or federally chartered credit union, or mortgage loan 20
145	144		company: 21
146	145		(A) Has a physical business location open for business for 22
147	146		normal banking hours located within the State of Arkansas; 23
148	147		(B) Is either the holder or the mortgage loan servicer for 24
149	148		the holder of a note secured by a mortgage or deed of trust; and 25
150	149		(C) Does not collect a fee or cost for any action taken 26
151	150		under this chapter unless authorized by a court order; or 27
152	151		28
153	152		SECTION 5. Arkansas Code § 23 -35-201 is amended to read as follows: 29
154	153		23-35-201. Credit Union Division — State Credit Union Supervisor — 30
155	154		Staff. 31
156	155		(a) There is created under the State Securities Department a Cr edit 32
157	156		Union Division which shall be administered by the State Credit Union 33
158	157		Supervisor. The Securities Commissioner, in consultation with the Secretary 34
159	158		of the Department of Commerce and the Bank Commissioner , shall act as State 35
160	159		Credit Union Supervisor. 36 SB418
161	160
162	161		5 3/14/2023 11:03:35 AM ANS309
163	162
164	163
165	164		(b) The supervisor, in consultation with the Secretary of the 1
166	165		Department of Commerce and the Bank Commissioner , shall appoint such 2
167	166		administrative assistants and examiners as may be necessary to assist in the 3
168	167		performance of his or her duties under this chapter . 4
169	168		5
170	169		SECTION 6. Arkansas Code § 23 -37-206(b)(1), concerning the Supervisor 6
171	170		of Savings and Loan Associations, is amended to read as follows: 7
172	171		(b)(1)(A) The Securities Commissioner, in consultation with the 8
173	172		Secretary of the Department of Commerce and the Bank Commissioner, shall act 9
174	173		as Supervisor of Savings and Loan Associations. 10
175	174		(B) He or she The Securities Commissioner may appoint an 11
176	175		assistant securities commissioner responsible for financial institutions to 12
177	176		act as the Assistant Supervisor of Savings a nd Loan Associations and perform 13
178	177		all duties delegated by the commissioner Securities Commissioner . 14
179	178		15
180	179		SECTION 7. Arkansas Code § 23 -42-201(a), concerning the administration 16
181	180		of the State Securities Department by the Securities Commissioner, is amended 17
182	181		to read as follows: 18
183	182		(a)(1) This chapter shall be administered by the Securities 19
184	183		Commissioner, who shall be appointed by the Governor and who shall serve at 20
185	184		the pleasure of the Governor . 21
186	185		(2) The commissioner shall report to the Secretary of the 22
187	186		Department of Commerce Except as provided in subdivision (a)(3) of this 23
188	187		section, the Securities Commissioner shall: 24
189	188		(A) Be appointed by the Governor and serve at the pleasure 25
190	189		of the Governor; and 26
191	190		(B) Report to the Bank Commissioner. 27
192	191		(3) The Bank Commissio ner may act as the Securities 28
193	192		Commissioner. 29
194	193		30
195	194		SECTION 8. Arkansas Code § 25 -43-302(a)(26), concerning the state 31
196	195		entities within the Department of Commerce is amended to read as follows: 32
197	196		(26) The State Securities Department, created under the Arkansas 33
198	197		Securities Act, § 23-42-101 et seq., within the State Bank Department. 34
199	198		35
200		-	~~APPROVED: 4/4/23~~ 36
	199	+	36