Text: SSB01160 Text: SSB01162 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 ARTICLE 1 1 2 GENERAL PROVISIONS 1 3 Section 1. NEW SECTION. 533C.101 SHORT TITLE. 1 4 This chapter may be cited as the "Uniform Money Services 1 5 Act". 1 6 Sec. 2. NEW SECTION. 533C.102 DEFINITIONS. 1 7 In this chapter: 1 8 1. "Applicant" means a person that files an application 1 9 for a license under this chapter. 1 10 2. "Authorized delegate" means a person a licensee 1 11 designates to provide money services on behalf of the 1 12 licensee. 1 13 3. "Bank" means an institution organized under federal or 1 14 state law which does any of the following: 1 15 a. Accepts demand deposits or deposits that the depositor 1 16 may use for payment to third parties and engages in the 1 17 business of making commercial loans. 1 18 b. Engages in credit card operations and maintains only 1 19 one office that accepts deposits, does not accept demand 1 20 deposits or deposits that the depositor may use for payments 1 21 to third parties, does not accept a savings or time deposit 1 22 less than one hundred thousand dollars, and does not engage in 1 23 the business of making commercial loans. 1 24 4. "Compensation" means any fee, commission, or other 1 25 benefit. 1 26 5. "Conducting the business" means engaging in activities 1 27 of a licensee or money transmitter more than ten times in any 1 28 calendar year for compensation. 1 29 6. "Control" means any of the following: 1 30 a. Ownership of, or the power to vote, directly or 1 31 indirectly, at least twenty-five percent of a class of voting 1 32 securities or voting interests of a licensee or person in 1 33 control of a licensee. 1 34 b. Power to elect a majority of executive officers, 1 35 managers, directors, trustees, or other persons exercising 2 1 managerial authority of a licensee or person in control of a 2 2 licensee. 2 3 c. The power to exercise, directly or indirectly, a 2 4 controlling influence over the management or policies of a 2 5 licensee or person in control of a licensee. 2 6 7. "Credit union" means a cooperative, nonprofit 2 7 association incorporated under chapter 533 of the Federal 2 8 Credit Union Act, 12 U.S.C. } 1751 et seq., that is insured by 2 9 the national credit union administration and includes an 2 10 office of a credit union. 2 11 8. "Currency exchange" means receipt of compensation from 2 12 the exchange of money of one government for money of another 2 13 government. 2 14 9. "Executive officer" means a president, chairperson of 2 15 the executive committee, chief financial officer, responsible 2 16 individual, or other individual who performs similar 2 17 functions. 2 18 10. "Licensee" means a person licensed under this chapter. 2 19 11. "Location" means a place of business at which activity 2 20 conducted by a licensee or money transmitter occurs. 2 21 12. "Monetary value" means a medium of exchange, whether 2 22 or not redeemable in money. 2 23 13. "Money" means a medium of exchange authorized or 2 24 adopted by a domestic or foreign government as a part of its 2 25 currency and that is customarily used and accepted as a medium 2 26 of exchange in the country of issuance. The term includes a 2 27 monetary unit of account established by an intergovernmental 2 28 organization or by agreement between two or more governments. 2 29 14. "Money services" means money transmission, check 2 30 cashing, or currency exchange. 2 31 15. "Money transmission" means any of the following: 2 32 a. Selling or issuing payment instruments. 2 33 b. Conducting the business of receiving money or monetary 2 34 value for transmission. 2 35 c. Conducting the business of receiving money for obligors 3 1 for the purpose of paying obligors' bills, invoices, or 3 2 accounts. 3 3 16. "Outstanding", with respect to a payment instrument, 3 4 means issued or sold by or for the licensee and reported as 3 5 sold but not yet paid by or for the licensee. 3 6 17. "Payment instrument" means a check, draft, money 3 7 order, traveler's check, stored-value, or other instrument or 3 8 order for the transmission or payment of money or monetary 3 9 value, sold to one or more persons, whether or not that 3 10 instrument or order is negotiable. "Payment instrument" does 3 11 not include an instrument that is redeemable by the issuer or 3 12 an affiliate in merchandise or service, a credit card voucher, 3 13 or a letter of credit. 3 14 18. "Person" means an individual, corporation, business 3 15 trust, estate, trust, partnership, limited liability company, 3 16 association, joint venture, government; governmental 3 17 subdivision, agency or instrumentality; public corporation; or 3 18 any other legal or commercial entity. 3 19 19. "Proceeds" means property acquired or derived directly 3 20 or indirectly from, produced through, realized through, or 3 21 caused by an act or omission and includes any property of any 3 22 kind. 3 23 20. "Property" means anything of value, and includes any 3 24 interest in property, including any benefit, privilege, claim, 3 25 or right with respect to anything of value, whether real or 3 26 personal, tangible or intangible, without reduction for 3 27 expenses incurred for acquisition, maintenance, production, or 3 28 any other purpose. 3 29 21. "Record" means information that is inscribed on a 3 30 tangible medium or that is stored in an electronic or other 3 31 medium and is retrievable in perceivable form. 3 32 22. "Responsible individual" means an individual who is 3 33 employed by a licensee and has principal managerial authority 3 34 over the provision of money services by the licensee in this 3 35 state. 4 1 23. "State" means a state of the United States, the 4 2 District of Columbia, Puerto Rico, the United States Virgin 4 3 Islands, or any territory or insular possession subject to the 4 4 jurisdiction of the United States. 4 5 24. "Stored-value" means a monetary value that is 4 6 evidenced by an electronic record. 4 7 25. "Superintendent" means the superintendent of banking 4 8 for the state of Iowa. 4 9 26. "Transaction" includes a purchase, sale, trade, loan, 4 10 pledge, investment, gift, transfer, transmission, delivery, 4 11 deposit, withdrawal, payment, transfer between accounts, 4 12 exchange of currency, extension of credit, purchase or sale of 4 13 any monetary instrument or stored-value, use of a safe deposit 4 14 box, or any other acquisition or disposition of property by 4 15 whatever means effected. 4 16 27. "Unsafe or unsound practice" means a practice or 4 17 conduct by a person licensed to engage in money transmission 4 18 or an authorized delegate of such a person which creates the 4 19 likelihood of material loss, insolvency, or dissipation of the 4 20 licensee's assets, or otherwise materially prejudices the 4 21 interests of its customers. 4 22 Sec. 3. NEW SECTION. 533C.103 EXCLUSIONS. 4 23 This chapter does not apply to: 4 24 1. The United States or a department, agency, or 4 25 instrumentality thereof. 4 26 2. A money transmission by the United States postal 4 27 service or by a contractor on behalf of the United States 4 28 postal service. 4 29 3. A state, county, city, or any other governmental agency 4 30 or governmental subdivision of a state. 4 31 4. A bank, bank holding company, credit union, office of 4 32 an international banking corporation, branch of a foreign 4 33 bank, corporation organized pursuant to the federal Bank 4 34 Service Company Act, 12 U.S.C. } 1861-1867, or corporation 4 35 organized under the federal Edge Act, 12 U.S.C. } 611-633, 5 1 under the laws of a state or the United States if not issuing, 5 2 selling, or providing payment instruments or stored-value 5 3 through an authorized delegate that is not such a person. 5 4 5. Electronic funds transfer of governmental benefits for 5 5 a federal, state, county, or governmental agency by a 5 6 contractor on behalf of the United States or a department, 5 7 agency, or instrumentality thereof, or a state or governmental 5 8 subdivision, agency, or instrumentality thereof. 5 9 6. A board of trade designated as a contract market under 5 10 the federal Commodity Exchange Act, 7 U.S.C. } 1-25, or a 5 11 person that, in the ordinary course of business, provides 5 12 clearance and settlement services for a board of trade to the 5 13 extent of its operation as or for such a board. 5 14 7. A registered futures commission merchant under the 5 15 federal commodities laws to the extent of its operation as 5 16 such a merchant. 5 17 8. A person that provides clearance or settlement services 5 18 pursuant to a registration as a clearing agency or an 5 19 exemption from such registration granted under the federal 5 20 securities laws to the extent of its operation as such a 5 21 provider. 5 22 9. An operator of a payment system to the extent that it 5 23 provides processing, clearing, or settlement services, between 5 24 or among persons excluded by this section, in connection with 5 25 wire transfers, credit card transactions, debit card 5 26 transactions, stored-value transactions, automated clearing 5 27 house transfers, or similar funds transfers. 5 28 10. A person registered as a securities broker-dealer 5 29 under federal or state securities laws to the extent of its 5 30 operation as such a broker-dealer. 