Virginia Register of Regulations, Vol. 28 Iss. 20 Jun 04, 2012

REGULATIONS
Vol. 28 Iss. 20 - June 04, 2012

REGISTRAR'S NOTICE: The State Board of Elections is claiming an exemption from the Administrative Process Act pursuant to § 2.2-4002 B 8 of the Code of Virginia, which exempts agency action relating to the conduct of elections or eligibility to vote.

Title of Regulation: 1VAC20-60. Election Administration (amending 1VAC20-60-40).

Statutory Authority: § 24.2-103 of the Code of Virginia.

Effective Date: Effective upon the filing of the notice of the U.S. Attorney General's preclearance with the Registrar of Regulations.

Agency Contact: Martha Brissette, Policy Analyst, State Board of Elections, 1100 Bank Street, Richmond, VA 23219, telephone (804) 864-8925, or email martha.brissette@sbe.virginia.gov.

Summary:

This regulatory action defines when an absentee voter who votes other than in person is considered to have cast his ballot.

1VAC20-60-40. When ballot cast.

A. A voter, voting in person on election day or voting absentee in-person, has not voted until a permanent record of the voter's intent is preserved.

B. A permanent record is preserved by a voter pressing the vote or cast button on a direct recording electronic machine, inserting an optical scan ballot into an electronic counter, or placing a paper ballot in an official ballot container.

C. A vote has not been cast by the voter unless and until the voter or an officer of election or assistant at the direction of and on behalf of the voter pursuant to § 24.2-649 of the Code of Virginia completes these actions to preserve a permanent record of the vote.

D. If any voter's ballot was not so cast by or at the direction of the voter, then the ballot cannot be cast by any officer of election or other person present.

E. An absentee voter who votes other than in person shall be deemed to have cast his ballot [ ~~and voted~~ ] at the moment he personally delivers the ballot to the general registrar or electoral board or relinquishes control over the ballot to the United States Postal Service or other authorized carrier for returning the ballot as required by law.

Title of Regulation: 4VAC25-90. Regulations Governing the Use of Diesel-Powered Equipment in Underground Coal Mines (amending 4VAC25-90-60).

Statutory Authority: §§ 45.1-161.3, 45.1-161.106, and 45.1-161.206 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: July 4, 2012.

Effective Date: July 19, 2012.

Agency Contact: Michael Skiffington, Regulatory Coordinator, Department of Mines, Minerals and Energy, 1100 Bank Street, 8th Floor, Richmond, VA 23219-3402, telephone (804) 692-3212, FAX (804) 692-3237, TTY (800) 828-1120, or email mike.skiffington@dmme.virginia.gov.

Basis: Sections 45.1-161.3 (4) and 45.1-161.106 A of the Code of Virginia authorize the Chief of the Department of Mines, Minerals and Energy's Division of Mines, in consultation with the Coal Mine Safety Board, to promulgate regulations to ensure safe and healthy working conditions in underground mines in the Commonwealth. Also, § 45.1-161.206 of the Code of Virginia specifically directs the chief to promulgate regulations necessary to govern the use of diesel powered equipment in underground coal mines.

Purpose: The amended regulation is necessary to clarify the language. It is also necessary to improve the efficiency of the approval process. Tests conducted by the Mine Safety and Health Administration are done in a closed, laboratory environment and provide little assistance to the Chief of the Division of Mines in determining whether to approve equipment. By streamlining the process by which diesel equipment is approved and tested to be used in underground mines, the safety of coal miners and the public at large will be enhanced.

Rationale for Using Fast-Track Process: This rulemaking is expected to be noncontroversial as it does not represent a substantive change to the regulation. The amendments are to clarify language and enhance the existing process.

Substance: One sentence is stricken for the sake of clarity. The phrase "based on MSHA approval data" is deleted because that data is produced in a closed environment and does not accurately reflect the real world conditions underground where diesel equipment is used.

Issues: The primary advantages to this action are a clearly written regulation and a more efficient process by which diesel powered equipment is approved for use in underground mines in the Commonwealth. There are no disadvantages.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Board of Mines, Minerals and Energy proposes to delete the language requiring the use of the Mine Safety and Health Administrations engine approval data in establishing the baseline of diesel exhaust emissions in underground coal mines.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. These regulations establish emission testing and evaluation requirements for diesel engines used in underground coal mines.

