House
File
675
-
Enrolled
House
File
675
AN
ACT
RELATING
TO
MONEY
TRANSMISSION
SERVICES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
533A.2,
subsection
2,
paragraph
h,
Code
2023,
is
amended
to
read
as
follows:
h.
A
person
licensed
under
chapter
533C
,
including
that
person’s
authorized
delegates
as
defined
in
section
533C.102
,
or
a
person
exempt
from
licensing
under
section
533C.103
,
when
engaging
in
money
transmission
or
currency
exchange
as
defined
in
section
533C.102
.
Sec.
2.
Section
533C.101,
Code
2023,
is
amended
to
read
as
follows:
533C.101
Short
title.
This
chapter
may
be
cited
as
the
“Uniform
Money
Services
Transmission
Modernization
Act”
.
Sec.
3.
Section
533C.102,
Code
2023,
is
amended
to
read
as
follows:
533C.102
Definitions.
In
this
chapter
:
1.
“Applicant”
means
a
person
that
files
an
application
for
a
license
under
this
chapter
.
House
File
675,
p.
2
1.
“Acting
in
concert”
means
persons
knowingly
acting
together
with
a
common
goal
of
jointly
acquiring
control
of
a
licensee
whether
or
not
pursuant
to
an
express
agreement.
2.
“Authorized
delegate”
means
a
person
a
licensee
designates
to
provide
money
services
on
behalf
of
the
licensee.
3.
“Bank”
means
an
institution
organized
under
federal
or
state
law
which
does
any
of
the
following:
a.
Accepts
demand
deposits
or
deposits
that
the
depositor
may
use
for
payment
to
third
parties
and
engages
in
the
business
of
making
commercial
loans.
b.
Engages
in
credit
card
operations
and
maintains
only
one
office
that
accepts
deposits,
does
not
accept
demand
deposits
or
deposits
that
the
depositor
may
use
for
payments
to
third
parties,
does
not
accept
a
savings
or
time
deposit
less
than
one
hundred
thousand
dollars,
and
does
not
engage
in
the
business
of
making
commercial
loans.
4.
“Compensation”
means
any
fee,
commission,
or
other
benefit.
5.
“Conducting
the
business”
means
engaging
in
activities
of
a
licensee
or
money
transmitter
more
than
ten
times
in
any
calendar
year
for
compensation.
3.
“Average
daily
money
transmission
liability”
means
the
amount
of
the
licensee’s
outstanding
money
transmission
obligations
in
this
state
at
the
end
of
each
day
in
a
given
period
of
time,
added
together,
and
divided
by
the
total
number
of
days
in
the
given
period
of
time.
For
purposes
of
calculating
average
daily
money
transmission
liability
under
this
chapter
for
any
required
licensee,
the
given
period
of
time
shall
be
the
quarters
ending
March
31,
June
30,
September
30,
and
December
31.
4.
“Bank
Secrecy
Act”
means
the
federal
Bank
Secrecy
Act,
31
U.S.C.
§5311
et
seq.,
and
its
implementing
regulations,
as
amended.
5.
“Closed
loop
stored
value”
means
stored
value
that
is
redeemable
by
the
issuer
only
for
goods
or
services
provided
by
the
issuer
or
its
affiliate
or
franchisees
of
the
issuer
or
its
affiliate,
except
to
the
extent
required
by
applicable
law
to
be
redeemable
in
cash
for
its
cash
value.
6.
“Control”
means
any
of
the
following:
House
File
675,
p.
3
a.
Ownership
of,
or
the
The
power
to
vote,
directly
or
indirectly,
at
least
twenty-five
percent
of
a
class
of
outstanding
voting
securities
or
voting
interests
of
a
licensee
or
person
in
control
of
a
licensee.
b.
Power
The
power
to
elect
or
appoint
a
majority
of
key
individuals,
executive
officers,
managers,
directors,
trustees,
or
other
persons
exercising
managerial
authority
of
a
licensee
or
person
in
control
of
a
licensee.
c.
The
power
to
exercise,
directly
or
indirectly,
a
controlling
influence
over
the
management
or
policies
of
a
licensee
or
person
in
control
of
a
licensee.
7.
“Credit
union”
means
a
cooperative,
nonprofit
association
incorporated
under
chapter
533
or
the
Federal
Credit
Union
Act,
12
U.S.C.
§1751
et
seq.,
that
is
insured
by
the
national
credit
union
administration
and
includes
an
office
of
a
credit
union.
8.
“Currency
exchange”
means
receipt
of
compensation
from
the
exchange
of
money
of
one
government
for
money
of
another
government.
9.
“Executive
officer”
means
a
president,
chairperson
of
the
executive
committee,
chief
financial
officer,
responsible
individual,
or
other
individual
who
performs
similar
functions.
7.
“Eligible
rating”
means
a
credit
rating
of
any
of
the
three
highest
rating
categories
provided
by
an
eligible
rating
service,
whereby
each
category
may
include
rating
category
modifiers
such
as
“plus”
or
“minus”
for
Standard
and
Poor’s
500
stock
market
index,
or
the
equivalent
for
any
other
eligible
rating
service.
A
long-term
credit
rating
is
deemed
eligible
if
the
rating
is
equal
to
“A-”
or
higher
by
Standard
and
Poor’s
500
stock
market
index,
or
the
equivalent
from
any
other
eligible
rating
service.
A
short-term
credit
rating
is
deemed
eligible
if
the
rating
is
equal
to
or
higher
than
“A-2”
or
“SP-2”
by
Standard
and
Poor’s
500
stock
market
index,
or
the
equivalent
from
any
other
eligible
rating
service.
In
the
event
that
the
ratings
differ
among
eligible
rating
services,
the
highest
rating
shall
apply
when
determining
whether
a
security
bears
an
eligible
rating.
8.
“Eligible
rating
service”
means
any
nationally
recognized
statistical
rating
organization
as
defined
by
the
federal
Securities
and
Exchange
Commission,
and
any
other
organization
House
File
675,
p.
4
designated
by
the
superintendent
by
rule
or
order.
9.
“Federally
insured
depository
financial
institution”
means
a
bank,
credit
union,
savings
and
loan
association,
trust
company,
savings
association,
savings
bank,
industrial
bank,
or
industrial
loan
company
organized
under
the
laws
of
the
United
States
or
any
state,
when
such
entity
has
federally
insured
deposits.
10.
“In
this
state”
means
at
a
physical
location
within
Iowa
for
an
in-person
transaction
request.
11.
“Individual”
means
a
natural
person.
12.
“Key
individual”
means
an
individual
ultimately
responsible
for
establishing
or
directing
policies
and
procedures
of
the
licensee,
including
an
executive
officer,
manager,
director,
or
trustee.
10.
13.
“Licensee”
means
a
person
licensed
under
this
chapter
.
11.
“Location”
means
a
place
of
business
at
which
activity
conducted
by
a
licensee
or
money
transmitter
occurs.
14.
“Material
litigation”
means
litigation
that,
according
to
generally
accepted
accounting
principles
in
the
United
States,
is
significant
to
a
person’s
financial
health
and
would
be
required
to
be
disclosed
in
the
person’s
audited
financial
statements,
report
to
shareholders,
or
similar
records.
12.
15.
“Monetary
value”
means
a
medium
of
exchange,
whether
or
not
redeemable
in
money.
13.
16.
“Money”
means
a
medium
of
exchange
authorized
or
adopted
by
a
domestic
the
United
States
or
a
foreign
government
as
a
part
of
its
currency
and
that
is
customarily
used
and
accepted
as
a
medium
of
exchange
in
the
country
of
issuance
.
The
term
includes
a
monetary
unit
of
account
established
by
an
intergovernmental
organization
or
by
agreement
between
two
or
more
governments.
14.
“Money
services”
means
money
transmission
or
currency
exchange.
15.
17.
“Money
transmission”
means
and
includes
any
of
the
following:
a.
Selling
or
issuing
payment
instruments
to
one
or
more
persons
or
issuing
payment
instruments
which
are
sold
to
one
or
more
persons
a
person
located
in
this
state
.
House
File
675,
p.
5
b.
Selling
or
issuing
stored
value
to
a
person
located
in
this
state.
b.
c.
Conducting
the
business
of
receiving
Receiving
money
or
monetary
value
for
transmission
from
a
person
located
in
this
state
.
c.
Conducting
the
business
of
receiving
money
for
obligors
for
the
purpose
of
paying
obligors’
bills,
invoices,
or
accounts.
d.
“Money
transmission”
does
not
include
the
provision
solely
of
online
or
telecommunications
services
or
network
access.
16.
“Outstanding”
,
with
respect
to
a
payment
instrument,
means
issued
or
sold
by
or
for
the
licensee
and
reported
as
sold
but
not
yet
paid
by
or
for
the
licensee.
18.
“Money
services
businesses
accredited
state”
or
“MSB
accredited
state”
means
a
state
agency
that
is
accredited
by
the
conference
of
state
bank
supervisors
and
the
money
transmitter
regulators
association
for
money
transmission
licensing
and
supervision.
19.
“Multistate
licensing
process”
means
any
agreement
entered
into
by
and
among
state
regulators
relating
to
coordinated
processing
of
applications
for
money
transmission
licenses,
applications
for
the
acquisition
of
control
of
a
licensee,
control
determinations,
or
notice
and
information
requirements
for
a
change
of
key
individuals.
20.
“Nationwide
multistate
licensing
system”
or
“NMLS”
means
the
nationwide
multistate
licensing
system
and
registry
developed
by
the
conference
of
state
bank
supervisors
and
the
American
association
of
residential
mortgage
regulators
and
owned
and
operated
by
the
state
regulatory
registry,
LLC,
or
any
successor
or
affiliated
entity,
for
the
licensing
and
registration
of
persons
in
financial
services
industries.
21.
“Outstanding
money
transmission
obligations”
means
any
of
the
following:
a.
Any
payment
instrument
or
stored
value
issued
or
sold
by
the
licensee
to
a
person
located
in
the
United
States
or
reported
as
sold
by
an
authorized
delegate
of
the
licensee
to
a
person
that
is
located
in
the
United
States
that
has
not
yet
been
paid
or
refunded
by
or
for
the
licensee,
or
escheated
in
House
File
675,
p.
6
accordance
with
applicable
abandoned
property
laws.
b.
Any
money
received
for
transmission
by
the
licensee
or
an
authorized
delegate
in
the
United
States
from
a
person
located
in
the
United
States
that
has
not
been
received
by
the
payee
or
refunded
to
the
sender,
or
escheated
in
accordance
with
applicable
abandoned
property
laws.
22.
“Passive
investor”
means
a
person
that
can
attest
in
a
medium
prescribed
by
the
superintendent
or
commits
in
writing
to
any
of
the
following:
a.
The
person
does
not
have
the
power
to
elect
a
majority
of
key
individuals
or
executive
officers,
managers,
directors,
trustees,
or
other
persons
exercising
managerial
authority
of
a
person
in
control
of
a
licensee.
b.
The
person
is
not
employed
by
and
does
not
have
any
managerial
duties
of
the
licensee
or
person
in
control
of
a
licensee.
c.
The
person
does
not
have
the
power
to
exercise,
directly
or
indirectly,
a
controlling
influence
over
the
management
or
policies
of
a
licensee
or
person
in
control
of
a
licensee.
17.
23.
“Payment
instrument”
means
a
written
or
electronic
check,
draft,
money
order,
traveler’s
check,
stored-value,
or
other
written
or
electronic
instrument
or
order
for
the
transmission
or
payment
of
money
or
monetary
value,
sold
to
one
or
more
persons,
whether
or
not
that
instrument
or
order
is
negotiable.
“Payment
instrument”
does
not
include
an
stored
value
or
any
instrument
that
is
redeemable
by
the
issuer
only
for
goods
or
services
provided
by
the
issuer
or
an
its
affiliate
in
merchandise
or
service,
a
credit
card
voucher,
or
a
letter
of
credit
,
except
to
the
extent
required
by
applicable
law
to
be
redeemable
in
cash
for
its
cash
value,
or
not
sold
to
the
public
but
issued
and
distributed
as
part
of
a
loyalty,
rewards,
or
promotional
program
.
24.
“Payroll
processing
services”
means
receiving
money
for
transmission
pursuant
to
a
contract
with
a
person
to
deliver
wages
or
salaries,
make
payments
of
payroll
taxes
to
states
and
federal
agencies,
make
payments
relating
to
employee
benefit
plans,
or
make
distributions
of
other
authorized
deductions
from
wages
or
salaries.
The
term
“payroll
processing
services”
does
not
include
an
employer
performing
payroll
processing
House
File
675,
p.
7
services
on
its
own
behalf
or
on
behalf
of
its
affiliate,
or
a
professional
employer
organization
subject
to
regulation
under
other
applicable
state
law.
18.
25.
