GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	2 

HOUSE BILL 580
Committee Substitute Favorable 7/3/91

Short Title:  Financial Inst./Public Service Study.	(Public)
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Sponsors:
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Referred to:  
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April 3, 1991

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE NEED FOR THE ESTABLISHMENT OF A SERVICE THAT WOULD PROVIDE INFORMATION TO THE GENERAL PUBLIC ON THE FINANCIAL SOUNDNESS OF BANKS, CREDIT UNIONS, SAVINGS INSTITUTIONS, AND OTHER FINANCIAL INTERMEDIARIES.
The General Assembly of North Carolina enacts:
Section 1. The Legislative Research Commission may study the need for a public service to be provided by the Commissioner of Banks, under rules adopted by the State Banking Commission, that would give citizens, upon request and free of charge, information on the financial health, stability, and creditworthiness of banks, credit unions, savings institutions, and other financial intermediaries doing business in the State.  In conducting its study, the Commission may consider the following:
(1)	The development of a rating or other type of evaluation system that will yield information that is meaningful and useful to the general public concerning the financial health, stability, and creditworthiness of a particular bank, credit union, savings institution, or other financial intermediary while maintaining compliance with laws pertaining to confidentiality of records.  Currently used rating or evaluations systems may be adapted to meet the requirements and intent of this subdivision;
(2)	Information should be provided in such manner and content as to enhance the consumer's understanding of the financial condition of the bank, credit union, savings institution, or other financial intermediary that is the subject of the consumer's inquiry;
(3)	The development of written materials for dissemination to the general public explaining the service;
(4)	The most efficient and effective means for making the service easily accessible to the general public, including the economic feasibility of facsimile or toll free telephone services;
(5)	Requiring the State Banking Commission to make periodic reports to the General Assembly on the implementation and effectiveness of the public service; and
(6)	Any other issues or problems that are pertinent to the establishment and effectiveness of the public service.
If the Commission conducts the study authorized under this act, it may report its findings together with recommended legislation, to the 1992 Session of the 1991 General Assembly, to the 1993 General Assembly, or to both.
Sec. 2. There is appropriated from the General Fund to the Legislative Research Commission the sum of $15,000 in the 1991-92 fiscal year and the sum of $15,000 in the 1992-93 fiscal year to carry out the study authorized in Section 1 of this act.
Sec. 3. This act becomes effective July 1, 1991.