House Bill 25-1201 Reengrossed

A Bill for an Act

• Page 1, Line 101Concerning implementing a model act to modernize money

• Page 1, Line 102transmission.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill repeals the current "Money Transmitters Act" and replaces it with the "Money Transmission Modernization Act" (act). The new act enacts, in part, a model law developed in conjunction with the money transmitter industry.

The act reduces regulatory burden by modernizing outdated and inconsistent regulatory requirements, including:

• Clarifying the definition of "control" of a licensee and introducing a rebuttable presumption of control;
• Enabling Colorado's participation in multistate licensing initiatives;
• Codifying the agent-to-payee exemption to licensure;
• Revising prudential standards required for licensing and ongoing monitoring, such as tangible net worth and permissible investment calculations;
• Establishing an irrevocable, standby letter of credit as a permissible investment; and
• Expanding the enforcement actions available in case of nonperformance by a money transmitter.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, repeal and reenact, with amendments, article 110 of title 11 as follows:

• Page 2, Line 3ARTICLE 110

• Money Transmitters

• Page 2, Line 4PART 1

• SHORT TITLE AND LEGISLATIVE DECLARATION

• Page 2, Line 511-110-101.  Short title.The short title of this article 110 is the "Money Transmission Modernization Act".

• Page 2, Line 611-110-102.  Legislative declaration. (1)  The general

• Page 2, Line 7assembly finds and declares that the purpose of this article 110 is to:

• Page 2, Line 8(a)  Ensure states can coordinate in all areas of

• Page 2, Line 9regulation, licensing, and supervision to eliminate unnecessary

• Page 2, Line 10regulatory burden and more effectively utilize regulator resources;

• Page 2, Line 11(b)  Protect the public from financial crime;

• Page 2, Line 12(c)  Standardize the types of activities that are subject to

• Page 2, Line 13licensing or otherwise exempt from licensing; and

• Page 3, Line 1(d)  Modernize safety and soundness requirements to

• Page 3, Line 2ensure customer money is protected in an environment that supports innovative and competitive business practices.

• Page 3, Line 3PART 2

• DEFINITIONS

• Page 3, Line 411-110-201.  Definitions - rules.As used in this article 110, unless the context otherwise requires:

• Page 3, Line 5(1)  "Acting in concert" means persons knowingly acting

• Page 3, Line 6together with a common goal of jointly acquiring control of a licensee, whether or not pursuant to an express agreement.

• Page 3, Line 7(2)  "Authorized delegate" means a person a licensee

• Page 3, Line 8designates to engage in money transmission on behalf of the licensee.

• Page 3, Line 9(3)  "Average daily money transmission liability" means

• Page 3, Line 10the amount of a licensee's outstanding money transmission

• Page 3, Line 11obligations in this state at the end of each day in a given period

• Page 3, Line 12of time, added together and divided by the total number of days

• Page 3, Line 13in the given period of time. For purposes of calculating average

• Page 3, Line 14daily money transmission liability under this article 110 for any

• Page 3, Line 15licensee required to do so, the given period of time is the

• Page 3, Line 16quarters ending March 31, June 30, September 30, and December 31.

• Page 3, Line 17(4)  "Banking board" or "board" means the banking board created in section 11-102-103.

• Page 3, Line 18(5)  "Bank secrecy act" means the federal "Bank Secrecy

• Page 3, Line 19Act", 31 U.S.C. sec. 5311 et seq., as amended, and its implementing

• Page 3, Line 20regulations.

• Page 4, Line 1(6)  "Closed loop stored value" means stored value that

• Page 4, Line 2is redeemable by an issuer only for goods or services provided

• Page 4, Line 3by the issuer or its affiliate or franchisees of the issuer or its

• Page 4, Line 4affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.

• Page 4, Line 5(7)  "Commissioner" means the state bank commissioner appointed and serving pursuant to section 11-102-101 (2).

• Page 4, Line 6(8) (a) "Control" means the power to:

• Page 4, Line 7 (I)  Vote, directly or indirectly, at least twenty-five

• Page 4, Line 8percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee;

• Page 4, Line 9(II)  Elect or appoint a majority of key individuals or

• Page 4, Line 10executive officers, managers, directors, trustees, or other

• Page 4, Line 11individuals exercising managerial authority of a person in control of a licensee; or

• Page 4, Line 12(III)  Exercise, directly or indirectly, a controlling

• Page 4, Line 13influence over the management or policies of a licensee or person in control of a licensee.

• Page 4, Line 14(b)  Rebuttable presumption of control. (I)  A person is

• Page 4, Line 15presumed to exercise a controlling influence when the person

• Page 4, Line 16holds the power to vote, directly or indirectly, at least ten

• Page 4, Line 17percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.

• Page 4, Line 18(II)  A person presumed to exercise a controlling influence

• Page 4, Line 19as described in this subsection (8) may rebut the presumption of control if the person is a passive investor.

• Page 4, Line 20(c)  For purposes of determining the percentage of a person

• Page 5, Line 1controlled by any other person, the person's interest shall be

• Page 5, Line 2aggregated with the interest of any other immediate family

• Page 5, Line 3member, including the person's spouse, parents, children,

• Page 5, Line 4siblings, mothers- and fathers-in-law, sons- and

• Page 5, Line 5daughters-in-law, and brothers- and sisters-in-law and any other person who shares such person's home.

• Page 5, Line 6(9)  "Division" means the division of banking created in section 11-102-101.

• Page 5, Line 7(10)  "Eligible rating" means a credit rating of any of the

• Page 5, Line 8three highest rating categories provided by an eligible rating

• Page 5, Line 9service, whereby each category may include rating category

• Page 5, Line 10modifiers such as "plus" or "minus" for S&P Global Ratings or

• Page 5, Line 11the equivalent for any other eligible rating service. Long-term

• Page 5, Line 12credit ratings are deemed eligible if the rating is equal to "A-"

• Page 5, Line 13or higher by S&P Global Ratings or the equivalent from any

• Page 5, Line 14other eligible rating service. Short-term credit ratings are

• Page 5, Line 15deemed eligible if the rating is equal to or higher than "A-2" or

• Page 5, Line 16"SP-2" by S&P Global Ratings or the equivalent from any other

• Page 5, Line 17eligible rating service. In the event that ratings differ among

• Page 5, Line 18eligible rating services, the highest rating applies when determining whether a security bears an eligible rating.

• Page 5, Line 19(11)  "Eligible rating service" means any nationally

• Page 5, Line 20recognized statistical rating organization, or "NRSRO", as

• Page 5, Line 21defined by the United States securities and exchange

• Page 5, Line 22commission, and any other organization designated by the banking board by rule or order.

• Page 5, Line 23(12)  "Federally insured depository financial institution"

• Page 6, Line 1means a bank, credit union, savings and loan association, trust

• Page 6, Line 2company, savings association, savings bank, industrial bank, or

• Page 6, Line 3industrial loan company organized under the laws of the United

• Page 6, Line 4States or any state of the United States, when such bank, credit

• Page 6, Line 5union, savings and loan association, trust company, savings

• Page 6, Line 6association, savings bank, industrial bank, or industrial loan company has federally insured deposits.

• Page 6, Line 7(13)  "Individual" means a natural person.

• Page 6, Line 8(14) (a)  "In this state" means at a physical location within this state for a transaction requested in person.

• Page 6, Line 9(b)  For a transaction requested electronically or by

• Page 6, Line 10phone, the provider of money transmission shall determine if the

• Page 6, Line 11person requesting the transaction is "in this state" by relying on

• Page 6, Line 12other information provided by the person regarding the

• Page 6, Line 13location of the individual's residential address or a business

• Page 6, Line 14entity's principal place of business or other physical address

• Page 6, Line 15location, and any records associated with the person that the

• Page 6, Line 16provider of money transmission may have that indicate such

• Page 6, Line 17location, including but not limited to an address associated with an account.

• Page 6, Line 18(15)  "Key individual" means any individual ultimately

• Page 6, Line 19responsible for establishing or directing policies and procedures

• Page 6, Line 20of a licensee, such as an executive officer, manager, director, or trustee.

• Page 6, Line 21(16)  "Licensee" means a person licensed under this article 110.

• Page 6, Line 22(17)  "Material litigation" means litigation that,

• Page 7, Line 1according to United States generally accepted accounting

• Page 7, Line 2principles, is significant to a person's financial health and would

• Page 7, Line 3be required to be disclosed in the person's annual audited

• Page 7, Line 4financial statements or report to shareholders or similar records.

• Page 7, Line 5(18)  "Monetary value" means a medium of exchange, whether or not redeemable in money.

• Page 7, Line 6(19) (a)  "Money" means a medium of exchange that is

• Page 7, Line 7authorized or adopted by the United States or a foreign government.

• Page 7, Line 8(b)  "Money" includes a monetary unit of account

• Page 7, Line 9established by an intergovernmental organization or by agreement between two or more governments.

• Page 7, Line 10(20) (a)  "Money transmission" means any of the following:

• Page 7, Line 11(I)  Selling or issuing payment instruments to a person located in this state;

• Page 7, Line 12(II)  Selling or issuing stored value to a person located in this state; or

• Page 7, Line 13(III)  Receiving money for transmission from a person located in this state.

• Page 7, Line 14(b)  "Money transmission" includes payroll processing services.

• Page 7, Line 15(c)  "Money transmission" does not include the sole

• Page 7, Line 16provision of online or telecommunications services or network access.

• Page 7, Line 17(21)  "MSB accredited state" means a state agency that is

• Page 7, Line 18accredited by the Conference of State Bank Supervisors and the

• Page 8, Line 1Money Transmitter Regulators Association for money transmission licensing and supervision.

• Page 8, Line 2(22)  "Multistate licensing process" means any agreement

• Page 8, Line 3entered into by and among state regulators relating to

• Page 8, Line 4coordinated processing of applications for money transmission

• Page 8, Line 5licenses, applications for the acquisition of control of a

• Page 8, Line 6licensee, control determinations, or notice and information requirements for a change of key individuals.

• Page 8, Line 7(23)  "NMLS" means the Nationwide Multistate Licensing

• Page 8, Line 8System and Registry developed by the Conference of State Bank

• Page 8, Line 9Supervisors and the American Association of Residential

• Page 8, Line 10Mortgage Regulators and owned and operated by the State

• Page 8, Line 11Regulatory Registry, LLC, or any successor or affiliated

• Page 8, Line 12entity, for the licensing and registration of persons in financial services industries.

• Page 8, Line 13(24) (a)  "Outstanding money transmission obligation"

• Page 8, Line 14means, as established and extinguished in accordance with applicable state law:

• Page 8, Line 15(I)  Any payment instrument or stored value issued or sold

• Page 8, Line 16by a licensee to a person located in the United States or

• Page 8, Line 17reported as sold by an authorized delegate of the licensee to a

• Page 8, Line 18person that is located in the United States that has not yet been

• Page 8, Line 19paid or refunded by or for the licensee or escheated in accordance with applicable abandoned property laws; or

• Page 8, Line 20(II)  Any money received for transmission by a licensee or

• Page 8, Line 21an authorized delegate of the licensee in the United States from

• Page 8, Line 22a person located in the United States that has not been received

• Page 9, Line 1by the payee or refunded to the sender or escheated in accordance with applicable abandoned property laws.

• Page 9, Line 2(b)  As used in this subsection (24), "in the United States"

• Page 9, Line 3means, to the extent applicable, a person in any state, territory,

• Page 9, Line 4or possession of the United States; the District of Columbia; the

• Page 9, Line 5Commonwealth of Puerto Rico; or a United States military installation that is located in a foreign country.

• Page 9, Line 6(25)  "Passive investor" means a person that:

• Page 9, Line 7(a)  Does not have the power to elect a majority of key

• Page 9, Line 8individuals or executive officers, managers, directors, trustees,

• Page 9, Line 9or other persons exercising managerial authority of a person in control of a licensee;

• Page 9, Line 10(b)  Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;

• Page 9, Line 11(c)  Does not have the power to exercise, directly or

• Page 9, Line 12indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and

• Page 9, Line 13(d)  Either:

• Page 9, Line 14(I)  Attests to subsections (25)(a) to (25)(c) of this section

• Page 9, Line 15in a form and in a medium prescribed by the banking board by rule; or

• Page 9, Line 16(II)  Commits to the passivity characteristics of

• Page 9, Line 17subsections (25)(a) to (25)(c) of this section in a written document.

• Page 9, Line 18(26) (a)  "Payment instrument" means a written or

• Page 9, Line 19electronic check, draft, money order, traveler's check, or other

• Page 9, Line 20written or electronic instrument for the transmission or

• Page 10, Line 1payment of money or monetary value, whether or not negotiable.