5 31 11. A delayed deposit services business as defined in 5 32 chapter 533D. 5 33 12. A real estate broker or salesperson as defined in 5 34 chapter 543B. 5 35 13. Pari-mutuel wagering, racetracks, and excursion 6 1 gambling boats as provided in chapters 99D and 99F. 6 2 14. A person engaging in the business of debt management 6 3 that is licensed or exempt from licensing pursuant to section 6 4 533A.2. 6 5 ARTICLE 2 6 6 MONEY TRANSMISSION LICENSES 6 7 Sec. 4. NEW SECTION. 533C.201 LICENSE REQUIRED. 6 8 1. A person shall not engage in the business of money 6 9 transmission or advertise, solicit, or hold itself out as 6 10 providing money transmission unless the person: 6 11 a. Is licensed under this article. 6 12 b. Is an authorized delegate of a person licensed under 6 13 this article. 6 14 2. A license under this article is not transferable or 6 15 assignable. 6 16 Sec. 5. NEW SECTION. 533C.202 APPLICATION FOR LICENSE. 6 17 1. In this section, "material litigation" means litigation 6 18 that according to generally accepted accounting principles is 6 19 significant to an applicant's or a licensee's financial health 6 20 and would be required to be disclosed in the applicant's or 6 21 licensee's annual audited financial statements, report to 6 22 shareholders, or similar records. 6 23 2. A person applying for a license under this article 6 24 shall do so in a form prescribed by the superintendent. The 6 25 application must state or contain: 6 26 a. The legal name and residential and business addresses 6 27 of the applicant and any fictitious or trade name used by the 6 28 applicant in conducting its business. 6 29 b. A list of any criminal convictions of the applicant and 6 30 any material litigation in which the applicant has been 6 31 involved in the ten-year period next preceding the submission 6 32 of the application. 6 33 c. A description of any money services previously provided 6 34 by the applicant and the money services that the applicant 6 35 seeks to provide in this state. 7 1 d. A list of the applicant's proposed authorized delegates 7 2 and the locations in this state where the applicant and its 7 3 authorized delegates propose to engage in money transmission 7 4 or provide other money services. 7 5 e. A list of other states in which the applicant is 7 6 licensed to engage in money transmission or provide other 7 7 money services and any license revocations, suspensions, or 7 8 other disciplinary action taken against the applicant in 7 9 another state. 7 10 f. Information concerning any bankruptcy or receivership 7 11 proceedings affecting the licensee. 7 12 g. A sample form of contract for authorized delegates, if 7 13 applicable, and a sample form of payment instrument or 7 14 instrument upon which stored-value is recorded, if applicable. 7 15 h. The name and address of any bank through which the 7 16 applicant's payment instruments and stored-value will be paid. 7 17 i. A description of the source of money and credit to be 7 18 used by the applicant to provide money services. 7 19 j. Any other information the superintendent reasonably 7 20 requires with respect to the applicant. 7 21 3. If an applicant is a corporation, limited liability 7 22 company, partnership, or other entity, the applicant shall 7 23 also provide all of the following: 7 24 a. The date of the applicant's incorporation or formation 7 25 and state or country of incorporation or formation. 7 26 b. If applicable, a certificate of good standing from the 7 27 state or country in which the applicant is incorporated or 7 28 formed. 7 29 c. A brief description of the structure or organization of 7 30 the applicant, including any parent or subsidiary of the 7 31 applicant, and whether any parent or subsidiary is publicly 7 32 traded. 7 33 d. The legal name, any fictitious or trade name, all 7 34 business and residential addresses, and the employment, in the 7 35 ten-year period next preceding the submission of the 8 1 application of each executive officer, manager, director, or 8 2 person that has control, of the applicant. 8 3 e. A list of any criminal convictions and material 8 4 litigation in which any executive officer, manager, director, 8 5 or person in control of the applicant has been involved in the 8 6 ten-year period next preceding the submission of the 8 7 application. 8 8 f. A copy of the applicant's audited financial statements 8 9 for the most recent fiscal year and, if available, for the 8 10 two-year period next preceding the submission of the 8 11 application. 8 12 g. A copy of the applicant's unconsolidated financial 8 13 statements for the current fiscal year, whether audited or 8 14 not, and, if available, for the two-year period next preceding 8 15 the submission of the application. 8 16 h. If the applicant is publicly traded, a copy of the most 8 17 recent report filed with the United States securities and 8 18 exchange commission under section 13 of the federal Securities 8 19 Exchange Act of 1934, 15 U.S.C. } 78m. 8 20 i. If the applicant is a wholly owned subsidiary of: 8 21 (1) A corporation publicly traded in the United States, a 8 22 copy of audited financial statements for the parent 8 23 corporation for the most recent fiscal year or a copy of the 8 24 parent corporation's most recent report filed under section 13 8 25 of the federal Securities Exchange Act of 1934, 15 U.S.C. } 8 26 78m. 8 27 (2) A corporation publicly traded outside the United 8 28 States, a copy of similar documentation filed with the 8 29 regulator of the parent corporation's domicile outside the 8 30 United States. 8 31 j. If the applicant has a registered agent in this state, 8 32 the name and address of the applicant's registered agent in 8 33 this state. 8 34 k. Any other information the superintendent reasonably 8 35 requires with respect to the applicant. 9 1 4. A nonrefundable application fee of one thousand dollars 9 2 and a license fee must accompany an application for a license 9 3 under this article. The license fee must be refunded if the 9 4 application is denied. The license fee shall be the sum of 9 5 five hundred dollars plus an additional ten dollars for each 9 6 location in this state at which business is conducted through 9 7 authorized delegates or employees of the licensee, but shall 9 8 not exceed five thousand dollars. Fees for locations added 9 9 after the initial application shall be submitted with the 9 10 quarterly reports pursuant to section 533C.503, subsection 2. 9 11 If the licensee has no locations in this state at which 9 12 business is conducted through authorized delegates or 9 13 employees of the licensee, the license shall be set by the 9 14 superintendent, but shall not exceed five thousand dollars, 9 15 and the superintendent may require a bond not to exceed two 9 16 hundred fifty thousand dollars. A license under this article 9 17 expires on the next September 30 after its issuance. The 9 18 initial license fee is considered an annual fee and the 9 19 superintendent shall prorate the license fee, refunding any 9 20 amount due to a partial license year. However, no refund of a 9 21 license fee shall be made when a license is suspended, 9 22 revoked, or surrendered. 9 23 5. The superintendent may waive one or more requirements 9 24 of subsections 2 and 3, or permit an applicant to submit other 9 25 information in lieu of the required information. 9 26 Sec. 6. NEW SECTION. 533C.203 SECURITY. 9 27 1. Except as otherwise provided in subsection 2, a surety 9 28 bond, letter of credit, or other similar security acceptable 9 29 to the superintendent in the amount of fifty thousand dollars 9 30 plus ten thousand dollars per location, not exceeding a total 9 31 addition of three hundred thousand dollars, must accompany an 9 32 application for a license. If the licensee has no locations 9 33 in this state, the superintendent shall set the bond amount 9 34 not to exceed three hundred thousand dollars. 9 35 2. Security must be in a form satisfactory to the 10 1 superintendent and payable to the state for the benefit of any 10 2 claimant against the licensee to secure the faithful 10 3 performance of the obligations of the licensee with respect to 10 4 money transmission. 10 5 3. The aggregate liability on a surety bond shall not 10 6 exceed the principal sum of the bond. A claimant against a 10 7 licensee may maintain an action on the bond, or the 10 8 superintendent may maintain an action on behalf of the 10 9 claimant. 10 10 4. A surety bond must cover claims for so long as the 10 11 superintendent specifies, but for at least five years after 10 12 the licensee ceases to provide money services in this state. 10 13 However, the superintendent may permit the amount of security 10 14 to be reduced or eliminated before the expiration of that time 10 15 to the extent the amount of the licensee's payment instruments 10 16 or stored-value obligations outstanding in this state is 10 17 reduced. The superintendent may permit a licensee to 10 18 substitute another form of security acceptable to the 10 19 superintendent for the security effective at the time the 10 20 licensee ceases to provide money services in this state. 10 21 5. In lieu of the security prescribed in this section, an 10 22 applicant for a license or a licensee may provide security in 10 23 a form prescribed by the superintendent. 