The proposed changes will delete the current language requiring the use of the Mine Safety and Health Administrations engine approval data in establishing the baseline of diesel exhaust emissions in underground coal mines. This data is currently required to be used in combination with the average of the first four undiluted exhaust emission tests. With the proposed change, baseline emissions will be required to be based solely on the average of the first four undiluted exhaust emission tests. According to the Department of Mines, Minerals and Energy (DMME), the Mine Safety and Health Administrations data is not used in practice to establish baseline emissions because it is produced in a laboratory environment which does not accurately reflect the real world conditions underground where diesel equipment is used. Since deletion of this language will have no impact on the way baseline emissions are currently established, no significant economic impact is expected other than improving the clarity of the regulations and possibly streamlining the approval process by eliminating potentially confusing language.

Businesses and Entities Affected. These regulations apply to approximately 36 operators of 65 underground coal mines in Virginia.

Localities Particularly Affected. The proposed regulations apply throughout the Commonwealth. However, according to DMME, coal mines are located exclusively in the counties of Buchanan, Tazewell, Wise, Lee, Dickenson, and Russell.

Projected Impact on Employment. No significant impact on employment is expected.

Effects on the Use and Value of Private Property. No significant impact on the use and value of private property is expected.

Small Businesses: Costs and Other Effects. No costs or other significant impact on small businesses are expected. The proposed changes do not impose any costs on regulated entities. Also, of the regulated 36 operators, DMME believes only a few, if any, are small businesses due to increased consolidation in the mining industry. Finally, other effects of the proposed changes are not expected to be significant.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed regulations do not impose any adverse impacts on small businesses.

Real Estate Development Costs. No significant impact on real estate development costs is expected.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 107 (09). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The Department of Mines, Minerals and Energy concurs with the economic impact analysis conducted by the Department of Planning and Budget.

Summary:

The amendment removes the requirement that the Mine Safety and Health Administration engine approval data be used in establishing the baseline of diesel exhaust emissions in underground coal mines.

4VAC25-90-60. Emission testing and evaluation.

Undiluted exhaust emissions of diesel engines, to include each side of a dual exhaust system, on diesel-powered equipment used in underground coal mines shall be tested and evaluated weekly by an authorized person. The mine operator shall develop and implement effective written procedures for such testing and evaluation that shall include the following:

1. The method for which a repeatable load test is conducted that must include an engine RPM reading;

2. Sampling and analytical methods used to measure diesel engine emission concentrations;

3. Instrumentation and calibration of instrumentation capable of accurately detecting carbon monoxide in the expected concentrations;

4. The method of evaluation and interpretation of sampling results;

5. ~~The concentration or changes in concentration of carbon monoxide that will indicate a change in engine performance and an action plan to address changes in performance.~~ The operator will establish a baseline level of diesel exhaust emissions, subject to approval by the chief based upon ~~the MSHA engine approval data and~~ the average of the first four undiluted exhaust emission tests required by this section. This ~~plan~~ procedure will establish an action level not to exceed the lesser of two times the baseline or 2500 parts per million (ppm) of carbon monoxide. Should the action level be exceeded, the machine shall be removed from service and engine performance improved.

6. The maintenance of records necessary to track engine performance. These records shall be:

a. Recorded in a secure book that is not susceptible to alteration, or recorded electronically in a computer system that is secure and not susceptible to alteration; and

b. Retained at a surface location at the mine for at least one year and made available for inspection by interested persons.

Title of Regulation: 4VAC25-145. Regulations on the Eligibility of Certain Mining Operators to Perform Reclamation Projects (amending 4VAC25-145-10 through 4VAC25-145-40).

Statutory Authority: §§ 45.1-161.3 and 45.1-261.1 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: July 4, 2012.

Effective Date: July 19, 2012.

Agency Contact: Michael Skiffington, Program Support Manager, Department of Mines, Minerals and Energy, 1100 Bank Street, 8th Floor, Richmond, VA 23219, telephone (804) 692-3212, FAX (804) 692-3237, or email mike.skiffington@dmme.virginia.gov.

Basis: The Department of Mines, Minerals and Energy is authorized to promulgate regulations necessary to the performance of its duties under § 45.1-161.3 of the Code of Virginia. Section 45.1-261.1 of the Code of Virginia mandates the Director of Department of Mines, Minerals and Energy to promulgate regulations to implement the process by which operators can perform reclamation work in the Commonwealth.