• Page 10, Line 2(b)  "Payment instrument" does not include stored value or any instrument that:

• Page 10, Line 3(I)  Is redeemable by the issuer only for goods or services

• Page 10, Line 4provided by the issuer or its affiliate or franchisees of the issuer

• Page 10, Line 5or their affiliates, except to the extent required by applicable law to be redeemable in cash for its cash value; or

• Page 10, Line 6(II)  Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.

• Page 10, Line 7(27) (a)  "Payroll processing services" means receiving

• Page 10, Line 8money for transmission pursuant to a contract with a person to

• Page 10, Line 9deliver wages or salaries, make payment of payroll taxes to

• Page 10, Line 10state and federal agencies, make payments relating to employee

• Page 10, Line 11benefit plans, or make distributions of other authorized deductions from wages or salaries.

• Page 10, Line 12(b)  "Payroll processing services" does not include:

• Page 10, Line 13(I)  An employer performing payroll processing services on

• Page 10, Line 14its own behalf or on behalf of its affiliate or a professional

• Page 10, Line 15employer organization subject to regulation under other applicable state law; or

• Page 10, Line 16(II)  A person appointed as an agent of an employer for

• Page 10, Line 17purposes of providing payroll processing services for which the

• Page 10, Line 18agent would otherwise need to be licensed, so long as all of the following apply:

• Page 10, Line 19(A)  There is a written agreement between the employer

• Page 10, Line 20and the agent that directs the agent to provide payroll processing services on the employer's behalf;

• Page 11, Line 1(B)  The employer holds the agent out to employees and

• Page 11, Line 2other payees as providing payroll processing services on the employer's behalf; and

• Page 11, Line 3(C)  The employer's obligation to a payee, including an

• Page 11, Line 4employee or other party entitled to receive money via the

• Page 11, Line 5payroll processing services provided by the agent, is not extinguished if the agent fails to remit the money to the payee.

• Page 11, Line 6(28)  "Person" means any individual, general partnership,

• Page 11, Line 7limited partnership, limited liability company, corporation,

• Page 11, Line 8trust, association, joint stock corporation, or other corporate entity identified by the banking board.

• Page 11, Line 9(29)  "Receiving money for transmission" or "money

• Page 11, Line 10received for transmission" means receiving money or monetary

• Page 11, Line 11value in the United States for transmission within or outside the United States by electronic or other means.

• Page 11, Line 12(30) (a)  "Stored value" means monetary value that

• Page 11, Line 13represents a claim against the issuer evidenced by an electronic

• Page 11, Line 14or digital record and that is intended and accepted for use as a

• Page 11, Line 15means of redemption for money or monetary value or payment

• Page 11, Line 16for goods or services. "Stored value" includes but is not limited to "prepaid access" as defined by 31 CFR 1010.100.

• Page 11, Line 17(b)  Notwithstanding subsection (30)(a) of this section,

• Page 11, Line 18"stored value" does not include a payment instrument or closed

• Page 11, Line 19loop stored value or stored value not sold to the public but

• Page 11, Line 20issued and distributed as part of a loyalty, rewards, or

• Page 11, Line 21promotional program.

• Page 12, Line 1(31)  "Tangible net worth" means the aggregate assets of

• Page 12, Line 2a licensee excluding all intangible assets, less liabilities, as

• Page 12, Line 3determined in accordance with United States generally accepted accounting principles.

• Page 12, Line 4PART 3

• EXEMPTIONS

• Page 12, Line 511-110-301.  Exemptions. (1)  This article 110 does not apply to:

• Page 12, Line 6(a)  An operator of a payment system to the extent that it

• Page 12, Line 7provides processing, clearing, or settlement services, between

• Page 12, Line 8or among persons exempted by this section or licensees, in

• Page 12, Line 9connection with wire transfers, credit card transactions, debit

• Page 12, Line 10card transactions, stored-value transactions, automated clearing house transfers, or similar money transfers;

• Page 12, Line 11(b)  A person appointed as an agent of a payee to collect

• Page 12, Line 12and process a payment from a payer to the payee for goods or

• Page 12, Line 13services, other than money transmission itself, provided to the payer by the payee, so long as:

• Page 12, Line 14(I)  There exists a written agreement between the payee

• Page 12, Line 15and the agent directing the agent to collect and process payments from payers on the payee's behalf;

• Page 12, Line 16(II)  The payee holds the agent out to the public as

• Page 12, Line 17accepting payments for goods or services on the payee's behalf; and

• Page 12, Line 18(III)  Payment for the goods and services is treated as

• Page 12, Line 19received by the payee upon receipt by the agent so that the

• Page 12, Line 20payer's obligation is extinguished and there is no risk of loss to the payer if the agent fails to remit the money to the payee;

• Page 13, Line 1(c)  A person that acts as an intermediary by processing

• Page 13, Line 2payments between an entity that has directly incurred an

• Page 13, Line 3outstanding money transmission obligation to a sender, and the sender's designated recipient, if the entity:

• Page 13, Line 4(I)  Is properly licensed or exempt from licensing requirements under this article 110;

• Page 13, Line 5(II)  Provides a receipt, electronic record, or other

• Page 13, Line 6written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and

• Page 13, Line 7(III)  Bears sole responsibility to satisfy the outstanding

• Page 13, Line 8money transmission obligation to the sender, including the

• Page 13, Line 9obligation to make the sender whole in connection with any

• Page 13, Line 10failure to transmit the money to the sender's designated recipient;

• Page 13, Line 11(d)  The United States or a department, agency, or instrumentality of the United States or its agent;

• Page 13, Line 12(e)  Money transmission by the United States postal service or by an agent of the United States postal service;

• Page 13, Line 13(f)  A state, county, or city or any other governmental

• Page 13, Line 14agency or governmental subdivision or instrumentality of a state or its agent;

• Page 13, Line 15(g)  A federally insured depository financial institution;

• Page 13, Line 16bank holding company; office of an international banking

• Page 13, Line 17corporation; foreign bank that establishes a federal branch

• Page 13, Line 18pursuant to the federal "International Bank Act", 12 U.S.C. sec.

• Page 13, Line 193102, as amended; a corporation organized pursuant to the

• Page 14, Line 1federal "Bank Service Corporation Act", 12 U.S.C. secs. 1861 to

• Page 14, Line 21867, as amended; a corporation organized under the "Edge

• Page 14, Line 3Act", 12 U.S.C. secs. 611 to 633, as amended; or an entity

• Page 14, Line 4organized under the general banking, savings and loan, or

• Page 14, Line 5credit union laws of this state, another state, or the United States;

• Page 14, Line 6(h)  Electronic funds transfer of governmental benefits

• Page 14, Line 7for a federal, state, county, or governmental agency by a

• Page 14, Line 8contractor on behalf of the United States or a department,

• Page 14, Line 9agency, or instrumentality of the United States or on behalf of

• Page 14, Line 10a state or governmental subdivision, agency, or instrumentality of a state;

• Page 14, Line 11(i)  A board of trade designated as a contract market

• Page 14, Line 12under the federal "Commodity Exchange Act", 7 U.S.C. secs. 1 to

• Page 14, Line 1325, as amended, or a person that, in the ordinary course of

• Page 14, Line 14business, provides clearance and settlement services for a

• Page 14, Line 15board of trade to the extent of its operation as or for such a board;

• Page 14, Line 16(j)  A registered futures commission merchant under

• Page 14, Line 17federal commodities laws to the extent of its operation as such a merchant;

• Page 14, Line 18(k)  A person registered as a securities broker-dealer

• Page 14, Line 19under federal or state securities laws to the extent of the person's operation as such a broker-dealer;

• Page 14, Line 20(l)  An individual employed by a licensee, an authorized

• Page 14, Line 21delegate, or any person exempted from the licensing

• Page 14, Line 22requirements of this article 110 when acting within the scope of

• Page 15, Line 1employment and under the supervision of the licensee,

• Page 15, Line 2authorized delegate, or exempted person as an employee and not as an independent contractor;

• Page 15, Line 3(m)  A person expressly appointed as a third-party service

• Page 15, Line 4provider to or agent of an entity exempt under subsection (1)(g) of this section, solely to the extent that:

• Page 15, Line 5(I)  The service provider or agent is engaging in money

• Page 15, Line 6transmission on behalf of and pursuant to a written agreement

• Page 15, Line 7with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and

• Page 15, Line 8(II)  The exempt entity assumes all risk of loss and all

• Page 15, Line 9legal responsibility for satisfying the outstanding money

• Page 15, Line 10transmission obligations owed to purchasers and holders of the

• Page 15, Line 11outstanding money transmission obligations upon receipt of the

• Page 15, Line 12purchaser's or holder's money or monetary value by the service provider or agent; or

• Page 15, Line 13(n)  A person exempt by regulation or order if the banking

• Page 15, Line 14board finds an exemption to be in the public interest and that the

• Page 15, Line 15regulation of such person is not necessary for the purposes of this article 110.

• Page 15, Line 1611-110-302.  Authority to require demonstration of exemption.

• Page 15, Line 17The banking board may require that a person claiming to be

• Page 15, Line 18exempt from licensing pursuant to section 11-110-301 provide

• Page 15, Line 19information and documentation to the board demonstrating that the person qualifies for the claimed exemption.

• Page 15, Line 20PART 4

• Page 15, Line 21IMPLEMENTATION, CONFIDENTIALITY, SUPERVISION,

• AND RELATIONSHIP TO FEDERAL LAW

• Page 16, Line 111-110-401.  Implementation - rules. (1)  Powers.In order to

• Page 16, Line 2carry out the purposes of this article 110, the banking board may, subject to the provisions of section 11-110-402 (1) and (2):

• Page 16, Line 3(a)  Enter into agreements or relationships with other

• Page 16, Line 4government officials or federal and state regulatory agencies

• Page 16, Line 5and regulatory associations in order to improve efficiencies and

• Page 16, Line 6reduce regulatory burden by standardizing methods or

• Page 16, Line 7procedures and sharing resources, records, or related information obtained under this article 110;

• Page 16, Line 8(b)  Use, hire, contract, or employ analytical systems,

• Page 16, Line 9methods, or software to examine or investigate any person subject to this article 110;

• Page 16, Line 10(c)  Accept, from other state or federal governmental

• Page 16, Line 11agencies or officials, licensing, examination, or investigation

• Page 16, Line 12reports made by such other state or federal governmental agencies or officials; and

• Page 16, Line 13(d)  Accept audit reports made by an independent certified

• Page 16, Line 14public accountant or other qualified third-party auditor for an

• Page 16, Line 15applicant or licensee and incorporate the audit report in any report of examination or investigation.

• Page 16, Line 16(2)  Broad administrative authority - rules. (a)  The banking board has broad administrative authority to:

• Page 16, Line 17(I)  Administer, interpret, and enforce this article 110;

• Page 16, Line 18(II)  Adopt rules implementing this article 110, including rules to conform to applicable federal regulations;

• Page 16, Line 19(III)  Recover the cost of administering and enforcing this

• Page 17, Line 1article 110 by imposing and collecting proportionate and

• Page 17, Line 2equitable fees and costs associated with applications, examinations, and investigations; and

• Page 17, Line 3(IV)  Take other reasonable actions required to achieve the purposes of this article 110.

• Page 17, Line 4(b)  The powers, duties, and functions of the banking board

• Page 17, Line 5and the commissioner set forth in article 102 of this title 11 and

• Page 17, Line 6the declaration of policy set forth in section 11-101-102 apply to

• Page 17, Line 7this article 110. For purposes of this section and section

• Page 17, Line 811-102-104, the banking board has the same powers, duties, and

• Page 17, Line 9functions concerning a violation of this article 110, or a rule

• Page 17, Line 10adopted pursuant to this article 110, as the board has

• Page 17, Line 11concerning a violation of the "Colorado Banking Code",

• Page 17, Line 12articles 101 to 109 and article 10.5 of this title 11, or a rule adopted pursuant to that code.

• Page 17, Line 1311-110-402.  Confidentiality. (1)  Except as otherwise

• Page 17, Line 14provided in subsection (2) of this section, all information or

• Page 17, Line 15reports obtained by the banking board from an applicant,

• Page 17, Line 16licensee, or authorized delegate, and all information contained

• Page 17, Line 17in or related to an examination, investigation, operating report,

• Page 17, Line 18or condition report prepared by, on behalf of, or for the use of

• Page 17, Line 19the board, or financial statements, balance sheets, or

• Page 17, Line 20authorized delegate information, are confidential and are not

• Page 17, Line 21subject to disclosure under the "Colorado Open Records Act", part 2 of article 72 of title 24.