“Person”
means
an
individual,
corporation,
business
trust,
estate,
trust,
partnership,
general
partnership,
limited
partnership,
limited
liability
company,
association,
joint
venture
stock
corporation,
trust,
corporation
,
government;
governmental
subdivision,
agency
or
instrumentality;
public
corporation;
or
any
other
legal
or
commercial
corporate
entity
identified
by
the
superintendent
.
19.
“Proceeds”
means
property
acquired
or
derived
directly
or
indirectly
from,
produced
through,
realized
through,
or
caused
by
an
act
or
omission
and
includes
any
property
of
any
kind.
20.
“Property”
means
anything
of
value,
and
includes
any
interest
in
property,
including
any
benefit,
privilege,
claim,
or
right
with
respect
to
anything
of
value,
whether
real
or
personal,
tangible
or
intangible,
without
reduction
for
expenses
incurred
for
acquisition,
maintenance,
production,
or
any
other
purpose.
21.
“Record”
means
information
that
is
inscribed
on
a
tangible
medium
or
that
is
stored
in
an
electronic
or
other
medium
and
is
retrievable
in
perceivable
form.
22.
“Responsible
individual”
means
an
individual
who
is
employed
by
a
licensee
and
has
principal
managerial
authority
over
the
provision
of
money
services
by
the
licensee
in
this
state.
23.
“State”
means
a
state
of
the
United
States,
the
District
of
Columbia,
Puerto
Rico,
the
United
States
Virgin
Islands,
or
any
territory
or
insular
possession
subject
to
the
jurisdiction
of
the
United
States.
26.
“Receipt”
means
a
paper
receipt,
electronic
record,
or
other
written
confirmation.
27.
“Receiving
money
for
transmission”
or
“money
received
for
transmission”
means
receiving
money
or
monetary
value
in
the
United
States
for
transmission
within
or
outside
the
United
States
by
electronic
or
other
means.
28.
“Remit”
means
to
make
direct
payments
of
money
to
a
licensee
or
its
representative
authorized
to
receive
money
House
File
675,
p.
8
or
to
deposit
money
in
a
bank
in
an
account
specified
by
the
licensee.
24.
29.
“Stored-value”
means
a
monetary
value
that
is
representing
a
claim
against
the
issuer
evidenced
by
an
electronic
or
digital
record
,
and
that
is
intended
and
accepted
for
use
as
a
means
of
redemption
for
money
or
monetary
value,
or
payment
for
goods
or
services.
The
term
“stored-value”
includes
but
is
not
limited
to
“prepaid
access”
as
defined
by
31
C.F.R.
§1010.100,
as
amended.
“Stored-value”
does
not
include
a
payment
instrument
or
closed
loop
stored
value,
or
stored
value
not
sold
to
the
public
but
issued
and
distributed
as
part
of
a
loyalty,
rewards,
or
promotional
program
.
25.
30.
“Superintendent”
means
the
superintendent
of
banking
for
the
state
of
Iowa.
26.
“Transaction”
includes
a
purchase,
sale,
trade,
loan,
pledge,
investment,
gift,
transfer,
transmission,
delivery,
deposit,
withdrawal,
payment,
transfer
between
accounts,
exchange
of
currency,
extension
of
credit,
purchase
or
sale
of
any
monetary
instrument
or
stored-value,
use
of
a
safe
deposit
box,
or
any
other
acquisition
or
disposition
of
property
by
whatever
means
effected.
27.
“Unsafe
or
unsound
practice”
means
a
practice
or
conduct
by
a
person
licensed
to
engage
in
money
transmission
or
an
authorized
delegate
of
such
a
person
which
creates
the
likelihood
of
material
loss,
insolvency,
or
dissipation
of
the
licensee’s
assets,
or
otherwise
materially
prejudices
the
interests
of
its
customers.
31.
“Tangible
net
worth”
means
the
aggregate
assets
of
a
licensee
excluding
all
intangible
assets,
less
liabilities,
as
determined
in
accordance
with
generally
accepted
accounting
principles
in
the
United
States.
32.
“In
the
United
States”
means
a
person
in
any
state,
territory,
or
possession
of
the
United
States,
District
of
Columbia,
Commonwealth
of
Puerto
Rico,
or
U.S.
military
installation
that
is
located
in
a
foreign
country.
Sec.
4.
Section
533C.103,
Code
2023,
is
amended
to
read
as
follows:
533C.103
Exclusions
Exemptions
.
The
superintendent
may
require
that
any
person
claiming
House
File
675,
p.
9
to
be
exempt
from
licensing
pursuant
to
this
section
provide
information
and
documentation
to
the
superintendent
demonstrating
that
the
person
qualifies
for
any
claimed
exemption.
This
chapter
does
not
apply
to:
1.
The
United
States
or
a
department,
agency,
agent,
or
instrumentality
thereof.
2.
A
money
Money
transmission
by
the
United
States
postal
service
or
by
a
contractor
on
behalf
an
agent
of
the
United
States
postal
service.
3.
A
state,
county,
city,
or
any
other
governmental
agency
,
or
governmental
subdivision
,
instrumentality,
or
agent
of
a
state.
4.
The
following
entities
whether
chartered
or
organized
under
the
laws
of
a
state
or
of
the
United
States:
a
bank,
A
federally
insured
depository
financial
institution,
bank
holding
company,
savings
and
loan
association,
savings
bank,
credit
union,
office
of
an
international
banking
corporation,
branch
of
a
foreign
bank
that
establishes
a
federal
branch
pursuant
to
the
federal
International
Bank
Act,
12
U.S.C.
§3102,
as
amended
,
corporation
organized
pursuant
to
the
federal
Bank
Service
Company
Act,
12
U.S.C.
§1861
–
1867,
as
amended,
or
corporation
organized
under
the
federal
Edge
Act,
12
U.S.C.
§611
–
633
,
as
amended
.
5.
Electronic
funds
transfer
of
governmental
benefits
for
a
federal,
state,
county,
or
governmental
agency
by
a
contractor
on
behalf
of
the
United
States
or
a
department,
agency,
or
instrumentality
thereof,
or
on
behalf
of
a
state
or
governmental
subdivision,
agency,
or
instrumentality
thereof.
6.
A
board
of
trade
designated
as
a
contract
market
under
the
federal
Commodity
Exchange
Act,
7
U.S.C.
§1
–
25,
as
amended,
or
a
person
that,
in
the
ordinary
course
of
business,
provides
clearance
and
settlement
services
for
a
board
of
trade
to
the
extent
of
its
operation
as
or
for
such
a
board.
7.
A
registered
futures
commission
merchant
under
the
federal
commodities
laws
to
the
extent
of
its
operation
as
such
a
merchant.
8.
A
person
that
provides
clearance
or
settlement
services
pursuant
to
a
registration
as
a
clearing
agency
or
an
exemption
from
such
registration
granted
under
the
federal
securities
House
File
675,
p.
10
laws
to
the
extent
of
its
operation
as
such
a
provider
acts
as
an
intermediary
by
processing
payments
between
an
entity
that
has
directly
incurred
an
outstanding
money
transmission
obligation
to
a
sender,
and
the
sender’s
designated
recipient,
provided
all
of
the
following
apply:
a.
The
entity
is
properly
licensed
or
exempt
from
licensing
requirements
under
this
chapter
.
b.
The
entity
provides
a
receipt,
electronic
record,
or
other
written
confirmation
to
the
sender
identifying
the
entity
as
the
provider
of
money
transmission
in
the
transaction.
c.
The
entity
bears
sole
responsibility
to
satisfy
the
outstanding
money
transmission
obligations
to
the
sender,
including
the
obligation
to
make
the
sender
whole
in
connection
with
any
failure
to
transmit
the
funds
to
the
sender’s
designated
recipient.
9.
An
operator
of
a
payment
system
to
the
extent
that
it
provides
processing,
clearing,
or
settlement
services,
between
or
among
persons
excluded
by
this
section
,
or
licensees,
in
connection
with
wire
transfers,
credit
card
transactions,
debit
card
transactions,
stored-value
transactions,
automated
clearing
house
transfers,
or
similar
funds
transfers.
10.
A
person
registered
as
a
securities
broker-dealer
under
federal
or
state
securities
laws
to
the
extent
of
its
operation
as
such
a
broker-dealer.
11.
A
delayed
deposit
services
business
as
defined
in
chapter
533D
.
12.
A
real
estate
broker
or
salesperson
as
defined
in
chapter
543B
.
13.
Pari-mutuel
wagering,
racetracks,
excursion
gambling
boats,
and
gambling
structures
as
provided
in
chapters
99D
and
99F
.
14.
A
person
engaging
in
the
business
of
debt
management
that
is
licensed
or
exempt
from
licensing
pursuant
to
section
533A.2
.
15.
An
insurance
company
organized
under
chapter
508
,
514
,
514B
,
515
,
518
,
518A
,
or
520
,
or
authorized
to
do
the
business
of
insurance
in
Iowa
to
the
extent
of
its
operation
as
an
insurance
company.
16.
An
insurance
producer
as
defined
in
section
522B.1
to
House
File
675,
p.
11
the
extent
of
its
operation
as
an
insurance
producer.
17.
A
person
appointed
as
an
agent
of
a
payee
to
collect
and
process
a
payment
from
a
payor
to
the
payee
for
goods
or
services,
other
than
money
transmission
itself,
provided
to
the
payor
by
the
payee,
provided
all
of
the
following
apply:
a.
There
exists
a
written
agreement
between
the
payee
and
the
agent
directing
the
agent
to
collect
and
process
payments
from
payors
on
the
payee’s
behalf.
b.
The
payee
holds
the
agent
out
to
the
public
as
accepting
payments
for
goods
or
services
on
the
payee’s
behalf.
c.
Payment
for
the
goods
and
services
is
treated
as
received
by
the
payee
upon
receipt
by
the
agent
so
that
the
payor’s
obligation
is
extinguished
and
there
is
no
risk
of
loss
to
the
payor
if
the
agent
fails
to
remit
the
funds
to
the
payee.
18.
An
individual
employed
by
a
licensee,
authorized
delegate,
or
any
person
exempted
from
the
licensing
requirements
of
this
chapter
when
acting
within
the
scope
of
employment
and
under
the
supervision
of
the
licensee,
authorized
delegate,
or
exempted
person
as
an
employee
and
not
as
an
independent
contractor.
19.
A
person
expressly
appointed
as
a
third-party
service
provider
to
or
agent
of
an
entity
exempt
under
subsection
4,
provided
all
of
the
following
apply:
a.
The
service
provider
or
agent
is
engaging
in
money
transmission
on
behalf
of
and
pursuant
to
a
written
agreement
with
the
exempt
entity
that
sets
forth
the
specific
functions
that
the
service
provider
or
agent
is
to
perform.
b.
The
exempt
entity
assumes
all
risk
of
loss
and
all
legal
responsibility
for
satisfying
the
outstanding
money
transmission
obligations
owed
to
purchasers
and
holders
of
the
outstanding
money
transmission
obligations
upon
receipt
of
the
purchaser’s
or
holder’s
money
or
monetary
value
by
the
service
provider
or
agent.
20.
A
person
exempt
by
regulation
or
order
if
the
superintendent
finds
such
exemption
to
be
in
the
public
interest
and
that
the
regulation
of
such
person
is
not
necessary
for
the
purposes
of
this
chapter.
Sec.
5.
Section
533C.201,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
House
File
675,
p.
12
533C.201
Implementation.
1.
In
order
to
carry
out
the
purposes
of
this
chapter,
the
superintendent
may,
subject
to
the
provisions
of
section
533C.202:
a.
Enter
into
agreements
or
relationships
with
other
government
officials,
federal
and
state
regulatory
agencies,
and
regulatory
associations
in
order
to
improve
efficiencies
and
reduce
regulatory
burden
by
standardizing
methods
or
procedures,
and
sharing
resources,
records,
or
related
information
obtained
under
this
chapter.
b.
Use,
hire,
contract,
or
employ
analytical
systems,
methods,
or
software
to
examine
or
investigate
any
person
subject
to
this
chapter.
c.
Accept,
from
other
state
or
federal
government
agencies
or
officials,
licensing,
examination,
or
investigation
reports
made
by
such
other
state
or
federal
government
agencies
or
officials.
d.
Accept
audit
reports
made
by
an
independent
certified
public
accountant
or
other
qualified
third-party
auditor
for
an
applicant
or
licensee
and
incorporate
the
audit
report
in
any
report
of
examination
or
investigation.
2.
The
superintendent
shall
have
the
broad
administrative
authority
to
administer,
interpret,
and
enforce
this
chapter,
to
promulgate
rules
or
regulations
implementing
this
chapter,
and
to
recover
the
cost
of
administering
and
enforcing
this
chapter
by
imposing
and
collecting
proportionate
and
equitable
fees
and
costs
associated
with
applications,
examinations,
investigations,
and
other
actions
required
to
achieve
the
purpose
of
this
chapter.
