Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0573.01 Jery Payne x2157
HOUSE BILL 24-1328
House Committees Senate Committees
Business Affairs & Labor
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CONTINUATION OF THE REGULATION OF MONEY101
TRANSMITTERS , AND, IN CONNECTION THEREWITH ,102
IMPLEMENTING THE RE COMMENDATIONS IN THE 2023 SUNSET103
REPORT BY THE DEPARTMENT OF REGULATORY AGENCIES .104
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/
.)
Sunset Process - House Business Affairs and Labor
Committee. The bill implements the recommendations of the department
of regulatory agencies, as specified in the department's sunset review of
HOUSE
Amended 2nd Reading
April 5, 2024
HOUSE SPONSORSHIP
English and Clifford, Amabile, Lindstedt, Ricks
SENATE SPONSORSHIP
Rich,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. the regulation of money transmitters, as follows:
! Sections 1 and 2 of the bill continue the regulation of
money transmitters until 2033;
! Section 3 authorizes the banking board (board) to suspend
a money transmitter's license;
! Section 4 expands the requirement to furnish surety bond
coverage to include all money transmission, rather than
merely exchange;
! Section 5 increases the maximum penalty for failure to
report from $250 to $750 per day and for failure to allow
an examination from $100 to $1,000 per day;
! Section 6 authorizes the state bank commissioner to submit
fingerprints directly to the federal bureau of investigation
for a criminal history record check;
! Section 7 repeals the requirement that license holders
annually report the name, address, and telephone number
of each owner of at least 10% of the agent of the money
transmitter;
! Section 8 authorizes the board to issue cease-and-desist
orders and sets procedural requirements;
! Section 9 expands the licensing exemption for in-state
banks to also cover out-of-state banks and repeals the
licensing exemption for telegraph or cable companies; and
! Sections 10 through 12 replace gendered pronouns with
gender-neutral terms.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
(25)(a)(II); and add
(31)(a)(XI) as follows:3
24-34-104. General assembly review of regulatory agencies4
and functions for repeal, continuation, or reestablishment - legislative5
declaration - repeal. (25) (a) The following agencies, functions, or both,6
are scheduled for repeal on September 1, 2024:7
(II) The licensing functions of the banking board and the state8
bank commissioner specified in article 110 of title 11 regarding persons9
who transmit money;10
(31) (a) The following agencies, functions, or both, are scheduled11
1328-2- for repeal on September 1, 2030:1
(XI) THE FUNCTIONS OF THE BANKING BOARD AND THE STATE2
BANK COMMISSIONER RELATED TO MONEY TRANSMITTERS SPECIFIED IN3
ARTICLE 110 OF TITLE 11. 4
SECTION 2. In Colorado Revised Statutes, amend 11-110-1215
as follows:6
11-110-121. Repeal of article - review of functions. (1) This7
article 110 is repealed, effective September 1, 2024 2030.8
(2) Prior to such BEFORE THE repeal, the licensing functions of the9
commissioner and the banking board shall be reviewed as provided for in10
THIS ARTICLE 110 IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH11
section 24-34-104.12
SECTION 3. In Colorado Revised Statutes, 11-110-115, amend13
(1) and (2) introductory portion as follows:14
11-110-115. Revocation, suspension, or surrender of license.15
(1) The banking board may, upon ten days' notice served personally upon16
the licensee stating the contemplated action and the grounds therefor FOR17
THE ACTION, hold a hearing at which the licensee shall have HAS a18
reasonable opportunity to be heard, for the purpose of determining19
whether a license should be
SUSPENDED OR revoked.20
(2) After the hearing the banking board may
SUSPEND OR revoke21
any license issued under this article 110 if it finds that:22
SECTION 4. In Colorado Revised Statutes, 11-110-108, amend23
(1)(a), (1)(b), and (4) as follows:24
11-110-108. Bond - condition - amount - rules. (1) (a) E
XCEPT25
AS OTHERWISE PROVIDED IN THIS SUBSECTION (1), each approved26
applicant shall furnish a corporate surety bond in the principal sum of one27
1328
-3- million dollars, except as otherwise provided in this subsection (1), by a1
bonding company or insurance company authorized to do business in this2
state, in which the applicant is named as obligor, to be approved by the3
banking board, that shall run RUNS to the state of Colorado for the use and4
