HOUSE BILL 24-1328
BY REPRESENTATIVE(S) English and Clifford, Amabile, Lindstedt,
Ricks;
also SENATOR(S) Rich.
C
ONCERNING THE CONTINUATION OF THE REGULATION OF MONEY
TRANSMITTERS
, AND, IN CONNECTION THEREWITH, IMPLEMENTING
THE RECOMMENDATIONS IN THE
2023 SUNSET REPORT BY THE
DEPARTMENT OF REGULATORY AGENCIES
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal
(25)(a)(II); and add (31)(a)(XI) as follows:
24-34-104. General assembly review of regulatory agencies and
functions for repeal, continuation, or reestablishment - legislative
declaration - repeal. (25) (a) The following agencies, functions, or both,
are scheduled for repeal on September 1, 2024:
(II) The licensing functions of the banking board and the state bank
commissioner specified in article 110 of title 11 regarding persons who
transmit money;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (31) (a) The following agencies, functions, or both, are scheduled
for repeal on September 1, 2030:
(XI) T
HE FUNCTIONS OF THE BANKING BOARD AND THE STATE BANK
COMMISSIONER RELATED TO MONEY TRANSMITTERS SPECIFIED IN ARTICLE
110 OF TITLE 11.
SECTION 2. In Colorado Revised Statutes, amend 11-110-121 as
follows:
11-110-121. Repeal of article - review of functions. (1) This
article 110 is repealed, effective September 1, 2024
2030.
(2) Prior to such BEFORE THE repeal, the licensing functions of the
commissioner and the banking board shall be reviewed as provided for in
THIS ARTICLE 110 IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH section
24-34-104.
SECTION 3. In Colorado Revised Statutes, 11-110-115, amend (1)
and (2) introductory portion as follows:
11-110-115. Revocation, suspension, or surrender of license.
(1) The banking board may, upon ten days' notice served personally upon
the licensee stating the contemplated action and the grounds therefor FOR
THE ACTION
, hold a hearing at which the licensee shall have
HAS a
reasonable opportunity to be heard, for the purpose of determining whether
a license should be
SUSPENDED OR revoked.
(2) After the hearing the banking board may
SUSPEND OR revoke any
license issued under this article 110 if it finds that:
SECTION 4. In Colorado Revised Statutes, 11-110-108, amend
(1)(a), (1)(b), and (4) as follows:
11-110-108. Bond - condition - amount - rules. (1) (a) E
XCEPT AS
OTHERWISE PROVIDED IN THIS SUBSECTION
(1), each approved applicant
shall furnish a corporate surety bond in the principal sum of one million
dollars, except as otherwise provided in this subsection (1),
by a bonding
company or insurance company authorized to do business in this state, in
PAGE 2-HOUSE BILL 24-1328 which the applicant is named as obligor, to be approved by the banking
board, that shall run RUNS to the state of Colorado for the use and benefit
of the state and of any creditor of the licensee for any liability incurred on
any exchange issued
MONEY TRANSMISSION by the licensee. The bond shall
MUST BE APPROVED BY THE BANKING BOARD AND be conditioned that the
obligor will faithfully conform to and abide by the provisions of this article
110, and
will honestly and faithfully apply all funds received for the
performance of all obligations and undertakings for exchange issued and
sold under MONEY TRANSMISSION SUBJECT TO this article 110, and will pay
to the state and to any person all money that becomes due and owing to the
state or to the person under the provisions of this article 110 because of any
exchange sold or issued by the licensee MONEY TRANSMISSION. The bond
shall remain in force and effect until the surety is released from liability by
the banking board or until the bond is canceled by the surety; which EXCEPT
THAT A
cancellation may be had only upon ninety days' written notice to the
banking board. The cancellation shall
DOES not affect any liability incurred
or accrued prior to the termination of the ninety-day period. If the banking
board finds, at any time, any
A bond to be exhausted, THE LICENSEE SHALL
OBTAIN AND FILE
a replacement bond in an equal amount shall be filed bythe licensee within thirty days after THE written demand therefor IS
RECEIVED
.