3.
For
a
transaction
requested
electronically
or
by
phone,
the
provider
of
money
transmission
may
determine
if
the
person
requesting
the
transmission
is
located
in
this
state
by
relying
on
other
information
provided
by
the
person
regarding
the
location
of
the
individual’s
residential
address
or
a
business
entity’s
principal
place
of
business
or
other
physical
address
location,
and
any
records
associated
with
the
person
that
the
provider
of
money
transmission
may
have
that
indicate
such
location,
including
but
not
limited
to
an
address
associated
with
an
account,
provided
that
any
transaction
requested
by
House
File
675,
p.
13
an
individual
whose
residential
address
is
in
Iowa
shall
be
presumed
to
occur
in
Iowa.
4.
Outstanding
money
transmission
obligations
shall
be
established
and
extinguished
in
accordance
with
applicable
state
law.
Sec.
6.
Section
533C.202,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.202
Confidentiality.
1.
Except
as
otherwise
provided
in
subsection
2,
financial
statements,
balance
sheets,
authorized
delegate
information,
all
information
and
reports
obtained
by
the
superintendent
from
an
applicant,
licensee,
or
authorized
delegate,
and
all
information
contained
in
or
related
to
an
examination,
investigation,
operating
report,
or
condition
report
prepared
by,
on
behalf
of,
or
for
the
use
of
the
superintendent
are
confidential
and
are
not
subject
to
disclosure
under
chapter
22.
2.
The
superintendent
may
disclose
information
not
otherwise
subject
to
disclosure
under
subsection
1
where:
a.
Representatives
of
state
or
federal
agencies
certify
in
a
record
that
they
shall
maintain
the
confidentiality
of
the
information.
b.
The
superintendent
finds
that
the
release
is
reasonably
necessary
for
the
protection
and
interest
of
the
public
in
accordance
with
chapter
22.
3.
This
section
does
not
prohibit
the
superintendent
from
disclosing
to
the
public
a
list
of
all
licensees
or
the
aggregated
financial
or
transactional
data
concerning
those
licensees.
4.
The
division
of
banking
or
superintendent’s
records
containing
nonconfidential
information
may
be
made
available
to
the
public
on
the
division’s
website,
upon
receipt
by
the
division
of
a
written
request,
or
via
the
NMLS.
The
release
of
information
shall
include,
where
applicable,
all
of
the
following:
a.
The
name,
business
address,
telephone
number,
and
unique
identifier
of
a
licensee.
b.
The
business
address
of
a
licensee’s
registered
agent
for
service.
House
File
675,
p.
14
c.
The
name,
business
address,
and
telephone
number
of
all
authorized
delegates.
d.
The
terms,
or
a
copy,
of
any
bond
filed
by
a
licensee,
provided
that
confidential
information,
including
but
not
limited
to
prices
and
fees
for
such
bond,
is
redacted.
e.
Copies
of
any
nonconfidential
final
orders
of
the
superintendent
relating
to
any
violation
of
this
chapter
or
regulations
implementing
this
chapter.
f.
Imposition
of
an
administrative
fine
or
penalty
under
this
chapter.
Sec.
7.
Section
533C.203,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.203
Supervision.
1.
The
superintendent
may
conduct
an
examination
or
investigation
of
a
licensee
or
authorized
delegate
or
otherwise
take
independent
action
authorized
by
this
chapter
or
by
a
rule
adopted
or
order
issued
under
this
chapter
as
reasonably
necessary
or
appropriate
to
administer
and
enforce
this
chapter,
regulations
implementing
this
chapter,
and
other
applicable
law,
including
the
federal
Bank
Secrecy
Act,
Pub.
L.
No.
91-508,
and
the
federal
Uniting
and
Strengthening
America
by
Providing
Appropriate
Tools
Required
to
Intercept
and
Obstruct
Terrorism
Act
of
2001,
Pub.
L.
No.
107-56.
The
superintendent
shall
provide
supervision
as
follows:
a.
Conducting
an
examination
either
on
site
or
off
site
as
the
supervision
may
reasonably
require.
b.
Conducting
an
examination
in
conjunction
with
an
examination
conducted
by
representatives
of
other
state
agencies
or
agencies
of
another
state
or
of
the
federal
government.
c.
Accepting
the
examination
report
of
another
state
agency
or
an
agency
of
another
state
or
of
the
federal
government,
or
a
report
prepared
by
an
independent
accounting
firm,
which
on
being
accepted
is
considered
for
all
purposes
as
an
official
report
of
the
superintendent.
d.
Summoning
and
examining
under
oath
a
key
individual
or
employee
of
a
licensee
or
authorized
delegate
and
requiring
the
person
to
produce
records
regarding
any
matter
related
to
the
condition
and
business
of
the
licensee
or
authorized
delegate.
House
File
675,
p.
15
2.
A
licensee
or
authorized
delegate
shall
provide,
and
the
superintendent
shall
have
full
and
complete
access
to,
all
records
the
superintendent
may
reasonably
require
to
conduct
a
complete
examination.
The
records
shall
be
provided
at
the
location
and
in
the
format
specified
by
the
superintendent,
provided
the
superintendent
may
utilize
multistate
record
production
standards
and
examination
procedures
when
such
standards
will
reasonably
achieve
the
requirements
of
this
section.
3.
Unless
otherwise
directed
by
the
superintendent,
a
licensee
shall
pay
all
costs
reasonably
incurred
in
connection
with
an
examination
of
the
licensee
or
the
licensee’s
authorized
delegates.
Sec.
8.
Section
533C.204,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.204
Networked
supervision.
1.
To
efficiently
and
effectively
administer
and
enforce
this
chapter
and
to
minimize
regulatory
burden,
the
superintendent
is
authorized
and
encouraged
to
participate
in
multistate
supervisory
processes
established
between
states
and
coordinated
through
the
conference
of
state
bank
supervisors,
the
money
transmitter
regulators
association,
and
affiliates
and
successors
thereof
for
all
licensees
that
hold
licenses
in
this
state
and
other
states.
As
a
participant
in
multistate
supervision,
the
superintendent
shall
engage
in
all
of
the
following:
a.
Cooperation,
coordination,
and
information
sharing
with
other
state
and
federal
regulators
in
accordance
with
section
533C.202.
b.
Cooperation,
coordination,
and
information
sharing
with
organizations,
the
membership
of
which
is
made
up
of
state
or
federal
government
agencies,
provided
that
the
organizations
agree
in
writing
to
maintain
the
confidentiality
and
security
of
the
shared
information
in
accordance
with
section
533C.202.
c.
Entering
into
written
cooperation,
coordination,
or
information-sharing
contracts
or
agreements
with
organizations
the
membership
of
which
is
made
up
of
state
or
federal
government
agencies.
2.
The
superintendent
shall
not
waive,
and
nothing
in
this
House
File
675,
p.
16
section
constitutes
a
waiver
of,
the
superintendent’s
authority
to
conduct
an
examination
or
investigation
or
otherwise
take
independent
action
authorized
by
this
chapter
or
a
rule
adopted
or
order
issued
under
this
chapter
to
enforce
compliance
with
applicable
state
or
federal
law.
3.
A
joint
examination
or
investigation,
or
acceptance
of
an
examination
or
investigation
report,
shall
not
waive
an
examination
assessment
provided
for
in
this
chapter.
Sec.
9.
Section
533C.205,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.205
Relationship
to
federal
law.
1.
In
the
event
state
money
transmission
jurisdiction
is
conditioned
on
a
federal
law,
any
inconsistencies
between
a
provision
of
this
chapter
and
the
federal
law
governing
money
transmission
shall
be
governed
by
the
applicable
federal
law
to
the
extent
of
the
inconsistency.
2.
In
the
event
of
any
inconsistencies
between
this
chapter
and
a
federal
law
that
governs
pursuant
to
subsection
1,
the
superintendent
may
provide
interpretive
guidance
that
identifies
the
inconsistency
and
the
appropriate
means
of
compliance
with
federal
law.
Sec.
10.
Section
533C.301,
Code
2023,
is
amended
to
read
as
follows:
533C.301
License
required.
1.
A
person
shall
not
engage
in
currency
exchange
the
business
of
money
transmission
or
advertise,
solicit,
or
hold
itself
out
as
providing
currency
exchange
for
which
the
person
receives
revenues
equal
to
or
greater
than
five
percent
of
total
revenues
unless
the
person:
money
transmission
unless
they
are
a.
Is
licensed
under
this
article
.
b.
Is
licensed
for
money
transmission
under
article
2
.
c.
Is
an
authorized
delegate
of
a
person
licensed
under
article
2
.
2.
This
section
shall
not
apply
to
the
following:
a.
A
person
that
is
an
authorized
delegate
of
a
person
licensed
under
this
chapter
acting
within
the
scope
of
authority
conferred
by
a
written
contract
with
the
licensee.
b.
A
person
that
is
exempt
pursuant
to
section
533C.103
and
House
File
675,
p.
17
does
not
engage
in
money
transmission
outside
the
scope
of
such
exemption.
2.
3.
A
license
under
this
article
is
not
transferable
or
assignable.
Sec.
11.
Section
533C.302,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.302
Consistent
state
licensing.
1.
To
establish
consistent
licensing
between
this
state
and
other
states,
the
superintendent
is
authorized
and
encouraged
to
provide
all
of
the
following:
a.
Implement
all
licensing
provisions
of
this
chapter
in
a
manner
that
is
consistent
with
other
states
that
have
adopted
this
chapter
or
multistate
licensing
processes.
b.
Participate
in
nationwide
protocols
for
licensing
cooperation
and
coordination
among
state
regulators
provided
that
such
protocols
are
consistent
with
this
section.
2.
The
superintendent
is
authorized
and
encouraged
to
establish
relationships
or
contracts
with
NMLS
or
other
entities
designated
by
NMLS
to
enable
the
superintendent
to
do
all
of
the
following:
a.
Collect
and
maintain
records.
b.
Coordinate
multistate
licensing
processes
and
supervision
processes.
c.
Process
fees.
d.
Facilitate
communication
between
this
state,
the
superintendent,
and
licensees
or
other
persons
subject
to
this
chapter.
3.
The
superintendent
is
authorized
and
encouraged
to
utilize
NMLS
for
all
aspects
of
licensing
in
accordance
with
this
chapter,
including
but
not
limited
to:
license
applications,
applications
for
acquisitions
of
control,
surety
bonds,
reporting,
criminal
history
background
checks,
credit
checks,
fee
processing,
and
examinations.
4.
The
superintendent
is
authorized
and
encouraged
to
utilize
NMLS
forms,
processes,
and
functionalities
in
accordance
with
this
chapter.
In
the
event
NMLS
does
not
provide
functionality,
forms,
or
processes
for
a
provision
of
this
chapter,
the
superintendent
is
authorized
and
encouraged
to
strive
to
implement
the
requirements
in
a
manner
that
House
File
675,
p.
18
facilitates
uniformity
with
respect
to
licensing,
supervision,
reporting,
and
regulation
of
licensees
which
are
licensed
in
multiple
jurisdictions.
5.
For
the
purpose
of
participating
in
the
NMLS
and
registry,
the
superintendent
is
authorized
to
waive
or
modify,
in
whole
or
in
part,
by
rule,
regulation,
or
order,
any
or
all
of
the
requirements
and
to
establish
new
requirements
as
reasonably
necessary
to
participate
in
the
nationwide
multistate
licensing
system
and
registry.
Sec.
12.
Section
533C.303,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.303
Application
for
license.
1.
Applicants
for
a
license
under
this
chapter
shall
apply
on
a
form
prescribed
by
the
superintendent.
Each
such
form
shall
contain
content
as
set
forth
by
rule,
regulation,
instruction,
or
procedure
of
the
superintendent
and
shall
be
changed
or
updated
by
the
superintendent
in
accordance
with
applicable
law
in
order
to
carry
out
the
purposes
of
this
chapter
and
maintain
consistency
with
NMLS
licensing
standards
and
practices.
The
application
shall
state
or
contain,
as
applicable,
the
following:
a.
The
legal
name
and
residential
and
business
addresses
of
the
applicant
and
any
fictitious
or
trade
name
used
by
the
applicant
in
conducting
its
business.
b.
A
list
of
any
criminal
convictions
of
the
applicant
and
any
material
litigation
in
which
the
applicant
has
been
involved
in
the
ten-year
period
immediately
preceding
the
submission
of
the
application.
c.
A
description
of
any
money
transmission
previously
provided
by
the
applicant
and
the
money
transmission
that
the
applicant
seeks
to
provide
in
this
state.
d.
A
list
of
the
applicant’s
proposed
authorized
delegates
and
the
locations
in
this
state
where
the
applicant
and
its
authorized
delegates
propose
to
engage
in
money
transmission.
e.
