GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 1037

Short Title:  Depository Institutions Study.	(Public)
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Sponsors: Senator Staton.
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Referred to:  Rules.
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April 27, 1989

A BILL TO BE ENTITLED
AN ACT TO CREATE THE DEPOSITORY INSTITUTIONS STUDY COMMISSION.
Whereas, North Carolina has overall experienced financially sound depository institutions benefiting greatly the people of this State; and
Whereas, nationally there has been an increased number of depository institution failures, prompting the federal government to restructure the entire depository insurance mechanism and the regulations applicable thereto; and 
Whereas, North Carolina savings and other depository institutions may potentially be negatively impacted by the number of depository institution failures nationally; and 
Whereas, the degree of consolidation and change within the federal regulatory agencies and their ultimate and immediate effect upon North Carolina depository institutions cannot be known at this time; and 
Whereas, some proposed actions by Congress would as a practical matter require study of North Carolina financial regulatory agencies and their assigned functions; and 
Whereas, it is the intention of the legislature to encourage and foster the safe and sound development of all of its depository institutions and to protect this State from the financial loss and adversity suffered by other regions in the United States; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  The North Carolina Depository Institutions Study Commission is hereby created.  The Commission shall consist of 18 members:  five Senators appointed by the President of the Senate; five Representatives appointed by the Speaker of the House; one representative of the North Carolina commercial banking industry appointed by the President of the Senate; one representative of the North Carolina savings institution industry appointed by the Speaker of the House; one representative of the credit union industry appointed by the President Pro Tempore of the Senate; one representative of the small and minority business community appointed by the Speaker of the House; and one representative of the low-income consumer community appointed by the President of the Senate.  The North Carolina Commissioner of Banks, the Administrators of the Savings and Loan and Credit Union Divisions of the North Carolina Department of Commerce shall serve as ex officio nonvoting members.  All initial appointments shall be filled in the same manner as initial appointments.
Sec. 2.  The President of the Senate shall designate one Senator as cochairman and the Speaker of the House of Representatives shall designate one Representative as cochairman.  The cochairmen shall call the initial meeting of the Commission.
Sec. 3.  The Commission shall study the impact of national developments within the depository institutions industry and what effect, if any, these developments will have upon North Carolina depository institutions.  The scope of the study shall include, but not be limited to:
(1)	The effect on North Carolina depository institutions, if any, resulting from action by the federal government to restructure the Federal Savings and Loan Insurance Corporation;
(2)	The effect on North Carolina depository institutions, if any, resulting from any increased authority which may be granted to the Federal Deposit Insurance Corporation;
(3)	The effect on the North Carolina public, if any, if savings institutions were permitted to convert into commercial banks and commercial banks allowed to convert into savings institutions;
(4)	The level of competition between financial institutions in North Carolina;
(5)	The cost and availability of financial services available through North Carolina financial institutions; and 
(6)	The desirability, if any, of consolidating North Carolina financial institution regulatory agencies into a single agency.
Sec. 4.  The Commission shall submit a final report of its findings and recommendations to the General Assembly on or before the first day of the 1990 Session of the General Assembly by the filing of a report with the President of the Senate and the Speaker of the House of Representatives.  Upon filing its final report, the Commission shall terminate.  The report of the Commission shall summarize the information obtained in the course of its inquiry, set forth any findings and conclusions, and recommend such administrative actions or legislative actions that may be necessary.  If legislation is recommended, the Commission shall prepare and submit with its report appropriate bills.
Sec. 5.  With prior approval of the Legislative Services Commission, necessary professional and clerical assistance shall be provided by the Legislative Services Office.  The Commission may hold its meetings in legislative buildings with the prior approval from the Legislative Services Commission.  The Commission may also enter into contracts for the provision of technical assistance it finds necessary for the performance of its responsibilities under this Part.
Sec. 6.  Members of the Commission who are also members of the General Assembly shall be paid subsistence and travel expenses at the rate set forth in G.S. 120-3.1.  Members of the Commission who are officials or employees of the State shall receive travel allowances at the rate set forth in G.S. 138-6.  All other members of the Commission shall be paid the per diem and allowance at the rate set forth in G.S. 138-5.
Sec. 7.  There is appropriated from the General Fund to the Legislative Services Commission for the Depository Institutions Study Commission $25,000 for fiscal year 1989-90.  The Legislative Services Commission may allocate to the Commission additional funds necessary to enable the Commission to complete its study.
Sec. 8.  This act shall become effective July 1, 1989.