Purpose: This regulatory action is the result of a periodic review of the regulation. The amendments to the regulation are necessary to ensure it remains easily understandable for operators and the general public. The regulation is required by statute. Public health and safety will be protected by clarifying the requirements operators must meet in order to provide reclamation services in the Commonwealth. Poorly reclaimed sites are a public safety concern and this action will help ensure sites are reclaimed properly.

Rationale for Using Fast-Track Process: This rulemaking should be noncontroversial because no substantive changes are proposed. Technical changes are proposed to ensure the references made in the regulation are up to date and to ensure the regulation remains clearly written.

Substance: There are no substantive changes to the regulation, only technical ones.

Issues: The primary advantage to this regulation would be ensuring the regulation is technically correct and easy to understand for operators and the general public. There are no disadvantages.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Department of Mines, Minerals and Energy (Department) proposes to add clarifying language, update citations, and repeal obsolete language.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. The proposed addition of clarifying language, updating of citations, and repealing of obsolete language will not change requirements, rules, or opportunities and thus will produce no new cost. The proposed changes may improve the publics understanding of the existing requirements, rules, and opportunities and thus will likely be beneficial to that extent.

Businesses and Entities Affected. There are approximately 29 licensed non-underground coal mine operators in the Commonwealth.¹The Department estimates that fewer than five of these operators have any potential interest in reclamation projects and thus would be affected by these regulations.

Localities Particularly Affected. Coal mining in the Commonwealth primarily occurs in the following seven counties: Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise.

Projected Impact on Employment. The proposed amendments are unlikely to significantly affect employment.

Effects on the Use and Value of Private Property. The proposed amendments are unlikely to significantly affect the use and value of private property.

Small Businesses: Costs and Other Effects. The proposed amendments will not increase costs for small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed amendments will not increase costs for small businesses.

Real Estate Development Costs. The proposed amendments are unlikely to significantly affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

____________________________

1 Data source: Department of Mines, Minerals and Energy

Agency's Response to Economic Impact Analysis: The Department of Mines, Minerals and Energy concurs with the economic impact analysis conducted by the Department of Planning and Budget.

Summary:

The amendments add clarifying language, update citations, and repeal obsolete language.

4VAC25-145-10. Definitions.

"Department" means the Department of Mines, Minerals and Energy.

"Director" means the Director of the Department of Mines, Minerals and Energy.

"Division" means the Division of Mined Land Reclamation.

"Net worth" means total assets less total liabilities including funds pledged or otherwise obligated to the Commonwealth or other in effect at any time during the contract period and any other contingent liabilities that might materially affect the Commonwealth's ability to realize the amount of bond required in the event of forfeiture.

"Operator" means any person engaging in coal surface mining operations whether or not such coal is sold within or without the Commonwealth.

"Reclamation project" means any work contracted out by or on behalf of the division for reclamation of eligible lands and waters, and defined in § 45.1-262 of the Code of Virginia and funded by the Federal Office of Surface Mining or reclamation of mined lands where the operator who mined the land has had his bond covering the land forfeited to the division or otherwise defaulted on his reclamation obligation and the project is funded either by the forfeited bond or the Virginia Coal Surface Mining Reclamation Fund.

"Relevant mining experience" means at least three years of satisfactory mining and reclamation work in the Commonwealth under ~~Chapters 17 or~~ Chapter 19 of Title 45.1 of the Code of Virginia ~~or a combination of both~~. The operator shall have active reclamation work experience for two of the three years.

"State reclamation program" means Articles 4 and 5 of Chapter 19 of Title 45.1 of the Code of Virginia, as well as reclamation done by or for the Commonwealth and funded by the forfeited bond of an operator.

4VAC25-145-20. ~~Satisfactory mining and reclamation work~~ Operator requirements.

A. Operators must demonstrate relevant mining experience in order to bid on or be awarded contracts for any reclamation project in the Commonwealth. An operator may demonstrate satisfactory mining and reclamation work to the division by showing (i) that the operator has obtained partial or complete bond release on a coal surface mining permit obtained pursuant to Chapter ~~17 or~~ 19 of Title 45.1 of the Code of Virginia under his control, or that all reclamation work on any active permit operated or controlled by the operator is ~~up-to-date~~ up to date; and (ii) that no coal surface mining permit under his control has any outstanding violations of any federal, state or local agency's laws, rules, regulations or ordinances unless the operator submits proof to the division that such violations have been corrected or are being corrected to the satisfaction of the agencies citing of such violations.

