§ 206. Assessments to defray operating expenses of the department.
(a) For each fiscal year commencing on or after April first, two
thousand twelve, assessments to defray operating expenses, including all
direct and indirect costs, of the department, except expenses incurred
in the liquidation of banking organizations, shall be assessed by the
superintendent in accordance with this subsection. Persons regulated
under the insurance law shall be assessed by the superintendent for the
operating expenses of the department that are solely attributable to
regulating persons under the insurance law, which shall include any
expenses that were permissible to be assessed in fiscal year two
thousand nine-two thousand ten, with the assessments allocated pro rata
upon all domestic insurers and all licensed United States branches of
alien insurers domiciled in this state within the meaning of paragraph
four of subsection (b) of section seven thousand four hundred eight of
the insurance law, in proportion to the gross direct premiums and other
considerations, written or received by them in this state during the
calendar year ending December thirty-first immediately preceding the end
of the fiscal year for which the assessment is made (less return
premiums and considerations thereon) for policies or contracts of
insurance covering property or risks resident or located in this state
the issuance of which policies or contracts requires a license from the
superintendent. Persons regulated under the banking law shall be
assessed by the superintendent for the operating expenses of the
department that are solely attributable to regulating persons under the
banking law in such proportions as the superintendent shall deem just
and reasonable. Persons regulated under this chapter that engage in
"virtual currency business activity," as that term is defined by the
department, shall be assessed by the superintendent for the operating
expenses of the department that are solely attributable to regulating
such persons in such proportions as the superintendent shall deem just
and reasonable. Operating expenses of the department not covered by the
assessments set forth above shall be assessed by the superintendent in
such proportions as the superintendent shall deem just and reasonable
upon all domestic insurers and all licensed United States branches of
alien insurers domiciled in this state within the meaning of paragraph
four of subsection (b) of section seven thousand four hundred eight of
the insurance law, and upon any regulated person under the banking law,
other than mortgage loan originators, and upon persons regulated under
this chapter that engage in virtual currency business activity, except
as otherwise provided by sections one hundred fifty-one and two hundred
twenty-eight of the workers' compensation law and by section sixty of
the volunteer firefighters' benefit law. The provisions of this
subsection shall not be applicable to a bank holding company, as that
term is defined in article three-A of the banking law. Persons regulated
under the banking law will not be assessed for expenses that the
superintendent deems to benefit solely persons regulated under the
insurance law or under this chapter that engage in virtual currency
business activity, and persons regulated under the insurance law will
not be assessed for expenses that the superintendent deems to benefit
solely persons regulated under the banking law or under this chapter
that engage in virtual currency business activity. Persons regulated
under this chapter that engage in virtual currency business activity
will not be assessed for expenses that the superintendent deems to
benefit solely persons regulated under the insurance law or under the
banking law.

(b) For each fiscal year commencing on or after April first, two
thousand twelve, a partial payment shall be made by each entity subject
to this section in a sum equal to twenty-five per centum, or such other
per centum or per centums as the superintendent may prescribe, of the
annual expenses assessed upon it for the fiscal year as estimated by the
superintendent. Such payment shall be made on March tenth of the
preceding fiscal year and on June tenth, September tenth and December
tenth of each year, or at such other dates as the superintendent may
prescribe. The balance of assessments for the fiscal year shall be paid
upon determination of the actual amount due in accordance with the
provisions of this section. Any overpayment of annual assessment
resulting from complying with the requirements of this subsection shall
be applied against the next estimated quarterly assessment, if less than
or equal to such amount, with any excess refunded to the assessed. As an
alternative, if the estimated annual assessment for the fiscal year is
equal to or less than the annual minimum assessment set by the
superintendent, the superintendent may require full payment to be made
on or before September thirtieth or such other date of the fiscal year
as the superintendent may determine.

(c) The expenses incurred in making examinations of, or for special
services performed on account of, any bank holding company, as that term
is defined in the banking law, or any regulated person under the banking
law, shall be assessed provided, however, that the superintendent, in
the superintendent's sole discretion, may determine, with respect to
expenses incurred in the making of any specific examination or
investigation, or the performing of any special services, that any such
expense shall be assessed against and paid by the bank holding company
or any other regulated person under the banking law for which they were
incurred or performed.

(d) The expenses incurred in making an examination of any affiliate of
a banking organization pursuant to the banking law, and the expenses
incurred in making an examination, pursuant to the banking law, of a
non-banking subsidiary of a corporation or any other entity that is an
affiliate of a banking organization, shall be assessed against and paid
by such banking organization if the affiliate cannot be assessed
pursuant to the provisions of the banking law.

(d-1) The expenses of every examination of the affairs of any person
regulated pursuant to this chapter that engages in virtual currency
business activity shall be borne and paid by the regulated person so
examined, but the superintendent, with the approval of the comptroller,
may in the superintendent's discretion for good cause shown remit such
charges.

(e) The superintendent may, in the superintendent's sole discretion,
upon notice, suspend the license, registration, certificate or authority
(for purposes of this section, a license) granted to any person pursuant
to this chapter, the banking law or insurance law, upon the failure of
such person to make any payment required by this section within thirty
days after the due date. If the superintendent has suspended any such
license, such license may be reinstated if the superintendent determines
that such person has made any such payments within ninety days after the
date of such notice of suspension. Otherwise, unless the superintendent,
in the superintendent's sole discretion, has extended such suspension,
the license of such person shall be deemed to be automatically
terminated by operation of law at the close of business on such
ninetieth day.

(f) (1) The expenses of every examination of the affairs of any
regulated person subject to the insurance law, including an appraisal of
such regulated person's real property or of any real property on which
such regulated person holds a mortgage, made pursuant to the authority
conferred by any provision of this chapter, the insurance law or the
banking law, shall be borne and paid by the regulated person so
examined, but the superintendent, with the approval of the comptroller,
may in the superintendent's discretion for good cause shown remit such
charges.

(2) (A) For any such examination by the superintendent or a deputy
superintendent personally, the charge made shall be only for necessary
traveling expenses and other actual expenses. In all other cases, the
expenses of examination shall also include reimbursement for the
compensation paid for the services of persons employed by the
superintendent or by the superintendent's authority to make such
examination or appraisal.

(B) Notwithstanding any provisions of this section to the contrary, in
case of an examination or appraisal of a domestic insurer made within
this state, the traveling and living expense of the person or persons
making the examination shall be considered a cost of operation, as
referred to in section three hundred thirty-two of the insurance law and
not an expense of examination.

(3) All charges, including necessary traveling and other actual
expenses, except as hereinabove provided, as audited by the comptroller
and paid on the comptroller's warrant in the usual manner by the
comptroller to the person or persons making the examination or
appraisal, shall be presented to the insurer, or other person whose duty
it is to pay the same, in the form of a copy of the itemized bill
therefor as certified and approved by the superintendent or by any
deputy superintendent or authorized employee of the department. Upon
receiving such certified copy the insurer or other person whose duty it
is to pay such charges shall pay the amount thereof to the
superintendent, to be paid by the superintendent into the state
treasury.