10 24 6. The superintendent may increase the amount of security 10 25 required to a maximum of one million dollars if the financial 10 26 condition of a licensee so requires, as evidenced by reduction 10 27 of net worth, financial losses, or other relevant criteria. 10 28 Sec. 7. NEW SECTION. 533C.204 ISSUANCE OF LICENSE. 10 29 1. When an application is filed under this article, the 10 30 superintendent shall investigate the applicant's financial 10 31 condition and responsibility, financial and business 10 32 experience, character, and general fitness. The 10 33 superintendent may conduct an on-site investigation of the 10 34 applicant, the reasonable cost of which the applicant must 10 35 pay. The superintendent shall issue a license to an applicant 11 1 under this article if the superintendent finds that all of the 11 2 following conditions have been fulfilled: 11 3 a. The applicant has complied with sections 533C.202, 11 4 533C.203, and 533C.206. 11 5 b. The applicant has not been convicted of or pled guilty 11 6 to a felony or an indictable misdemeanor for financial gain 11 7 within the past ten years. 11 8 c. The applicant has paid a fee set by the department of 11 9 public safety, division of criminal investigation and bureau 11 10 of identification, to defray the costs associated with the 11 11 search of criminal history records of the applicant. If the 11 12 applicant is a corporation, the applicant shall pay the fee 11 13 associated with a criminal history record check for the 11 14 directors and officers of the corporation. If the applicant 11 15 is a partnership, the applicant shall pay the fee associated 11 16 with a criminal history record check for each of the partners. 11 17 The superintendent may require the applicant to provide 11 18 additional information from the applicant if the department of 11 19 public safety records indicate that a person with the same 11 20 name has a criminal history. If the applicant is a publicly 11 21 traded corporation or a subsidiary or affiliate of a publicly 11 22 traded corporation, no criminal history record check shall be 11 23 required. 11 24 2. When an application for an original license under this 11 25 article is complete, the superintendent shall promptly notify 11 26 the applicant of the date on which the application was 11 27 determined to be complete and the superintendent shall approve 11 28 or deny the application within one hundred twenty days after 11 29 that date. 11 30 3. The superintendent may for good cause extend the 11 31 application period. 11 32 4. An applicant whose application is denied by the 11 33 superintendent under this article may appeal, within thirty 11 34 days after receipt of the notice of the denial, from the 11 35 denial and request a hearing. The denial of a license shall 12 1 not be deemed a contested case. 12 2 Sec. 8. NEW SECTION. 533C.205 RENEWAL OF LICENSE. 12 3 1. A licensee under this article shall pay an annual 12 4 renewal fee as determined below by no later than September 1 12 5 of the year of expiration. The renewal fee shall be five 12 6 hundred dollars plus an additional ten dollars for each 12 7 location in this state at which business is conducted through 12 8 authorized delegates or employees of the licensee, but shall 12 9 not exceed five thousand dollars. Fees for locations added 12 10 after submission of the renewal application shall be submitted 12 11 with the quarterly reports pursuant to section 533C.503, 12 12 subsection 2. If the licensee has no locations in this state 12 13 at which business is conducted through authorized delegates or 12 14 employees of the licensee, the license fee shall be set by the 12 15 superintendent, but shall not exceed five thousand dollars. 12 16 Licenses issued under chapter 533B, Code 2003, will be 12 17 initially renewed as provided in section 533C.904. 12 18 2. A licensee under this article shall submit a renewal 12 19 report with the renewal fee, in a form and in a medium 12 20 prescribed by the superintendent. The renewal report must 12 21 state or contain: 12 22 a. A copy of the licensee's most recent audited annual 12 23 financial statement or, if the licensee is a wholly owned 12 24 subsidiary of another corporation, the most recent audited 12 25 consolidated annual financial statement of the parent 12 26 corporation or the licensee's most recent audited consolidated 12 27 annual financial statement. 12 28 b. The number and monetary amount of payment instruments 12 29 sold by the licensee in this state which have not been 12 30 included in a renewal report, and the monetary amount of 12 31 payment instruments and stored-value currently outstanding. 12 32 c. A description of each material change in information 12 33 submitted by the licensee in its original license application 12 34 which has not been reported to the superintendent on any 12 35 required report. 13 1 d. A list of the licensee's permissible investments and a 13 2 certification that the licensee continues to maintain 13 3 permissible investments according to the requirements set 13 4 forth in sections 533C.601 and 533C.602. 13 5 e. Proof that the licensee continues to maintain adequate 13 6 security as required by section 533C.203; and 13 7 f. A list of the locations in this state where the 13 8 licensee or an authorized delegate of the licensee engages in 13 9 money transmission or provides other money services. 13 10 3. If a licensee does not file a renewal report or pay its 13 11 renewal fee by September 1, or any extension of time granted 13 12 by the superintendent, the superintendent may assess a late 13 13 fee of one hundred dollars per day. 13 14 Sec. 9. NEW SECTION. 533C.206 NET WORTH. 13 15 A licensee under this article shall maintain a net worth of 13 16 at least one hundred thousand dollars plus ten thousand 13 17 dollars per authorized delegate not to exceed five hundred 13 18 thousand dollars determined in accordance with generally 13 19 accepted accounting principles. If the licensee has no 13 20 locations in this state at which business is conducted through 13 21 authorized delegates or employees of the licensee, the minimum 13 22 net worth, not to exceed five hundred thousand dollars, shall 13 23 be set by the superintendent. 13 24 ARTICLE 3 13 25 CURRENCY EXCHANGE LICENSES 13 26 Sec. 10. NEW SECTION. 533C.301 LICENSE REQUIRED. 13 27 1. A person shall not engage in currency exchange or 13 28 advertise, solicit, or hold itself out as providing currency 13 29 exchange for which the person receives revenues equal or 13 30 greater than five percent of total revenues unless the person: 13 31 a. Is licensed under this article. 13 32 b. Is licensed for money transmission under article 2. 13 33 c. Is an authorized delegate of a person licensed under 13 34 article 2. 13 35 2. A license under this article is not transferable or 14 1 assignable. 14 2 Sec. 11. NEW SECTION. 533C.302 APPLICATION FOR LICENSE. 14 3 1. A person applying for a license under this article 14 4 shall do so in a form prescribed by the superintendent. The 14 5 application must state or contain: 14 6 a. The legal name and residential and business addresses 14 7 of the applicant, if the applicant is an individual, or, if 14 8 the applicant is not an individual, the name of each partner, 14 9 executive officer, manager, and director. 14 10 b. The location of the principal office of the applicant. 14 11 c. The complete addresses of other locations in this state 14 12 where the applicant proposes to engage in currency exchange, 14 13 including all limited stations and mobile locations. 14 14 d. A description of the source of money and credit to be 14 15 used by the applicant to engage in currency exchange. 14 16 e. Other information the superintendent reasonably 14 17 requires with respect to the applicant, but not more than the 14 18 superintendent may require under article 2. 14 19 2. A nonrefundable application fee of one thousand dollars 14 20 and the license fee must accompany an application for a 14 21 license under this article. The license fee shall be the sum 14 22 of five hundred dollars plus an additional one hundred dollars 14 23 for each location at which business is conducted, but not to 14 24 exceed two thousand dollars. Fees for locations added after 14 25 the initial application shall be submitted with the quarterly 14 26 reports pursuant to section 533C.503, subsection 2. The 14 27 license fee must be refunded if the application is denied. A 14 28 license under this article expires on the next September 30 of 14 29 an odd-ending year after its issuance. The initial license 14 30 fee is considered a biennial fee and the superintendent shall 14 31 prorate the license fee, refunding any amount due to a partial 14 32 license period. However, no refund of a license fee shall be 14 33 made when a license is suspended, revoked, or surrendered. 14 34 Sec. 12. NEW SECTION. 533C.303 ISSUANCE OF LICENSE. 14 35 1. Upon the filing of an application under this article, 15 1 the superintendent shall investigate the applicant's financial 15 2 condition and responsibility, financial and business 15 3 experience, character, and general fitness. The 15 4 superintendent may conduct an on-site investigation of the 15 5 applicant, the reasonable cost of which the applicant must 15 6 pay. The superintendent shall issue a license to an applicant 15 7 under this article if the superintendent finds that all of the 15 8 following conditions have been fulfilled: 15 9 a. The applicant has complied with section 533C.302. 