B. No operator shall be allowed to bid on or be awarded contracts for any reclamation project in the Commonwealth if:

1. The director ~~of the department~~, after opportunity for a hearing, finds that the operator controls or has controlled mining operations with a demonstrated pattern of willful violations of the Federal Act or State Reclamation Program of such nature and duration with such resulting environmental damage as to indicate an intent not to comply with the Federal Act, P.L. 95-87 or State Reclamation Program.

2. The operator has had a coal surface mining permit revoked or suspended and has not been re-instated by the director; has had his bond forfeited,; or has received an order to show cause why his permit should not be revoked or suspended.

4VAC25-145-30. Compliance with other laws and obligations.

A. The operator bidding or seeking to bid on reclamation projects shall comply with all other applicable laws, ordinances, orders, rules and regulations of any federal, state or local agency with jurisdiction over the operator's mining or reclamation activities.

B. The operator shall comply with all applicable requirements of the division with regard to bidding on reclamation projects in the Commonwealth, excepting any requirements waived by § 45.1-161.1 of the Code of Virginia and this regulation.

4VAC25-145-40. Financial information; bonding.

A. Any operator bidding or seeking to bid on reclamation projects in the Commonwealth shall submit prior to the bidding, certification by a ~~CPA~~ certified public accountant, that the company has a net worth of at least $1 million in order to qualify for 50% reduction in the performance bond. Certification of at least $500,000 will qualify the applicant for a reduction of 25% of the performance bond. Net worth under $500,000 will not be eligible for any adjustment in the bid and performance bond.

B. The director, or his designee, after reviewing the information contained in the ~~CPA statements~~ certification described in subsection A of this section, shall adjust the bid and performance bonds accordingly unless he has information available to him that would contradict the net worth.

C. Net worth means total assets less total liabilities including funds pledged or otherwise obligated to the Commonwealth or other in effect at any time during the contract period and any other contingent liabilities that might materially affect the Commonwealth's ability to realize the amount of bond required in the event of forfeiture.

REGISTRAR'S NOTICE: The following amendments are exempt from the Virginia Administrative Process Act pursuant to § 2.2-4002 C of the Code of Virginia, which provides that minor changes to regulations published in the Virginia Administrative Code under the Virginia Register Act, Chapter 41 (§ 2.2-4100 et seq.) of Title 2.2 of the Code of Virginia, made by the Virginia Code Commission pursuant to § 30-150, shall be exempt from the provisions of the Virginia Administrative Process Act.

Titles of Regulations: 10VAC5-50. Industrial Loan Associations (amending 10VAC5-50-20, 10VAC5-50-30).

10VAC5-60. Consumer Finance Companies (amending 10VAC5-60-20, 10VAC5-60-30, 10VAC5-60-60).

10VAC5-80. Real Estate Settlement Agent Rules (amending 10VAC5-80-10, 10VAC5-80-20, 10VAC5-80-40).

10VAC5-110. Credit Counseling (amending 10VAC5-110-10, 10VAC5-110-30).

10VAC5-120. Money Order Sellers and Money Transmitters (amending 10VAC5-120-10, 10VAC5-120-50).

10VAC5-130. Virginia Financial Institution Holding Companies (amending 10VAC5-130-10, 10VAC5-130-20).

Statutory Authority:

10VAC5-50: § 6.2-1404 of the Code of Virginia.

10VAC5-60: § 6.2-1535 of the Code of Virginia.

10VAC5-80: § 55-525.20 of the Code of Virginia.

10VAC5-110: § 6.2-2013 of the Code of Virginia.

10VAC5-120: § 6.2-1913 of the Code of Virginia.

10VAC5-130: § 6.2-713 of the Code of Virginia.

Effective Date: June 1, 2012.

Agency Contact: Todd Rose, Senior Counsel, General Counsel's Office, State Corporation Commission, P.O. Box 640, Richmond, VA 23218, telephone (804) 371-9107, FAX (804) 371-9211, or email todd.rose@scc.virginia.gov.

Summary:

Several chapters of Title 10 of the Virginia Administrative Code pertaining to Finance and Financial Institutions are updated to replace references to Title 6.1 of the Code of Virginia with references to Title 6.2 of the Code of Virginia to reflect the recodification of Title 6.1 of the Code of Virginia in the fall of 2010.

10VAC5-50-20. Surety bond upon all active officers.