benefit of the state and of any creditor of the licensee for any liability5
incurred on any exchange issued MONEY TRANSMISSION by the licensee.6
The bond shall MUST BE APPROVED BY THE BANKING BOARD AND be7
conditioned that the obligor will faithfully conform to and abide by the8
provisions of this article 110, and will honestly and faithfully apply all9
funds received for the performance of all obligations and undertakings for10
exchange issued and sold under MONEY TRANSMISSION SUBJECT TO this11
article 110, and will pay to the state and to any person all money that12
becomes due and owing to the state or to the person under the provisions13
of this article 110 because of any exchange sold or issued by the licensee14
MONEY TRANSMISSION. The bond shall remain in force and effect until the15
surety is released from liability by the banking board or until the bond is16
canceled by the surety; which EXCEPT THAT A cancellation may be had17
only upon ninety days' written notice to the banking board. The18
cancellation shall DOES not affect any liability incurred or accrued prior19
to the termination of the ninety-day period. If the banking board finds, at20
any time, any A bond to be exhausted, THE LICENSEE SHALL OBTAIN AND21
FILE a replacement bond in an equal amount shall be filed by the licensee22
within thirty days after
THE written demand therefor
IS RECEIVED.23
(b) The banking board shall by rule establish financial standards:24
(I) By which to evaluate the financial condition or solvency of25
licensees; and26
(II) For the bond amount set under subsection (1)(a) of this section27
1328
-4- to be decreased to not less than two hundred fifty thousand dollars,1
following application by the licensee and an opportunity for hearing2
before the banking board, in such amounts as necessary up to the amount3
provided in subsection (1)(a) of this section to protect purchasers of4
exchange MONEY TRANSMISSION.5
(4) It is the intent of the general assembly that in applying the6
provisions of this section the purpose of the required bond and7
permissible investments is to protect the Colorado purchasers of exchange8
MONEY TRANSMISSION, and the amount of the bond and investments that9
are required of any licensee should not be more than is necessary to afford10
the protection given the financial condition of the licensee as determined11
under generally accepted accounting principles.12
SECTION 5. In Colorado Revised Statutes, 11-110-111, amend13
(1)(a) and (2)(c) as follows:14
11-110-111. Examination - fee - financial statements and15
reports to commissioner - change in control - penalties. (1) (a) The16
commissioner may examine the books and records of a licensee using17
risk-based criteria and considering other available regulatory mechanisms18
as directed by the banking board; shall make and file in the office of the19
commissioner a correct report in detail disclosing the results of the20
examination; and shall mail a copy of the report to the licensee examined.21
If the licensee's records are located outside this state, the licensee shall,22
at the option of the licensee, either make them available to the23
commissioner at a convenient location within this state or pay the24
reasonable and necessary expenses for the commissioner or the25
commissioner's representative to examine them at the place where they26
are maintained. The commissioner may designate representatives,27
1328
-5- including comparable officials of the state in which the records are1
located, to inspect them on behalf of the commissioner. For the2
examination, the commissioner shall charge a fee in an amount set by the3
banking board pursuant to section 11-102-104 (11). If any licensee4
refuses to permit the commissioner to make an examination, the licensee5
shall be subject to such penalty as the commissioner may assess, not in6
excess of one hundred THOUSAND dollars for each day any such THE7
refusal shall continue CONTINUES.8
(2) (c) If any licensee fails to submit any statement or report to the9
commissioner as required by this subsection (2), the licensee shall pay to10
the commissioner a penalty of two SEVEN hundred fifty dollars for each11
additional day of delinquency as set by the banking board pursuant to12
section 11-102-104 (11); except that, if in the opinion of the banking13
board the delay is excusable for good cause shown, no penalty shall be14
paid THE LICENSEE IS NOT SUBJECT TO THE PENALTY.15
SECTION 6. In Colorado Revised Statutes, 11-110-107, amend16