A
list
of
other
states
in
which
the
applicant
is
licensed
to
engage
in
money
transmission
and
of
any
license
revocations,
suspensions,
or
other
disciplinary
action
taken
against
the
applicant
in
another
state.
f.
Information
concerning
any
bankruptcy
or
receivership
House
File
675,
p.
19
proceedings
affecting
the
licensee
or
a
person
in
control
of
a
licensee.
g.
A
sample
form
of
contract
for
authorized
delegates.
h.
A
sample
form
of
payment
instrument
or
stored
value.
i.
The
name
and
address
of
any
federally
insured
depository
financial
institution
through
which
the
applicant
plans
to
conduct
money
transmission.
j.
Any
other
information
the
superintendent
or
NMLS
reasonably
requires
with
respect
to
the
applicant.
2.
If
an
applicant
is
a
corporation,
limited
liability
company,
partnership,
or
other
legal
entity,
the
applicant
shall
also
provide
all
of
the
following:
a.
The
date
of
the
applicant’s
incorporation
or
formation
and
state
or
country
of
incorporation
or
formation.
b.
If
applicable,
a
certificate
of
good
standing
from
the
state
or
country
in
which
the
applicant
is
incorporated
or
formed.
c.
A
brief
description
of
the
structure
or
organization
of
the
applicant,
including
any
parents
or
subsidiaries
of
the
applicant,
and
whether
any
parents
or
subsidiaries
are
publicly
traded.
d.
The
legal
name,
any
fictitious
or
trade
name,
all
business
and
residential
addresses,
and
the
employment,
in
the
ten-year
period
immediately
preceding
the
submission
of
the
application
of
each
key
individual
and
person
in
control
of
the
applicant.
e.
A
list
of
any
criminal
convictions
and
material
litigation
in
which
a
person
in
control
of
the
applicant
that
is
not
an
individual
has
been
involved
in
the
ten-year
period
immediately
preceding
the
submission
of
the
application.
f.
A
copy
of
audited
financial
statements
for
the
most
recent
fiscal
year
and
for
the
two-year
period
immediately
preceding
the
submission
of
the
application
or,
if
determined
to
be
acceptable
to
the
superintendent,
certified
unaudited
financial
statements
for
the
most
recent
fiscal
year
or
other
period
acceptable
to
the
superintendent.
g.
A
certified
copy
of
the
applicant’s
unaudited
financial
statements
for
the
most
recent
fiscal
quarter.
h.
If
the
applicant
is
a
publicly
traded
corporation,
a
House
File
675,
p.
20
copy
of
the
most
recent
report
filed
with
the
United
States
securities
and
exchange
commission
under
section
13
of
the
federal
Securities
Exchange
Act
of
1934,
15
U.S.C.
§78m,
as
amended.
i.
If
the
applicant
is
a
wholly
owned
subsidiary
of
any
of
the
following:
(1)
A
corporation
publicly
traded
in
the
United
States,
a
copy
of
audited
financial
statements
for
the
parent
corporation
for
the
most
recent
fiscal
year
or
a
copy
of
the
parent
corporation’s
most
recent
report
filed
under
section
13
of
the
federal
Securities
Exchange
Act
of
1934,
15
U.S.C.
§78m,
as
amended.
(2)
A
corporation
publicly
traded
outside
the
United
States,
a
copy
of
similar
documentation
filed
with
the
regulator
of
the
parent
corporation’s
domicile
outside
the
United
States.
j.
The
name
and
address
of
the
applicant’s
registered
agent
in
this
state.
k.
Any
other
information
the
superintendent
reasonably
requires
with
respect
to
the
applicant.
3.
A
nonrefundable
application
fee
of
one
thousand
dollars
and
a
license
fee
shall
accompany
an
application
for
a
license
under
this
chapter.
The
license
fee
shall
be
refunded
if
the
application
is
denied.
The
license
fee
shall
be
the
sum
of
five
hundred
dollars
plus
an
additional
ten
dollars
for
each
location
in
this
state
at
which
business
is
conducted
through
authorized
delegates
or
employees
of
the
licensee,
but
shall
not
exceed
five
thousand
dollars.
Fees
for
locations
added
after
the
initial
application
shall
be
submitted
with
the
quarterly
reports
pursuant
to
section
533C.601.
If
the
licensee
has
no
locations
in
this
state
at
which
business
is
conducted
through
authorized
delegates
or
employees
of
the
licensee,
the
license
fee
shall
be
set
by
the
superintendent,
but
shall
not
exceed
five
thousand
dollars.
A
license
under
this
chapter
expires
on
the
next
December
31
after
its
issuance.
The
initial
license
fee
is
considered
an
annual
fee
and
the
superintendent
shall
prorate
the
license
fee,
refunding
any
amount
due
to
a
partial
license
year.
No
refund
of
a
license
fee
shall
be
made
when
a
license
is
suspended,
revoked,
House
File
675,
p.
21
or
surrendered.
4.
A
person
who
requests
written
confirmation
from
the
superintendent
that
a
license
is
not
required
shall
submit
a
fee
of
one
hundred
dollars
along
with
the
written
request.
Sec.
13.
Section
533C.304,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.304
Information
requirements
for
certain
individuals.
1.
An
individual
in
control
of
a
licensee
or
applicant,
an
individual
seeking
to
acquire
control
of
a
licensee,
and
each
key
individual
shall
furnish
to
the
superintendent
through
NMLS
the
following
items:
a.
The
individual’s
fingerprints
for
submission
to
the
federal
bureau
of
investigation
and
the
superintendent
for
purposes
of
a
national
criminal
history
background
check
unless
the
person
currently
resides
outside
of
the
United
States
and
has
resided
outside
of
the
United
States
for
the
last
ten
years.
b.
Personal
history
and
experience
in
a
form
and
in
a
medium
prescribed
by
the
superintendent,
to
obtain
all
of
the
following:
(1)
An
independent
credit
report
from
a
consumer
reporting
agency.
If
the
individual
does
not
have
a
social
security
number,
the
requirement
shall
be
waived.
(2)
Information
related
to
any
criminal
convictions
or
pending
charges.
(3)
Information
related
to
any
regulatory
or
administrative
action
and
any
civil
litigation
involving
claims
of
fraud,
misrepresentation,
conversion,
mismanagement
of
funds,
breach
of
fiduciary
duty,
or
breach
of
contract.
2.
If
the
individual
has
resided
outside
of
the
United
States
at
any
time
in
the
last
ten
years,
the
individual
shall
also
provide
an
investigative
background
report
prepared
by
an
independent
search
firm.
The
search
firm
shall
demonstrate
it
has
sufficient
knowledge,
resources,
and
employs
accepted
and
reasonable
methodologies
to
conduct
the
research
of
the
background
report
and
be
unaffiliated
with,
or
have
no
interest
in,
the
individual
it
is
researching.
The
investigative
background
report
shall
be
written
in
the
English
language
and
shall
contain
all
of
the
following:
House
File
675,
p.
22
a.
If
available
in
the
individual’s
current
jurisdiction
of
residency,
a
comprehensive
credit
report,
or
any
equivalent
information
obtained
or
generated
by
the
independent
search
firm
to
accomplish
such
report,
including
a
search
of
the
court
data
in
the
countries,
provinces,
states,
cities,
towns,
and
contiguous
areas
where
the
individual
resided
and
worked.
b.
Criminal
record
information
for
the
past
ten
years,
including
but
not
limited
to
felonies,
misdemeanors,
or
similar
convictions
for
violations
of
law
in
the
countries,
provinces,
states,
cities,
towns,
and
contiguous
areas
where
the
individual
resided
and
worked.
c.
Employment
history.
d.
Media
history,
including
an
electronic
search
of
national
and
local
publications,
wire
services,
and
business
applications.
e.
Financial
services-related
regulatory
history,
including
but
not
limited
to
money
transmission,
securities,
banking,
insurance,
and
mortgage-related
industries.
Sec.
14.
NEW
SECTION
.
533C.305
Issuance
of
license.
1.
When
an
application
for
an
original
license
is
filed
under
this
chapter
and
appears
to
include
all
required
information,
the
application
is
considered
complete
and
the
superintendent
shall
promptly
notify
the
applicant
in
a
record
of
the
date
on
which
the
application
is
determined
to
be
complete.
The
application
is
approved
one
hundred
twenty-one
days
after
completion,
unless
denied
or
approved
earlier
by
the
superintendent.
The
license
takes
effect
as
of
the
first
business
day
after
expiration
of
the
one
hundred
twenty-day
period.
The
superintendent
may
for
good
cause
extend
the
application
period.
2.
A
determination
by
the
superintendent
that
an
application
is
complete
and
is
accepted
for
processing
means
only
that
the
application,
on
its
face,
appears
to
include
all
of
the
items,
including
the
criminal
background
check
response
from
the
federal
bureau
of
investigation,
and
address
all
of
the
matters
that
are
required.
A
determination
by
the
superintendent
that
an
application
is
complete
is
not
an
assessment
of
the
substance
of
the
application
or
of
the
sufficiency
of
the
information
provided.
House
File
675,
p.
23
3.
When
an
application
is
filed
and
considered
complete
under
this
section,
the
superintendent
shall
investigate
the
applicant’s
financial
condition
and
responsibility,
financial
and
business
experience,
character,
and
general
fitness.
The
superintendent
may
conduct
an
on-site
investigation
of
the
applicant,
the
reasonable
cost
of
which
the
applicant
shall
pay.
The
superintendent
shall
issue
a
license
to
an
applicant
under
this
section
if
the
superintendent
finds
that
all
of
the
following
conditions
have
been
fulfilled:
a.
The
applicant
has
complied
with
sections
533C.303
and
533C.304.
b.
The
financial
condition
and
responsibility,
financial
and
business
experience,
competence,
character,
and
general
fitness
of
the
applicant
or
key
individuals
and
person
in
control
of
the
applicant,
indicate
that
it
is
in
the
interest
of
the
public
to
permit
the
applicant
to
engage
in
money
transmission.
4.
If
an
applicant
avails
itself
or
is
otherwise
subject
to
a
multistate
licensing
process,
the
superintendent
is
authorized
and
encouraged
to
accept
the
investigation
results
of
a
lead
investigative
state
for
the
purpose
of
subsection
3,
if
the
lead
investigative
state
has
sufficient
staffing,
expertise,
and
minimum
standards.
Additionally,
if
this
state
is
a
lead
investigative
state,
the
superintendent
is
authorized
and
encouraged
to
investigate
the
applicant
pursuant
to
subsection
3,
and
the
time
frames
established
by
agreement
through
the
multistate
licensing
process,
provided,
that
in
no
case
shall
such
time
frame
be
noncompliant
with
the
application
period
in
subsection
1,
paragraph
“a”
.
5.
The
superintendent
shall
issue
a
formal
written
notice
of
the
denial
of
a
license
application
within
thirty
days
of
the
decision
to
deny
the
application.
The
superintendent
shall
set
forth
in
the
notice
of
denial
the
specific
reasons
for
the
denial
of
the
application.
An
applicant
whose
application
is
denied
by
the
superintendent
under
this
section
may
appeal
within
thirty
days
after
receipt
of
the
written
notice
of
the
denial
pursuant
to
chapter
17A.
6.
The
initial
license
term
shall
begin
on
the
day
the
application
is
approved.
The
license
shall
expire
on
December
31
of
the
year
in
which
the
license
term
began,
unless
the
House
File
675,
p.
24
initial
license
date
is
between
November
1
and
December
31,
in
which
case
the
initial
license
term
shall
run
through
December
31
of
the
following
year.
Sec.
15.
NEW
SECTION
.
533C.306
Renewal
of
license.
1.
A
license
under
this
chapter
shall
be
renewed
annually.
An
annual
renewal
fee
of
five
hundred
dollars
plus
an
additional
ten
dollars
for
each
location
in
this
state
at
which
business
is
conducted
through
authorized
delegates
or
employees
of
the
licensee,
which
shall
not
exceed
five
thousand
dollars,
shall
be
paid
no
more
than
sixty
days
before
the
license
expiration.
The
renewal
term
shall
be
for
a
period
of
one
year
and
shall
begin
on
January
1
of
each
year
after
the
initial
license
term
and
shall
expire
on
December
31
of
the
year
the
renewal
term
begins.
2.
A
licensee
shall
submit
a
renewal
report
with
the
renewal
fee,
in
a
form
prescribed
by
the
superintendent.
The
renewal
report
shall
state
or
contain
a
description
of
each
material
change
in
information
submitted
by
the
licensee
in
its
original
license
application
which
has
not
been
reported
to
the
superintendent.
3.
The
superintendent
for
good
cause
may
grant
an
extension
of
the
renewal
date.
4.
The
superintendent
is
authorized
and
encouraged
to
utilize
NMLS
to
process
renewals
provided
that
such
functionality
is
consistent
with
this
section.
5.