• Page 17, Line 22(2)  The banking board may disclose information not

• Page 17, Line 23otherwise subject to disclosure under subsection (1) of this

• Page 18, Line 1section to representatives of state or federal agencies who

• Page 18, Line 2promise in a record that they will maintain the confidentiality

• Page 18, Line 3of the information or where the board finds that the release is

• Page 18, Line 4reasonably necessary for the protection and interest of the public.

• Page 18, Line 5(3)  This section does not prohibit the banking board from

• Page 18, Line 6disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.

• Page 18, Line 7(4)  Information contained in the records of the division

• Page 18, Line 8that is not confidential and may be made available to the public

• Page 18, Line 9either on the division's website, upon receipt by the division of a written request, or in NMLS must include:

• Page 18, Line 10(a)  The name, business address, telephone number, and unique identifier of a licensee;

• Page 18, Line 11(b)  The business address of a licensee's registered agent for service;

• Page 18, Line 12(c)  The name, business address, and telephone number of all authorized delegates;

• Page 18, Line 13(d)  The terms of or a copy of any bond filed by a licensee,

• Page 18, Line 14so long as confidential information, including but not limited to prices and fees, for such bond is redacted;

• Page 18, Line 15(e)  Copies of any nonconfidential final orders of the

• Page 18, Line 16division relating to any violation of this article 110 or rules implementing this article 110; and

• Page 18, Line 17(f)  Imposition of an administrative fine or penalty under this article 110.

• Page 18, Line 1811-110-403.  Supervision. (1)  The banking board may

• Page 19, Line 1conduct an examination or investigation of a licensee or

• Page 19, Line 2authorized delegate or otherwise take independent action

• Page 19, Line 3authorized by this article 110 or by a rule adopted or order

• Page 19, Line 4issued under this article 110 as reasonably necessary or

• Page 19, Line 5appropriate to administer and enforce this article 110, rules

• Page 19, Line 6implementing this article 110, and other applicable law,

• Page 19, Line 7including the bank secrecy act and the federal "USA PATRIOT Act", Pub.L. 107-56. The banking board may:

• Page 19, Line 8(a)  Conduct an examination either on site or off site as the board may reasonably require;

• Page 19, Line 9(b)  Conduct an examination in conjunction with an

• Page 19, Line 10examination conducted by representatives of other state

• Page 19, Line 11agencies or agencies of another state or of the federal government;

• Page 19, Line 12(c)  Accept the examination report of another state

• Page 19, Line 13agency or an agency of another state or of the federal

• Page 19, Line 14government, or a report prepared by an independent accounting

• Page 19, Line 15firm, which, upon being accepted, is considered for all purposes as an official report of the board; and

• Page 19, Line 16(d)  Summon and examine under oath a key individual or

• Page 19, Line 17employee of a licensee or authorized delegate and require the

• Page 19, Line 18key individual, employee, or authorized delegate to produce

• Page 19, Line 19records regarding any matter related to the condition and business of the licensee or authorized delegate.

• Page 19, Line 20(2)  A licensee or authorized delegate shall provide, and

• Page 19, Line 21the banking board shall have full and complete access to, all

• Page 19, Line 22records the board may require to conduct a complete

• Page 20, Line 1examination. The records must be provided at the location and

• Page 20, Line 2in the format specified by the board; however, the board may

• Page 20, Line 3utilize multistate record production standards and

• Page 20, Line 4examination procedures when such standards will reasonably achieve the requirements of this subsection (2).

• Page 20, Line 5(3)  Unless otherwise directed by the banking board, a

• Page 20, Line 6licensee shall pay all costs reasonably incurred in connection

• Page 20, Line 7with an examination of the licensee or the licensee's authorized delegates.

• Page 20, Line 811-110-404.  Networked supervision. (1)  To efficiently and

• Page 20, Line 9effectively administer and enforce this article 110 and to

• Page 20, Line 10minimize regulatory burden, the banking board may participate

• Page 20, Line 11in multistate supervisory processes established between states

• Page 20, Line 12and coordinated through the Conference of State Bank

• Page 20, Line 13Supervisors, the Money Transmitter Regulators Association,

• Page 20, Line 14and affiliates and successors thereof for all licensees that

• Page 20, Line 15hold licenses in this state and other states. As a participant in multistate supervision, the banking board shall:

• Page 20, Line 16(a)  Cooperate, coordinate, and share information with

• Page 20, Line 17other state and federal regulators in accordance with section 11-110-402;

• Page 20, Line 18(b)  Enter into written cooperation, coordination, or

• Page 20, Line 19information-sharing contracts or agreements with

• Page 20, Line 20organizations, the membership of which is made up of state or federal governmental agencies; and

• Page 20, Line 21(c)  Cooperate, coordinate, and share information with

• Page 20, Line 22organizations, the membership of which is made up of state or

• Page 21, Line 1federal governmental agencies, if the organizations agree in

• Page 21, Line 2writing to maintain the confidentiality and security of the shared information in accordance with section 11-110-402.

• Page 21, Line 3(2)  The banking board does not waive, and nothing in this

• Page 21, Line 4section constitutes a waiver of, the board's authority to

• Page 21, Line 5conduct an examination or investigation or otherwise take

• Page 21, Line 6independent action authorized by this article 110 or a rule

• Page 21, Line 7adopted or order issued under this article 110 to enforce compliance with applicable state or federal law.

• Page 21, Line 8(3)  A joint examination or investigation, or acceptance of

• Page 21, Line 9an examination or investigation report, does not waive an examination assessment provided for in this article 110.

• Page 21, Line 1011-110-405.  Relationship to federal law - interpretative

• Page 21, Line 11guidance. (1)  In the event state money transmission jurisdiction

• Page 21, Line 12is conditioned on a federal law, any inconsistencies between a

• Page 21, Line 13provision of this article 110 and federal law governing money

• Page 21, Line 14transmission is governed by the applicable federal law to the extent of the inconsistency.

• Page 21, Line 15(2)  In the event of any inconsistencies between this

• Page 21, Line 16article 110 and federal law that governs money transmission

• Page 21, Line 17pursuant to subsection (1) of this section, the banking board may provide interpretive guidance that:

• Page 21, Line 18(a)  Identifies the inconsistency; and

• Page 21, Line 19(b)  Identifies the appropriate means of compliance with federal law.

• Page 21, Line 20PART 5

• Page 21, Line 21MONEY TRANSMISSION LICENSES

• Page 22, Line 111-110-501.  License required. (1)  A person shall not engage

• Page 22, Line 2in the business of money transmission or advertise, solicit, or

• Page 22, Line 3make representations that the person may provide money transmission unless the person is licensed under this article 110.

• Page 22, Line 4(2)  Subsection (1) of this section does not apply to:

• Page 22, Line 5(a)  A person that is an authorized delegate of a person

• Page 22, Line 6licensed under this article 110 acting within the scope of authority conferred by a written contract with the licensee; or

• Page 22, Line 7(b)  A person that is exempt pursuant to section 11-110-301

• Page 22, Line 8and does not engage in money transmission outside the scope of such exemption.

• Page 22, Line 911-110-502.  Consistent state licensing - rules. (1)  To establish

• Page 22, Line 10consistent licensing between Colorado and other states, the banking board may:

• Page 22, Line 11(a)  Implement all licensing provisions of this article 110

• Page 22, Line 12in a manner that is consistent with other states that have

• Page 22, Line 13adopted laws regulating money transmission that are similar to

• Page 22, Line 14the provisions of this article 110 or multistate licensing processes; and

• Page 22, Line 15(b)  Participate in nationwide protocols for licensing

• Page 22, Line 16cooperation and coordination among state regulators if such protocols are consistent with this article 110.

• Page 22, Line 17(2)  In order to fulfill the purposes of this article 110, the

• Page 22, Line 18banking board may establish relationships or contracts with

• Page 22, Line 19NMLS or other entities designated by NMLS to enable the board to:

• Page 22, Line 20(a)  Collect and maintain records;

• Page 23, Line 1(b)  Coordinate multistate licensing processes and supervision processes;

• Page 23, Line 2(c)  Process fees; and

• Page 23, Line 3(d)  Facilitate communication between Colorado and licensees or other persons subject to this article 110.

• Page 23, Line 4(3)  The banking board may utilize NMLS for all aspects of

• Page 23, Line 5licensing in accordance with this article 110, including but not

• Page 23, Line 6limited to license applications, applications for acquisitions of

• Page 23, Line 7control, surety bonds, reporting, criminal history background checks, credit checks, fee processing, and examinations.

• Page 23, Line 8(4)  The banking board may utilize NMLS forms, processes,

• Page 23, Line 9and functionalities in accordance with this article 110. In the

• Page 23, Line 10event NMLS does not provide forms, processes, or

• Page 23, Line 11functionalities for a provision of this article 110, the  board may

• Page 23, Line 12implement this article 110 in a manner that facilitates

• Page 23, Line 13uniformity with respect to licensing, supervision, reporting, and

• Page 23, Line 14regulation of licensees that are licensed in multiple jurisdictions.

• Page 23, Line 15(5)  Waive or modify requirements.For the purpose of

• Page 23, Line 16participating in NMLS, the banking board may waive or modify,

• Page 23, Line 17in whole or in part, by rule or order, any or all of the

• Page 23, Line 18requirements and establish new requirements as reasonably necessary to participate in NMLS.

• Page 23, Line 1911-110-503.  Application for license - license fee - rules. (1)  An

• Page 23, Line 20applicant for a license shall apply with the banking board in a

• Page 23, Line 21form and in a medium prescribed by the  board. The board by rule

• Page 23, Line 22or procedure shall determine the content of the application and

• Page 24, Line 1may change or update the application in accordance with

• Page 24, Line 2applicable law or to carry out the purposes of this article 110

• Page 24, Line 3and maintain consistency with NMLS licensing standards or practices. The application must state or contain, as applicable:

• Page 24, Line 4(a)  The legal name and residential and business addresses

• Page 24, Line 5of the applicant and any fictitious or trade name used by the applicant in conducting the applicant's business;

• Page 24, Line 6(b)  A list of any criminal convictions of the applicant and

• Page 24, Line 7any material litigation in which the applicant has been involved

• Page 24, Line 8in the ten-year period immediately preceding the submission of the application;

• Page 24, Line 9(c)  A description of any money transmission previously

• Page 24, Line 10provided by the applicant and the money transmission that the applicant seeks to provide in this state;

• Page 24, Line 11(d)  A list of the applicant's proposed authorized delegates

• Page 24, Line 12and the locations in this state where the applicant and the

• Page 24, Line 13applicant's authorized delegates propose to engage in money transmission;

• Page 24, Line 14(e)  A list of other states in which the applicant is licensed

• Page 24, Line 15to engage in money transmission and any license revocations,

• Page 24, Line 16suspensions, or other disciplinary action taken against the applicant in another state;

• Page 24, Line 17(f)  Information concerning any bankruptcy or

• Page 24, Line 18receivership proceedings affecting the applicant or a person in control of an applicant;

• Page 24, Line 19(g)  A sample form of contract for authorized delegates,

• Page 24, Line 20if applicable;

• Page 25, Line 1(h)  A sample form of payment instrument or stored value, as applicable;

• Page 25, Line 2(i)  The name and address of any federally insured

• Page 25, Line 3depository financial institution through which the applicant plans to conduct money transmission; and

• Page 25, Line 4(j)  Any other information the board or NMLS reasonably requires with respect to the applicant.