(b) The banking board shall by rule establish financial standards:
(I) By which to evaluate the financial condition or solvency of
licensees; and
(II) For the bond amount set under subsection (1)(a) of this section
to be decreased to not less than two hundred fifty thousand dollars,
following application by the licensee and an opportunity for hearing before
the banking board, in such amounts as necessary up to the amount provided
in subsection (1)(a) of this section to protect purchasers of exchange
MONEY
TRANSMISSION
.
(4) It is the intent of the general assembly that in applying the
provisions of this section the purpose of the required bond and permissible
investments is to protect the Colorado purchasers of exchange
MONEY
TRANSMISSION
, and the amount of the bond and investments that are
required of any licensee should not be more than is necessary to afford the
protection given the financial condition of the licensee as determined under
PAGE 3-HOUSE BILL 24-1328 generally accepted accounting principles.
SECTION 5. In Colorado Revised Statutes, 11-110-111, amend
(1)(a) and (2)(c) as follows:
11-110-111. Examination - fee - financial statements and reports
to commissioner - change in control - penalties. (1) (a) The
commissioner may examine the books and records of a licensee using
risk-based criteria and considering other available regulatory mechanisms
as directed by the banking board; shall make and file in the office of the
commissioner a correct report in detail disclosing the results of the
examination; and shall mail a copy of the report to the licensee examined.
If the licensee's records are located outside this state, the licensee shall, at
the option of the licensee, either make them available to the commissioner
at a convenient location within this state or pay the reasonable and
necessary expenses for the commissioner or the commissioner's
representative to examine them at the place where they are maintained. The
commissioner may designate representatives, including comparable officials
of the state in which the records are located, to inspect them on behalf of the
commissioner. For the examination, the commissioner shall charge a fee in
an amount set by the banking board pursuant to section 11-102-104 (11). If
any licensee refuses to permit the commissioner to make an examination,
the licensee shall be subject to such penalty as the commissioner may
assess, not in excess of one hundred
THOUSAND dollars for each day any
such THE refusal shall continue CONTINUES.
(2) (c) If any licensee fails to submit any statement or report to the
commissioner as required by this subsection (2), the licensee shall pay to the
commissioner a penalty of two
SEVEN hundred fifty dollars for each
additional day of delinquency as set by the banking board pursuant to
section 11-102-104 (11); except that, if in the opinion of the banking board
the delay is excusable for good cause shown, no penalty shall be paid
THE
LICENSEE IS NOT SUBJECT TO THE PENALTY
.
SECTION 6. In Colorado Revised Statutes, 11-110-107, amend (1)
introductory portion and (1)(e) as follows:
11-110-107. Application for license - rules. (1) Application for a
license shall
MUST be made in writing, under oath, to the banking board on
such form as it may prescribe. The application shall MUST:
PAGE 4-HOUSE BILL 24-1328 (e) (I) Contain a set of fingerprints for each of the owners, principal
shareholders, principal members, directors, trustees, officers, or other
managing officials,
WHO MUST PAY THE ACTUAL COSTS OF THE RECORD
CHECK
.
(II) The commissioner shall forward
PERFORM A
FINGERPRINT
-BASED CRIMINAL HISTORY RECORD CHECK OF THE PERSONS
DESCRIBED IN SUBSECTION
(1)(e)(I) OF THIS SECTION BY FORWARDING the
fingerprints to
EITHER the FEDERAL BUREAU OF INVESTIGATION OR THE
Colorado bureau of investigation. for the purpose of obtaining a
fingerprint-based criminal history record check.
(III) Upon receipt of fingerprints and payment for the costs, the
Colorado bureau of investigation shall conduct a state and national
fingerprint-based criminal history record check utilizing records of the
Colorado bureau of investigation and the federal bureau of investigation.
T
HE COLORADO BUREAU OF INVESTIGATION SHALL RETURN THE RESULTS OF
ITS CRIMINAL HISTORY RECORD CHECK TO THE BOARD
, AND the board shall
be IS the authorized agency to receive information regarding the result of
any national criminal history record check. Only the actual costs of the
record check shall be borne by the applicant THE RESULTS OF THE FEDERAL
BUREAU OF INVESTIGATION
'S CRIMINAL HISTORY RECORD CHECK .
