Montana Administrative Register Notice 2-59-627 No. 11   06/10/2022    
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In the matter of the amendment of ARM 2.59.104 and 2.59.401 pertaining to semiannual assessments and supervisory fees for banks and credit unions










TO: All Concerned Persons


1. On July 23, 2022, the Department of Administration proposes to amend the above-stated rules.


2. The department will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5:00 p.m. on June 22, 2022, to advise us of the nature of the accommodation that you need. Please contact Julie James, Department of Administration, P.O. Box 200101, Helena, Montana 59620-0101; telephone (406) 444-2460; Montana Relay Service 711; facsimile (406) 444-6194; or e-mail to Julie.James2@mt.gov.


3. The rules proposed to be amended are as follows, new matter underlined, deleted matter interlined:


2.59.104  SEMIANNUAL ASSESSMENT (1) through (5) remain the same.

           (6)  For the assessment billed in December 2021 and collected in January 2022, calculate the assessment as set forth in (2) and divide by 2. For this period only, the semiannual assessment shall not exceed $150,000. The assessment billed in December 2022 and collected in January 2023 is waived.


AUTH: 32-1-213, 32-1-218, MCA

IMP: 32-1-213, 32-1-218, MCA


GENERAL STATEMENT OF REASONABLE NECESSITY:  The department proposes to waive the December 2022 bank and credit union assessments in order to reduce its fund balance which will be sufficient despite the decrease in revenue. This amendment will reduce assessments the department will receive from banks from approximately $1,463,513 to zero and reduce fees the department will receive from credit unions from approximately $211,961 to zero.

The division's special fund balance continues to grow despite numerous efforts to reduce it.  While the division tries to keep its bank and credit union assessments in proportion to the costs it spends on supervising Montana banks and credit unions, it has been challenging to predict the surge in asset growth among these regulated institutions.  Asset size is the primary factor by which bank and credit union assessments are calculated.  Bank and credit union asset growth has been unpredictable due to mergers and acquisitions and a steady growth in customer deposits related to pandemic-related stimulus. The division estimates that on a semiannual basis, based on current costs and estimates of assessments, not collecting an assessment for one-half year will bring the amount of revenue it collects closer to the cost of supervision.

The division will re-evaluate the assessments prior to 2023 and again attempt to align the revenue with costs of supervision of Montana's state-chartered banks and credit unions.


2.59.401 CREDIT UNIONS - SUPERVISORY FEE  (1) through (3) remain the same.

(4) For the assessment billed in December 2021 and collected in January 2022, calculate the assessment as set forth in (2) and divide by 2. The assessment billed in December 2022 and collected in January 2023 is waived.


AUTH: 32-3-201, MCA

IMP: 32-3-201, MCA


4. Concerned persons may present their data, views, or arguments concerning the proposed action to the person listed in paragraph 2 above. Comments must be received no later than 5:00 p.m., July 8, 2022.


5. If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to the person listed in paragraph 2 above no later than 5:00 p.m., June 22, 2022.


6. If the department receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be four persons based on the 36 state-chartered banks and 10 state-chartered credit unions.


7. An electronic copy of this proposal notice is available through the department's website at http://doa.mt.gov/administrativerules. The department strives to make its online version of the notice conform to the official published version but advises all concerned persons that if a discrepancy exists between the official version and the department's online version, only the official text will be considered. In addition, although the department works to keep its website accessible at all times, concerned persons should be aware that the website may be unavailable during some periods, due to system maintenance or technical problems.


8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this division. Persons who wish to have their name added to the mailing list shall make a written request that includes the name, mailing address, and e-mail address of the person to receive notices and specifies that the person wishes to receive notices regarding division rulemaking actions. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written requests may be mailed or delivered to the person listed in paragraph 2 above or may be made by completing a request form at any rules hearing held by the department.


9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


10. The department has determined that under 2-4-111, MCA, the proposed amendment of the above-stated rules will not significantly and directly impact small businesses.



By:      /s/ Misty Ann Giles                                 By:      /s/ Don Harris                                   

            Misty Ann Giles, Director                                  Don Harris, Rule Reviewer

            Department of Administration                           Department of Administration


Certified to the Secretary of State May 31, 2022.

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