1262763 The Commissioner of the Department of Insurance, Securities and Banking hereby gives notice of the adoption of Capital Access Rules, a new chapter 28 of subtitle C of Title 26, to clarify the Capital Access Program.  

  • DISTRICT OF COLUMBIA

    DEPARTMENT OF INSURANCE, SECURITIES AND BANKING

     

    NOTICE OF EMERGENCY AND PROPOSED RULEMAKING

     

    The  Commissioner of the Department of Insurance, Securities and Banking (Department), pursuant to the authority set forth in Mayor’s Order 2011-91, dated May 6, 2011, and section 13 of the Capital Access Program Act of 2010 (Act), effective March 12, 2011 (D.C. Law 18-322; D.C. Official Code §§ 2-1210.01, et seq.)(Supp. 2011), hereby gives notice of the adoption, on an emergency basis, of a new chapter 28 entitled “Capital Access Program”, to subtitle C of title 26 of the District of Columbia Municipal Regulations.  The purpose of the new chapter is to clarify that the District shall pay a one hundred percent (100%) match for loans enrolled in the Capital Access Program (Program) under section 7(d)(2) and (3) of the Act if local appropriated funds are not available to satisfy the enhanced match percentages of one hundred fifty percent (150%) and two hundred percent (200%) required  under that section. 

     

    This emergency and proposed rulemaking is necessary for the immediate implementation of the Program to ensure the receipt of federal funds under the Small Business Jobs Act of 2010, Pub. L. No. 111-240, 124 Stat. 2554, to allow small businesses and nonprofit organizations access to loans to facilitate expansion and employment of local residents in the District of Columbia (District).  The District will receive no less than S13.1 million of federal funding offered to participating states who fully comply with the application process. The immediate commencement of the Program, with the clarifying rulemaking, will ensure compliance with federal and District guidelines. This rulemaking, therefore, is necessary for the immediate preservation of the public safety and welfare.

     

    The Commissioner also gives notice of his intent to take final rulemaking action to adopt these rules in not less than thirty (30) days after the date of publication of this notice in the D.C. Register. 

     

    This emergency rulemaking was adopted by the Commissioner and became effective on June 15, 2011.  It will remain in effect for up to one hundred twenty (120) days after the date of adoption, unless earlier superseded by a notice of final rulemaking.

    A new chapter 28 is added to subtitle C of title 26 of the D.C. Municipal Regulations to read as follows:

     

    CHAPTER 28

     

    CAPITAL ACCESS PROGRAM

     

     

    2800                SCOPE

     

    2800.1             Unless specified otherwise, these rules shall apply to clarify section 7(d)(2) and (d)(3) of the Capital Access Program Act of 2010 (Act), effective March 12, 2011 (D.C. Law 18-322; D.C. Official Code §§ 2-1210.01, et seq.)(Supp. 2011)

     

    2801                AVAILABILITY OF DISTRICT MATCHING FUNDS

     

    2801.1             The requirement in section 7(d)(2) of the Act that the Mayor shall deposit in the reserve account for each capital access loan made by a financial institution an amount equal to one hundred fifty percent (150%) of the total amount deposited by the financial institution and the borrower is only effective upon the availability of appropriated local funds sufficient to deposit this percentage.  If sufficient funds are not available to pay one hundred fifty percent (150%), the Mayor shall deposit one hundred percent (100%) of the contributions deposited by the financial institution and the borrower under section 7(b).

     

    2801.2             The requirement in section 7(d)(3) of the Act that the Mayor shall deposit in the reserve account for each capital access loan made by the financial institution an amount equal to two hundred percent (200%) of the total amount deposited by the financial institution and the borrower is only effective upon the availability of appropriated local funds sufficient to deposit this percentage.  If sufficient funds are not available to pay two hundred percent (200%), the Mayor shall deposit one hundred percent (100%) of the contributions deposited by the financial institution and the borrower under section 7(b).

     

     

    2802                CERTIFYING THE AVAILABILITY OF LOCAL FUNDS FOR THE IMPLEMENTATION OF THE ACT

     

    2802.1             Prior to the acceptance of loan applications for loans under the Act, participating financial institutions shall contact the Associate Commissioner for Banking to determine the availability of District funds.

     

     

    Persons desiring to comment on these proposed rules should submit comments in writing to Rhonda Blackshear, Acting General Counsel, Department of Insurance, Securities and Banking, 810 First Street, NE, Suite 701, Washington, D.C. 20002.  Comments must be received not later than thirty (30) days after the date of publication of this notice in the D.C. Register.  Copies of the proposed rules may be obtained from the Department at the address above.