SECTION 7. In Colorado Revised Statutes, 11-110-201, repeal
(1)(b) as follows:
11-110-201. Agent information - rules. (1) A money transmitter
licensed pursuant to part 1 of this article 110 shall annually send the
following information to the banking board on such form as it may
prescribe:
(b) The name, address, and telephone number of each of the owners
of the agent holding more than a ten percent interest in the business if the
agent is a partnership or an entity created pursuant to title 7;
SECTION 8. In Colorado Revised Statutes, 11-110-119, add (1)(d)
as follows:
11-110-119. Civil remedies - restraining orders -
cease-and-desist orders - injunctions. (1) (d) (I) (A) I
F THE
PAGE 5-HOUSE BILL 24-1328 COMMISSIONER HAS CREDIBLE EVIDENCE THAT A PERSON IS VIOLATING OR
HAS VIOLATED THIS ARTICLE
110 AND THE VIOLATION CAUSES AN IMMINENT
RISK OF HARM TO THE PUBLIC
, THE COMMISSIONER MAY ISSUE AN ORDER TO
CEASE AND DESIST FROM THE VIOLATION
. THE ORDER MUST SET FORTH THE
STATUTES AND RULES ALLEGED TO HAVE BEEN VIOLATED
, THE FACTS
ALLEGED TO HAVE CONSTITUTED THE VIOLATION
, AND THE REQUIREMENT
THAT VIOLATIONS OR UNLICENSED PRACTICE IMMEDIATELY CEASE
.
(B) W
ITHIN TEN DAYS AFTER SERVICE OF THE ORDER TO CEASE AND
DESIST PURSUANT TO SUBSECTION
(1)(d)(I)(A) OF THIS SECTION, THE
RESPONDENT MAY REQUEST A HEARING ON THE QUESTION OF WHETHER A
VIOLATION OF THIS ARTICLE
110 HAS OCCURRED.
(II) (A) I
F THE COMMISSIONER HAS CREDIBLE EVIDENCE THAT A
PERSON IS VIOLATING OR HAS VIOLATED THIS ARTICLE
110, THE
COMMISSIONER MAY ISSUE AN ORDER TO SHOW CAUSE AS TO WHY THE
COMMISSIONER SHOULD NOT ISSUE A FINAL ORDER DIRECTING THE PERSON
TO CEASE AND DESIST FROM THE UNLAWFUL ACT OR UNLICENSED PRACTICE
.
T
HE COMMISSIONER SHALL PROMPTLY NOTIFY THE PERSON OF THE ISSUANCE
OF THE ORDER TO SHOW CAUSE AND SHALL INCLUDE IN THE NOTICE A COPY
OF THE ORDER AND THE FACTUAL AND LEGAL BASIS FOR THE ORDER
.
(B) I
F THE COMMISSIONER REASONABLY FINDS FOLLOWING A
HEARING THAT THE PERSON AGAINST WHOM THE COMMISSIONER ISSUED THE
ORDER TO SHOW CAUSE IS ACTING OR HAS ACTED WITHOUT THE REQUIRED
LICENSE OR HAS OR IS ABOUT TO ENGAGE IN ACTS OR PRACTICES
CONSTITUTING VIOLATIONS OF THIS ARTICLE
110, THE COMMISSIONER MAY
ISSUE A FINAL CEASE
-AND-DESIST ORDER DIRECTING THE PERSON TO CEASE
AND DESIST FROM FURTHER UNLAWFUL ACTS OR PRACTICES
.
(C) T
HE COMMISSIONER SHALL PROVIDE NOTICE OF THE FINAL
CEASE
-AND-DESIST ORDER WITHIN TEN CALENDAR DAYS AFTER THE
REQUIRED HEARING
. THE FINAL ORDER IS EFFECTIVE WHEN ISSUED AND
CONSTITUTES A FINAL ORDER FOR PURPOSES OF JUDICIAL REVIEW
.