If
a
licensee
does
not
file
a
renewal
report
or
pay
its
renewal
fee
by
December
1,
or
any
extension
of
time
granted
by
the
superintendent,
the
superintendent
may
assess
a
late
fee
of
one
hundred
dollars
per
day.
Sec.
16.
NEW
SECTION
.
533C.307
Maintenance
of
license.
If
a
licensee
does
not
continue
to
meet
the
qualifications
or
satisfy
the
requirements
that
apply
to
an
applicant
for
a
new
money
transmission
license,
the
superintendent
may
suspend
or
revoke
the
licensee’s
license
in
accordance
with
the
procedures
established
by
this
chapter
or
other
applicable
state
law
for
such
suspension
or
revocation.
1.
An
applicant
for
a
money
transmission
license
shall
demonstrate
that
the
applicant
meets
or
will
meet
the
requirements
of
sections
533C.801,
533C.802,
and
533C.803.
House
File
675,
p.
25
2.
A
money
transmission
licensee
shall
at
all
times
meet
the
requirements
of
sections
533C.801,
533C.802,
and
533C.803.
Sec.
17.
Section
533C.401,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.401
Acquisition
of
control.
1.
Any
person,
or
group
of
persons
acting
in
concert,
seeking
to
acquire
control
of
a
licensee
shall
obtain
the
written
approval
of
the
superintendent
prior
to
acquiring
control.
An
individual
is
not
deemed
to
acquire
control
of
a
licensee
and
is
not
subject
to
acquisition
of
control
provisions
when
that
individual
becomes
a
key
individual
in
the
ordinary
course
of
business.
2.
A
person
is
presumed
to
exercise
a
controlling
influence
when
the
person
holds
the
power
to
vote,
directly
or
indirectly,
at
least
ten
percent
of
the
outstanding
voting
shares
or
voting
interests
of
a
licensee
or
person
in
control
of
a
licensee.
A
person
presumed
to
exercise
a
controlling
influence
can
rebut
the
presumption
of
control
if
the
person
is
a
passive
investor.
3.
For
purposes
of
determining
the
percentage
of
a
person
controlled
by
any
other
person,
the
person’s
interest
shall
be
aggregated
with
the
interest
of
any
other
immediate
family
member,
including
the
person’s
spouse,
parents,
children,
siblings,
mother-in-law,
father-in-law,
son-in-law,
daughter-in-law,
brother-in-law,
sister-in-law,
and
any
other
person
who
shares
such
person’s
home.
4.
A
person,
or
group
of
persons
acting
in
concert,
seeking
to
acquire
control
of
a
licensee
shall,
in
cooperation
with
the
licensee,
submit
an
application
in
a
form
and
in
a
medium
prescribed
by
the
superintendent
and
a
nonrefundable
fee
of
one
thousand
dollars
with
the
request
for
approval.
5.
Upon
request,
the
superintendent
may
permit
a
licensee
or
the
person,
or
group
of
persons
acting
in
concert,
to
submit
some
or
all
information
required
by
the
superintendent
pursuant
to
subsection
4
without
using
NMLS.
6.
The
application
required
by
subsection
4
shall
include
information
required
by
section
533C.304
for
a
licensee,
including
for
any
new
key
individuals
that
have
not
previously
completed
the
requirements.
House
File
675,
p.
26
7.
When
an
application
for
acquisition
of
control
under
this
section
appears
to
include
all
the
items
and
address
all
of
the
matters
that
are
required,
the
application
shall
be
considered
complete
and
the
superintendent
shall
promptly
notify
the
applicant
in
a
record
of
the
date
on
which
the
application
was
determined
to
be
complete.
The
application
is
approved
and
the
person,
or
group
of
persons
acting
in
concert,
are
permitted
to
acquire
control
sixty-one
days
after
application
completion,
unless
denied
or
approved
earlier
by
the
superintendent.
The
superintendent
may
for
good
cause
extend
the
application
period.
8.
A
determination
by
the
superintendent
that
an
application
is
complete
and
is
accepted
for
processing
means
only
that
the
application,
on
its
face,
appears
to
include
all
of
the
items
and
address
all
of
the
matters
that
are
required,
and
is
not
an
assessment
of
the
substance
of
the
application
or
of
the
sufficiency
of
the
information
provided.
9.
When
an
application
is
filed
and
considered
complete
under
subsection
7,
the
superintendent
shall
investigate
the
financial
condition
and
responsibility,
financial
and
business
experience,
character,
and
general
fitness
of
the
person,
or
group
of
persons
acting
in
concert,
seeking
to
acquire
control.
The
superintendent
shall
approve
an
acquisition
of
control
pursuant
to
this
section
if
the
superintendent
finds
that
all
of
the
following
conditions
have
been
fulfilled:
a.
The
requirements
of
subsections
4
and
6
have
been
met,
as
applicable.
b.
The
financial
condition
and
responsibility,
financial
and
business
experience,
competence,
character,
and
general
fitness
of
the
person,
or
group
of
persons
acting
in
concert,
seeking
to
acquire
control,
and
of
the
key
individuals
and
persons
that
would
be
in
control
of
the
licensee
indicate
that
it
is
in
the
interest
of
the
public
to
permit
the
applicant
to
control
the
licensee.
10.
If
an
applicant
avails
itself
or
is
otherwise
subject
to
a
multistate
licensing
process,
the
superintendent
is
authorized
and
encouraged
to
accept
the
investigation
results
of
a
lead
investigative
state
for
the
purpose
of
subsection
9
if
the
lead
investigative
state
has
sufficient
staffing,
House
File
675,
p.
27
expertise,
and
minimum
standards.
If
this
state
is
a
lead
investigative
state,
the
superintendent
is
authorized
and
encouraged
to
investigate
the
applicant
pursuant
to
subsection
9
and
the
time
frames
established
by
agreement
through
the
multistate
licensing
process.
11.
The
superintendent
shall
issue
a
formal
written
notice
of
the
denial
of
an
application
to
acquire
control
within
thirty
days
of
the
decision
to
deny
the
application.
The
superintendent
shall
set
forth
in
the
notice
of
denial
the
specific
reasons
for
the
denial
of
the
application.
An
applicant
whose
application
is
denied
by
the
superintendent
under
this
section
may
appeal
within
thirty
days
after
receipt
of
the
written
notice
of
the
denial.
12.
The
requirements
of
subsections
1
and
4
shall
not
apply
to
any
of
the
following:
a.
A
person
that
acts
as
a
proxy
for
the
sole
purpose
of
voting
at
a
designated
meeting
of
the
shareholders
or
holders
of
voting
shares
or
voting
interests
of
a
licensee
or
a
person
in
control
of
a
licensee.
b.
A
person
that
acquires
control
of
a
licensee
by
devise
or
descent.
c.
A
person
that
acquires
control
of
a
licensee
as
a
personal
representative,
custodian,
guardian,
conservator,
or
trustee,
or
as
an
officer
appointed
by
a
court
of
competent
jurisdiction
or
by
operation
of
law.
d.
A
person
that
is
exempt
under
section
533C.103,
subsection
4.
e.
A
person
that
the
superintendent
determines
is
not
subject
to
subsection
1
based
on
the
public
interest.
f.
A
public
offering
of
securities
of
a
licensee
or
a
person
in
control
of
a
licensee.
g.
An
internal
reorganization
of
a
person
in
control
of
the
licensee
where
the
ultimate
person
in
control
of
the
licensee
remains
the
same.
13.
Persons
specified
in
subsection
12,
paragraphs
“b”
,
“c”
,
“d”
,
“f”
,
and
“g”
,
in
cooperation
with
the
licensee,
shall
notify
the
superintendent
within
fifteen
days
after
the
acquisition
of
control.
14.
The
requirements
of
subsections
1
and
4
shall
not
House
File
675,
p.
28
apply
to
a
person
that
has
complied
with
and
received
approval
to
engage
in
money
transmission
under
this
chapter
or
was
identified
as
a
person
in
control
in
a
prior
application
filed
with
and
approved
by
the
superintendent
or
by
an
MSB
accredited
state
pursuant
to
a
multistate
licensing
process,
provided
all
of
the
following
apply:
a.
The
person
has
not
had
a
license
revoked
or
suspended.
b.
The
person
has
not
controlled
a
licensee
that
has
had
a
license
revoked
or
suspended
while
the
person
was
in
control
of
the
licensee
in
the
previous
five
years.
c.
If
the
person
is
a
licensee,
the
person
is
well-managed
and
has
received
at
least
a
satisfactory
rating
for
compliance
at
its
most
recent
examination
by
an
MSB-accredited
state
if
such
rating
was
given.
d.
The
licensee
to
be
acquired
is
projected
to
meet
the
requirements
of
sections
533C.801,
533C.802,
and
533C.803
after
the
acquisition
of
control
is
completed.
e.
If
the
person
acquiring
control
is
a
licensee,
that
licensee
is
projected
to
meet
the
requirements
of
sections
533C.801,
533C.802,
and
533C.803
after
the
acquisition
of
control
is
completed.
f.
The
licensee
to
be
acquired
will
not
implement
any
material
changes
to
its
business
plan
as
a
result
of
the
acquisition
of
control.
g.
If
the
person
acquiring
control
is
a
licensee,
that
licensee
will
not
implement
any
material
changes
to
its
business
plan
as
a
result
of
the
acquisition
of
control.
h.
The
person
provides
notice
of
the
acquisition
in
cooperation
with
the
licensee
and
attests
to
the
provisions
in
this
subsection
in
a
form
and
in
a
medium
prescribed
by
the
superintendent.
If
the
notice
is
not
disapproved
within
thirty
days
after
the
date
on
which
the
notice
was
determined
to
be
complete,
the
notice
is
deemed
approved.
15.
Before
filing
an
application
for
approval
to
acquire
control
of
a
licensee,
a
person
may
request
in
writing
a
determination
from
the
superintendent
as
to
whether
the
person
would
be
considered
a
person
in
control
of
a
licensee
upon
consummation
of
a
proposed
transaction.
If
the
superintendent
determines
that
the
person
would
not
be
a
person
in
control
of
House
File
675,
p.
29
a
licensee,
the
proposed
person
and
transaction
are
not
subject
to
the
requirements
of
subsections
1
and
4.
16.
If
a
multistate
licensing
process
includes
a
determination
pursuant
to
subsection
15
and
an
applicant
avails
itself
or
is
otherwise
subject
to
the
multistate
licensing
process,
the
superintendent
is
authorized
and
encouraged
to
accept
the
control
determination
of
a
lead
investigative
state
with
sufficient
staffing,
expertise,
and
minimum
standards
for
the
purpose
of
subsection
15.
If
this
state
is
a
lead
investigative
state,
the
superintendent
is
authorized
and
encouraged
to
investigate
the
applicant
pursuant
to
subsection
15
and
the
time
frames
established
by
agreement
through
the
multistate
licensing
process.
Sec.
18.
Section
533C.402,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.402
Notice
and
information
requirements
for
a
change
of
key
individuals.
1.
A
licensee
adding
or
replacing
any
key
individual
shall
provide
notice
in
a
manner
prescribed
by
the
superintendent
within
fifteen
days
after
the
effective
date
of
the
key
individual’s
appointment
and
provide
information
as
required
by
section
533C.304
within
forty-five
days
of
the
effective
date.
2.
A
key
individual
is
considered
approved
ninety-one
days
after
notice
is
provided
pursuant
to
this
section,
unless
denied
or
approved
earlier
by
the
superintendent.
The
superintendent
may
issue
a
notice
of
disapproval
of
a
key
individual
if
the
competence,
experience,
character,
or
integrity
of
the
individual
would
not
be
in
the
best
interests
of
the
public
or
the
customers
of
the
licensee
to
permit
the
individual
to
be
a
key
individual
of
such
licensee.
A
notice
of
disapproval
shall
contain
a
statement
of
the
basis
for
disapproval
and
shall
be
sent
to
the
licensee
and
the
disapproved
individual.
A
licensee
may
appeal
a
notice
of
disapproval
within
thirty
days
after
receipt
of
the
written
notice
of
such
disapproval.
3.
If
a
multistate
licensing
process
includes
a
key
individual
notice
review
and
disapproval
process
pursuant
to
this
section
and
the
licensee
avails
itself
or
is
otherwise
subject
to
the
multistate
licensing
process,
the
superintendent
House
File
675,
p.
30
is
authorized
and
encouraged
to
accept
the
determination
of
another
state
if
the
investigating
state
has
sufficient
staffing,
expertise,
and
minimum
standards
for
the
purpose
of
this
section.
If
this
state
is
a
lead
investigative
state,
the
superintendent
is
authorized
and
encouraged
to
investigate
the
applicant
pursuant
to
subsection
2
and
the
time
frames
established
by
agreement
through
the
multistate
licensing
process.
Sec.
19.
Section
533C.501,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.501
Relationship
between
licensee
and
authorized
delegate.
1.