15 10 b. The applicant has not been convicted of or pled guilty 15 11 to any felony or an indictable misdemeanor for financial gain 15 12 within the past ten years. 15 13 c. The applicant has paid a fee set by the department of 15 14 public safety, division of criminal investigation and bureau 15 15 of identification, to defray the costs associated with the 15 16 search of criminal history records of the applicant. If the 15 17 applicant is a corporation, the applicant shall pay the fee 15 18 associated with a criminal history record check for the 15 19 directors and officers of the corporation. If the applicant 15 20 is a partnership, the applicant shall pay the fee associated 15 21 with a criminal history record check for each of the partners. 15 22 The superintendent may require the applicant to provide 15 23 additional information from the applicant if the department of 15 24 public safety records indicate that a person with the same 15 25 name has a criminal history. If the applicant is a publicly 15 26 traded corporation or a subsidiary or affiliate of a publicly 15 27 traded corporation, no criminal history record check shall be 15 28 required. 15 29 d. The financial condition and responsibility, financial 15 30 and business experience, competence, character, and general 15 31 fitness of the applicant; and the competence, experience, 15 32 character, and general fitness of the executive officers, 15 33 managers, directors, and persons in control of the applicant 15 34 indicate that it is in the interest of the public to permit 15 35 the applicant to engage in currency exchange. 16 1 2. When an application for an original license under this 16 2 article is complete, the superintendent shall promptly notify 16 3 the applicant of the date on which the application was 16 4 determined to be complete and the superintendent shall approve 16 5 or deny the application within one hundred twenty days after 16 6 that date. 16 7 3. The superintendent may for good cause extend the 16 8 application period. 16 9 4. An applicant whose application is denied a license by 16 10 the superintendent under this article may appeal, within 16 11 thirty days after receipt of the notice of the denial, from 16 12 the denial and request a hearing. The denial of a license 16 13 shall not be deemed a contested case. 16 14 Sec. 13. NEW SECTION. 533C.304 RENEWAL OF LICENSE. 16 15 1. A licensee under this article shall pay a biennial 16 16 renewal fee no later than September 1 of an odd-ending year. 16 17 The biennial renewal fee shall be the sum of five hundred 16 18 dollars plus an additional one hundred dollars for each 16 19 location at which business is conducted, but shall not exceed 16 20 two thousand dollars. Fees for locations added after the 16 21 initial application shall be submitted with the quarterly 16 22 reports pursuant to section 533C.503, subsection 2. 16 23 2. A licensee under this article shall submit a renewal 16 24 report with the renewal fee, in a form and prescribed by the 16 25 superintendent. The renewal report must state or contain: 16 26 a. A description of each material change in information 16 27 submitted by the licensee in its original license application 16 28 that has not been reported to the superintendent on any 16 29 required report. 16 30 b. A list of the locations in this state where the 16 31 licensee or an authorized delegate of the licensee engages in 16 32 currency exchange. 16 33 3. If a licensee does not file a renewal report and pay 16 34 its renewal fee by September 1 of an odd-ending year, or any 16 35 extension of time granted by the superintendent, the 17 1 superintendent may assess a late fee of one hundred dollars 17 2 per day. 17 3 4. The superintendent for good cause may grant an 17 4 extension of the renewal date. 17 5 ARTICLE 4 17 6 AUTHORIZED DELEGATES 17 7 Sec. 14. NEW SECTION. 533C.401 RELATIONSHIP BETWEEN 17 8 LICENSEE AND AUTHORIZED DELEGATE. 17 9 1. In this section, "remit" means to make direct payments 17 10 of money to a licensee or its representative authorized to 17 11 receive money or to deposit money in a bank in an account 17 12 specified by the licensee. 17 13 2. A contract between a licensee and an authorized 17 14 delegate must require the authorized delegate to operate in 17 15 full compliance with this chapter. The licensee shall furnish 17 16 in a record to each authorized delegate policies and 17 17 procedures for the operation of the money services business. 17 18 3. An authorized delegate shall remit all money owing to 17 19 the licensee in accordance with the terms of the contract 17 20 between the licensee and the authorized delegate. 17 21 4. If a license is suspended or revoked or a licensee does 17 22 not renew its license, the superintendent shall notify all 17 23 authorized delegates of the licensee whose names are in a 17 24 record filed with the superintendent of the suspension, 17 25 revocation, or nonrenewal. After notice is sent or 17 26 publication is made, an authorized delegate shall immediately 17 27 cease to provide money services as a delegate of the licensee. 17 28 5. An authorized delegate shall not provide money services 17 29 outside the scope of activity permissible under the contract 17 30 between the authorized delegate and the licensee, except 17 31 activity in which the authorized delegate is licensed to 17 32 engage under article 2 or 3. An authorized delegate of a 17 33 licensee holds in trust for the benefit of the licensee all 17 34 money net of fees received from money transmission. 17 35 Sec. 15. NEW SECTION. 533C.402 UNAUTHORIZED ACTIVITIES. 18 1 A person shall not provide money services on behalf of 18 2 another person not licensed under this chapter. A person who 18 3 engages in that activity provides money services to the same 18 4 extent as if the person were a licensee. 18 5 ARTICLE 5 18 6 EXAMINATIONS – REPORTS – RECORDS 18 7 Sec. 16. NEW SECTION. 533C.501 AUTHORITY TO CONDUCT 18 8 EXAMINATIONS. 18 9 1. The superintendent may conduct an annual examination of 18 10 a licensee or of any of its authorized delegates upon 18 11 reasonable notice in a record to the licensee. 18 12 2. The superintendent may examine a licensee or its 18 13 authorized delegate, at any time, without notice, if the 18 14 superintendent has reason to believe that the licensee or 18 15 authorized delegate is engaging in an unsafe or unsound 18 16 practice or has violated or is violating this chapter or a 18 17 rule adopted or an order issued under this chapter. 18 18 3. The licensee shall pay the reasonable cost of the 18 19 examination. 18 20 4. Information obtained during an examination under this 18 21 chapter may be disclosed only as provided in section 533C.507. 18 22 Sec. 17. NEW SECTION. 533C.502 JOINT EXAMINATIONS. 18 23 1. The superintendent may conduct an on-site examination 18 24 of records listed in section 533C.505 in conjunction with 18 25 representatives of other state agencies or agencies of another 18 26 state or of the federal government. Instead of an 18 27 examination, the superintendent may accept the examination 18 28 report of an agency of this state or of another state or of 18 29 the federal government or a report prepared by an independent 18 30 licensed or certified public accountant. 18 31 2. A joint examination or an acceptance of an examination 18 32 report does not preclude the superintendent from conducting an 18 33 examination as provided by law. A joint report or a report 18 34 accepted under this section is an official report of the 18 35 superintendent for all purposes. 19 1 Sec. 18. NEW SECTION. 533C.503 REPORTS. 19 2 1. A licensee shall file with the superintendent within 19 3 fifteen business days any material changes in information 19 4 provided in a licensee's application as prescribed by the 19 5 superintendent. 19 6 2. A licensee shall file with the superintendent within 19 7 forty-five days after the end of each fiscal quarter a current 19 8 list of all authorized delegates and locations in this state 19 9 where the licensee or an authorized delegate of the licensee 19 10 provides money services. The licensee shall state the name 19 11 and street address of each location and authorized delegate. 19 12 3. A licensee shall file a report with the superintendent 19 13 within one business day after the licensee has reason to know 19 14 of the occurrence of any of the following events: 19 15 a. The filing of a petition by or against the licensee 19 16 under the United States bankruptcy code, 11 U.S.C. } 101 et 19 17 seq., for bankruptcy or reorganization. 19 18 b. The filing of a petition by or against the licensee for 19 19 receivership, the commencement of any other judicial or 19 20 administrative proceeding for its dissolution or 19 21 reorganization, or the making of a general assignment for the 19 22 benefit of its creditors. 19 23 c. The commencement of a proceeding to revoke or suspend 19 24 its license in a state or country in which the licensee 19 25 engages in business or is licensed. 19 26 d. The cancellation or other impairment of the licensee's 19 27 bond or other security. 19 28 e. A charge or conviction of the licensee or of an 19 29 executive officer, manager, or director of, or person in 19 30 control of, the licensee for a felony. 