Substitute Senate Bill No. 231
          Substitute Senate Bill No. 231

               PUBLIC ACT NO. 98-65


AN  ACT  CONCERNING  THE EXAMINATION OF ELECTRONIC
DATA PROCESSING SERVICERS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  36a-17  of  the  general  statutes is
repealed and the following is substituted in  lieu
thereof:
    (a)  The  commissioner,  in the commissioner's
discretion,  may  make  such  public  or   private
investigations  or  examinations within or outside
this state, concerning any person subject  to  the
jurisdiction   of   the   commissioner,   as   the
commissioner deems  necessary  to  carry  out  the
duties of the commissioner.
    (b)  ANY  CONNECTICUT BANK WHICH CAUSES OR HAS
CAUSED ANY ELECTRONIC DATA PROCESSING SERVICES  TO
BE  PERFORMED  FOR SUCH CONNECTICUT BANK EITHER ON
OR  OFF  ITS  PREMISES  BY  AN   ELECTRONIC   DATA
PROCESSING  SERVICER  SHALL  ENTER  INTO A WRITTEN
CONTRACT WITH SUCH SERVICER. SUCH  CONTRACT  SHALL
SPECIFY  THE  DUTIES  AND  RESPONSIBILITIES OF THE
CONNECTICUT BANK AND  SUCH  SERVICER  AND  PROVIDE
THAT SUCH SERVICER SHALL ALLOW THE COMMISSIONER TO
EXAMINE  SUCH  SERVICER'S   BOOKS,   RECORDS   AND
COMPUTER   SYSTEMS   IN   ACCORDANCE   WITH   THIS
SUBSECTION, IF REQUIRED BY THE  COMMISSIONER.  THE
CONNECTICUT  BANK  SHALL  PROMPTLY  SEND A COPY OF
SUCH   CONTRACT   TO   THE    COMMISSIONER.    THE
COMMISSIONER  MAY  EXAMINE  THE BOOKS, RECORDS AND
COMPUTER SYSTEMS OF ANY ELECTRONIC DATA PROCESSING
SERVICER  THAT PERFORMS ELECTRONIC DATA PROCESSING
SERVICES FOR A CONNECTICUT BANK, IF SUCH  SERVICES
SUBSTANTIALLY   IMPACT   THE   OPERATIONS  OF  THE
CONNECTICUT   BANK   AS    DETERMINED    BY    THE
COMMISSIONER,  IN  ORDER  TO (1) DETERMINE WHETHER
SUCH SERVICER HAS  THE  CAPACITY  TO  PROTECT  THE
CONNECTICUT  BANK'S  CUSTOMER  INFORMATION AND (2)
ASSESS SUCH  SERVICER'S  POTENTIAL  FOR  CONTINUED
SERVICE.  THE COMMISSIONER MAY ASSESS A FEE OF ONE
HUNDRED FIFTY DOLLARS PER DAY PLUS COSTS FOR  EACH
EXAMINER  WHO CONDUCTS SUCH EXAMINATION, THE TOTAL
COST OF WHICH THE COMMISSIONER MAY ALLOCATE  ON  A
PRO  RATA  BASIS  TO  ALL  CONNECTICUT BANKS UNDER
CONTRACT WITH SUCH SERVICER.
    [(b)]    (c)    For   the   purpose   of   any
investigation,  examination  or  proceeding  under
this  title  the commissioner may administer oaths
and  affirmations,  subpoena   witnesses,   compel
attendance  of  witnesses,  take evidence, require
written statements and require the  production  of
any  records which the commissioner deems relevant
or material. The  commissioner  may  require  that
certified  copies  of any such records be provided
to the commissioner at the commissioner's office.
    [(c)]  (d)  Any  person  who is the subject of
any such investigation, examination or  proceeding
shall   make   its   records   available   to  the
commissioner in readable form;  provide  personnel
and   equipment   necessary,  including,  but  not
limited  to,  assistance  in   the   analysis   of
computer-generated   records;  provide  copies  or
computer printouts of records when  so  requested;
furnish  unrestricted  access  to all areas of its
principal place of business  or  wherever  records
may  be  located; and otherwise cooperate with the
commissioner.
    [(d)] (e) The  superior court for the judicial
district    of   Hartford-New    Britain*,    upon
application of the  commissioner, may issue to any
person refusing to obey a subpoena issued pursuant
to subsection [(b)]  (c)  of this section an order
requiring  that  person   to   appear  before  the
commissioner  or any  officer  designated  by  the
commissioner to produce  records  so ordered or to
give   evidence  concerning   the   matter   under
investigation or in  question. Failure to obey the
order of the court may be punished by the court as
a contempt of court.
    [(e)]  (f)  A  licensee under section 36a-489,
36a-511, 36a-536, 36a-555,  AS  AMENDED,  36a-581,
36a-600, 36a-633, 36a-656 or 36a-801, shall pay to
the  commissioner   the   actual   cost   of   any
examination  of  the  licensee,  as  such  cost is
determined by the  commissioner.  Failure  by  the
licensee  to  pay  such cost within thirty days of
receipt of  demand  from  the  commissioner  shall
automatically  suspend the license until the costs
are paid.
    [(f)]  (g)  As used in this section, "records"
includes, but is not limited  to,  books,  papers,
correspondence,  memoranda,  agreements,  diaries,
logs, notes,  ledgers,  journals,  visual,  audio,
magnetic   or   electronic   recordings,  computer
printouts and software, and any other documents.

Approved May 19, 1998