Title 19
Financial Institutions

Chapter 33
Student Loan Bill of Rights Act

§ 19-33-9. Examinations.

(a) In addition to any other authority provided under this chapter, the department shall have the authority to conduct examinations of registrants.

(b) In order to carry out the purposes of this chapter, the department may:

(1) Retain attorneys, accountants or other professionals and specialists as examiners or auditors to conduct or assist in the conduct of examinations. The costs of these persons shall be borne by the registrant;

(2) Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this section;

(3) Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine the student loan servicer or person subject to the provisions of this chapter. The costs of these systems shall be borne by the registrant;

(4) Accept and rely on examination reports made by other government officials, within or outside of the state; and

(5) Accept audit reports made by an independent certified public accountant for the student loan servicer or person subject to the provisions of this chapter in the course of that part of the examination covering the same general subject matter as the audit and incorporate the audit report in the report of examination or other writing of the department.

(c) The department may at any time examine the student education loans and business and examine the books, accounts, records, and files used therein, of every registrant and person who shall be engaged in any activity that requires a registration under this chapter, whether the person shall act, or claim to act, as principal or agent, or under or without the authority of this chapter. For that purpose, the department shall have free access to the offices and places of business, books, accounts, paper, records, files, and safes, of all such persons. The department shall have authority to require the attendance of, and to examine under oath, any person whose testimony may be required relative to the student education loans or the business or to the subject matter of any examination or hearing.

(d) The department shall make an examination of the affairs, business, office, and records of each registrant as often as is necessary, based upon all relevant factors, including the volume of activity within the state. The total cost of an examination made pursuant to this section shall be paid by the registrant or person being examined and shall include the following expenses:

(1) One hundred fifty percent (150%) of the total salaries and benefits plus one hundred percent (100%) of the travel and transportation expenses for the examining personnel engaged in the examinations. The fees shall be paid to the department to, and for the use of, the state. The examination fees shall be in addition to any taxes and fees otherwise payable to the state;

(2) All reasonable technology costs related to the examination process. Technology costs shall include the actual cost of software and hardware utilized in the examination process and the cost of training examination personnel in the proper use of the software or hardware; and

(3) All necessary and reasonable education and training costs incurred by the state to maintain the proficiency and competence of the examination personnel. All these costs shall be incurred in accordance with appropriate state of Rhode Island regulations, guidelines, and procedures.

(e) The authority of this chapter shall remain in effect, whether the student loan servicer or person subject to the provisions of this chapter acts or claims to act under any licensing or registration law of this state, or claims to act without such authority.

(f) No student loan servicer or person subject to examination under this section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.

(g) The provisions of § 19-4-3 shall apply to investigatory records and examination reports issued by other state and federal regulatory agencies, and the work papers of examinations or investigations of registrants created by the department; provided, however, the director or designee is authorized to make public all consumer complaints and final examination reports issued by the department as determined by the director or designee.