(1) introductory portion and (1)(e) as follows:17
11-110-107. Application for license - rules. (1) Application for18
a license shall MUST be made in writing, under oath, to the banking board19
on such form as it may prescribe. The application shall MUST:20
(e) (I) Contain a set of fingerprints for each of the owners,21
principal shareholders, principal members, directors, trustees, officers, or22
other managing officials,
WHO MUST PAY THE ACTUAL COSTS OF THE23
RECORD CHECK.24
(II) The commissioner shall forward
PERFORM A25
FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK OF THE PERSONS26
DESCRIBED IN SUBSECTION (1)(e)(I) OF THIS SECTION BY FORWARDING the27
1328
-6- fingerprints to EITHER the FEDERAL BUREAU OF INVESTIGATION OR THE1
Colorado bureau of investigation. for the purpose of obtaining a2
fingerprint-based criminal history record check.3
(III) Upon receipt of fingerprints and payment for the costs, the4
Colorado bureau of investigation shall conduct a state and national5
fingerprint-based criminal history record check utilizing records of the6
Colorado bureau of investigation and the federal bureau of investigation.7
T
HE COLORADO BUREAU OF INVESTIGATION SHALL RETURN THE RESULTS8
OF ITS CRIMINAL HISTORY RECORD CHECK TO THE BOARD , AND the board9
shall be
IS the authorized agency to receive information regarding the10
result of any national criminal history record check. Only the actual costs11
of the record check shall be borne by the applicant THE RESULTS OF THE12
FEDERAL BUREAU OF INVESTIGATION'S CRIMINAL HISTORY RECORD CHECK.13
SECTION 7. In Colorado Revised Statutes, 11-110-201, repeal14
(1)(b) as follows:15
11-110-201. Agent information - rules. (1) A money transmitter16
licensed pursuant to part 1 of this article 110 shall annually send the17
following information to the banking board on such form as it may18
prescribe:19
(b) The name, address, and telephone number of each of the20
owners of the agent holding more than a ten percent interest in the21
business if the agent is a partnership or an entity created pursuant to title22
7;23
SECTION 8. In Colorado Revised Statutes, 11-110-119, add24
(1)(d) as follows:25
11-110-119. Civil remedies - restraining orders -26
cease-and-desist orders - injunctions. (1) (d) (I) (A) I
F THE27
1328
-7- COMMISSIONER HAS CREDIBLE EVIDENCE THAT A PERSON IS VIOLATING OR1
HAS VIOLATED THIS ARTICLE 110 AND THE VIOLATION CAUSES AN2
IMMINENT RISK OF HARM TO THE PUBLIC, THE COMMISSIONER MAY ISSUE3
AN ORDER TO CEASE AND DESIST FROM THE VIOLATION . THE ORDER MUST4
SET FORTH THE STATUTES AND RULES ALLEGED TO HAVE BEEN VIOLATED ,5
THE FACTS ALLEGED TO HAVE CONSTITUTED THE VIOLATION , AND THE6
REQUIREMENT THAT VIOLATIONS OR UNLICENSED PRACTICE IMMEDIATELY7
CEASE.8
(B) W
ITHIN TEN DAYS AFTER SERVICE OF THE ORDER TO CEASE9
AND DESIST PURSUANT TO SUBSECTION (1)(d)(I)(A) OF THIS SECTION, THE10
RESPONDENT MAY REQUEST A HEARING ON THE QUESTION OF WHETHER A11
VIOLATION OF THIS ARTICLE 110 HAS OCCURRED.12
(II) (A) I
F THE COMMISSIONER HAS CREDIBLE EVIDENCE THAT A13
PERSON IS VIOLATING OR HAS VIOLATED THIS ARTICLE 110, THE14
COMMISSIONER MAY ISSUE AN ORDER TO SHOW CAUSE AS TO WHY THE15
COMMISSIONER SHOULD NOT ISSUE A FINAL ORDER DIRECTING THE PERSON16
TO CEASE AND DESIST FROM THE UNLAWFUL ACT OR UNLICENSED17
PRACTICE. THE COMMISSIONER SHALL PROMPTLY NOTIFY THE PERSON OF18
THE ISSUANCE OF THE ORDER TO SHOW CAUSE AND SHALL INCLUDE IN THE19
NOTICE A COPY OF THE ORDER AND THE FACTUAL AND LEGAL BASIS FOR20
THE ORDER.21
(B) I
F THE COMMISSIONER REASONABLY FINDS FOLLOWING A22
HEARING THAT THE PERSON AGAINST WHOM THE COMMISSIONER ISSUED23
THE ORDER TO SHOW CAUSE IS ACTING OR HAS ACTED WITHOUT THE24
REQUIRED LICENSE OR HAS OR IS ABOUT TO ENGAGE IN ACTS OR PRACTICES25
CONSTITUTING VIOLATIONS OF THIS ARTICLE 110, THE COMMISSIONER MAY26
ISSUE A FINAL CEASE-AND-DESIST ORDER DIRECTING THE PERSON TO27
1328
-8- CEASE AND DESIST FROM FURTHER UNLAWFUL ACTS OR PRACTICES .1
(C) T
HE COMMISSIONER SHALL PROVIDE NOTICE OF THE FINAL2
CEASE-AND-DESIST ORDER WITHIN TEN CALENDAR DAYS AFTER THE3
REQUIRED HEARING. THE FINAL ORDER IS EFFECTIVE WHEN ISSUED AND4
CONSTITUTES A FINAL ORDER FOR PURPOSES OF JUDICIAL REVIEW .5
(III) T
HE COMMISSIONER SHALL TRANSMIT NOTICES AND ORDERS6
REQUIRED BY THIS SUBSECTION (1)(d) BY PERSONAL SERVICE , BY7
FIRST-CLASS UNITED STATES MAIL, POSTAGE PREPAID, OR BY OTHER8
REASONABLY PRACTICABLE MEANS UPON ANY PERSON AGAINST WHOM9
THE ORDER IS ISSUED. PERSONAL SERVICE OR PROOF OF RECEIPT OF10