Before
a
licensee
is
authorized
to
conduct
business
through
an
authorized
delegate
or
allows
a
person
to
act
as
the
licensee’s
authorized
delegate,
the
licensee
shall
do
all
of
the
following:
a.
Adopt,
and
update
as
necessary,
written
policies
and
procedures
reasonably
designed
to
ensure
that
the
licensee’s
authorized
delegates
comply
with
applicable
state
and
federal
law.
b.
Enter
into
a
written
contract
that
complies
with
this
subsection.
c.
Conduct
a
reasonable
risk-based
background
investigation
sufficient
for
the
licensee
to
determine
whether
the
authorized
delegate
has
complied
and
will
likely
comply
with
applicable
state
and
federal
law.
2.
An
authorized
delegate
shall
operate
in
full
compliance
with
this
chapter.
3.
The
written
contract
required
by
subsection
1,
shall
be
signed
by
the
licensee
and
the
authorized
delegate
and
shall:
a.
Appoint
the
person
signing
the
contract
as
the
licensee’s
authorized
delegate
with
the
authority
to
conduct
money
transmission
on
behalf
of
the
licensee.
b.
Set
forth
the
nature
and
scope
of
the
relationship
between
the
licensee
and
the
authorized
delegate
and
the
respective
rights
and
responsibilities
of
the
parties.
c.
Require
the
authorized
delegate
to
agree
to
fully
comply
with
all
applicable
state
and
federal
laws,
rules,
and
regulations
pertaining
to
money
transmission,
including
this
House
File
675,
p.
31
chapter
and
regulations
implementing
this
chapter,
relevant
provisions
of
the
federal
Bank
Secrecy
Act
and
federal
Uniting
and
Strengthening
America
by
Providing
Appropriate
Tools
Required
to
Intercept
and
Obstruct
Terrorism
Act
of
2001,
Pub.
L.
No.
107-56.
d.
Require
the
authorized
delegate
to
remit
and
handle
money
and
monetary
value
in
accordance
with
the
terms
of
the
contract
between
the
licensee
and
the
authorized
delegate.
e.
Impose
a
trust
on
money
and
monetary
value
net
of
fees
received
for
money
transmission
for
the
benefit
of
the
licensee.
f.
Require
the
authorized
delegate
to
prepare
and
maintain
records
as
required
by
this
chapter
or
regulations
implementing
this
chapter,
or
as
reasonably
requested
by
the
superintendent.
g.
Acknowledge
that
the
authorized
delegate
consents
to
examination
or
investigation
by
the
superintendent.
h.
State
that
the
licensee
is
subject
to
regulation
by
the
superintendent
who
may
suspend
or
revoke
an
authorized
delegate
designation
or
require
the
licensee
to
terminate
an
authorized
delegate
designation
as
a
part
of
regulation.
i.
Acknowledge
receipt
of
the
written
policies
and
procedures
required
under
subsection
1.
4.
If
the
licensee’s
license
is
suspended,
revoked,
surrendered,
or
expired,
the
licensee
shall,
within
five
business
days,
provide
documentation
to
the
superintendent
that
the
licensee
has
notified
all
applicable
authorized
delegates
of
the
licensee
whose
names
are
in
a
record
filed
with
the
superintendent
of
the
suspension,
revocation,
surrender,
or
expiration
of
a
license.
Upon
suspension,
revocation,
surrender,
or
expiration
of
a
license,
applicable
authorized
delegates
shall
immediately
cease
to
provide
money
transmission
as
an
authorized
delegate
of
the
licensee.
5.
An
authorized
delegate
of
a
licensee
holds
in
trust
for
the
benefit
of
the
licensee
all
money
net
of
fees
received
from
money
transmission.
If
any
authorized
delegate
commingles
any
funds
received
from
money
transmission
with
any
other
funds
or
property
owned
or
controlled
by
the
authorized
delegate,
all
commingled
funds
and
other
property
shall
be
considered
held
in
trust
in
favor
of
the
licensee
in
an
amount
equal
to
the
amount
House
File
675,
p.
32
of
money
net
of
fees
received
from
money
transmission.
6.
An
authorized
delegate
may
not
use
a
subdelegate
to
conduct
money
transmission
on
behalf
of
a
licensee.
Sec.
20.
Section
533C.502,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.502
Unauthorized
activities.
A
person
shall
not
engage
in
the
business
of
money
transmission
on
behalf
of
a
person
not
licensed
under
this
chapter.
A
person
who
engages
in
such
activity
provides
money
transmission
to
the
same
extent
as
if
the
person
were
a
licensee,
and
shall
be
jointly
and
severally
liable
with
the
unlicensed
or
nonexempt
person.
Sec.
21.
Section
533C.601,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.601
Report
of
condition.
1.
A
licensee
shall
submit
a
report
of
condition
within
forty-five
days
of
the
end
of
the
calendar
quarter,
or
within
any
extended
time
as
the
superintendent
may
prescribe.
2.
The
report
of
condition
shall
include
all
of
the
following:
a.
Financial
information
at
the
licensee
level.
b.
Nationwide
and
state-specific
money
transmission
transaction
information
in
every
jurisdiction
in
the
United
States
where
the
licensee
is
licensed
to
engage
in
money
transmission.
c.
Permissible
investments
report.
d.
Transaction
destination
country
reporting
for
money
received
for
transmission,
if
applicable.
This
information
shall
only
be
included
in
a
report
of
condition
submitted
within
forty-five
days
of
the
end
of
the
fourth
calendar
quarter.
e.
Any
other
information
the
superintendent
reasonably
requires
with
respect
to
the
licensee.
The
superintendent
is
authorized
and
encouraged
to
utilize
NMLS
for
the
submission
of
the
report
required
by
this
section
and
is
authorized
to
update
as
necessary
the
requirements
of
this
section
to
carry
out
the
purposes
of
this
chapter
and
maintain
consistency
with
NMLS
reporting.
Sec.
22.
Section
533C.602,
Code
2023,
is
amended
by
striking
House
File
675,
p.
33
the
section
and
inserting
in
lieu
thereof
the
following:
533C.602
Audited
financials.
1.
A
licensee
shall,
within
ninety
days
after
the
end
of
each
fiscal
year,
or
within
any
extended
time
as
the
superintendent
may
prescribe,
file
with
the
superintendent
an
audited
financial
statement
for
the
fiscal
year
prepared
in
accordance
with
United
States
generally
accepted
accounting
principles
and
any
other
information
as
the
superintendent
may
reasonably
require.
2.
The
audited
financial
statements
shall
be
prepared
by
an
independent
certified
public
accountant
or
independent
public
accountant
who
is
satisfactory
to
the
superintendent.
3.
The
audited
financial
statements
shall
include
or
be
accompanied
by
a
certificate
of
opinion
of
the
independent
certified
public
accountant
or
independent
public
accountant
that
is
satisfactory
in
form
and
content
to
the
superintendent.
If
the
certificate
or
opinion
is
qualified,
the
superintendent
may
order
the
licensee
to
take
any
action
as
the
superintendent
may
find
necessary
to
enable
the
independent
or
certified
public
accountant
or
independent
public
accountant
to
remove
the
qualification.
Sec.
23.
NEW
SECTION
.
533C.603
Authorized
delegate
reporting.
1.
A
licensee
shall
submit
a
report
of
authorized
delegates
within
forty-five
days
of
the
end
of
the
calendar
quarter.
The
superintendent
is
authorized
and
encouraged
to
utilize
NMLS
for
the
submission
of
the
report
required
by
this
section
provided
that
such
functionality
is
consistent
with
the
requirements
of
this
section.
2.
The
authorized
delegate
report
shall
include
the
following
for
each
authorized
delegate:
a.
Company
legal
name.
b.
Taxpayer
employer
identification
number.
c.
Principal
provider
identifier.
d.
Physical
address.
e.
Mailing
address.
f.
Any
business
conducted
in
other
states.
g.
Any
fictitious
or
trade
name.
h.
Contact
person
name,
phone
number,
and
email.
House
File
675,
p.
34
i.
Start
date
as
licensee’s
authorized
delegate.
j.
End
date
acting
as
licensee’s
authorized
delegate,
if
applicable.
k.
Any
other
information
the
superintendent
reasonably
requires
with
respect
to
the
authorized
delegate.
Sec.
24.
NEW
SECTION
.
533C.604
Report
of
certain
events.
1.
A
licensee
shall
submit
a
nonrefundable
fee
of
one
thousand
dollars
with
the
request
and
file
a
report
with
the
superintendent
within
one
business
day
after
the
licensee
knows
or
has
reason
to
know
of
the
occurrence
of
any
of
the
following
events:
a.
The
filing
of
a
petition
by
or
against
the
licensee
under
the
federal
bankruptcy
code,
11
U.S.C.
§§101
–
110,
as
amended,
for
bankruptcy
or
reorganization.
b.
The
filing
of
a
petition
by
or
against
the
licensee
for
receivership.
c.
The
filing
of
a
petition
or
commencement
of
any
other
judicial
or
administrative
proceeding
for
its
dissolution
or
reorganization.
d.
The
filing
of
a
petition
or
the
making
of
a
general
assignment
for
the
benefit
of
its
creditors.
e.
The
commencement
of
a
proceeding
to
revoke
or
suspend
its
license
in
a
state
or
country
in
which
the
licensee
engages
in
business
or
is
licensed.
2.
A
licensee
shall
file
a
report
with
the
superintendent
within
three
business
days
after
the
licensee
has
reason
to
know
of
the
occurrence
of
a
felony
charge
or
conviction
of
the
licensee,
a
key
individual
or
person
in
control
of
the
licensee,
or
an
authorized
delegate.
Sec.
25.
NEW
SECTION
.
533C.605
Bank
secrecy
act
reports.
A
licensee
and
an
authorized
delegate
shall
file
all
reports
required
by
federal
currency
reporting,
record
keeping,
and
suspicious
activity
reporting
requirements
pursuant
to
the
federal
Bank
Secrecy
Act
and
other
federal
and
state
laws
pertaining
to
money
laundering.
The
timely
filing
of
a
complete
and
accurate
report
required
under
this
section
with
the
appropriate
federal
agency
is
deemed
compliant
with
the
requirements
of
this
section.
Sec.
26.
NEW
SECTION
.
533C.606
Records.
House
File
675,
p.
35
1.
A
licensee
shall
maintain
records
in
any
form,
for
the
purpose
of
determining
compliance
with
this
chapter,
for
at
least
three
years,
including
all
of
the
following:
a.
A
record
of
each
outstanding
money
transmission
obligation
sold.
b.
A
general
ledger
posted
at
least
monthly
containing
all
asset,
liability,
capital,
income,
and
expense
accounts.
c.
Bank
statements
and
bank
reconciliation
records.
d.
Records
or
outstanding
money
transmission
obligations.
e.
Records
of
each
outstanding
money
transmission
obligation
paid
within
the
three-year
period.
f.
A
list
of
the
last-known
names
and
addresses
of
all
of
the
licensee’s
authorized
delegates.
g.
Any
other
records
the
superintendent
reasonably
requires
by
rule.
2.
Records
specified
in
this
section
may
be
maintained
outside
the
state
if
they
are
made
accessible
to
the
superintendent
on
seven
business
days’
notice
that
is
sent
by
the
superintendent
in
a
record.
3.
All
records
maintained
by
the
licensee
as
required
in
this
section
are
open
to
inspection
by
the
superintendent
pursuant
to
section
533C.203.
Sec.
27.
NEW
SECTION
.
533C.607
Disclosure.
1.
Except
as
otherwise
provided
by
this
chapter,
the
records
of
the
superintendent
relating
to
examinations,
supervision,
and
regulation
of
a
person
licensed
pursuant
to
this
chapter
or
authorized
delegates
of
a
person
licensed
pursuant
to
this
chapter
are
not
public
records
and
are
not
subject
to
disclosure
under
chapter
22.
Neither
the
superintendent
nor
any
member
of
the
superintendent’s
staff
shall
disclose
any
information
obtained
in
the
discharge
of
the
superintendent’s
official
duties
to
any
person
not
connected
with
the
department,
except
that
the
superintendent
or
the
superintendent’s
designee
may
disclose
information
to
the
following:
a.
Representatives
of
federal
agencies
insuring
accounts
in
the
financial
institution.
b.
Representatives
of
state
agencies,
federal
agencies,
or
foreign
countries
having
regulatory
or
supervisory
authority
House
File
675,
p.
36
over
the
activities
of
the
financial
institution
or
similar
financial
institutions
if
those
representatives
are
permitted
to
and
do,
upon
request
of
the
superintendent,
disclose
similar
information
respecting
those
financial
institutions
under
their
regulation
or
supervision,
or
to
those
representatives
who
state
in
writing
under
oath
that
they
will
maintain
the
confidentiality
of
that
information.
c.
To
the
attorney
general.
d.
To
a
federal
or
state
grand
jury
in
response
to
a
lawful
subpoena
or
pursuant
to
a
county
attorney
subpoena.
e.
