286.1-013 Financial Institutions Board -- Duties.
(1) There is created a Financial Institutions Board. The board shall consist of twelve
(12) members appointed by the Governor who shall serve terms of four (4) years, <br>except the initial terms shall be established as hereafter provided. It is <br>recommended that the board appointments made by the Governor be selected from <br>the following: <br>(a) Three (3) members selected from the banking industry regulated by the
department with appropriate recognition as to bank size and geographic <br>diversity;
(b) Three (3) members selected from the broker/dealer securities industry
regulated by the department;
(c) One (1) member selected from the credit union industry regulated by the
department;
(d) One (1) member selected from the consumer finance or industrial loan
industry regulated by the department;
(e) Three (3) members selected from the public at large who are knowledgeable
concerning financial institutions, the legislative process and consumer <br>interests, two (2) of whom are not employees, officers, or directors of any <br>financial institution; and
(f) The commissioner, who shall also serve as chairman of the board.
(2) All members of the board from the banking industry, securities industry, credit
union industry, consumer finance, or industrial loan industry shall be persons with <br>practical experience in the industry so represented and currently serving at the <br>executive level of that industry at the time of their appointment.
(3) At the first meeting of the board, a drawing by lot shall be conducted to determine
the length of each original member's term. Initially, there shall be four (4) four (4) <br>year terms, five (5) three (3) year terms, and two (2) two (2) year terms. Vacancies <br>in the membership of the board shall be filled in the same manner as original <br>appointments. Appointments to fill vacancies occurring before the expiration of a <br>term shall be for the remainder of the unexpired term.
(4) No member of the board, other than the commissioner, shall serve more than two
(2) consecutive terms on the board.
(5) The board shall first meet at the call of the Governor and thereafter as the chairman
shall determine at a time and place determined by the chairman. The board may <br>elect other officers for the conduct of its business. A majority of board members <br>shall constitute a quorum, and a decision shall require the majority vote of those <br>present. Each board member shall have one (1) vote, and voting by proxy shall be <br>prohibited.
(6) Board members shall receive one hundred dollars ($100) per diem for each board
meeting which they attend and shall be reimbursed for other reasonable and <br>necessary expenses incurred while engaged in carrying out the duties of the board.
(7) The board shall:
(a) Prepare and submit at the Governor's request a list of candidates qualified to
serve as commissioner and recommend to the Governor a proposed salary for <br>each nomination for commissioner;
(b) Recommend to the Governor a proposed salary structure for other department
staff in order to provide competitive salaries for recruitment and retention of <br>staff;
(c) Receive and comment on various reports relating to the department and its
activities as submitted to the board by the commissioner or the Governor; and
(d) Review, consider and make recommendations to the commissioner on any
matters referred to the board by the commissioner or the Governor.
(8) In no event shall the board or its members interfere with the statutory duties of the
commissioner whose decisions shall be governed by law.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 609, effective July 15, 2010. -- Amended
2006 Ky. Acts ch. 183, sec. 3, effective July 12, 2006. -- Amended 1998 Ky. Acts <br>ch. 196, sec. 2, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 59, sec. 1, <br>effective July 15, 1986. -- Created 1984 Ky. Acts ch. 324, sec. 40, effective July 13, <br>1984.
Formerly codified as KRS 287.013. <br>Legislative Research Commission Note (7/12/2006). This section was amended in
2006 Ky. Acts ch. 183. In that same session, 2006 Ky. Acts ch. 247, sec. 38 required <br>that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be <br>renumbered as sections of a single KRS chapter entitled the "Kentucky Financial <br>Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has <br>changed the number of this section and codified it as a new section of KRS Chapter <br>286.
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