A. Every industrial loan association as defined in Chapter 5 14 (§ ~~6.1-227~~ 6.2-1400 et seq.) of Title ~~6.1~~ 6.2 of the Code of Virginia shall obtain and keep in force upon all its active officers a bond or bonds in a surety company authorized to do business in this Commonwealth in the penalty of whatever amount is deemed appropriate by its board of directors_;.

B. No bond given pursuant to this section may be cancelled without first giving the Commissioner of Financial Institutions 10 days' written notice of such cancellation, and every such bond shall contain a provision to that effect.

10VAC5-50-30. Schedule prescribing annual fees paid for examination, supervision, and regulation of industrial loan associations.

Pursuant to the provision of ~~Section 6.1-237.4~~ § 6.2-1414 of the Code of Virginia, the State Corporation Commission hereby promulgates the following schedule prescribing the annual fee to be paid by every industrial loan association for its supervision and regulation, as follows:

SCHEDULE
Asset Interval		Fee
Assets Exceed-ing	But Not Exceed-ing	Pay This Amount	Plus		Assets Exceed-ing
$0	$2 million	$1,200	0
2 million	5 million	1,200	.000900	x	$2 million
5 million	25 million	3,900	.000120	x	5 million
25 million		6,300	.000060	x	25 million

The assessment calculation shall be rounded down to the nearest whole dollar amount. The assessment shall be computed on the basis of the association's total assets as shown by its last Consolidated Report of Condition made as of the close of business for the preceding calendar year as filed with the Bureau of Financial Institutions.

10VAC5-60-20. Time limit for compliance.

Licensees shall have 30 days after the date a loan is paid in full, or a judgment is satisfied, or a borrower's obligation is otherwise terminated to accomplish the acts required by § ~~6.1-282(4)~~ 6.2-1524 G of the Code of Virginia.

Failure so to comply within that time limit shall constitute a violation of ~~said subdivision~~ the subsection, which violation will result in penalties as provided by law.

10VAC5-60-30. Allotment program loans; applicability; definitions; rules.

A. This chapter applies to all licensees under ~~the Consumer Finance Act (the Act)~~ Chapter 15 (§ 6.2-1500 et seq.) of Title 6.2 of the Code of Virginia making any loan under ~~the Act~~ Chapter 15 of Title 6.2 of the Code of Virginia in connection with which loan a borrower authorizes an allotment and automatic disbursement from an account for the purpose of making any payments required by the loan agreement. Such a loan is referred to herein as an "allotment program loan."

B. As used in this chapter the following terms shall have the following meanings:

"Allotment" means payment of any part of a borrower's military pay to a financial institution as permitted under federal law and regulations.

"Automatic disbursement" means payment, by a financial institution to a licensee, of funds received pursuant to an allotment.

"Borrower" means any person in the United States military service obligated, directly or contingently, to repay a loan made by a licensee.

"Licensee" has the meaning set forth in § ~~6.1-245~~ 6.2-1500 of the Code of Virginia.

C.1. No licensee shall require any allotment or automatic disbursement, or a borrower's execution of the Allotment Disclosure Form appended to this chapter, as a condition to making a loan under ~~the Act~~ Chapter 15 (§ 6.2-1500 et seq.) of Title 6.2 of the Code of Virginia.

2. A licensee making an allotment program loan shall bear all costs and expenses incident to the allotment and automatic disbursement.

3. When making an allotment program loan, a licensee shall use the Allotment Disclosure Form appended to this chapter. The form shall be printed or typed without alteration on one side of a paper separate from all other papers or documents obtained by the licensee in type of size not less than that known as 12 point. All blanks on the form, other than those blanks to be filled in with the name of the licensee shall be filled in by the borrower and the filled-in form shall be signed and dated by the borrower. The completed form shall be kept in the separate loan file maintained with respect to the loan for the period specified in § ~~6.1-300~~ 6.2-1533 of the Code of Virginia.

4. No licensee making an allotment program loan shall withhold any part of the proceeds of the loan to be applied to any payment required under the loan.

Attachment: Allotment Disclosure Form

ALLOTMENT DISCLOSURE FORM

1. I, (APPLICANT'S NAME), intend to apply for an allotment of my military pay in the amount of $(AMOUNT) per month to an account in my name at (FINANCIAL INSTITUTION).

2. I also intend to authorize disbursement of funds from my account at (FINANCIAL INSTITUTION) in the amount of $ (AMOUNT) per month for the purpose of making monthly payments on my loan with (FINANCE COMPANY).