• Page 25, Line 5(2)  If an applicant is a corporation, limited liability

• Page 25, Line 6company, partnership, or other legal entity, the applicant shall also provide:

• Page 25, Line 7(a)  The date of the applicant's incorporation or formation and state or country of incorporation or formation;

• Page 25, Line 8(b)  If applicable, a certificate of good standing from the

• Page 25, Line 9state or country in which the applicant is incorporated or formed;

• Page 25, Line 10(c)  A brief description of the structure or organization of

• Page 25, Line 11the applicant, including any parents or subsidiaries of the

• Page 25, Line 12applicant, and whether any parents or subsidiaries are publicly traded;

• Page 25, Line 13(d)  The legal name, any fictitious or trade name, all

• Page 25, Line 14business and residential addresses, and the employment, as

• Page 25, Line 15applicable, in the ten-year period immediately preceding the

• Page 25, Line 16submission of the application of each key individual and person in control of the applicant;

• Page 25, Line 17(e)  A list of any criminal convictions and material

• Page 25, Line 18litigation in which a person in control of the applicant that is

• Page 25, Line 19not an individual has been involved in the ten-year period immediately preceding the submission of the application;

• Page 26, Line 1(f)  A copy of audited financial statements of the applicant

• Page 26, Line 2for the most recent fiscal year and for the two-year period

• Page 26, Line 3immediately preceding the submission of the application or, if

• Page 26, Line 4determined to be acceptable to the banking board, certified

• Page 26, Line 5unaudited financial statements for the most recent fiscal year or other period acceptable to the board;

• Page 26, Line 6(g)  A certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;

• Page 26, Line 7(h)  If the applicant is a publicly traded corporation, a

• Page 26, Line 8copy of the most recent report filed with the United States

• Page 26, Line 9securities and exchange commission under section 13 of the

• Page 26, Line 10federal "Securities Exchange Act of 1934", 15 U.S.C. sec. 78m, as amended;

• Page 26, Line 11(i)  If the applicant is a wholly owned subsidiary of:

• Page 26, Line 12(I)  A corporation publicly traded in the United States, a

• Page 26, Line 13copy of audited financial statements for the parent corporation

• Page 26, Line 14for the most recent fiscal year or a copy of the parent

• Page 26, Line 15corporation's most recent report filed under section 13 of the

• Page 26, Line 16federal "Securities Exchange Act of 1934", 15 U.S.C. sec. 78m, as amended; or

• Page 26, Line 17(II)  A corporation publicly traded outside the United

• Page 26, Line 18States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;

• Page 26, Line 19(j)  The name and address of the applicant's registered agent in this state; and

• Page 26, Line 20(k)  Any other information the banking board reasonably requires with respect to the applicant.

• Page 27, Line 1(3)  An applicant must submit a nonrefundable license fee,

• Page 27, Line 2as determined by the banking board, with the application for a license.

• Page 27, Line 3(4)  The banking board may waive one or more

• Page 27, Line 4requirements of subsection (1) or (2) of this section or permit an

• Page 27, Line 5applicant to submit other information in lieu of the required information.

• Page 27, Line 611-110-504.  Information requirements for certain individuals

• Page 27, Line 7- background check - name-based judicial record check. (1)  An

• Page 27, Line 8individual in control of a licensee or applicant, an individual

• Page 27, Line 9that seeks to acquire control of a licensee, and each key

• Page 27, Line 10individual shall furnish to the banking board through NMLS the following items:

• Page 27, Line 11(a)  The individual's fingerprints for submission to the

• Page 27, Line 12federal bureau of investigation and the board for purposes of a

• Page 27, Line 13national criminal history background check unless the person

• Page 27, Line 14currently resides outside of the United States and has resided outside of the United States for the last ten years; and

• Page 27, Line 15(b)  Personal history and experience in a form and in a medium prescribed by the board to obtain the following:

• Page 27, Line 16(I)  Information related to any criminal convictions or pending charges; and

• Page 27, Line 17(II)  Information related to any regulatory or

• Page 27, Line 18administrative action and any civil litigation involving claims

• Page 27, Line 19of fraud, misrepresentation, conversion, mismanagement of

• Page 27, Line 20money, breach of fiduciary duty, or breach of contract.

• Page 28, Line 1(2)  If the individual described in subsection (1) of this

• Page 28, Line 2section has resided outside of the United States at any time in

• Page 28, Line 3the last ten years, the individual shall also provide to the

• Page 28, Line 4banking board an investigative background report prepared by

• Page 28, Line 5an independent search firm that meets the following requirements:

• Page 28, Line 6(a)  At a minimum, the search firm shall:

• Page 28, Line 7(I)  Demonstrate that it has sufficient knowledge and

• Page 28, Line 8resources and employs accepted and reasonable methodologies to conduct the research of the background report; and

• Page 28, Line 9(II)  Not be affiliated with or have an interest with the individual it is researching.

• Page 28, Line 10(b)  At a minimum, the investigative background report

• Page 28, Line 11must be written in the English language and must contain the following:

• Page 28, Line 12(I)  Criminal records information for the past ten years,

• Page 28, Line 13including but not limited to felonies, misdemeanors, or similar

• Page 28, Line 14convictions for violations of law in the countries, provinces,

• Page 28, Line 15states, cities, towns, and contiguous areas where the individual resided and worked;

• Page 28, Line 16(II)  Employment history;

• Page 28, Line 17(III)  Media history, including an electronic search of

• Page 28, Line 18national and local publications, wire services, and business applications; and

• Page 28, Line 19(IV)  Financial services-related regulatory history,

• Page 28, Line 20including but not limited to money transmission, securities,

• Page 28, Line 21banking, insurance, and mortgage-related industries.

• Page 29, Line 1(3)  When the results of a criminal history record check

• Page 29, Line 2performed pursuant to this section reveal a record of arrest

• Page 29, Line 3without a disposition, the board shall require the individual to

• Page 29, Line 4submit to and pay the required cost for a name-based judicial record check, as defined in section 22-2-119.3 (6)(d).

• Page 29, Line 511-110-505.  Issuance of license - investigation of financial

• Page 29, Line 6condition - initial license term - denial - appeal. (1)  When an

• Page 29, Line 7application for an original license appears to include all the

• Page 29, Line 8items and addresses all of the matters that are required

• Page 29, Line 9pursuant to this article 110, the application is complete, and the

• Page 29, Line 10banking board shall promptly notify the applicant in a record

• Page 29, Line 11of the date on which the application is determined to be complete and the date of scheduled action by the board.

• Page 29, Line 12(2)  A determination by the banking board that an

• Page 29, Line 13application is complete and is accepted for processing means

• Page 29, Line 14only that the application, on its face, appears to include all of

• Page 29, Line 15the items, including the criminal background check response

• Page 29, Line 16from the federal bureau of investigation and the results of a

• Page 29, Line 17name-based judicial record check, if applicable, and addresses

• Page 29, Line 18all of the matters that are required pursuant to this article

• Page 29, Line 19110, and the determination is not an assessment of the substance

• Page 29, Line 20of the application or of the sufficiency of the information provided.

• Page 29, Line 21(3)  When an application is filed and considered complete

• Page 29, Line 22under this section, the banking board shall investigate the

• Page 29, Line 23applicant's financial condition and responsibility, financial and

• Page 29, Line 24business experience, competence, character, and general fitness.

• Page 30, Line 1The board may conduct an on-site investigation of the applicant,

• Page 30, Line 2with the applicant paying the reasonable cost of the

• Page 30, Line 3investigation. The board shall issue a license to an applicant

• Page 30, Line 4under this section if the board finds that all of the following conditions have been fulfilled:

• Page 30, Line 5(a)  The applicant has complied with sections 11-110-503 and 11-110-504; and

• Page 30, Line 6(b)  The financial condition and responsibility, financial

• Page 30, Line 7and business experience, competence, character, and general

• Page 30, Line 8fitness of the applicant, and the competence, experience,

• Page 30, Line 9character, and general fitness of the key individuals and

• Page 30, Line 10persons in control of the applicant, indicate that it is in the

• Page 30, Line 11interest of the public to permit the applicant to engage in money transmission.

• Page 30, Line 12(4)  If an applicant uses or is otherwise subject to a multistate licensing process:

• Page 30, Line 13(a)  The banking board may accept the investigation

• Page 30, Line 14results of a lead investigative state for the purpose of

• Page 30, Line 15subsection (3) of this section if the lead investigative state has sufficient staffing, expertise, and minimum standards; or

• Page 30, Line 16(b)  If Colorado is a lead investigative state, the banking

• Page 30, Line 17board may investigate the applicant pursuant to subsection (3)

• Page 30, Line 18of this section and the time frames established by agreement through the multistate licensing process.

• Page 30, Line 19(5)  The banking board shall issue a formal written notice

• Page 30, Line 20of the denial of a license application within thirty days after

• Page 30, Line 21the decision to deny the application. The board shall set forth

• Page 31, Line 1in the notice of denial the specific reasons for the denial of the

• Page 31, Line 2application. An applicant whose application is denied by the

• Page 31, Line 3board under this subsection (5) may appeal within thirty days

• Page 31, Line 4after receipt of the written notice of the denial pursuant to state administrative law procedures.

• Page 31, Line 5(6)  The initial license term begins on the day the license

• Page 31, Line 6is issued. The license expires on December 31 of the year in which

• Page 31, Line 7the license term began; except that, if the initial license date is

• Page 31, Line 8between November 1 and December 31, the initial license term runs through December 31 of the following year.

• Page 31, Line 9(7)  A license issued under this section is not transferable or assignable.

• Page 31, Line 1011-110-506.  Renewal of license - annual fee - renewal report.

• Page 31, Line 11(1) (a)  A license issued under this article 110 shall be renewed annually.

• Page 31, Line 12(b)  Not more than sixty days before the license

• Page 31, Line 13expiration, a licensee shall pay an annual license fee to the banking board, as established by the banking board.

• Page 31, Line 14(c)  The renewal term is for a period of one year and begins

• Page 31, Line 15on January 1 of each year after the initial license term and expires on December 31 of the year the renewal term begins.

• Page 31, Line 16(2)  A licensee shall submit a renewal report with the

• Page 31, Line 17annual fee to the banking board, in a form and in a medium

• Page 31, Line 18prescribed by the board by rule. The renewal report must state

• Page 31, Line 19or contain a description of each material change in information

• Page 31, Line 20submitted by the licensee in its original license application that

• Page 31, Line 21has not been reported to the board.

• Page 32, Line 1(3)  The banking board may grant an extension of the renewal date for good cause.

• Page 32, Line 2(4)  The banking board may utilize NMLS to process license

• Page 32, Line 3renewals if the functionality is consistent with the requirements of this section.

• Page 32, Line 411-110-507.  Maintenance of license - suspension and

• Page 32, Line 5revocation. (1)  If a licensee does not continue to meet the

• Page 32, Line 6qualifications or satisfy the requirements for an applicant for

• Page 32, Line 7a new money transmission license described in this article 110,

• Page 32, Line 8the banking board may suspend or revoke the licensee's license

• Page 32, Line 9in accordance with the procedures established by this article

• Page 32, Line 10110 or other applicable state law for such suspension or revocation.

• Page 32, Line 11(2)  An applicant for a money transmission license shall

• Page 32, Line 12demonstrate that the applicant meets or will meet, and a

• Page 32, Line 13licensee shall at all times meet, the requirements in sections 11-110-1001, 11-110-1002, and 11-110-1003.

• Page 32, Line 14PART 6

• ACQUISITION OF CONTROL AND CHANGE

• Page 32, Line 15OF KEY INDIVIDUAL

• Page 32, Line 1611-110-601.  Acquisition of control - application - fee -

• Page 32, Line 17investigation of financial condition - denial - appeal - exemptions.

• Page 32, Line 18(1)  A person, or group of persons acting in concert, seeking to

• Page 32, Line 19acquire control of a licensee shall obtain the written approval

• Page 32, Line 20of the banking board prior to acquiring control. An individual

• Page 32, Line 21is not deemed to acquire control of a licensee and is not subject

• Page 32, Line 22to this section if that individual becomes a key individual in the ordinary course of business.

• Page 33, Line 1(2)  A person, or group of persons acting in concert,

• Page 33, Line 2seeking to acquire control of a licensee shall, in cooperation with the licensee:

• Page 33, Line 3(a)  Submit an application in a form and in a medium prescribed by the banking board by rule; and

• Page 33, Line 4(b)  Submit with the request for approval a nonrefundable fee established by the banking board.

• Page 33, Line 5(3)  Upon request, the banking board may permit a licensee

• Page 33, Line 6or a person, or group of persons acting in concert, to submit

• Page 33, Line 7some or all information required by the board pursuant to subsection (2)(a) of this section without using NMLS.

• Page 33, Line 8(4)  The application required by subsection (2)(a) of this

• Page 33, Line 9section must include information required by section 11-110-504

• Page 33, Line 10for new key individuals that have not previously completed the requirements of section 11-110-504 for a licensee.

• Page 33, Line 11(5)  When an application for acquisition of control

• Page 33, Line 12submitted under this section appears to include all the items and

• Page 33, Line 13address all of the matters that are required, the application is

• Page 33, Line 14considered complete, and the banking board shall promptly

• Page 33, Line 15notify the applicant in a record of the date on which the

• Page 33, Line 16application was determined to be complete and approve or deny the application within sixty days after the completion date.