MAILING OF A NOTICE OR ORDER OR OTHER REASONABLY EFFECTIVE11
DOCUMENTATION OF RECEIPT CONSTITUTES NOTICE TO THE PERSON OF THE12
EXISTENCE AND CONTENTS OF THE NOTICE OR ORDER .13
(IV) A
NY HEARING REQUIRED BY THIS SUBSECTION (1)(d) AND THE14
RELATED PROCEDURES ARE GOVERNED BY ARTICLE 4 OF TITLE 24.15
SECTION 9. In Colorado Revised Statutes, amend 11-110-10616
as follows:17
11-110-106. Exemptions. Nothing in
This article 110 shall DOES18
NOT apply: To departments or agencies of the United States of America;19
or to any state or municipal government; or to corporations organized20
under the general banking, savings and loan, or credit union laws of this21
state,
OF OTHER STATES, or of the United States. or to the receipt of money
22
by an incorporated telegraph or cable company at any office or agency23
thereof for immediate transmission by telegraph or cable.24
SECTION 10. In Colorado Revised Statutes, 11-110-107, amend25
(1)(a) as follows:26
11-110-107. Application for license. (1) Application for a27
1328
-9- license shall be made in writing, under oath, to the banking board on such1
form as it may prescribe. The application shall:2
(a) State the name of the applicant and the address of his or her3
THE APPLICANT'S principal office;4
SECTION 11. In Colorado Revised Statutes, 11-110-109, amend5
(1), (2), and (3) as follows:6
11-110-109. Issuance of license. (1) Upon the filing of an7
application, the commissioner shall investigate the applicant. The8
applicant shall pay for the cost of the investigation. If the board finds that9
the applicant is of good moral character and financially responsible and10
can comply with this article 110, the board shall approve the application11
and notify the applicant in writing that its THE approval expires six12
months after the approval date. Once the approved applicant has notified13
the board that he or she THE APPLICANT is prepared to commence14
operations in Colorado, posted the required bond, and paid the license15
fee, the board shall issue to the applicant a license to engage in the16
business of money transmission subject to this article 110.17
(2) No license THE COMMISSIONER shall be issued NOT ISSUE A18
LICENSE to an applicant, if a natural person, unless he or she THE19
APPLICANT is over twenty-one years of age; or, if a partnership or20
syndicate, unless each of the partners is over twenty-one years of age; or,21
if a joint stock association, common law trust, unincorporated company22
or association, or corporation, unless each of the officers, directors,23
trustees, or other managing officials is over twenty-one years of age.24
(3) If the board denies an application, the board shall, within thirty25
days thereafter AFTER THE DENIAL, prepare and file in its office a written26
order of denial, which must contain the board's findings and reasons27
1328
-10- supporting the denial. and, Within ten days after filing the order OF1
DENIAL, the board shall notify the applicant and send him or her THE2
APPLICANT a copy of the order. The applicant may request a hearing by3
the board by submitting a written request to the board within sixty days4
after receiving notice as specified in section 24-4-104 (9), and, if so5
requested, the board shall hold a hearing as specified in section 24-4-105.6
SECTION 12. In Colorado Revised Statutes, 11-110-115, amend7
(3) as follows:8
11-110-115. Revocation or surrender of license. (3) A licensee9
may surrender any license by delivering to the banking board written10
notice that he or she THE PERSON surrenders the license, but the surrender11
shall DOES not:12
(a) Affect the licensee's civil or criminal liability for acts13
committed prior to the surrender; or14
(b) Affect the liability on any bond; or15
(c) Entitle the licensee to a return of any part of any license fee.16
SECTION 13. Act subject to petition - effective date. This act17
takes effect at 12:01 a.m. on the day following the expiration of the18
ninety-day period after final adjournment of the general assembly; except19
that, if a referendum petition is filed pursuant to section 1 (3) of article V20
of the state constitution against this act or an item, section, or part of this21
act within such period, then the act, item, section, or part will not take22
effect unless approved by the people at the general election to be held in23
November 2024 and, in such case, will take effect on the date of the24
official declaration of the vote thereon by the governor.25
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-11-