3. I am authorizing the allotment and automatic disbursement voluntarily and solely for my own convenience, and acknowledge that (FINANCE COMPANY) has not required me to authorize the allotment or automatic disbursement, or to sign this form, as a condition to making me a loan.

4. I understand that I can cancel the allotment and automatic disbursement at any time, and understand that I am not obligated to pay any fee or charge to any person or company, directly or indirectly, for the allotment or automatic disbursement.


	(Applicant's Signature)		(Date)

10VAC5-60-60. Schedule prescribing annual fees paid for examination, supervision, and regulation of consumer finance licenses.

Pursuant to § ~~6.1-299.1~~ 6.2-1532 of the Code of Virginia, the following schedule sets the fees to be paid annually by consumer finance licensees for their licenses, and to defray the costs of examination, supervision and regulation of licensed consumer finance offices:

Minimum fee - $300 per office open January 1 of the current calendar year.

In addition to the minimum fee, the following fee based on total assets:

SCHEDULE
Total Assets	Fee
Over $300,000 - $750,000	$.85 per $1,000 or fraction thereof
$750,000 - $2,000,000	$.70 per $1,000 or fraction thereof
Over $2,000,000	$.55 per $1,000 or fraction thereof

The annual fee for each licensee will be computed on the basis of its total assets combined with the total assets of all other businesses conducted in any of its licensed offices as of the close of business December 31 of the preceding calendar year. The amounts of such total assets will be derived from the annual reports which § ~~6.1-301~~ 6.2-1534 of the Code of Virginia requires licensees to file with the Bureau of Financial Institutions on or before the first day of April of each year.

In accordance with § ~~6.1-299.1~~ 6.2-1532 of the Code of Virginia, annual fees for any given calendar year will be assessed on or before May 1 of that year and must be paid on or before June 1 of that year. Fees are to be assessed using the foregoing schedule for the calendar year which began January 1, 1983. This fee schedule will be in effect until it is amended or revoked by order of the Commission.

10VAC5-80-10. Definitions.

As used in this chapter:

"Affiliate" means a company the majority of the ownership interest in which is held, directly or indirectly, by a company which owns a financial institution.

"Bureau" means the State Corporation Commission Bureau of Financial Institutions.

"Company" includes natural persons and any and all types of organizations and legal entities.

"Financial institution" has the meaning set forth in § ~~6.1-2.1~~ 6.2-100 of the Code of Virginia, and includes all such financial institutions authorized to do business in Virginia under Virginia or federal law.

"Party to the real estate transaction" (party) and "settlement agent' have the meanings set forth in § ~~6.1-2.20~~ 55-525.16 of the Code of Virginia.

"Subsidiary" means a company the majority of the ownership interest in which is held, directly or indirectly, by a financial institution.

10VAC5-80-20. Registration with the Virginia State Bar.

All financial institutions, and their subsidiaries and affiliates, acting in the capacity of a settlement agent shall register with the Virginia State Bar in accordance with the provisions of § ~~6.1-2.26~~ 55-525.30 of the Code of Virginia.

10VAC5-80-40. Escrow accounts and audits.

All funds received by a financial institution or financial institution subsidiary or affiliate, in the company's capacity of settlement agent and intended for distribution in whole or part to others, shall be deposited in a separate escrow account maintained in a bank, savings institution or credit union authorized to conduct business in Virginia. The company shall have the escrow account audited annually as provided in § ~~6.1-2.21 E~~ 55-525.20 C of the Code of Virginia and conforming to the American Institute of Certified Public Accountants, Statement on Auditing Standards, Special Reports, and shall file a copy of the audit report with the bureau promptly.

10VAC5-110-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Bureau" means the Bureau of Financial Institutions.

"Commissioner" means the Commissioner of Financial Institutions.

~~"Bureau," "commissioner,"~~ "~~debt~~ Debt management plan," and "licensee" shall have the meanings ascribed to them in § ~~6.1-363.2~~ 6.2-2000 of the Code of Virginia.

"Reporting period" means the first six months of a calendar year or the last six months of a calendar year, as the case may be.

10VAC5-110-30. Schedule of annual fees for the examination, supervision, and regulation of ~~credit counseling~~ agencies providing debt management plans.