• Page 33, Line 17(6)  When an application is filed and considered complete

• Page 33, Line 18pursuant to subsection (5) of this section, the banking board

• Page 33, Line 19shall investigate the financial condition and responsibility,

• Page 33, Line 20financial and business experience, competence, character, and

• Page 34, Line 1general fitness of the person, or group of persons acting in

• Page 34, Line 2concert, seeking to acquire control. The board shall approve an

• Page 34, Line 3acquisition of control pursuant to this section if the board finds that all of the following conditions have been fulfilled:

• Page 34, Line 4(a)  The requirements of subsections (2) and (4) of this section have been met, as applicable; and

• Page 34, Line 5(b)  The financial condition and responsibility, financial

• Page 34, Line 6and business experience, competence, character, and general

• Page 34, Line 7fitness of the person, or group of persons acting in concert,

• Page 34, Line 8seeking to acquire control, and the competence, experience,

• Page 34, Line 9character, and general fitness of the key individuals and

• Page 34, Line 10persons that would be in control of the licensee after the

• Page 34, Line 11acquisition of control, indicate that it is in the interest of the

• Page 34, Line 12public to permit the person, or group of persons acting in concert, to control the licensee.

• Page 34, Line 13(7)  If an applicant uses or is otherwise subject to a multistate licensing process:

• Page 34, Line 14(a)  The banking board may accept the investigation

• Page 34, Line 15results of a lead investigative state for the purpose of

• Page 34, Line 16subsection (6) of this section if the lead investigative state has sufficient staffing, expertise, and minimum standards; or

• Page 34, Line 17(b)  If Colorado is a lead investigative state, the banking

• Page 34, Line 18board may investigate the applicant pursuant to subsection (6)

• Page 34, Line 19of this section and the time frames established by agreement through the multistate licensing process.

• Page 34, Line 20(8)  The banking board shall issue a formal written notice

• Page 34, Line 21of the denial of an application to acquire control within thirty

• Page 35, Line 1days after the decision to deny the application. The board shall

• Page 35, Line 2set forth in the notice of denial the specific reasons for the

• Page 35, Line 3denial of the application. An applicant whose application is

• Page 35, Line 4denied by the board under this subsection (8) may appeal within

• Page 35, Line 5thirty days after receipt of the written notice of the denial pursuant to state administrative law procedures.

• Page 35, Line 6(9)  The requirements of subsections (1) and (2) of this section do not apply to any of the following:

• Page 35, Line 7(a)  A person that acts as a proxy for the sole purpose of

• Page 35, Line 8voting at a designated meeting of the shareholders or holders

• Page 35, Line 9of voting shares or voting interests of a licensee or a person in control of a licensee;

• Page 35, Line 10(b)  A person that acquires control of a licensee by devise or descent;

• Page 35, Line 11(c)  A person that acquires control of a licensee as a

• Page 35, Line 12personal representative, custodian, guardian, conservator, or

• Page 35, Line 13trustee or as an officer appointed by a court of competent jurisdiction or by operation of law;

• Page 35, Line 14(d)  A person that is exempt under section 11-110-301 (1)(g);

• Page 35, Line 15(e)  A person that the banking board determines is not

• Page 35, Line 16subject to subsection (1) of this section based on the public interest;

• Page 35, Line 17(f)  A public offering of securities of a licensee or a person in control of a licensee; or

• Page 35, Line 18(g)  An internal reorganization of a person in control of

• Page 35, Line 19a licensee where the ultimate person in control of the licensee

• Page 35, Line 20remains the same.

• Page 36, Line 1(10)  Persons described in subsections (9)(b), (9)(c), (9)(d),

• Page 36, Line 2(9)(f), and (9)(g) of this section shall, in cooperation with the

• Page 36, Line 3licensee, notify the banking board within fifteen days after the acquisition of control.

• Page 36, Line 4(11)  Streamlined acquisition of control. (a)  The requirements

• Page 36, Line 5of subsections (1) and (2) of this section do not apply to a person

• Page 36, Line 6that has complied with and received approval to engage in

• Page 36, Line 7money transmission under this article 110 or was identified as a

• Page 36, Line 8person in control in a prior application filed with and approved

• Page 36, Line 9by the banking board or by an MSB accredited state pursuant to a multistate licensing process, so long as:

• Page 36, Line 10(I)  The person has not had a license revoked or suspended

• Page 36, Line 11or controlled a licensee that has had a license revoked or

• Page 36, Line 12suspended while the person was in control of the licensee in the previous five years;

• Page 36, Line 13(II)  If the person is a licensee, the person is well managed

• Page 36, Line 14and has received at least a satisfactory rating for compliance

• Page 36, Line 15at the person's most recent examination by an MSB accredited state if such rating was given;

• Page 36, Line 16(III)  The licensee to be acquired is projected to meet the

• Page 36, Line 17requirements of sections 11-110-1001, 11-110-1002, and

• Page 36, Line 1811-110-1003 after the acquisition of control is completed, and,

• Page 36, Line 19if the person acquiring control is a licensee, that licensee is also

• Page 36, Line 20projected to meet the requirements of sections 11-110-1001,

• Page 36, Line 2111-110-1002, and 11-110-1003 after the acquisition of control is completed;

• Page 36, Line 22(IV)  The licensee to be acquired will not implement any

• Page 37, Line 1material changes to its business plan as a result of the

• Page 37, Line 2acquisition of control, and, if the person acquiring control is a

• Page 37, Line 3licensee, that licensee also will not implement any material

• Page 37, Line 4changes to its business plan as a result of the acquisition of control; and

• Page 37, Line 5(V)  The person provides notice of the acquisition in

• Page 37, Line 6cooperation with the licensee and attests to the conditions

• Page 37, Line 7specified in subsections (11)(a)(I) to (11)(a)(IV) of this section in a form and in a medium prescribed by the board by rule.

• Page 37, Line 8(b)  If the notice is not disapproved within thirty days

• Page 37, Line 9after the date on which the notice was determined to be complete, the notice is deemed approved.

• Page 37, Line 10(12)  Before filing an application for approval to acquire

• Page 37, Line 11control of a licensee, a person may request in writing a

• Page 37, Line 12determination from the banking board as to whether the person

• Page 37, Line 13would be considered a person in control of a licensee upon

• Page 37, Line 14consummation of a proposed transaction. If the board

• Page 37, Line 15determines that the person would not be a person in control of

• Page 37, Line 16a licensee, the proposed person and transaction is not subject to the requirements of subsections (1) and (2) of this section.

• Page 37, Line 17(13)  If a multistate licensing process includes a

• Page 37, Line 18determination made pursuant to subsection (12) of this section

• Page 37, Line 19and an applicant uses or is otherwise subject to the multistate licensing process:

• Page 37, Line 20(a)  The banking board is authorized and encouraged to

• Page 37, Line 21accept the control determination of a lead investigative state

• Page 37, Line 22with sufficient staffing, expertise, and minimum standards for the purpose of this subsection (13); or

• Page 38, Line 1(b)  If the state is a lead investigative state, the banking

• Page 38, Line 2board is authorized and encouraged to investigate the applicant

• Page 38, Line 3pursuant to this subsection (13) and the time frames established by agreement through the multistate licensing process.

• Page 38, Line 411-110-602.  Notice and information requirements for a change

• Page 38, Line 5of key individuals.A licensee adding or replacing a key individual

• Page 38, Line 6shall provide notice to the banking board in a manner prescribed

• Page 38, Line 7by the board by rule within fifteen days after the effective date of the key individual's appointment.

• Page 38, Line 8PART 7

• REPORTING AND RECORDS

• Page 38, Line 911-110-701.  Report of condition. (1)  Each licensee shall

• Page 38, Line 10submit a report of condition to the banking board within

• Page 38, Line 11forty-five days after the end of a calendar quarter or within any extended time as the board by rule may prescribe.

• Page 38, Line 12(2)  The report of condition must include:

• (a)  Financial information at the licensee level;

• Page 38, Line 13(b)  Nationwide and state-specific money transmission

• Page 38, Line 14transaction information in every jurisdiction in the United

• Page 38, Line 15States where the licensee is licensed to engage in money transmission;

• Page 38, Line 16(c)  A permissible investments report;

• Page 38, Line 17(d)  Transaction destination country reporting for money received for transmission, if applicable; and

• Page 38, Line 18(e)  Any other information the banking board reasonably

• Page 38, Line 19requires with respect to the licensee.

• Page 39, Line 1(3)  The information required by subsection (2)(d) of this

• Page 39, Line 2section shall only be included in a report of condition submitted

• Page 39, Line 3within forty-five days after the end of the fourth calendar quarter.

• Page 39, Line 411-110-702.  Audited financials. (1)  Each licensee shall,

• Page 39, Line 5within ninety days after the end of each fiscal year, or within

• Page 39, Line 6any extended time as the banking board by rule may prescribe, file with the board:

• Page 39, Line 7(a)  An audited financial statement of the licensee for the

• Page 39, Line 8fiscal year prepared in accordance with United States generally accepted accounting principles; and

• Page 39, Line 9(b)  Any other information that the board may reasonably require.

• Page 39, Line 10(2)  The audited financial statements shall be prepared by

• Page 39, Line 11an independent certified public accountant or independent public accountant who is satisfactory to the banking board.

• Page 39, Line 12(3)  The audited financial statements must include or be

• Page 39, Line 13accompanied by a certificate of opinion of the independent

• Page 39, Line 14certified public accountant or independent public accountant

• Page 39, Line 15that is satisfactory in form and content to the banking board.

• Page 39, Line 16If the certificate or opinion is qualified, the board may order the

• Page 39, Line 17licensee to take any action that the board may find necessary

• Page 39, Line 18to enable the independent certified public accountant or independent public accountant to remove the qualification.

• Page 39, Line 1911-110-703.  Authorized delegate reporting. (1)  Each licensee

• Page 39, Line 20shall submit a report of authorized delegates to the banking

• Page 39, Line 21board within forty-five days after the end of a calendar

• Page 40, Line 1quarter. The board is authorized and encouraged to utilize

• Page 40, Line 2NMLS for the submission of the report required by this section

• Page 40, Line 3if the functionality is consistent with the requirements of this section.

• Page 40, Line 4(2)  The authorized delegate report must include, at a

• Page 40, Line 5minimum, the following information for each authorized delegate:

• Page 40, Line 6(a)  Company legal name;

• (b)  Taxpayer employer identification number;

• Page 40, Line 7(c)  Principal provider identifier;

• (d)  Physical address;

• Page 40, Line 8(e)  Mailing address;

• (f)  Business conducted in other states, if any;

• Page 40, Line 9(g)  Fictitious or trade names, if any;

• (h)  Contact person name, phone number, and email;

• Page 40, Line 10(i)  Start date as licensee's authorized delegate;

• Page 40, Line 11(j)  End date acting as licensee's authorized delegate, if applicable; and

• Page 40, Line 12(k)  Other information the banking board reasonably requires with respect to the authorized delegate.

• Page 40, Line 1311-110-704.  Reports of certain events. (1)  A licensee shall

• Page 40, Line 14file a report with the banking board within one business day

• Page 40, Line 15after the licensee has reason to know of the occurrence of any of the following events:

• Page 40, Line 16(a)  The filing of a petition by or against the licensee under

• Page 40, Line 17the United States bankruptcy code, 11 U.S.C. secs. 101 to 110, as

• Page 40, Line 18amended, for bankruptcy or reorganization;

• Page 41, Line 1(b)  The filing of a petition by or against the licensee for

• Page 41, Line 2receivership, the commencement of any other judicial or

• Page 41, Line 3administrative proceeding for the licensee's dissolution or

• Page 41, Line 4reorganization, or the making of a general assignment for the benefit of the licensee's creditors; or

• Page 41, Line 5(c)  The commencement of a proceeding to revoke or

• Page 41, Line 6suspend the licensee's license in a state or country in which the licensee engages in business or is licensed.

• Page 41, Line 7(2)  A licensee shall file a report with the banking board

• Page 41, Line 8within three business days after the licensee has reason to know of the occurrence of any of the following events:

• Page 41, Line 9(a)  A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony; or

• Page 41, Line 10(b)  A charge or conviction of an authorized delegate for a felony.

• Page 41, Line 1111-110-705.  Bank secrecy act reports.A licensee and an

• Page 41, Line 12authorized delegate shall file all reports required by federal

• Page 41, Line 13currency reporting, record-keeping, and suspicious activity

• Page 41, Line 14reporting requirements as set forth in the bank secrecy act and

• Page 41, Line 15other federal and state laws pertaining to money laundering.

• Page 41, Line 16The timely filing of a complete and accurate report required

• Page 41, Line 17under this section with the appropriate federal agency is deemed compliant with the requirements of this section.