19 31 f. A charge or conviction of an authorized delegate for a 19 32 felony. 19 33 Sec. 19. NEW SECTION. 533C.504 CHANGE OF CONTROL. 19 34 1. A licensee shall: 19 35 a. Request approval from the superintendent of a proposed 20 1 change of control. 20 2 b. Submit a nonrefundable fee of one thousand dollars with 20 3 the request. 20 4 2. After review of a request for approval under subsection 20 5 1, the superintendent may require the licensee to provide 20 6 additional information concerning the proposed persons in 20 7 control of the licensee. The additional information must be 20 8 limited to the same types required of the licensee or persons 20 9 in control of the licensee as part of its original license or 20 10 renewal application. 20 11 3. The superintendent shall approve a request for change 20 12 of control under subsection 1 if, after investigation, the 20 13 superintendent determines that the person or group of persons 20 14 requesting approval has the competence, experience, character, 20 15 and general fitness to operate the licensee or person in 20 16 control of the licensee in a lawful and proper manner and that 20 17 the public interest will not be jeopardized by the change of 20 18 control. 20 19 4. When an application for a change of control under this 20 20 article is complete, the superintendent shall notify the 20 21 licensee in a record of the date on which the request was 20 22 determined to be complete and shall approve or deny the 20 23 request within one hundred twenty days after that date. 20 24 5. The superintendent, by rule or order, may exempt a 20 25 person from any of the requirements of subsection 1, paragraph 20 26 "b", if it is in the public interest to do so. 20 27 6. Subsection 1 does not apply to a public offering of 20 28 securities. 20 29 7. Before filing a request for approval to acquire control 20 30 of a licensee or person in control of a licensee, a person may 20 31 request in a record a determination from the superintendent as 20 32 to whether the person would be considered a person in control 20 33 of a licensee upon consummation of a proposed transaction. If 20 34 the superintendent determines that the person would not be a 20 35 person in control of a licensee, the superintendent shall 21 1 enter an order to that effect and the proposed person and 21 2 transaction is not subject to the requirements of subsections 21 3 1 through 3. 21 4 Sec. 20. NEW SECTION. 533C.505 RECORDS. 21 5 1. A licensee shall maintain the following records for 21 6 determining its compliance with this chapter for at least 21 7 three years: 21 8 a. A record of each payment instrument sold. 21 9 b. A general ledger posted at least monthly containing all 21 10 asset, liability, capital, income, and expense accounts. 21 11 c. Bank statements and bank reconciliation records. 21 12 d. Records of outstanding payment instruments and stored- 21 13 value obligations. 21 14 e. Records of each payment instrument and stored-value 21 15 obligation paid within the three-year period. 21 16 f. A list of the last known names and addresses of all of 21 17 the licensee's authorized delegates. 21 18 g. Any other records the superintendent reasonably 21 19 requires by rule. 21 20 2. The items specified in subsection 1 may be maintained 21 21 in any form of record. 21 22 3. Records may be maintained outside this state if they 21 23 are made accessible to the superintendent on seven business- 21 24 days' notice that is sent in a record. 21 25 4. All records maintained by the licensee as required in 21 26 subsections 1 through 3 shall be open to inspection by the 21 27 superintendent pursuant to 533C.501. 21 28 5. A licensee, authorized delegate, or any officer, 21 29 employee, agent, or any public official or governmental 21 30 employee who keeps or files a record pursuant to this section 21 31 or who communicates or discloses information or records under 21 32 this section is not liable to its customer, to a state or 21 33 local agency, or to any person for any loss or damage caused 21 34 in whole or in part by the making, filing, or governmental use 21 35 of the record, or any information contained in that record. 22 1 6. The licensee shall keep such records as the 22 2 superintendent may require in order to determine whether such 22 3 licensee is complying with the provisions of this chapter and 22 4 with the rules and orders lawfully made by the superintendent 22 5 under this chapter. 22 6 Sec. 21. NEW SECTION. 533C.506 MONEY LAUNDERING REPORTS. 22 7 A licensee and an authorized delegate shall file all 22 8 reports required by federal currency reporting, recordkeeping, 22 9 and suspicious activity reporting requirements as set forth in 22 10 31 U.S.C. } 5311-5330, and 31 C.F.R. } 103.11-103.170. 22 11 Sec. 22. NEW SECTION. 533C.507 DISCLOSURE. 22 12 1. Except as otherwise provided by this chapter, the 22 13 records of the superintendent relating to examinations or 22 14 supervision and regulation of a person licensed pursuant to 22 15 this chapter, or authorized delegates of a person licensed 22 16 pursuant to this chapter, are not public records and are not 22 17 subject to disclosure under chapter 22. Neither the 22 18 superintendent nor any member of the superintendent's staff 22 19 shall disclose any information obtained in the discharge of 22 20 the superintendent's official duties to any person not 22 21 connected with the department, except that the superintendent 22 22 or the superintendent's designee may disclose the information: 22 23 a. To representatives of federal agencies insuring 22 24 accounts in the financial institution. 22 25 b. To representatives of state or federal agencies and 22 26 foreign countries having regulatory or supervisory authority 22 27 over the activities of the financial institution or similar 22 28 financial institutions if those representatives are permitted 22 29 to and do, upon request of the superintendent, disclose 22 30 similar information respecting those financial institutions 22 31 under their regulation or supervision or to those 22 32 representatives who state in writing under oath that they will 22 33 maintain the confidentiality of that information. 22 34 c. To the attorney general of this state. 22 35 d. To a federal or state grand jury in response to a 23 1 lawful subpoena, or pursuant to a county attorney subpoena. 23 2 e. To the auditor of this state for the purpose of 23 3 conducting audits authorized by law. 23 4 2. The superintendent may: 23 5 a. Disclose the fact of filing of applications with the 23 6 department pursuant to this chapter, give notice of a hearing, 23 7 if any, regarding those applications, and announce the 23 8 superintendent's action thereon. 23 9 b. Disclose final decisions in connection with proceedings 23 10 for the suspension or revocation of licenses or certificates 23 11 issued pursuant to this chapter. 23 12 c. Prepare and circulate reports reflecting the assets and 23 13 liabilities of licensees on an aggregate basis, including 23 14 other information considered pertinent to the purpose of each 23 15 report for general statistical information. 23 16 d. Prepare and circulate reports provided by law. 23 17 3. Every official report of the department is prima facie 23 18 evidence of the facts therein stated in any action or 23 19 proceeding wherein the superintendent is a party. 23 20 4. Nothing in this section shall be construed to prevent 23 21 the disclosure of information that is: 23 22 a. Admissible in evidence in any civil or criminal 23 23 proceeding brought by or at the request of the superintendent 23 24 or this state to enforce or prosecute violations of this 23 25 chapter, chapter 706B, or the rules adopted, or orders issued 23 26 pursuant to this chapter. 23 27 b. Requested by or provided to a federal agency, including 23 28 but not limited to the department of defense, department of 23 29 energy, department of homeland security, nuclear regulatory 23 30 commission, and centers for disease control and prevention, to 23 31 assist state and local government with domestic preparedness 23 32 for acts of terrorism. 23 33 5. The attorney general or the department of public safety 23 34 may report any possible violations indicated by analysis of 23 35 the reports required by this chapter to any appropriate law 24 1 enforcement or regulatory agency for use in the proper 24 2 discharge of its official duties. The attorney general or the 24 3 department of public safety shall provide copies of the 24 4 reports required by this chapter to any appropriate 24 5 prosecutorial or law enforcement agency upon being provided 24 6 with a written request for records relating to a specific 24 7 individual or entity and stating that the agency has an 24 8 articulable suspicion that such individual or entity has 24 9 committed a felony offense or a violation of this chapter to 24 10 which the reports are relevant. A person who releases 24 11 information received pursuant to this subsection except in the 24 12 proper discharge of the person's official duties is guilty of 24 13 a serious misdemeanor. 24 14 6. Any report, record, information, analysis, or request 24 15 obtained by the attorney general or department of public 24 16 safety pursuant to this chapter is not a public record as 24 17 defined in chapter 22 and is not subject to disclosure. 