Pursuant to § ~~6.1-363.14~~ 6.2-2012 of the Code of Virginia, the commission sets the following schedule of annual fees to be paid by persons licensed under Chapter ~~10.2~~ 20 (§ ~~6.1-363.2~~ 6.2-2000 et seq.) of Title ~~6.1~~ 6.2 of the Code of Virginia. The fees are to defray the costs of examination, supervision, and regulation of licensees by the Bureau of Financial Institutions.

SCHEDULE

If a licensee maintained less than 250 debt management plans for Virginia residents as of December 31 of the calendar year preceding the year of assessment, the licensee shall pay an annual fee of $0 plus $4.33 per debt management plan.

If a licensee maintained 250 or more debt management plans for Virginia residents as of December 31 of the calendar year preceding the year of assessment, the licensee shall pay an annual fee of $500 plus $4.33 per debt management plan.

The fee assessed using the above schedule shall be rounded down to the nearest whole dollar.

Fees shall be assessed on or before June 1 for the current calendar year. The fee shall be paid on or before July 1.

The annual report, due March 25 each year, of each licensee provides the basis for its assessment. In cases where a license has been granted between January 1 and March 25, the licensee's initial annual fee shall be $250.

Fees prescribed and assessed by this schedule are apart from, and do not include, the reimbursement for expenses permitted by subsection B of § ~~6.1-363.14~~ 6.2-2012 of the Code of Virginia.

10VAC5-120-10. Definitions.

The following words and terms, when used in this chapter, shall have the following meaning unless the context clearly indicates otherwise:

"Money order," "money transmission," and "licensee" have the meaning ascribed to them in § ~~6.1-370~~ 6.2-1900 of the Code of Virginia.

"Reporting period" means a calendar quarter, the first six months of a calendar year, or the last six months of a calendar year, as the case may be.

10VAC5-120-50. Assessment schedule for the examination and supervision of money order sellers and money transmitters.

Pursuant to subsection B of § ~~6.1-373~~ 6.2-1905 of the Code of Virginia, the commission sets the following schedule for the annual assessment to be paid by persons licensed under Chapter 12 19 (§ ~~6.1-370~~ 6.2-1900 et seq.) of Title ~~6.1~~ 6.2 of the Code of Virginia. The assessment defrays the costs of the examination and supervision of licensees by the Bureau of Financial Institutions.

The annual assessment shall be $0.000047 per dollar of money orders sold and money transmitted by a licensee pursuant to Chapter 12 19 (§ ~~6.1-370~~ 6.2-1900 et seq.) of Title ~~6.1~~ 6.2 of the Code of Virginia. The assessment shall be based on the dollar volume of business conducted by a licensee, either directly or through its authorized delegates, during the calendar year preceding the year of the assessment.

The amount calculated using the above schedule shall be rounded down to the nearest whole dollar.

Fees shall be assessed on or before August 1 for the current calendar year. The assessment shall be paid by licensees on or before September 1.

The annual report, due April 15 each year, of each licensee provides the basis for its assessment. In cases where a license has been granted between January 1 and April 15 of the year of the assessment, the licensee's initial annual assessment shall be $0.

Fees prescribed and assessed pursuant to this schedule are apart from, and do not include, the following: (i) the annual license renewal fee of $750 authorized by subsection A of § ~~6.1-373~~ 6.2-1905 of the Code of Virginia and (ii) the reimbursement for expenses authorized by subsection C of § ~~6.1-373~~ 6.2-1905 of the Code of Virginia.

10VAC5-130-10. Filing of registration statements required.

Pursuant to the direction of § ~~6.1-382~~ 6.2-702 of the Code of Virginia, every Virginia financial institution holding company (as defined in § ~~6.1-381~~ 6.2-700 of the Code of Virginia) which was in existence as of November 1, 1978, shall register not later than December 31, 1978, by filing with the Bureau of Financial Institutions a copy of the registration statement it has filed with a federal agency pursuant to the Bank Holding Company Act (12 USC § 1841 ff et seq.), or pursuant to the Home Owners' Loan Act (12 USC § 1467a).

Any company which becomes a Virginia financial institution holding company after November 1, 1978, shall file with the Bureau of Financial Institutions, within 180 days of its becoming such a company, a copy of the registration statement it files with a federal agency under the provisions of the Bank Holding Company Act (12 USC § 1841 ff et seq.) or under the Home Owners' Loan Act (12 USC § 1467a).

10VAC5-130-20. Reporting by Virginia financial institution holding companies.