• Page 41, Line 1811-110-706.  Records - rules. (1)  A licensee shall maintain

• Page 41, Line 19the following records for determining the licensee's compliance

• Page 41, Line 20with this article 110 for at least three years after the creation

• Page 41, Line 21of the record:

• Page 42, Line 1(a)  A record of each outstanding money transmission obligation sold;

• Page 42, Line 2(b)  A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;

• Page 42, Line 3(c)  Bank statements and bank reconciliation records;

• Page 42, Line 4(d)  Records of outstanding money transmission obligations;

• Page 42, Line 5(e)  Records of each outstanding money transmission obligation paid within the three-year period;

• Page 42, Line 6(f)  A list of the last-known names and addresses of all of the licensee's authorized delegates; and

• Page 42, Line 7(g)  Any other records the banking board by rule reasonably requires.

• Page 42, Line 8(2)  The items specified in subsection (1) of this section may be maintained in any form of record.

• Page 42, Line 9(3)  Records specified in subsection (1) of this section may

• Page 42, Line 10be maintained outside this state if they are made accessible to

• Page 42, Line 11the banking board with ten business days' notice that is sent in a record.

• Page 42, Line 12(4)  All records maintained by the licensee as required in

• Page 42, Line 13subsections (1) to (3) of this section are open to inspection by the banking board pursuant to section 11-110-403 (1).

• Page 42, Line 14PART 8

• AUTHORIZED DELEGATES

• Page 42, Line 1511-110-801.  Relationship between licensee and authorized

• Page 42, Line 16delegate - written policies and procedures required - background

• Page 42, Line 17investigation - definition. (1)  As used in this section, "remit" means

• Page 43, Line 1to make direct payments of money to a licensee or the licensee's

• Page 43, Line 2representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.

• Page 43, Line 3(2)  Before a licensee is authorized to conduct business

• Page 43, Line 4through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee shall:

• Page 43, Line 5(a)  Adopt, and update as necessary, written policies and

• Page 43, Line 6procedures reasonably designed to ensure that the licensee's

• Page 43, Line 7authorized delegates comply with applicable state and federal law;

• Page 43, Line 8(b)  Enter into a written contract that complies with subsection (4) of this section; and

• Page 43, Line 9(c)  Conduct a reasonable risk-based background

• Page 43, Line 10investigation sufficient for the licensee to determine whether

• Page 43, Line 11the authorized delegate has complied and will likely comply with applicable state and federal law.

• Page 43, Line 12(3)  An authorized delegate must operate in full compliance with this article 110.

• Page 43, Line 13(4)  The written contract required by subsection (2)(b) of this section must:

• Page 43, Line 14(a)  Be signed by the licensee and the authorized delegate

• Page 43, Line 15and, at a minimum, must appoint the person signing the contract

• Page 43, Line 16as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee;

• Page 43, Line 17(b)  Set forth the nature and scope of the relationship

• Page 43, Line 18between the licensee and the authorized delegate and the

• Page 43, Line 19respective rights and responsibilities of the parties;

• Page 44, Line 1(c)  Require the authorized delegate to agree to fully

• Page 44, Line 2comply with all applicable state and federal laws, rules, and

• Page 44, Line 3regulations pertaining to money transmission, including this

• Page 44, Line 4article 110 and rules implementing this article 110 and relevant

• Page 44, Line 5provisions of the bank secrecy act and the federal "USA PATRIOT Act", Pub.L. 107-56;

• Page 44, Line 6(d)  Require the authorized delegate to remit and handle

• Page 44, Line 7money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;

• Page 44, Line 8(e)  Impose a trust on money and monetary value net of

• Page 44, Line 9fees received for money transmission for the benefit of the licensee;

• Page 44, Line 10(f)  Require the authorized delegate to prepare and

• Page 44, Line 11maintain records as required by this article 110 or rules

• Page 44, Line 12implementing this article 110 or as reasonably requested by the banking board;

• Page 44, Line 13(g)  Acknowledge that the authorized delegate consents to examination or investigation by the banking board;

• Page 44, Line 14(h)  State that the licensee is subject to regulation by the

• Page 44, Line 15banking board and that, as part of that regulation, the board

• Page 44, Line 16may suspend or revoke an authorized delegate designation or

• Page 44, Line 17require the licensee to terminate an authorized delegate designation; and

• Page 44, Line 18(i)  Acknowledge receipt of the written policies and procedures required under subsection (2)(a) of this section.

• Page 44, Line 19(5)  If the licensee's license is suspended, revoked,

• Page 44, Line 20surrendered, or expired, the licensee must, within five business

• Page 45, Line 1days, provide documentation to the banking board that the

• Page 45, Line 2licensee has notified all applicable authorized delegates of the

• Page 45, Line 3licensee whose names are in a record filed with the board of the

• Page 45, Line 4suspension, revocation, surrender, or expiration of a license.

• Page 45, Line 5Upon suspension, revocation, surrender, or expiration of a

• Page 45, Line 6license, applicable authorized delegates shall immediately

• Page 45, Line 7cease to provide money transmission as an authorized delegate of the licensee.

• Page 45, Line 8(6)  An authorized delegate of a licensee holds in trust for

• Page 45, Line 9the benefit of the licensee all money net of fees received from

• Page 45, Line 10money transmission. If an authorized delegate commingles any

• Page 45, Line 11money received from money transmission with any other money

• Page 45, Line 12or property owned or controlled by the authorized delegate,

• Page 45, Line 13all commingled money and other property shall be considered

• Page 45, Line 14held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.

• Page 45, Line 15(7)  An authorized delegate shall not use a subdelegate to conduct money transmission on behalf of a licensee.

• Page 45, Line 1611-110-802.  Unauthorized activities - joint and several

• Page 45, Line 17liability.A person shall not engage in the business of money

• Page 45, Line 18transmission on behalf of a person not licensed under this

• Page 45, Line 19article 110 or not exempt pursuant to part 3 of this article 110.

• Page 45, Line 20A person that engages in such activity provides money

• Page 45, Line 21transmission to the same extent as if the person were a licensee

• Page 45, Line 22and shall be jointly and severally liable with the unlicensed or nonexempt person.

• Page 45, Line 23PART 9

• TIMELY TRANSMISSION, REFUNDS, AND DISCLOSURES

• Page 46, Line 111-110-901.  Timely transmission. (1)  Every licensee shall

• Page 46, Line 2forward all money received for transmission in accordance

• Page 46, Line 3with the terms of the agreement between the licensee and the

• Page 46, Line 4sender unless the licensee has a reasonable belief or a

• Page 46, Line 5reasonable basis to believe that the sender may be a victim of

• Page 46, Line 6fraud or that a crime or violation of a law, rule, or regulation has occurred, is occurring, or may occur.

• Page 46, Line 7(2)  If a licensee fails to forward money received for

• Page 46, Line 8transmission in accordance with this section, the licensee must

• Page 46, Line 9respond to inquiries by the sender with the reason for the

• Page 46, Line 10failure unless providing a response would violate a state or federal law, rule, or regulation.

• Page 46, Line 1111-110-902.  Refunds. (1)  This section does not apply to:

• Page 46, Line 12(a)  Money received for transmission subject to the federal remittance rule, 12 CFR 1005, subpart B; or

• Page 46, Line 13(b)  Money received for transmission pursuant to a

• Page 46, Line 14written agreement between the licensee and payee to process payments for goods or services provided by the payee.

• Page 46, Line 15(2)  Every licensee shall refund to the sender within ten

• Page 46, Line 16days after receipt of the sender's written request for a refund

• Page 46, Line 17any and all money received for transmission unless any of the following occurs:

• Page 46, Line 18(a)  The money has been forwarded within ten days after the date on which the money was received for transmission;

• Page 46, Line 19(b)  Instructions have been given committing an equivalent

• Page 46, Line 20amount of money to the person designated by the sender within

• Page 47, Line 1ten days after the date on which the money was received for transmission;

• Page 47, Line 2(c)  The agreement between the licensee and the sender

• Page 47, Line 3instructs the licensee to forward the money at a time that is

• Page 47, Line 4beyond ten days after the date on which the money was received

• Page 47, Line 5for transmission. If money has not yet been forwarded in

• Page 47, Line 6accordance with the terms of the agreement between the

• Page 47, Line 7licensee and the sender, the licensee shall issue a refund in accordance with the other provisions of this section.

• Page 47, Line 8(d)  The refund is requested for a transaction that the

• Page 47, Line 9licensee has not completed based on a reasonable belief or a

• Page 47, Line 10reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur; or

• Page 47, Line 11(e)  The refund request does not enable the licensee to:

• Page 47, Line 12(I)  Identify the sender's name and address or telephone number; or

• Page 47, Line 13(II)  Identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.

• Page 47, Line 1411-110-903.  Receipts - definition. (1)  This section does not apply to:

• Page 47, Line 15(a)  Money received for transmission subject to the federal remittance rule, 12 CFR 1005, subpart B;

• Page 47, Line 16(b)  Money received for transmission that is not primarily for personal, family, or household purposes;

• Page 47, Line 17(c)  Money received for transmission pursuant to a written

• Page 47, Line 18agreement between the licensee and payee to process payments

• Page 47, Line 19for goods or services provided by the payee; or

• (d)  Payroll processing services.

• Page 48, Line 1(2)  As used in this section, "receipt" means a paper receipt,

• Page 48, Line 2electronic record, or other written confirmation. For a

• Page 48, Line 3transaction conducted in person, the receipt may be provided

• Page 48, Line 4electronically if the sender requests or agrees to receive an

• Page 48, Line 5electronic receipt. For a transaction conducted electronically

• Page 48, Line 6or by phone, a receipt may be provided electronically. All electronic receipts shall be provided in a retainable form.

• Page 48, Line 7(3) (a)  Every licensee or every licensee's authorized

• Page 48, Line 8delegate shall provide the sender a receipt for money received for transmission.

• Page 48, Line 9(b)  The receipt must contain the following information, as applicable:

• Page 48, Line 10(I)  The name of the sender;

• (II)  The name of the designated recipient;

• Page 48, Line 11(III)  The date of the transaction;

• (IV)  The unique transaction or identification number;

• Page 48, Line 12(V)  The name of the licensee, the NMLS unique identifier,

• Page 48, Line 13the licensee's business address, and the licensee's customer service telephone number;

• Page 48, Line 14(VI)  The amount of the transaction in United States dollars;

• Page 48, Line 15(VII)  The fee charged by the licensee to the sender for the transaction, if any; and

• Page 48, Line 16(VIII)  Taxes collected by the licensee from the sender for the transaction, if any.

• Page 48, Line 17(c)  The receipt required by this section must be in English

• Page 49, Line 1and in the language principally used by the licensee or

• Page 49, Line 2authorized delegate, if other than English, to advertise, solicit,

• Page 49, Line 3or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone.

• Page 49, Line 411-110-904.  Notice.Every licensee or authorized delegate

• Page 49, Line 5shall include on a receipt described in section 11-110-903 or

• Page 49, Line 6disclose on the licensee's website or mobile application the name

• Page 49, Line 7and phone number of the division and a statement that the

• Page 49, Line 8licensee's customers can contact the division with questions or complaints about the licensee's money transmission services.

• Page 49, Line 911-110-905.  Disclosures for payroll processing services. (1)  A licensee that provides payroll processing services shall:

• Page 49, Line 10(a)  Issue reports to clients detailing client payroll

• Page 49, Line 11obligations in advance of the payroll money being deducted from an account; and

• Page 49, Line 12(b)  Make available worker pay stubs or an equivalent statement to workers.

• Page 49, Line 13(2)  Subsection (1) of this section does not apply to a

• Page 49, Line 14licensee providing payroll processing services where the

• Page 49, Line 15licensee's client designates the intended recipients to the

• Page 49, Line 16licensee and is responsible for providing the disclosures required by subsection (1)(b) of this section.

• Page 49, Line 17PART 10

• PRUDENTIAL STANDARDS

• Page 49, Line 1811-110-1001.  Net worth. (1)  A licensee licensed pursuant to

• Page 49, Line 19this article 110 shall maintain at all times a tangible net worth

• Page 49, Line 20of the greater of one hundred thousand dollars or three

• Page 50, Line 1percent of total assets for the first one hundred million

• Page 50, Line 2dollars, two percent of additional assets for one hundred

• Page 50, Line 3million dollars to one billion dollars, and one-half of one percent of additional assets for over one billion dollars.

• Page 50, Line 4(2)  Tangible net worth required by subsection (1) of this

• Page 50, Line 5section must be demonstrated at initial application by the

• Page 50, Line 6applicant's most recent audited or unaudited financial statements pursuant to section 11-110-503 (2)(f).