24 18 ARTICLE 6 24 19 PERMISSIBLE INVESTMENTS 24 20 Sec. 23. NEW SECTION. 533C.601 MAINTENANCE OF 24 21 PERMISSIBLE INVESTMENTS. 24 22 1. A licensee shall maintain at all times permissible 24 23 investments that have a market value computed in accordance 24 24 with generally accepted accounting principles of not less than 24 25 the aggregate amount of all of its outstanding payment 24 26 instruments and stored-value obligations issued or sold and 24 27 money transmitted by the licensee in the United States. 24 28 2. The superintendent, with respect to any licensees, may 24 29 limit the extent to which a type of investment within a class 24 30 of permissible investments may be considered a permissible 24 31 investment, except for money and certificates of deposit 24 32 issued by a bank. The superintendent by rule may prescribe or 24 33 by order allow other types of investments that the 24 34 superintendent determines to have a safety substantially 24 35 equivalent to other permissible investments. 25 1 3. Permissible investments, even if commingled with other 25 2 assets of the licensee, are held in trust for the benefit of 25 3 the purchasers and holders of the licensee's outstanding 25 4 payment instruments and stored-value obligations in the event 25 5 of bankruptcy or receivership of the licensee. 25 6 Sec. 24. NEW SECTION. 533C.602 TYPES OF PERMISSIBLE 25 7 INVESTMENTS. 25 8 1. Except to the extent otherwise limited by the 25 9 superintendent pursuant to section 533C.601, the following 25 10 investments are permissible under section 533C.601: 25 11 a. Cash, a certificate of deposit, or senior debt 25 12 obligation of an insured depositary institution, as defined in 25 13 section 3 of the Federal Deposit Insurance Act, 12 U.S.C. } 25 14 1813. 25 15 b. Banker's acceptance or bill of exchange that is 25 16 eligible for purchase upon endorsement by a member bank of the 25 17 federal reserve system and is eligible for purchase by a 25 18 federal reserve bank. 25 19 c. An investment bearing a rating of one of the three 25 20 highest grades as defined by a nationally recognized 25 21 organization that rates securities. 25 22 d. An investment security that is an obligation of the 25 23 United States or a department, agency, or instrumentality 25 24 thereof; an investment in an obligation that is guaranteed 25 25 fully as to principal and interest by the United States; or an 25 26 investment in an obligation of a state or a governmental 25 27 subdivision, agency, or instrumentality thereof. 25 28 e. Receivables that are payable to a licensee from its 25 29 authorized delegates, in the ordinary course of business, 25 30 pursuant to contracts which are not past due or doubtful of 25 31 collection if the aggregate amount of receivables under this 25 32 paragraph does not exceed twenty percent of the total 25 33 permissible investments of a licensee and the licensee does 25 34 not hold at one time receivables under this paragraph in any 25 35 one person aggregating more than ten percent of the licensee's 26 1 total permissible investments. 26 2 f. A share or a certificate issued by an open-end 26 3 management investment company that is registered with the 26 4 United States securities and exchange commission under the 26 5 federal Investment Companies Act of 1940, 15 U.S.C. } 80a-1- 26 6 80a-64, and whose portfolio is restricted by the management 26 7 investment company's investment policy to investments 26 8 specified in paragraphs "a" through "d". 26 9 2. The following investments are permissible under section 26 10 533C.601, but only to the extent specified: 26 11 a. An interest-bearing bill, note, bond, or debenture of a 26 12 person whose equity shares are traded on a national securities 26 13 exchange or on a national over-the-counter market, if the 26 14 aggregate of investments under this paragraph does not exceed 26 15 twenty percent of the total permissible investments of a 26 16 licensee and the licensee does not at one time hold 26 17 investments under this paragraph in any one person aggregating 26 18 more than ten percent of the licensee's total permissible 26 19 investments. 26 20 b. A share of a person traded on a national securities 26 21 exchange or a national over-the-counter market or a share or a 26 22 certificate issued by an open-end management investment 26 23 company that is registered with the United States securities 26 24 and exchange commission under the federal Investment Companies 26 25 Act of 1940, 15 U.S.C. } 80a-1-80a-64, and whose portfolio is 26 26 restricted by the management investment company's investment 26 27 policy to shares of a person traded on a national securities 26 28 exchange or a national over-the-counter market, if the 26 29 aggregate of investments under this paragraph does not exceed 26 30 twenty percent of the total permissible investments of a 26 31 licensee and the licensee does not at one time hold 26 32 investments in any one person aggregating more than ten 26 33 percent of the licensee's total permissible investments. 26 34 c. A demand-borrowing agreement made with a corporation or 26 35 a subsidiary of a corporation whose securities are traded on a 27 1 national securities exchange if the aggregate of the amount of 27 2 principal and interest outstanding under demand-borrowing 27 3 agreements under this paragraph does not exceed twenty percent 27 4 of the total permissible investments of a licensee and the 27 5 licensee does not at one time hold principal and interest 27 6 outstanding under demand-borrowing agreements under this 27 7 paragraph with any one person aggregating more than ten 27 8 percent of the licensee's total permissible investments. 27 9 d. Any other investment the superintendent designates, to 27 10 the extent specified by the superintendent. 27 11 3. The aggregate of investments under subsection 2 may not 27 12 exceed fifty percent of the total permissible investments of a 27 13 licensee calculated in accordance with section 533C.601. 27 14 ARTICLE 7 27 15 ENFORCEMENT 27 16 Sec. 25. NEW SECTION. 533C.701 SUSPENSION AND REVOCATION 27 17 – RECEIVERSHIP. 27 18 1. The superintendent may suspend or revoke a license, 27 19 place a licensee in receivership, or order a licensee to 27 20 revoke the designation of an authorized delegate if: 27 21 a. The licensee violates this chapter or a rule adopted or 27 22 an order issued under this chapter. 27 23 b. The licensee does not cooperate with an examination or 27 24 investigation by the superintendent. 27 25 c. The licensee engages in fraud, intentional 27 26 misrepresentation, or gross negligence. 27 27 d. An authorized delegate is convicted of a violation of a 27 28 state or federal anti-money laundering statute, or violates a 27 29 rule adopted or an order issued under this chapter, as a 27 30 result of the licensee's willful misconduct or willful 27 31 blindness. 27 32 e. The competence, experience, character, or general 27 33 fitness of the licensee, authorized delegate, person in 27 34 control of a licensee, or responsible individual of the 27 35 licensee or authorized delegate indicates that it is not in 28 1 the public interest to permit the person to provide money 28 2 services. 28 3 f. The licensee engages in an unsafe or unsound practice. 28 4 g. The licensee is insolvent, suspends payment of its 28 5 obligations, or makes a general assignment for the benefit of 28 6 its creditors. 28 7 h. The licensee does not remove an authorized delegate 28 8 after the superintendent issues and serves upon the licensee a 28 9 final order finding that the authorized delegate has violated 28 10 this chapter. 28 11 2. In determining whether a licensee is engaging in an 28 12 unsafe or unsound practice, the superintendent may consider 28 13 the size and condition of the licensee's money transmission, 28 14 the magnitude of the loss, the gravity of the violation of 28 15 this chapter, and the previous conduct of the person involved. 28 16 Sec. 26. NEW SECTION. 533C.702 SUSPENSION AND REVOCATION 28 17 OF AUTHORIZED DELEGATES. 28 18 1. The superintendent may issue an order suspending or 28 19 revoking the designation of an authorized delegate if the 28 20 superintendent finds that: 28 21 a. The authorized delegate violated this chapter or a rule 28 22 adopted or an order issued under this chapter. 28 23 b. The authorized delegate did not cooperate with an 28 24 examination or investigation by the superintendent. 28 25 c. The authorized delegate engaged in fraud, intentional 28 26 misrepresentation, or gross negligence. 28 27 d. The authorized delegate is convicted of a violation of 28 28 a state or federal anti-money laundering statute. 28 29 e. The competence, experience, character, or general 28 30 fitness of the authorized delegate or a person in control of 28 31 the authorized delegate indicates that it is not in the public 28 32 interest to permit the authorized delegate to provide money 28 33 services. 28 34 f. The authorized delegate is engaging in an unsafe or 28 35 unsound practice. 29 1 2. In determining whether an authorized delegate is 29 2 engaging in an unsafe or unsound practice, the superintendent 29 3 may consider the size and condition of the authorized 29 4 delegate's provision of money services, the magnitude of the 29 5 loss, the gravity of the violation of this chapter or a rule 29 6 adopted or order issued under this chapter, and the previous 29 7 conduct of the authorized delegate. 