Every company which has control over any Virginia financial institution (within the meaning of Chapter 13 7 (§ ~~6.1-381~~ 6.2-700 et seq.) of Title ~~6.1~~ 6.2 of the Code of Virginia) shall report annually by filing with the Bureau of Financial Institutions a copy of the report it submits to the federal regulatory agency requiring such reports. Excluded from the reporting requirement herein shall be any such company which, according to an applicable provision of the Bank Holding Company Act (12 USC § 1841 ff et seq.) is exempt from such reporting to a federal agency; or which acquires a controlling interest in a Virginia financial institution solely: (i) in a fiduciary capacity, (ii) in connection with the company's underwriting of securities or proxy solicitation, or (iii) in connection with the company's securing or collecting a debt.

REGISTRAR'S NOTICE: The following amendments are exempt from the Virginia Administrative Process Act pursuant to § 2.2-4002 C of the Code of Virginia, which provides that minor changes to regulations published in the Virginia Administrative Code under the Virginia Register Act, Chapter 41 (§ 2.2-4100 et seq.) of Title 2.2 of the Code of Virginia, made by the Virginia Code Commission pursuant to § 30-150, shall be exempt from the provisions of the Virginia Administrative Process Act.

Titles of Regulations: 10VAC5-50. Industrial Loan Associations (amending 10VAC5-50-20, 10VAC5-50-30).

10VAC5-60. Consumer Finance Companies (amending 10VAC5-60-20, 10VAC5-60-30, 10VAC5-60-60).

10VAC5-80. Real Estate Settlement Agent Rules (amending 10VAC5-80-10, 10VAC5-80-20, 10VAC5-80-40).

10VAC5-110. Credit Counseling (amending 10VAC5-110-10, 10VAC5-110-30).

10VAC5-120. Money Order Sellers and Money Transmitters (amending 10VAC5-120-10, 10VAC5-120-50).

10VAC5-130. Virginia Financial Institution Holding Companies (amending 10VAC5-130-10, 10VAC5-130-20).

Statutory Authority:

10VAC5-50: § 6.2-1404 of the Code of Virginia.

10VAC5-60: § 6.2-1535 of the Code of Virginia.

10VAC5-80: § 55-525.20 of the Code of Virginia.

10VAC5-110: § 6.2-2013 of the Code of Virginia.

10VAC5-120: § 6.2-1913 of the Code of Virginia.

10VAC5-130: § 6.2-713 of the Code of Virginia.

Effective Date: June 1, 2012.

Agency Contact: Todd Rose, Senior Counsel, General Counsel's Office, State Corporation Commission, P.O. Box 640, Richmond, VA 23218, telephone (804) 371-9107, FAX (804) 371-9211, or email todd.rose@scc.virginia.gov.

Summary:

Several chapters of Title 10 of the Virginia Administrative Code pertaining to Finance and Financial Institutions are updated to replace references to Title 6.1 of the Code of Virginia with references to Title 6.2 of the Code of Virginia to reflect the recodification of Title 6.1 of the Code of Virginia in the fall of 2010.

10VAC5-50-20. Surety bond upon all active officers.

A. Every industrial loan association as defined in Chapter 5 14 (§ ~~6.1-227~~ 6.2-1400 et seq.) of Title ~~6.1~~ 6.2 of the Code of Virginia shall obtain and keep in force upon all its active officers a bond or bonds in a surety company authorized to do business in this Commonwealth in the penalty of whatever amount is deemed appropriate by its board of directors_;.

B. No bond given pursuant to this section may be cancelled without first giving the Commissioner of Financial Institutions 10 days' written notice of such cancellation, and every such bond shall contain a provision to that effect.

10VAC5-50-30. Schedule prescribing annual fees paid for examination, supervision, and regulation of industrial loan associations.

Pursuant to the provision of ~~Section 6.1-237.4~~ § 6.2-1414 of the Code of Virginia, the State Corporation Commission hereby promulgates the following schedule prescribing the annual fee to be paid by every industrial loan association for its supervision and regulation, as follows:

SCHEDULE
Asset Interval		Fee
Assets Exceed-ing	But Not Exceed-ing	Pay This Amount	Plus		Assets Exceed-ing
$0	$2 million	$1,200	0
2 million	5 million	1,200	.000900	x	$2 million
5 million	25 million	3,900	.000120	x	5 million
25 million		6,300	.000060	x	25 million