• Page 50, Line 7(3)  Notwithstanding subsections (1) and (2) of this section,

• Page 50, Line 8the banking board may, for good cause shown, exempt, in part or

• Page 50, Line 9in whole, an applicant or licensee from the requirements set forth in this section.

• Page 50, Line 1011-110-1002.  Surety bond. (1)  An applicant for a money

• Page 50, Line 11transmission license shall provide, and a licensee at all times

• Page 50, Line 12shall maintain, security consisting of a surety bond in a form

• Page 50, Line 13satisfactory to the banking board or, with the board's approval, a deposit instead of a bond in accordance with this section.

• Page 50, Line 14(2)  The amount of the required security is the greater of

• Page 50, Line 15two hundred fifty thousand dollars or an amount equal to one

• Page 50, Line 16hundred percent of the licensee's average daily money

• Page 50, Line 17transmission liability in this state calculated for the most

• Page 50, Line 18recently completed three-month period, up to a maximum of one million dollars.

• Page 50, Line 19(3)  A licensee that maintains a bond in the maximum

• Page 50, Line 20amount provided for in subsection (2) of this section is not

• Page 50, Line 21required to calculate its average daily money transmission

• Page 50, Line 22liability in this state for purposes of this section.

• Page 51, Line 111-110-1003.  Maintenance of permissible investments -

• Page 51, Line 2statutory trust - rules. (1)  A licensee shall maintain at all times

• Page 51, Line 3permissible investments that have a market value computed in

• Page 51, Line 4accordance with United States generally accepted accounting

• Page 51, Line 5principles of not less than the aggregate amount of all of the licensee's outstanding money transmission obligations.

• Page 51, Line 6(2)  Except for permissible investments enumerated in

• Page 51, Line 7section 11-110-1004 (1), the banking board, with respect to a

• Page 51, Line 8licensee, may by rule or order limit the extent to which a

• Page 51, Line 9specific investment maintained by a licensee within a class of

• Page 51, Line 10permissible investments may be considered a permissible

• Page 51, Line 11investment if the specific investment represents undue risk to customers not reflected in the market value of investments.

• Page 51, Line 12(3)  Permissible investments, even if commingled with other

• Page 51, Line 13assets of a licensee, are held in trust for the benefit of the

• Page 51, Line 14purchasers and holders of the licensee's outstanding money

• Page 51, Line 15transmission obligations in the event of insolvency; the filing of

• Page 51, Line 16a petition by or against the licensee under the United States

• Page 51, Line 17bankruptcy code, 11 U.S.C. secs. 101 to 110, as amended, for

• Page 51, Line 18bankruptcy or reorganization; the filing of a petition by or

• Page 51, Line 19against the licensee for receivership; the commencement of any

• Page 51, Line 20other judicial or administrative proceeding for the licensee's

• Page 51, Line 21dissolution or reorganization; or an action against the licensee

• Page 51, Line 22by a creditor that is not a beneficiary of the statutory trust.

• Page 51, Line 23Permissible investments impressed with a trust pursuant to this

• Page 51, Line 24section are not subject to attachment, levy of execution, or

• Page 51, Line 25sequestration by order of any court, except for a beneficiary of the statutory trust.

• Page 52, Line 1(4)  Upon the establishment of a statutory trust in

• Page 52, Line 2accordance with subsection (3) of this section or when money is

• Page 52, Line 3drawn on a letter of credit pursuant to section 11-110-1004

• Page 52, Line 4(1)(d), the banking board shall notify the applicable regulator

• Page 52, Line 5of each state in which the licensee is licensed to engage in money

• Page 52, Line 6transmission, if any, of the establishment of the trust or the

• Page 52, Line 7money drawn on the letter of credit, as applicable. Notice is

• Page 52, Line 8deemed satisfied if performed pursuant to a multistate

• Page 52, Line 9agreement or through NMLS. Money drawn on a letter of

• Page 52, Line 10credit, and any other permissible investments held in trust for

• Page 52, Line 11the benefit of the purchasers and holders of the licensee's

• Page 52, Line 12outstanding money transmission obligations, is deemed held in

• Page 52, Line 13trust for the benefit of such purchasers and holders on a pro

• Page 52, Line 14rata and equitable basis in accordance with statutes pursuant

• Page 52, Line 15to which permissible investments are required to be held in this

• Page 52, Line 16state, and other states, as applicable. A statutory trust

• Page 52, Line 17established pursuant to this section is terminated upon

• Page 52, Line 18extinguishment of all of the licensee's outstanding money transmission obligations.

• Page 52, Line 19(5)  The banking board by rule may allow other types of

• Page 52, Line 20investments that the board determines are of sufficient

• Page 52, Line 21liquidity and quality to be a permissible investment. The banking

• Page 52, Line 22board may participate in efforts with other state regulators to

• Page 52, Line 23determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.

• Page 52, Line 2411-110-1004.  Types of permissible investments - rules. (1)  The following investments are permissible under section 11-110-1003:

• Page 53, Line 1(a)  Cash, including demand deposits, savings deposits, and

• Page 53, Line 2money in such accounts held for the benefit of the licensee's

• Page 53, Line 3customers in a federally insured depository financial

• Page 53, Line 4institution, and cash equivalents, including ACH items in transit

• Page 53, Line 5to the licensee and ACH items or international wires in transit

• Page 53, Line 6to a payee, cash in transit via armored car, cash in smart safes,

• Page 53, Line 7cash in licensee-owned locations, debit card or credit

• Page 53, Line 8card-funded transmission receivables owed by a bank, or money

• Page 53, Line 9market mutual funds rated "AAA" by S&P Global Ratings or the equivalent from any eligible rating service;

• Page 53, Line 10(b)  Certificates of deposit or senior debt obligations of an

• Page 53, Line 11insured depository institution, as defined in section 3 of the

• Page 53, Line 12"Federal Deposit Insurance Act", 12 U.S.C. sec. 1813, as amended,

• Page 53, Line 13or as defined under the "Federal Credit Union Act", 12 U.S.C. sec. 1781, as amended;

• Page 53, Line 14(c)  An obligation of the United States or a commission,

• Page 53, Line 15agency, or instrumentality of the United States; an obligation

• Page 53, Line 16that is guaranteed fully as to principal and interest by the

• Page 53, Line 17United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality of a state; or

• Page 53, Line 18(d)  The full drawable amount of an irrevocable standby

• Page 53, Line 19letter of credit for which the stated beneficiary is the banking

• Page 53, Line 20board that stipulates that the beneficiary need only draw a

• Page 53, Line 21sight draft under the letter of credit and present it to obtain

• Page 53, Line 22money up to the letter of credit amount within seven days after

• Page 53, Line 23presentation of the items required by subsection (2)(c) of this section.

• Page 54, Line 1(2) (a)  The letter of credit described in subsection (1)(d) of this section must:

• Page 54, Line 2(I)  Be issued by:

• (A)  A federally insured depository financial institution;

• Page 54, Line 3(B)  A foreign bank that is authorized under federal law

• Page 54, Line 4to maintain a federal agency or federal branch office in a state or states; or

• Page 54, Line 5(C)  A foreign bank that bears an eligible rating, or whose

• Page 54, Line 6parent company bears an eligible rating; that is regulated,

• Page 54, Line 7supervised, and examined by federal or state authorities having

• Page 54, Line 8regulatory authority over banks, credit unions, and trust

• Page 54, Line 9companies; and that is authorized under state law to maintain a branch in a state;

• Page 54, Line 10(II)  Be irrevocable, be unconditional, and indicate that

• Page 54, Line 11the letter of credit is not subject to any condition or qualifications outside of the letter of credit;

• Page 54, Line 12(III)  Not contain reference to any other agreements,

• Page 54, Line 13documents, or entities or otherwise provide for any security interest in the licensee; and

• Page 54, Line 14(IV)  Contain an issue date and expiration date, and

• Page 54, Line 15expressly provide for automatic extension, without a written

• Page 54, Line 16amendment, for an additional period of one year after the

• Page 54, Line 17present and each future expiration date, unless the issuer of the

• Page 54, Line 18letter of credit notifies the banking board in writing by

• Page 54, Line 19certified or registered mail or courier mail or other receipted

• Page 54, Line 20means, at least sixty days prior to any expiration date, that the irrevocable letter of credit will not be extended.

• Page 55, Line 1(b)  In the event of a notice of expiration or nonextension

• Page 55, Line 2of a letter of credit issued under subsection (2)(a)(IV) of this

• Page 55, Line 3section, the licensee is required to demonstrate to the

• Page 55, Line 4satisfaction of the banking board, at least fifteen days prior to

• Page 55, Line 5expiration, that the licensee maintains and will maintain

• Page 55, Line 6permissible investments in accordance with section 11-110-1003

• Page 55, Line 7(1) upon the expiration of the letter of credit. If the licensee is

• Page 55, Line 8not able to do so, the board may draw on the letter of credit in

• Page 55, Line 9an amount up to the amount necessary to meet the licensee's

• Page 55, Line 10requirements to maintain permissible investments in accordance

• Page 55, Line 11with section 11-110-1003 (1). A draw on the letter of credit by

• Page 55, Line 12the board shall be offset against the licensee's outstanding

• Page 55, Line 13money transmission obligations. The drawn money shall be held

• Page 55, Line 14in trust by the board or the board's designated agent, to the

• Page 55, Line 15extent authorized by law, as agent for the benefit of the

• Page 55, Line 16purchasers and holders of the licensee's outstanding money transmission obligations.

• Page 55, Line 17(c)  The letter of credit must provide that the issuer of the

• Page 55, Line 18letter of credit will honor, at sight, a presentation made by the

• Page 55, Line 19beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit:

• Page 55, Line 20(I)  The original letter of credit, including any amendments; and

• Page 55, Line 21(II)  A written statement from the beneficiary stating that any of the following events have occurred:

• Page 55, Line 22(A)  The filing of a petition by or against the licensee

• Page 56, Line 1under the United States bankruptcy code, 11 U.S.C. secs. 101 to 110, as amended, for bankruptcy or reorganization;

• Page 56, Line 2(B)  The filing of a petition by or against the licensee for

• Page 56, Line 3receivership or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;

• Page 56, Line 4(C)  The seizure of assets of a licensee by a banking board

• Page 56, Line 5pursuant to an emergency order issued in accordance with

• Page 56, Line 6applicable law, on the basis of an action, violation, or condition

• Page 56, Line 7that has caused or is likely to cause the insolvency of the licensee; or

• Page 56, Line 8(D)  The beneficiary has received notice of expiration or

• Page 56, Line 9nonextension of a letter of credit, and the licensee failed to

• Page 56, Line 10demonstrate to the satisfaction of the beneficiary that the

• Page 56, Line 11licensee will maintain permissible investments in accordance

• Page 56, Line 12with section 11-110-1003 (1) upon the expiration or nonextension of the letter of credit.

• Page 56, Line 13(d)  The banking board may designate an agent to serve on

• Page 56, Line 14the board's behalf as beneficiary to a letter of credit so long as

• Page 56, Line 15the agent and letter of credit meet requirements established by

• Page 56, Line 16the board. The board's agent may serve as agent for multiple

• Page 56, Line 17licensing authorities for a single irrevocable letter of credit if

• Page 56, Line 18the proceeds of the drawable amount for the purposes of subsection (1)(d) of this section are assigned to the board.

• Page 56, Line 19(e)  The banking board is authorized and encouraged to

• Page 56, Line 20participate in multistate licensing processes designed to

• Page 56, Line 21facilitate the issuance and administration of letters of credit,

• Page 56, Line 22including but not limited to services provided by NMLS and the State Regulatory Registry, LLC.

• Page 57, Line 1(3)  Unless permitted by the banking board by rule or by

• Page 57, Line 2order to exceed the limits as set forth in this subsection (3), the

• Page 57, Line 3following investments are permissible under section 11-110-1003, to the extent specified:

• Page 57, Line 4(a) (I)  Except as provided in subsection (3)(a)(II) of this

• Page 57, Line 5section, receivables that are payable to a licensee from the

• Page 57, Line 6licensee's authorized delegates in the ordinary course of

• Page 57, Line 7business that are less than seven days old, up to fifty percent of

• Page 57, Line 8the aggregate value of the licensee's total permissible investments.

• Page 57, Line 9(II)  Of the receivables permissible under subsection

• Page 57, Line 10(3)(a)(I) of this section, receivables that are payable to a

• Page 57, Line 11licensee from a single authorized delegate in the ordinary

• Page 57, Line 12course of business must not exceed ten percent of the aggregate value of the licensee's total permissible investments.