(III) T
HE COMMISSIONER SHALL TRANSMIT NOTICES AND ORDERS
REQUIRED BY THIS SUBSECTION
(1)(d) BY PERSONAL SERVICE , BY
FIRST
-CLASS UNITED STATES MAIL, POSTAGE PREPAID, OR BY OTHER
REASONABLY PRACTICABLE MEANS UPON ANY PERSON AGAINST WHOM THE
ORDER IS ISSUED
. PERSONAL SERVICE OR PROOF OF RECEIPT OF MAILING OF
PAGE 6-HOUSE BILL 24-1328 A NOTICE OR ORDER OR OTHER REASONABLY EFFECTIVE DOCUMENTATION OF
RECEIPT CONSTITUTES NOTICE TO THE PERSON OF THE EXISTENCE AND
CONTENTS OF THE NOTICE OR ORDER
.
(IV) A
NY HEARING REQUIRED BY THIS SUBSECTION (1)(d) AND THE
RELATED PROCEDURES ARE GOVERNED BY ARTICLE
4 OF TITLE 24.
SECTION 9. In Colorado Revised Statutes, amend 11-110-106 as
follows:
11-110-106. Exemptions. Nothing in
This article 110 shall DOES
NOT
apply: To departments or agencies of the United States of America; orto any state or municipal government; or to corporations organized under
the general banking, savings and loan, or credit union laws of this state,
OF
OTHER STATES
, or of the United States. or to the receipt of money by an
incorporated telegraph or cable company at any office or agency thereof for
immediate transmission by telegraph or cable.
SECTION 10. In Colorado Revised Statutes, 11-110-107, amend
(1)(a) as follows:
11-110-107. Application for license. (1) Application for a license
shall be made in writing, under oath, to the banking board on such form as
it may prescribe. The application shall:
(a) State the name of the applicant and the address of his or her
THE
APPLICANT
'S principal office;
SECTION 11. In Colorado Revised Statutes, 11-110-109, amend
(1), (2), and (3) as follows:
11-110-109. Issuance of license. (1) Upon the filing of an
application, the commissioner shall investigate the applicant. The applicant
shall pay for the cost of the investigation. If the board finds that the
applicant is of good moral character and financially responsible and can
comply with this article 110, the board shall approve the application and
notify the applicant in writing that its
THE approval expires six months after
the approval date. Once the approved applicant has notified the board that
he or she
THE APPLICANT is prepared to commence operations in Colorado,
posted the required bond, and paid the license fee, the board shall issue to
PAGE 7-HOUSE BILL 24-1328 the applicant a license to engage in the business of money transmission
subject to this article 110.
(2) No license THE COMMISSIONER shall be issued NOT ISSUE A
LICENSE
to an applicant, if a natural person, unless he or she
THE APPLICANT
is over twenty-one years of age; or, if a partnership or syndicate, unless each
of the partners is over twenty-one years of age; or, if a joint stock
association, common law trust, unincorporated company or association, or
corporation, unless each of the officers, directors, trustees, or other
managing officials is over twenty-one years of age.
(3) If the board denies an application, the board shall, within thirty
days thereafter
AFTER THE DENIAL, prepare and file in its office a written
order of denial, which must contain the board's findings and reasons
supporting the denial. and,
Within ten days after filing the order OF DENIAL,
the board shall notify the applicant and send him or her THE APPLICANT a
copy of the order. The applicant may request a hearing by the board by
submitting a written request to the board within sixty days after receiving
notice as specified in section 24-4-104 (9), and, if so requested, the board
shall hold a hearing as specified in section 24-4-105.
SECTION 12. In Colorado Revised Statutes, 11-110-115, amend
(3) as follows:
11-110-115. Revocation or surrender of license. (3) A licensee
may surrender any license by delivering to the banking board written notice
that he or she
THE PERSON surrenders the license, but the surrender shall
DOES not:
(a) Affect the licensee's civil or criminal liability for acts committed
prior to the surrender; or
(b) Affect the liability on any bond; or
(c) Entitle the licensee to a return of any part of any license fee.
SECTION 13. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
PAGE 8-HOUSE BILL 24-1328 of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 9-HOUSE BILL 24-1328