29 8 3. An authorized delegate may apply for relief from a 29 9 suspension or revocation of designation as an authorized 29 10 delegate according to procedures prescribed by the 29 11 superintendent. 29 12 Sec. 27. NEW SECTION. 533C.703 ORDERS TO CEASE AND 29 13 DESIST. 29 14 1. If the superintendent determines that a violation of 29 15 this chapter or of a rule adopted or an order issued under 29 16 this chapter by a licensee or authorized delegate is likely to 29 17 cause immediate and irreparable harm to the licensee, its 29 18 customers, or the public as a result of the violation, or 29 19 cause insolvency or significant dissipation of assets of the 29 20 licensee, the superintendent may issue an order requiring the 29 21 licensee or authorized delegate to cease and desist from the 29 22 violation. The order becomes effective upon service of it 29 23 upon the licensee or authorized delegate. 29 24 2. The superintendent may issue an order against a 29 25 licensee to cease and desist from providing money services 29 26 through an authorized delegate that is the subject of a 29 27 separate order by the superintendent. 29 28 3. An order to cease and desist remains effective and 29 29 enforceable pending the completion of an administrative 29 30 proceeding pursuant to section 533C.701 or 533C.702. 29 31 4. A licensee or an authorized delegate who is served with 29 32 an order to cease and desist may petition the appropriate 29 33 court, for a judicial order setting aside, limiting, or 29 34 suspending the enforcement, operation, or effectiveness of the 29 35 order pending the completion of an administrative proceeding 30 1 pursuant to section 533C.701 or 533C.702. 30 2 5. An order to cease and desist expires unless the 30 3 superintendent commences an administrative proceeding pursuant 30 4 to section 533C.701 or 533C.702 within ten days after it is 30 5 issued. 30 6 Sec. 28. NEW SECTION. 533C.704 CONSENT ORDERS. 30 7 The superintendent may enter into a consent order at any 30 8 time with a person to resolve a matter arising under this 30 9 chapter or a rule adopted or order issued under this chapter. 30 10 A consent order must be signed by the person to whom it is 30 11 issued or by the person's authorized representative, and must 30 12 indicate agreement with the terms contained in the order. A 30 13 consent order may provide that it does not constitute an 30 14 admission by a person that this chapter or a rule adopted or 30 15 an order issued under this chapter has been violated. 30 16 Sec. 29. NEW SECTION. 533C.705 CIVIL PENALTIES. 30 17 The superintendent may assess a civil penalty against a 30 18 person who violates this chapter or a rule adopted or an order 30 19 issued under this chapter in an amount not to exceed one 30 20 thousand dollars per day for each day the violation is 30 21 outstanding, plus this state's costs and expenses for the 30 22 investigation and prosecution of the matter, including 30 23 reasonable attorney fees. 30 24 Sec. 30. NEW SECTION. 533C.706 CRIMINAL PENALTIES. 30 25 1. A person who intentionally makes a false statement, 30 26 misrepresentation, or false certification in a record filed or 30 27 required to be maintained under this chapter or who 30 28 intentionally makes a false entry or omits a material entry in 30 29 such a record is guilty of a class "D" felony. 30 30 2. A person who knowingly engages in an activity for which 30 31 a license is required under this chapter without being 30 32 licensed under this chapter is guilty of an aggravated 30 33 misdemeanor. 30 34 3. It shall be unlawful for any person to do any of the 30 35 following: 31 1 a. With intent to disguise the fact that money or a 31 2 payment instrument is the proceeds of criminal conduct, or 31 3 with intent to promote, manage, establish, carry on, or 31 4 facilitate the promotion, management, establishment, or 31 5 carrying on of any criminal conduct, to knowingly furnish or 31 6 provide to a licensee, authorized delegate, financial 31 7 institution, person engaged in a trade or business, or any 31 8 officer, employee, agent, or authorized delegate of any of 31 9 them, or to the attorney general or department of public 31 10 safety, any false, inaccurate, or incomplete information; or 31 11 to knowingly conceal a material fact in connection with a 31 12 transaction for which a report is required to be filed 31 13 pursuant to this chapter. 31 14 b. With the intent to disguise the fact that money or a 31 15 payment instrument is the proceeds of criminal conduct, or 31 16 with intent to promote, manage, establish, carry on, or 31 17 facilitate the promotion, management, establishment, or 31 18 carrying on of any criminal conduct, or with intent to evade 31 19 the making or filing of a report required under this chapter, 31 20 or with intent to cause the making or filing of a report that 31 21 contains a material omission or misstatement of fact, to 31 22 conduct or structure a transaction or series of transactions 31 23 by or through one or more licensees, authorized delegates, 31 24 financial institutions, or persons engaged in a trade or 31 25 business. 31 26 4. A person who violates subsection 3 is guilty of a class 31 27 "C" felony and is also subject to a civil penalty of three 31 28 times the value of the property involved in the transaction, 31 29 or, if no transaction is involved, five thousand dollars. 31 30 5. Notwithstanding any other provision of law, each 31 31 violation of this section constitutes a separate, punishable 31 32 offense. 31 33 Sec. 31. NEW SECTION. 533C.707 UNLICENSED PERSONS. 31 34 1. If the superintendent has reason to believe that a 31 35 person has violated or is violating section 533C.201, 32 1 533C.301, 533C.401, or 533C.402, the superintendent may issue 32 2 an order to show cause why an order to cease and desist should 32 3 not issue requiring that the person cease and desist from the 32 4 violation of section 533C.201, 533C.301, 533C.401, or 32 5 533C.402. 32 6 2. In an emergency, the superintendent may petition the 32 7 district court for the issuance of a temporary restraining 32 8 order ex parte pursuant to the rules of civil procedure. 32 9 3. An order to cease and desist becomes effective upon 32 10 service of it upon the person. 32 11 4. An order to cease and desist remains effective and 32 12 enforceable pending the completion of an administrative 32 13 proceeding pursuant to sections 533C.701 and 533C.702. 32 14 5. A person who is served with an order to cease and 32 15 desist under this section may petition the district court for 32 16 a judicial order setting aside, limiting, or suspending the 32 17 enforcement, operation, or effectiveness of the order pending 32 18 the completion of an administrative proceeding pursuant to 32 19 sections 533C.701 and 533C.702. 32 20 6. An order to cease and desist expires unless the 32 21 superintendent commences an administrative proceeding within 32 22 ten days after it is issued. 32 23 Sec. 32. NEW SECTION. 533C.708 INVESTIGATIONS. 32 24 1. The attorney general or county attorney may conduct 32 25 investigations within or outside this state to determine if 32 26 any licensee, authorized delegate, or person engaged in a 32 27 trade or business has failed to file a report required by this 32 28 chapter or has engaged or is engaging in any act, practice, or 32 29 transaction that constitutes a violation of this chapter. 32 30 2. Upon presentation of a subpoena from a prosecuting 32 31 attorney, all licensees, authorized delegates, and financial 32 32 institutions shall make their books and records available to 32 33 the attorney general or county attorney or peace officer 32 34 during normal business hours for inspection and examination in 32 35 connection with an investigation pursuant to this section. 33 1 ARTICLE 8 33 2 ADMINISTRATIVE PROCEDURES 33 3 Sec. 33. NEW SECTION. 533C.801 ADMINISTRATIVE 33 4 PROCEEDINGS. 33 5 All administrative proceedings under this chapter must be 33 6 conducted in accordance with chapter 17A. 33 7 Sec. 34. NEW SECTION. 533C.802 HEARINGS. 33 8 Except as otherwise provided in sections 533C.703 and 33 9 533C.707, the superintendent shall not suspend or revoke a 33 10 license, place a licensee in receivership, issue an order to 33 11 cease and desist, suspend or revoke the designation of an 33 12 authorized delegate, or assess a civil penalty without notice 33 13 and an opportunity to be heard. The superintendent shall also 33 14 hold a hearing when requested to do so by an applicant whose 33 15 application for a license is denied. 33 16 Sec. 35. NEW SECTION. 533C.803 RULES. 33 17 The superintendent may adopt pursuant to chapter 17A such 33 18 reasonable and relevant rules, not inconsistent with this 33 19 chapter, as may be necessary for the enforcement of the 33 20 provisions of this chapter. 33 21 ARTICLE 9 33 22 MISCELLANEOUS PROVISIONS 33 23 Sec. 36. NEW SECTION. 533C.901 UNIFORMITY OF APPLICATION 33 24 AND CONSTRUCTION. 