• Page 57, Line 13(b)  The following investments, up to twenty percent per

• Page 57, Line 14category and combined up to fifty percent of the aggregate value of the licensee's total permissible investments:

• Page 57, Line 15(I)  A short-term investment of up to six months bearing an eligible rating;

• Page 57, Line 16(II)  Commercial paper bearing an eligible rating;

• Page 57, Line 17(III)  A bill, note, bond, or debenture bearing an eligible rating;

• Page 57, Line 18(IV)  United States tri-party repurchase agreements,

• Page 57, Line 19collateralized at one hundred percent or more, with United

• Page 57, Line 20States government or agency securities, municipal bonds, or other securities bearing an eligible rating;

• Page 58, Line 1(V)  Money market mutual funds rated less than "AAA"

• Page 58, Line 2and equal to or higher than "A-" by S&P Global Ratings or the equivalent from any other eligible rating service; and

• Page 58, Line 3(VI)  A mutual fund or other investment fund composed

• Page 58, Line 4solely and exclusively of one or more permissible investments listed in subsections (1)(a) to (1)(c) of this section; and

• Page 58, Line 5(c)  Cash, including demand deposits, savings deposits, and

• Page 58, Line 6cash in such accounts held for the benefit of the licensee's

• Page 58, Line 7customers at foreign depository institutions, up to ten percent

• Page 58, Line 8of the aggregate value of the licensee's total permissible

• Page 58, Line 9investments if the licensee has received a satisfactory rating in

• Page 58, Line 10the licensee's most recent examination and if the foreign depository institution:

• Page 58, Line 11(I)  Has an eligible rating;

• Page 58, Line 12(II)  Is registered under the federal "Foreign Account Tax Compliance Act", Pub.L. 111-47;

• Page 58, Line 13(III)  Is not located in any country subject to sanctions from the office of foreign assets control; and

• Page 58, Line 14(IV)  Is not located in a high-risk or noncooperative

• Page 58, Line 15jurisdiction as designated by the international Financial Action Task Force.

• Page 58, Line 16PART 11

• ENFORCEMENT AND JUDICIAL REVIEW

• Page 58, Line 1711-110-1101.  Suspension and revocation of license. (1)  The

• Page 58, Line 18banking board may suspend or revoke a license or order a

• Page 58, Line 19licensee to revoke the designation of an authorized delegate if:

• Page 59, Line 1(a)  The licensee violates this article 110 or a rule adopted or an order issued under this article 110;

• Page 59, Line 2(b)  The licensee does not cooperate with an examination or investigation by the board;

• Page 59, Line 3(c)  The licensee engages in fraud, intentional misrepresentation, or gross negligence;

• Page 59, Line 4(d)  An authorized delegate is convicted of a violation of

• Page 59, Line 5a state or federal anti-money laundering statute, or violates

• Page 59, Line 6a rule adopted or an order issued under this article 110, as a result of the licensee's willful misconduct or willful blindness;

• Page 59, Line 7(e)  The competence, experience, character, or general

• Page 59, Line 8fitness of the licensee, authorized delegate, person in control

• Page 59, Line 9of the licensee, key individual, or responsible person of the

• Page 59, Line 10authorized delegate indicates that it is not in the public interest to permit the person to provide money transmission;

• Page 59, Line 11(f)  The licensee engages in an unsafe or unsound practice;

• Page 59, Line 12(g)  The licensee is insolvent, suspends payment of its

• Page 59, Line 13obligations, or makes a general assignment for the benefit of its creditors; or

• Page 59, Line 14(h)  The licensee does not remove an authorized delegate

• Page 59, Line 15after the board issues and serves upon the licensee a final

• Page 59, Line 16order, including a finding that the authorized delegate has violated this article 110.

• Page 59, Line 17(2)  In determining whether a licensee is engaging in an

• Page 59, Line 18unsafe or unsound practice, the banking board may consider the

• Page 59, Line 19size and condition of the licensee's money transmission, the

• Page 59, Line 20magnitude of the loss, the gravity of the violation of this

• Page 60, Line 1article 110 or a rule adopted or order issued under this article 110, and the previous conduct of the person involved.

• Page 60, Line 211-110-1102.  Suspension and revocation of authorized

• Page 60, Line 3delegates. (1)  The banking board may issue an order suspending

• Page 60, Line 4or revoking the designation of an authorized delegate if the board finds that:

• Page 60, Line 5(a)  The authorized delegate violated this article 110 or a rule adopted or an order issued under this article 110;

• Page 60, Line 6(b)  The authorized delegate did not cooperate with an examination or investigation by the board;

• Page 60, Line 7(c)  The authorized delegate engaged in fraud, intentional misrepresentation, or gross negligence;

• Page 60, Line 8(d)  The authorized delegate is convicted of a violation of a state or federal anti-money laundering statute;

• Page 60, Line 9(e)  The competence, experience, character, or general

• Page 60, Line 10fitness of the authorized delegate or a person in control of the

• Page 60, Line 11authorized delegate indicates that it is not in the public interest

• Page 60, Line 12to permit the authorized delegate to provide money transmission; or

• Page 60, Line 13(f)  The authorized delegate is engaging in an unsafe or unsound practice.

• Page 60, Line 14(2)  In determining whether an authorized delegate is

• Page 60, Line 15engaging in an unsafe or unsound practice, the banking board

• Page 60, Line 16may consider the size and condition of the authorized delegate's

• Page 60, Line 17provision of money transmission, the magnitude of the loss, the

• Page 60, Line 18gravity of the violation of this article 110 or a rule adopted or

• Page 60, Line 19order issued under this article 110, and the previous conduct of the authorized delegate.

• Page 61, Line 1(3)  An authorized delegate may apply for relief from a

• Page 61, Line 2suspension or revocation of designation as an authorized

• Page 61, Line 3delegate according to procedures prescribed by the banking board by rule.

• Page 61, Line 411-110-1103.  Orders to cease and desist. (1)  If the banking

• Page 61, Line 5board determines that a violation of this article 110 or a rule

• Page 61, Line 6adopted or an order issued under this article 110 by a licensee

• Page 61, Line 7or authorized delegate is likely to cause immediate and

• Page 61, Line 8irreparable harm to the licensee, the licensee's customers, or

• Page 61, Line 9the public as a result of the violation, or cause insolvency or

• Page 61, Line 10significant dissipation of assets of the licensee, the board may

• Page 61, Line 11issue an order requiring the licensee or authorized delegate to

• Page 61, Line 12cease and desist from the violation. The order becomes effective

• Page 61, Line 13upon service of the order upon the licensee or authorized delegate.

• Page 61, Line 14(2)  The banking board may issue an order against a

• Page 61, Line 15licensee to cease and desist from providing money transmission

• Page 61, Line 16through an authorized delegate that is the subject of a separate order by the board.

• Page 61, Line 17(3)  An order to cease and desist remains effective and

• Page 61, Line 18enforceable pending the completion of an administrative proceeding pursuant to state administrative procedures.

• Page 61, Line 19(4)  A licensee or an authorized delegate that is served

• Page 61, Line 20with an order to cease and desist may petition the appropriate

• Page 61, Line 21court for a judicial order setting aside, limiting, or suspending

• Page 61, Line 22the enforcement, operation, or effectiveness of the order

• Page 62, Line 1pending the completion of an administrative proceeding pursuant to state administrative procedures.

• Page 62, Line 2(5)  An order to cease and desist expires within ten days

• Page 62, Line 3after the order is issued unless the banking board commences an

• Page 62, Line 4administrative proceeding pursuant to state administrative procedures.

• Page 62, Line 511-110-1104.  Consent orders.The banking board may enter

• Page 62, Line 6into a consent order at any time with a person to resolve a

• Page 62, Line 7matter arising under this article 110 or a rule adopted or order

• Page 62, Line 8issued under this article 110. A consent order must be signed by

• Page 62, Line 9the person to whom it is issued or by the person's authorized

• Page 62, Line 10representative and must indicate agreement with the terms

• Page 62, Line 11contained in the order. A consent order may provide that it does

• Page 62, Line 12not constitute an admission by a person that this article 110 or

• Page 62, Line 13a rule adopted or an order issued under this article 110 has been violated.

• Page 62, Line 1411-110-1105.  Criminal penalties. (1)  An individual that

• Page 62, Line 15intentionally makes a false statement, misrepresentation, or

• Page 62, Line 16false certification in a record filed or required to be maintained

• Page 62, Line 17under this article 110 or that intentionally makes a false entry

• Page 62, Line 18or omits a material entry in such a record commits a class 2

• Page 62, Line 19misdemeanor and shall be punished as provided in section 18-1.3-501.

• Page 62, Line 20(2)  An individual that knowingly engages in an activity

• Page 62, Line 21for which a license is required under this article 110 without

• Page 62, Line 22being licensed under this article 110 and that receives more

• Page 62, Line 23than five hundred dollars in compensation within a thirty-day

• Page 63, Line 1period from this activity commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501.

• Page 63, Line 2(3)  An individual that knowingly engages in an activity

• Page 63, Line 3for which a license is required under this article 110 without

• Page 63, Line 4being licensed under this article 110 and that receives no more

• Page 63, Line 5than five hundred dollars in compensation within a thirty-day

• Page 63, Line 6period from this activity commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501.

• Page 63, Line 711-110-1106.  Civil penalties.The banking board may assess

• Page 63, Line 8a civil penalty against a person that violates this article 110 or

• Page 63, Line 9a rule adopted or an order issued under this article 110 in an

• Page 63, Line 10amount as determined by the board for each day the violation

• Page 63, Line 11is outstanding, plus this state's costs and expenses for the

• Page 63, Line 12investigation and prosecution of the matter, including reasonable attorney fees.

• Page 63, Line 1311-110-1107.  Unlicensed persons. (1)  If the banking board

• Page 63, Line 14has reason to believe that a person has violated or is violating

• Page 63, Line 15section 11-110-501, the board may issue an order to show cause

• Page 63, Line 16why an order to cease and desist should not be issuedrequiring

• Page 63, Line 17that the person cease and desist from the violation of section 11-110-501.

• Page 63, Line 18(2)  In an emergency, the banking board may petition the

• Page 63, Line 19appropriate court for the issuance of a temporary restraining order ex parte pursuant to the rules of civil procedure.

• Page 63, Line 20(3)  An order to cease and desist becomes effective upon service of the order upon the person.

• Page 63, Line 21(4)  An order to cease and desist remains effective and

• Page 64, Line 1enforceable pending the completion of an administrative proceeding pursuant to state administrative procedures.

• Page 64, Line 2(5)  A person that is served with an order to cease and

• Page 64, Line 3desist for violating section 11-110-501 may petition the

• Page 64, Line 4appropriate court for a judicial order setting aside, limiting, or

• Page 64, Line 5suspending the enforcement, operation, or effectiveness of the

• Page 64, Line 6order pending the completion of an administrative proceeding pursuant to state administrative procedures.

• Page 64, Line 711-110-1108.  Judicial review.A person aggrieved and

• Page 64, Line 8directly affected by an order of the banking board issued under

• Page 64, Line 9this article 110 may seek a review in the district court of this

• Page 64, Line 10state in and for the county in which the principal place of

• Page 64, Line 11business of the applicant, licensee, or authorized delegate is

• Page 64, Line 12located within thirty days after receipt of written notice of the order.

• Page 64, Line 13PART 12

• MISCELLANEOUS PROVISIONS

• Page 64, Line 1411-110-1201.  Uniformity of application and construction.In

• Page 64, Line 15applying and construing this article 110, consideration must be

• Page 64, Line 16given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

• Page 64, Line 1711-110-1202.  Severability.If any provision of this article

• Page 64, Line 18110 or the application thereof to any person or circumstance is

• Page 64, Line 19held invalid, such invalidity does not affect other provisions or

• Page 64, Line 20applications of this article 110 that can be given effect without

• Page 64, Line 21the invalid provision or application, and to this end the

• Page 64, Line 22provisions of this article 110 are declared to be severable.

• Page 65, Line 111-110-1203.  Repeal of article - review of functions.This

• Page 65, Line 2article 110 is repealed, effective September 1, 2030. Before the

• Page 65, Line 3repeal, this article 110 is schedule for review in accordance with section 24-34-104.

• Page 65, Line 4SECTION 2.  Act subject to petition - effective date. This act

• Page 65, Line 5takes effect at 12:01 a.m. on the day following the expiration of the

• Page 65, Line 6ninety-day period after final adjournment of the general assembly; except

• Page 65, Line 7that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 65, Line 8of the state constitution against this act or an item, section, or part of this

• Page 65, Line 9act within such period, then the act, item, section, or part will not take

• Page 65, Line 10effect unless approved by the people at the general election to be held in

• Page 65, Line 11November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.