To
the
auditor
of
the
state
for
the
purpose
of
conducting
audits
authorized
by
law.
2.
Notwithstanding
subsection
1,
the
superintendent
may
disclose
the
following:
a.
The
fact
of
filing
of
applications
with
the
department
pursuant
to
this
chapter,
give
notice
of
a
hearing,
if
any,
regarding
those
applications,
and
announce
the
superintendent’s
action
thereon.
b.
Final
decisions
in
connection
with
proceedings
for
the
suspension
or
revocation
of
licenses
or
certificates
issued
pursuant
to
this
chapter.
c.
Prepare
and
circulate
reports
reflecting
the
assets
and
liabilities
of
licensees
on
an
aggregate
basis,
including
other
information
considered
pertinent
to
the
purpose
of
each
report
for
general
statistical
information.
d.
Prepare
and
circulate
reports
provided
by
law.
3.
Every
official
report
of
the
department
is
prima
facie
evidence
of
the
facts
therein
stated
in
any
action
or
proceeding
wherein
the
superintendent
is
a
party.
4.
Nothing
in
this
section
shall
be
construed
to
prevent
the
disclosure
of
information
that
is:
a.
Admissible
in
evidence
in
any
civil
or
criminal
proceeding
brought
by
or
at
the
request
of
the
superintendent
or
this
state
to
enforce
or
prosecute
violations
of
this
chapter,
chapter
706B,
or
the
rules
adopted,
or
orders
issued
pursuant
to
this
chapter.
b.
Requested
by
or
provided
to
a
federal
agency,
including
but
not
limited
to
the
department
of
defense,
department
of
energy,
department
of
homeland
security,
nuclear
regulatory
House
File
675,
p.
37
commission,
and
centers
for
disease
control
and
prevention,
to
assist
state
and
local
government
with
domestic
preparedness
for
acts
of
terrorism.
5.
The
attorney
general
or
the
department
of
public
safety
may
report
any
possible
violations
indicated
by
analysis
of
the
reports
required
by
this
chapter
to
any
appropriate
law
enforcement
or
regulatory
agency
for
use
in
the
proper
discharge
of
its
official
duties.
The
attorney
general
or
the
department
of
public
safety
shall
provide
copies
of
the
reports
required
by
this
chapter
to
any
appropriate
prosecutorial
or
law
enforcement
agency
upon
being
provided
with
a
written
request
for
records
relating
to
a
specific
individual
or
entity
and
stating
that
the
agency
has
an
articulable
suspicion
that
such
individual
or
entity
has
committed
a
felony
offense
or
a
violation
of
this
chapter
to
which
the
reports
are
relevant.
A
person
who
releases
information
received
pursuant
to
this
subsection
except
in
the
proper
discharge
of
the
person’s
official
duties
is
guilty
of
a
serious
misdemeanor.
6.
Any
report,
record,
information,
analysis,
or
request
obtained
by
the
attorney
general
or
department
of
public
safety
pursuant
to
this
chapter
is
not
a
public
record
as
defined
in
chapter
22
and
is
not
subject
to
disclosure.
Sec.
28.
Section
533C.701,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.701
Timely
transmission.
1.
Every
licensee
shall
forward
all
money
received
for
transmission
in
accordance
with
the
terms
of
the
agreement
between
the
licensee
and
the
sender
unless
the
licensee
has
a
reasonable
belief
or
a
reasonable
basis
to
believe
that
the
sender
may
be
a
victim
of
fraud
or
that
a
crime
or
violation
of
law,
rule,
or
regulation
has
occurred,
is
occurring,
or
may
occur.
2.
If
a
licensee
fails
to
forward
money
received
for
transmission
in
accordance
with
this
section,
the
licensee
shall
respond
to
inquiries
by
the
sender
with
the
reason
for
the
failure
unless
providing
a
response
would
violate
a
state
or
federal
law,
rule,
or
regulation.
Sec.
29.
Section
533C.702,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
House
File
675,
p.
38
533C.702
Refunds.
1.
Every
licensee
shall
refund
to
the
sender
within
ten
days
of
receipt
of
the
sender’s
written
request
for
a
refund
of
any
and
all
money
received
for
transmission
unless
any
of
the
following
occurs:
a.
The
money
has
been
forwarded
within
ten
days
of
the
date
on
which
the
money
was
received
for
transmission.
b.
Instructions
have
been
given
committing
an
equivalent
amount
of
money
to
the
person
designated
by
the
sender
within
ten
days
of
the
date
on
which
the
money
was
received
for
transmission.
c.
The
agreement
between
the
licensee
and
the
sender
instructs
the
licensee
to
forward
the
money
at
a
time
that
is
beyond
ten
days
of
the
date
on
which
the
money
was
received
for
transmission.
If
funds
have
not
yet
been
forwarded
in
accordance
with
the
terms
of
the
agreement
between
the
licensee
and
the
sender,
the
licensee
shall
issue
a
refund
in
accordance
with
the
other
provisions
of
this
section.
d.
The
refund
is
requested
for
a
transaction
that
the
licensee
has
not
completed
based
on
a
reasonable
belief
or
a
reasonable
basis
to
believe
that
a
crime
or
violation
of
law,
rule,
or
regulation
has
occurred,
is
occurring,
or
may
occur.
e.
The
refund
request
does
not
enable
the
licensee
to
identify
the
sender’s
name
and
address,
telephone
number,
or
the
particular
transaction
to
be
refunded
in
the
event
the
sender
has
multiple
transactions
outstanding.
2.
This
section
does
not
apply
to
money
received
for
transmission
subject
to
the
remittance
transfer
rule
of
the
federal
Electronic
Fund
Transfer
Act,
12
C.F.R.
§1005.30
–
1005.36,
as
amended,
or
pursuant
to
a
written
agreement
between
the
licensee
and
payee
to
process
payments
for
goods
or
services
provided
by
the
payee.
Sec.
30.
Section
533C.703,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.703
Receipts.
1.
For
a
transaction
conducted
in
person,
the
receipt
may
be
provided
electronically
if
the
sender
requests
or
agrees
to
receive
an
electronic
receipt.
For
a
transaction
conducted
electronically
or
by
phone,
a
receipt
may
be
provided
House
File
675,
p.
39
electronically.
All
electronic
receipts
shall
be
provided
in
a
retainable
form.
2.
Every
licensee
or
its
authorized
delegate
shall
provide
the
sender
a
receipt
for
money
received
for
transmission.
The
receipt
required
by
this
section
shall
be
in
English
and
in
the
language
principally
used
by
the
licensee
or
authorized
delegate
to
advertise,
solicit,
or
negotiate,
either
orally
or
in
writing,
for
a
transaction
conducted
in
person,
electronically,
or
by
phone,
if
other
than
English,
and
shall
contain,
as
applicable,
all
of
the
following:
a.
The
name
of
the
sender.
b.
The
name
of
the
designated
recipient.
c.
The
date
of
the
transaction.
d.
The
unique
transaction
or
identification
number.
e.
The
name
of
the
licensee,
NMLS
unique
ID,
the
licensee’s
business
address,
and
the
licensee’s
customer
service
telephone
number.
f.
The
amount
of
the
transaction
in
United
States
dollars.
g.
Any
fee
charged
by
the
licensee
to
the
sender
for
the
transaction.
h.
Any
taxes
collected
by
the
licensee
from
the
sender
for
the
transaction.
3.
This
section
does
not
apply
to
any
of
the
following:
a.
Money
received
for
transmission
subject
to
the
remittance
rule
of
the
federal
Electronic
Fund
Transfer
Act,
12
C.F.R.
§1005.30
–
1005.36,
as
amended.
b.
Money
received
for
transmission
that
is
not
primarily
for
personal,
family,
or
household
purposes.
c.
Money
received
for
transmission
pursuant
to
a
written
agreement
between
the
licensee
and
payee
to
process
payments
for
goods
or
services
provided
by
the
payee.
d.
Payroll
processing
services.
Sec.
31.
Section
533C.704,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.704
Disclosures
for
payroll
processing
services.
1.
A
licensee
that
provides
payroll
processing
services
shall
do
all
of
the
following:
a.
Issue
reports
to
clients
detailing
client
payroll
obligations
in
advance
of
the
payroll
funds
being
deducted
from
House
File
675,
p.
40
an
account.
b.
Make
available
worker
pay
stubs
or
an
equivalent
statement
to
workers.
2.
This
section
does
not
apply
to
a
licensee
providing
payroll
processing
services
where
the
licensee’s
client
designated
the
intended
recipients
to
the
licensee
and
the
licensee
is
responsible
for
providing
the
disclosures
required
by
subsection
1,
paragraph
“a”
.
Sec.
32.
Section
533C.801,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.801
Net
worth.
1.
A
licensee
under
this
chapter
shall
maintain
at
all
times
a
tangible
net
worth
of
the
greater
of
one
hundred
thousand
dollars
or
three
percent
of
total
assets
for
the
first
one
hundred
million
dollars,
two
percent
of
additional
assets
for
one
hundred
million
dollars
to
one
billion
dollars,
and
half
of
one
percent
of
additional
assets
for
over
one
billion
dollars.
2.
Tangible
net
worth
shall
be
demonstrated
at
initial
application
by
the
applicant’s
most
recent
audited
or
unaudited
financial
statements
pursuant
to
section
533C.303,
subsection
2,
paragraph
“f”
.
3.
Notwithstanding
the
foregoing
provisions
of
this
section,
the
superintendent
shall
have
the
authority,
for
good
cause
shown,
to
exempt
any
applicant
or
licensee,
in
part
or
in
whole,
from
the
requirements
of
this
section.
Sec.
33.
Section
533C.802,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.802
Surety
bond.
1.
An
applicant
for
a
money
transmission
license
shall
provide,
and
a
licensee
at
all
times
shall
maintain,
security
consisting
of
a
surety
bond
in
a
form
satisfactory
to
the
superintendent.
2.
The
amount
of
the
required
security
shall
be
the
greater
of
one
hundred
thousand
dollars
or
an
amount
equal
to
one
hundred
percent
of
the
licensee’s
average
daily
money
transmission
liability
in
this
state
calculated
for
the
most
recently
completed
three-month
period,
up
to
a
maximum
of
five
hundred
thousand
dollars.
3.
A
licensee
that
maintains
a
bond
in
the
maximum
amount
House
File
675,
p.
41
provided
for
in
subsection
2
shall
not
be
required
to
calculate
its
average
daily
money
transmission
liability
in
this
state
for
purposes
of
this
section.
4.
A
licensee
may
exceed
the
maximum
required
bond
amount
pursuant
to
section
533C.804,
subsection
1,
paragraph
“l”
.
Sec.
34.
Section
533C.803,
Code
2023,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
533C.803
Maintenance
of
permissible
investments.
1.
A
licensee
shall
maintain
at
all
times
permissible
investments
that
have
a
market
value
computed
in
accordance
with
United
States
generally
accepted
accounting
principles
of
not
less
than
the
aggregate
amount
of
all
of
its
outstanding
money
transmission
obligations.
2.
Except
for
permissible
investments
enumerated
in
section
533C.804,
subsection
1,
the
superintendent,
with
respect
to
any
licensee,
may
by
rule
or
order
limit
the
extent
to
which
a
specific
investment
maintained
by
a
licensee
within
a
class
of
permissible
investments
may
be
considered
a
permissible
investment,
if
the
specific
investment
represents
undue
risk
to
customers,
not
reflected
in
the
market
value
of
investments.
3.
Permissible
investments,
even
if
commingled
with
other
assets
of
the
licensee,
are
held
in
trust
for
the
benefit
of
the
purchasers
and
holders
of
the
licensee’s
outstanding
money
transmission
obligations
in
the
event
of
insolvency,
the
filing
of
a
petition
by
or
against
the
licensee
under
the
federal
bankruptcy
code,
11
U.S.C.
§101
–
110,
as
amended,
for
bankruptcy
or
reorganization,
the
filing
of
a
petition
by
or
against
the
licensee
for
receivership,
the
commencement
of
any
other
judicial
or
administrative
proceeding
for
its
dissolution
or
reorganization,
or
in
the
event
of
an
action
by
a
creditor
against
the
licensee
who
is
not
a
beneficiary
of
this
statutory
trust.
No
permissible
investments
impressed
with
a
trust
pursuant
to
this
section
shall
be
subject
to
attachment,
levy
of
execution,
or
sequestration
by
order
of
any
court,
except
for
a
beneficiary
of
this
statutory
trust.
4.
Upon
the
establishment
of
a
statutory
trust
in
accordance
with
subsection
3,
or
when
any
funds
are
drawn
on
a
letter
of
credit
pursuant
to
section
533C.804,
subsection
1,
paragraph
“m”
,
the
superintendent
shall
notify
the
applicable
regulator
House
File
675,
p.