33 25 1. The provisions of this chapter shall be liberally 33 26 construed to effectuate its remedial purposes. Civil remedies 33 27 under this chapter shall be supplemental and not mutually 33 28 exclusive. The civil remedies do not preclude and are not 33 29 precluded by other provisions of law. 33 30 2. The provisions of this chapter shall be applied and 33 31 construed to effectuate its general purpose to make uniform 33 32 the law with respect to the subject of this chapter among 33 33 states enacting the law and to make the reporting requirements 33 34 regarding financial transactions under Iowa law uniform with 33 35 the reporting requirements regarding financial transactions 34 1 under federal law. 34 2 3. The attorney general may enter into reciprocal 34 3 agreements with the attorney general or chief prosecuting 34 4 attorney of any state to effectuate the purposes of this 34 5 chapter. 34 6 Sec. 37. NEW SECTION. 533C.902 MONEY SERVICES LICENSING 34 7 FUND. 34 8 1. A financial services licensing fund is created as a 34 9 separate fund in the state treasury under the authority of the 34 10 banking division of the department of commerce. Moneys 34 11 deposited in the fund shall be used to pay for staffing 34 12 necessary to perform examinations, audits, and other duties 34 13 required of the superintendent and the banking division under 34 14 this chapter. 34 15 2. The fund shall receive moneys including, but not 34 16 limited to, any fees, costs, expenses, or penalties collected 34 17 pursuant to this chapter. 34 18 3. Notwithstanding section 8.33, moneys appropriated to 34 19 the fund and other moneys credited to the fund shall not 34 20 revert at the close of the fiscal year but shall remain in the 34 21 financial services licensing fund and shall remain available 34 22 for expenditure for the purposes designated. 34 23 Sec. 38. NEW SECTION. 533C.903 SEVERABILITY CLAUSE. 34 24 The provisions of this chapter are severable pursuant to 34 25 section 4.12. 34 26 Sec. 39. NEW SECTION. 533C.904 SAVINGS AND TRANSITIONAL 34 27 PROVISIONS. 34 28 1. A license issued under chapter 533B, Code 2003, that is 34 29 in effect immediately before October 1, 2003, remains in force 34 30 as a license under chapter 533B, Code 2003, until the 34 31 license's expiration date. Thereafter, the licensee is deemed 34 32 to have applied for and received a license under this chapter 34 33 and must comply with the renewal requirements set forth in 34 34 this chapter. Licenses issued under chapter 533B, Code 2003, 34 35 will be initially renewed for a period to the next September 35 1 30 with the license renewal fee prorated based on a two 35 2 thousand dollar annual fee. 35 3 2. This chapter applies to the provision of money services 35 4 on or after the effective date of this Act. This chapter does 35 5 not apply to money transmission provided by a licensee who was 35 6 licensed to provide money transmission under chapter 533B, 35 7 Code 2003, and whose license remains in force under this 35 8 section. 35 9 3. A person is not deemed to be in violation of this 35 10 chapter for operating without a license if the person files an 35 11 application within three calendar months after the effective 35 12 date of this Act until the application is denied. 35 13 Sec. 40. Section 524.212, Code 2003, is amended to read as 35 14 follows: 35 15 524.212 PROHIBITION AGAINST DISCLOSURE OF REGULATORY 35 16 INFORMATION. 35 17 The superintendent, deputy superintendent, assistant to the 35 18 superintendent, examiner, or other employee of the banking 35 19 division shall not disclose, in any manner, to any person 35 20 other than the person examined and those regulatory agencies 35 21 referred to in section 524.217, subsection 2, any information 35 22 relating specifically to the supervision and regulation of any 35 23 state bank, persons subject to the provisions of chapter 533A, 35 24533B533C, 536, or 536A, any affiliate of any state bank, or 35 25 an affiliate of a person subject to the provisions of chapter 35 26 533A,533B533C, 536, or 536A, except when ordered to do so by 35 27 a court of competent jurisdiction and then only in those 35 28 instances referred to in section 524.215, subsections 1, 2, 3, 35 29 and 5. 35 30 Sec. 41. Chapter 533B, Code 2003, is repealed. 35 31 Sec. 42. EFFECTIVE DATE. This Act takes effect October 1, 35 32 2003. 35 33 EXPLANATION 35 34 This bill adopts the "Uniform Money Services Act" requiring 35 35 all persons conducting money services, which includes money 36 1 transmission and currency exchange, to be licensed by the 36 2 superintendent of the banking division of the department of 36 3 commerce. The bill specifies the license application 36 4 procedures including an application fee, license fee, and 36 5 security. The superintendent shall issue a license where all 36 6 application requirements have been met and the applicant has 36 7 passed a criminal history check. Money transmission licenses 36 8 must be renewed annually by submitting a renewal report and 36 9 fee, and currency exchange licenses are renewed biennially by 36 10 submitting a renewal report and fee. 36 11 The bill provides for an authorized delegate to act on 36 12 behalf of a person licensed under this chapter pursuant to a 36 13 written contract. The superintendent is authorized to examine 36 14 any licensee or authorized delegate annually or where 36 15 suspected to have engaged in an unsound practice or violated 36 16 the chapter or rules adopted thereunder. Licensed persons 36 17 must file quarterly reports with the superintendent listing 36 18 all authorized delegates and all locations where the licensee 36 19 and each authorized delegate provides money services. Any 36 20 change in control of a licensee must be approved by the 36 21 superintendent. All licensed persons must keep various types 36 22 of records regarding its services and authorized delegates. 36 23 Licensed persons and their delegates must comply with all 36 24 federal money laundering reporting requirements. The bill 36 25 provides that the records of the superintendent are not public 36 26 records under Code chapter 22, except that the superintendent 36 27 may disclose certain information to specific individuals as 36 28 provided. 36 29 The bill provides that licensed persons must maintain 36 30 specified permissible investments of not less than the 36 31 aggregate amount of all of its outstanding payment 36 32 instruments, stored-value obligations issued or sold, and 36 33 money transmitted by the licensee or its authorized delegates. 36 34 The bill provides for the suspension and revocation of 36 35 licenses for money transmission and currency exchange, and of 37 1 the designation of an authorized designee, by the 37 2 superintendent of banking under specified circumstances. The 37 3 superintendent may issue an order to cease and desist to a 37 4 licensee and authorized delegate from violating the provisions 37 5 of the chapter and rules adopted thereunder. The 37 6 superintendent may enter into a consent order to resolve 37 7 matters arising under this chapter or its rules. 37 8 The bill provides for the issuance of civil penalties 37 9 against persons who violate the chapter or a rule adopted or 37 10 an order issued under the chapter in an amount not to exceed 37 11 $1,000 per day for each violation, plus costs and expenses for 37 12 investigation and prosecution, and reasonable attorney fees. 37 13 The bill designates intentionally making a false statement, 37 14 misrepresentation, or false certification or omission in a 37 15 record under the chapter as a class "D" felony. A class "D" 37 16 felony is punishable by confinement for no more than five 37 17 years and a fine of at least $750 but not more than $7,500. 37 18 The bill designates knowingly engaging in an activity licensed 37 19 under this chapter as an aggravated misdemeanor. An 37 20 aggravated misdemeanor is punishable by confinement for no 37 21 more than two years and a fine of at least $500 but not more 37 22 than $5,000. 37 23 The bill designates specific acts relating to knowingly 37 24 furnishing or providing false, inaccurate, or incomplete 37 25 information, or knowingly concealing a material fact with 37 26 intent to disguise, promote, or facilitate criminal conduct, 37 27 and relating to conducting or structuring transactions with 37 28 the intent to disguise, promote, facilitate criminal conduct, 37 29 or to evade the making or filing of a report as a class "C" 37 30 felony. A class "C" felony is punishable by confinement for 37 31 no more than 10 years and a fine of at least $1,000 but not 37 32 more than $10,000. 37 33 The bill provides that the superintendent may issue an 37 34 order to show cause why an order to cease and desist should 37 35 not issue against a person from conduct requiring a license 38 1 under the chapter, and that the superintendent may petition 38 2 the district court for an ex parte restraining order in cases 38 3 of emergency. 38 4 The bill provides that fees and penalties collected 38 5 pursuant to this chapter shall be deposited in a separate fund 38 6 in the state treasury under the authority of the banking 38 7 division and that licenses for persons licensed under chapter 38 8 533B, Code 2003, shall remain in force until their expiration 38 9 date at which time the license shall be renewed under the new 38 10 Code chapter 533C. 38 11 The bill repeals Code chapter 533B and takes effect October 38 12 1, 2003. 38 13 LSB 1043SC 80 38 14 kk/sh/8
Text: SSB01160 Text: SSB01162 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Mar 13 02:30:32 CST 2003
URL: /DOCS/GA/80GA/Legislation/SSB/01100/SSB01161/030312.html
jhf