42
of
each
state
in
which
the
licensee
is
licensed
to
engage
in
money
transmission,
if
any,
of
the
establishment
of
the
trust
or
the
funds
drawn
on
the
letter
of
credit,
as
applicable.
Notice
shall
be
deemed
satisfied
if
performed
pursuant
to
a
multistate
agreement
or
through
NMLS.
Funds
drawn
on
a
letter
of
credit,
and
any
other
permissible
investments
held
in
trust
for
the
benefit
of
the
purchasers
and
holders
of
the
licensee’s
outstanding
money
transmission
obligations,
are
deemed
held
in
trust
for
the
benefit
of
such
purchasers
and
holders
on
a
pro
rata
and
equitable
basis
in
accordance
with
statutes
pursuant
to
which
permissible
investments
are
required
to
be
held
in
this
state,
and
other
states,
as
applicable.
Any
statutory
trust
established
hereunder
shall
be
terminated
upon
extinguishment
of
all
of
the
licensee’s
outstanding
money
transmission
obligations.
5.
The
superintendent
by
rule
or
by
order
may
allow
other
types
of
investments
that
the
superintendent
determines
are
of
sufficient
liquidity
and
quality
to
be
a
permissible
investment.
The
superintendent
is
authorized
to
participate
in
efforts
with
other
state
regulators
to
determine
that
other
types
of
investments
are
of
sufficient
liquidity
and
quality
to
be
a
permissible
investment.
Sec.
35.
NEW
SECTION
.
533C.804
Types
of
permissible
investments.
1.
The
following
investments
are
permissible
under
section
533C.803:
a.
Cash,
including
demand
deposits,
savings
deposits,
and
funds
in
such
accounts
held
for
the
benefit
of
the
licensee’s
customers
in
a
federally
insured
depository
financial
institution.
b.
Cash
equivalents
including
automated
clearinghouse
items
in
transit
to
the
licensee
and
automated
clearinghouse
items
or
international
wires
in
transit
to
a
payee.
c.
Cash
in
transit
via
armored
car.
d.
Cash
in
smart
safes.
e.
Cash
in
licensee-owned
locations.
f.
Debit
card
or
credit
card-funded
transmission
receivables
owed
by
any
bank.
g.
Money
market
mutual
funds
rated
“AAA”
by
Standard
and
House
File
675,
p.
43
Poor’s
500
stock
market
index,
or
the
equivalent
from
any
eligible
rating
service.
h.
Certificates
of
deposit
or
senior
debt
obligations
of
an
insured
depository
institution,
pursuant
to
the
federal
Deposit
Insurance
Act,
12
U.S.C.
§1813,
as
amended,
or
as
defined
under
the
federal
Credit
Union
Act,
12
U.S.C.
§1751,
as
amended.
i.
An
obligation
of
the
United
States
or
a
commission,
agency,
or
instrumentality
thereof.
j.
An
obligation
that
is
guaranteed
fully
as
to
principal
and
interest
by
the
United
States.
k.
An
obligation
of
a
state
or
a
governmental
subdivision,
agency,
or
instrumentality
thereof.
l.
One
hundred
percent
of
the
surety
bond
provided
for
under
section
533C.802
that
exceeds
the
average
daily
money
transmission
liability
in
this
state.
m.
The
full
drawable
amount
of
an
irrevocable
standby
letter
of
credit
for
which
the
stated
beneficiary
is
the
superintendent
that
stipulates
that
the
beneficiary
need
only
draw
a
sight
draft
under
the
letter
of
credit
and
present
it
to
obtain
funds
up
to
the
letter
of
credit
amount
within
seven
days
of
presentation
of
the
items
required
by
this
section.
(1)
The
letter
of
credit
shall
conform
to
the
following:
(a)
Be
issued
by
a
federally
insured
depository
financial
institution,
a
foreign
bank
that
is
authorized
under
federal
law
to
maintain
a
federal
agency
or
federal
branch
office
in
a
state
or
states,
or
a
foreign
bank
that
is
authorized
under
state
law
to
maintain
a
branch
in
a
state
that
bears
an
eligible
rating,
or
whose
parent
company
bears
an
eligible
rating
and
such
bank
is
regulated,
supervised,
and
examined
by
the
United
States
federal
or
state
authorities
having
regulatory
authority
over
banks,
credit
unions,
and
trust
companies.
(b)
Be
irrevocable,
unconditional,
and
indicate
that
it
is
not
subject
to
any
condition
or
qualifications
outside
of
the
letter
of
credit.
(c)
Not
contain
reference
to
any
other
agreements,
documents,
or
entities,
or
otherwise
provide
for
any
security
interest
in
the
licensee.
(d)
Contain
an
issue
date
and
expiration
date,
and
expressly
House
File
675,
p.
44
provide
for
automatic
extension,
without
written
amendment,
for
an
additional
period
of
one
year
from
the
present
or
each
future
expiration
date,
unless
the
issuer
of
the
letter
of
credit
notifies
the
superintendent
in
writing
by
certified
or
registered
mail
or
courier
mail
or
other
receipted
means,
at
least
sixty
days
prior
to
any
expiration
date,
that
the
irrevocable
letter
of
credit
shall
not
be
extended.
In
the
event
of
any
notice
of
expiration
or
nonextension
of
a
letter
of
credit
issued
under
this
division,
the
licensee
shall
be
required
to
demonstrate
to
the
satisfaction
of
the
superintendent,
fifteen
days
prior
to
expiration,
that
the
licensee
maintains
and
will
maintain
permissible
investments
in
accordance
with
section
533C.803,
subsection
1,
upon
the
expiration
of
the
letter
of
credit.
If
the
licensee
is
not
able
to
do
so,
the
superintendent
may
draw
on
the
letter
of
credit
in
an
amount
up
to
the
amount
necessary
to
meet
the
licensee’s
requirements
to
maintain
permissible
investments
in
accordance
with
section
533C.803,
subsection
1.
Any
such
draw
shall
be
offset
against
the
licensee’s
outstanding
money
transmission
obligations.
The
drawn
funds
shall
be
held
in
trust
by
the
superintendent
or
the
superintendent’s
designated
agent,
to
the
extent
authorized
by
law,
as
agent
for
the
benefit
of
the
purchasers
and
holders
of
the
licensee’s
outstanding
money
transmission
obligations.
(2)
The
letter
of
credit
shall
provide
that
the
issuer
of
the
letter
of
credit
will
honor,
at
sight,
a
presentation
made
by
the
beneficiary
to
the
issuer
of
the
following
documents
on
or
prior
to
the
expiration
date
of
the
letter
of
credit:
(a)
The
original
letter
of
credit,
including
any
amendments.
(b)
A
written
statement
from
the
beneficiary
stating
that
any
of
the
following
events
have
occurred:
(i)
The
filing
of
a
petition
by
or
against
the
licensee
under
the
federal
bankruptcy
code,
11
U.S.C.
§101
–
110,
as
amended,
for
bankruptcy
or
reorganization.
(ii)
The
filing
of
a
petition
by
or
against
the
licensee
for
receivership,
or
the
commencement
of
any
other
judicial
or
administrative
proceeding
for
its
dissolution
or
reorganization.
House
File
675,
p.
45
(iii)
The
seizure
of
assets
of
a
licensee
by
the
superintendent
or
any
other
state
financial
regulatory
entity
pursuant
to
an
emergency
order
issued
in
accordance
with
applicable
law,
on
the
basis
of
an
action,
violation,
or
condition
that
has
caused
or
is
likely
to
cause
the
insolvency
of
the
licensee.
(iv)
The
beneficiary
has
received
notice
of
expiration
on
nonextension
of
a
letter
of
credit
and
the
licensee
failed
to
demonstrate
to
the
satisfaction
of
the
beneficiary
that
the
licensee
will
maintain
permissible
investments
in
accordance
with
section
533C.803,
subsection
1,
upon
the
expiration
or
nonextension
of
the
letter
of
credit.
(3)
The
superintendent
may
designate
an
agent
to
serve
on
the
superintendent’s
behalf
as
beneficiary
to
a
letter
of
credit
so
long
as
the
agent
and
letter
of
credit
meet
requirements
established
by
the
superintendent.
The
superintendent’s
agent
may
serve
as
agent
for
multiple
licensing
authorities
for
a
single
irrevocable
letter
of
credit
if
the
proceeds
of
the
drawable
amount
for
the
purposes
of
this
section
are
assigned
to
the
superintendent.
(4)
The
superintendent
is
authorized
and
encouraged
to
participate
in
multistate
processes
designed
to
facilitate
the
issuance
and
administration
of
letters
of
credit,
including
but
not
limited
to
services
provided
by
the
NMLS
and
state
regulatory
registry,
LLC.
2.
Unless
permitted
by
the
superintendent
by
rule
or
by
order
to
exceed
the
limit
as
set
forth
herein,
the
following
investments
are
permissible
under
section
533C.803
to
the
extent
specified:
a.
Receivables
that
are
payable
to
a
licensee
from
its
authorized
delegates
in
the
ordinary
course
of
business
that
are
less
than
seven
days
old,
up
to
fifty
percent
of
the
aggregate
value
of
the
licensee’s
total
permissible
investments.
b.
Of
the
receivables
permissible
under
subsection
1,
receivables
that
are
payable
to
a
licensee
from
a
single
authorized
delegate
in
the
ordinary
course
of
business
may
not
exceed
ten
percent
of
the
aggregate
value
of
the
licensee’s
total
permissible
investments.
House
File
675,
p.
46
c.
The
following
investments
are
permissible
up
to
twenty
percent
per
category
and
combined
up
to
fifty
percent
of
the
aggregate
value
of
the
licensee’s
total
permissible
investments:
(1)
An
up-to-six-month
short-term
investment
bearing
an
eligible
rating.
(2)
Commercial
paper
bearing
an
eligible
rating.
(3)
A
bill,
note,
bond,
or
debenture
bearing
an
eligible
rating.
(4)
United
States
tri-party
repurchase
agreements
collateralized
at
one
hundred
percent
or
more
with
United
States
government
or
agency
securities,
municipal
bonds,
or
other
securities
bearing
an
eligible
rating.
(5)
Money
market
mutual
funds
rated
less
than
“AAA”
and
equal
to
or
higher
than
“A-”
by
Standard
and
Poor’s
500
stock
market
index,
or
the
equivalent
from
any
other
eligible
rating
service.
(6)
A
mutual
fund
or
other
investment
fund
composed
solely
and
exclusively
of
one
or
more
permissible
investments
listed
in
section
533C.804,
subsection
1,
paragraph
“a”
through
“k”
.
d.
Cash,
including
demand
deposits,
savings
deposits,
and
funds
in
such
accounts
held
for
the
benefit
of
the
licensee’s
customers,
at
foreign
depository
institutions
are
permissible
up
to
ten
percent
of
the
aggregate
value
of
the
licensee’s
total
permissible
investments
if
the
licensee
has
received
a
satisfactory
rating
in
its
most
recent
examination
and
the
foreign
depository
institution
fulfills
all
of
the
following:
(1)
An
eligible
rating.
(2)
Registered
under
the
federal
Foreign
Account
Tax
Compliance
Act,
Pub.
L.
No.
111-147.
(3)
Not
located
in
any
country
subject
to
sanctions
from
the
federal
office
of
foreign
asset
control.
(4)
Not
located
in
a
high-risk
or
noncooperative
jurisdiction
as
designated
by
the
international
financial
action
task
force.
Sec.
36.
REPEAL.
Sections
533C.206,
533C.503,
533C.504,
533C.505,
533C.506,
533C.507,
533C.705,
533C.706,
533C.707,
533C.708,
533C.901,
533C.902,
533C.903,
and
533C.904,
Code
2023,
are
repealed.
House
File
675,
p.
47
Sec.
37.
CODE
EDITOR
DIRECTIVE.
The
following
articles
shall
be
changed
by
the
Code
editor
to
substantially
conform
to
the
following:
1.
ARTICLE
2
shall
be
retitled
IMPLEMENTATION,
CONFIDENTIALITY,
SUPERVISION,
AND
RELATIONSHIP
TO
FEDERAL
LAW.
2.
ARTICLE
3
shall
be
retitled
MONEY
TRANSMISSION
LICENSES.
3.
ARTICLE
4
shall
be
retitled
ACQUISITION
OF
CONTROL
AND
CHANGE
OF
KEY
INDIVIDUAL.
4.
ARTICLE
5
shall
be
retitled
AUTHORIZED
DELEGATES.
5.
ARTICLE
6
shall
be
retitled
REPORTING
AND
RECORDS.
6.
ARTICLE
7
shall
be
retitled
TIMELY
TRANSMISSION,
REFUNDS,
AND
DISCLOSURES.
7.
ARTICLE
8
shall
be
retitled
PRUDENTIAL
STANDARDS.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
675,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2023
______________________________
KIM
REYNOLDS
Governor