Colorado 2024 Regular Session

Colorado House Bill HB1328 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-0573.01 Jery Payne x2157
1	8		HOUSE BILL 24-1328
2		-	BY REPRESENTATIVE(S) English and Clifford, Amabile, Lindstedt,
3		-	Ricks;
4		-	also SENATOR(S) Rich.
	9	+	House Committees Senate Committees
	10	+	Business Affairs & Labor Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
5	13		C
6		-	ONCERNING THE CONTINUATION OF THE REGULATION OF MONEY
7		-	TRANSMITTERS
8		-	, AND, IN CONNECTION THEREWITH, IMPLEMENTING
9		-	THE RECOMMENDATIONS IN THE
10		-	2023 SUNSET REPORT BY THE
11		-	DEPARTMENT OF REGULATORY AGENCIES
12		-	.
13		-
14		-	Be it enacted by the General Assembly of the State of Colorado:
15		-	SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal
16		-	(25)(a)(II); and add (31)(a)(XI) as follows:
17		-	24-34-104. General assembly review of regulatory agencies and
18		-	functions for repeal, continuation, or reestablishment - legislative
19		-	declaration - repeal. (25) (a) The following agencies, functions, or both,
20		-	are scheduled for repeal on September 1, 2024:
21		-	(II) The licensing functions of the banking board and the state bank
22		-	commissioner specified in article 110 of title 11 regarding persons who
23		-	transmit money;
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. (31) (a) The following agencies, functions, or both, are scheduled
32		-	for repeal on September 1, 2030:
33		-	(XI) T
34		-	HE FUNCTIONS OF THE BANKING BOARD AND THE STATE BANK
35		-	COMMISSIONER RELATED TO MONEY TRANSMITTERS SPECIFIED IN ARTICLE
36		-	110 OF TITLE 11.
37		-	SECTION 2. In Colorado Revised Statutes, amend 11-110-121 as
38		-	follows:
39		-	11-110-121. Repeal of article - review of functions. (1) This
40		-	article 110 is repealed, effective September 1, 2024
41		-	2030.
42		-	(2) Prior to such BEFORE THE repeal, the licensing functions of the
43		-	commissioner and the banking board shall be reviewed as provided for in
44		-	THIS ARTICLE 110 IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH section
45		-	24-34-104.
46		-	SECTION 3. In Colorado Revised Statutes, 11-110-115, amend (1)
47		-	and (2) introductory portion as follows:
48		-	11-110-115. Revocation, suspension, or surrender of license.
49		-	(1) The banking board may, upon ten days' notice served personally upon
50		-	the licensee stating the contemplated action and the grounds therefor FOR
51		-	THE ACTION
52		-	, hold a hearing at which the licensee shall have
53		-	HAS a
54		-	reasonable opportunity to be heard, for the purpose of determining whether
55		-	a license should be
56		-	SUSPENDED OR revoked.
	14	+	ONCERNING THE CONTINUATION OF THE REGULATION OF MONEY101
	15	+	TRANSMITTERS , AND, IN CONNECTION THEREWITH ,102
	16	+	IMPLEMENTING THE RE COMMENDATIONS IN THE 2023 SUNSET103
	17	+	REPORT BY THE DEPARTMENT OF REGULATORY AGENCIES .104
	18	+	Bill Summary
	19	+	(Note: This summary applies to this bill as introduced and does
	20	+	not reflect any amendments that may be subsequently adopted. If this bill
	21	+	passes third reading in the house of introduction, a bill summary that
	22	+	applies to the reengrossed version of this bill will be available at
	23	+	http://leg.colorado.gov/
	24	+	.)
	25	+	Sunset Process - House Business Affairs and Labor
	26	+	Committee. The bill implements the recommendations of the department
	27	+	of regulatory agencies, as specified in the department's sunset review of
	28	+	SENATE
	29	+	3rd Reading Unamended
	30	+	April 24, 2024
	31	+	SENATE
	32	+	2nd Reading Unamended
	33	+	April 23, 2024
	34	+	HOUSE
	35	+	3rd Reading Unamended
	36	+	April 8, 2024
	37	+	HOUSE
	38	+	Amended 2nd Reading
	39	+	April 5, 2024
	40	+	HOUSE SPONSORSHIP
	41	+	English and Clifford, Amabile, Lindstedt, Ricks,
	42	+	SENATE SPONSORSHIP
	43	+	Rich,
	44	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	45	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	46	+	Dashes through the words or numbers indicate deletions from existing law. the regulation of money transmitters, as follows:
	47	+	! Sections 1 and 2 of the bill continue the regulation of
	48	+	money transmitters until 2033;
	49	+	! Section 3 authorizes the banking board (board) to suspend
	50	+	a money transmitter's license;
	51	+	! Section 4 expands the requirement to furnish surety bond
	52	+	coverage to include all money transmission, rather than
	53	+	merely exchange;
	54	+	! Section 5 increases the maximum penalty for failure to
	55	+	report from $250 to $750 per day and for failure to allow
	56	+	an examination from $100 to $1,000 per day;
	57	+	! Section 6 authorizes the state bank commissioner to submit
	58	+	fingerprints directly to the federal bureau of investigation
	59	+	for a criminal history record check;
	60	+	! Section 7 repeals the requirement that license holders
	61	+	annually report the name, address, and telephone number
	62	+	of each owner of at least 10% of the agent of the money
	63	+	transmitter;
	64	+	! Section 8 authorizes the board to issue cease-and-desist
	65	+	orders and sets procedural requirements;
	66	+	! Section 9 expands the licensing exemption for in-state
	67	+	banks to also cover out-of-state banks and repeals the
	68	+	licensing exemption for telegraph or cable companies; and
	69	+	! Sections 10 through 12 replace gendered pronouns with
	70	+	gender-neutral terms.
	71	+	Be it enacted by the General Assembly of the State of Colorado:1
	72	+	SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
	73	+	(25)(a)(II); and add
	74	+	(31)(a)(XI) as follows:3
	75	+	24-34-104. General assembly review of regulatory agencies4
	76	+	and functions for repeal, continuation, or reestablishment - legislative5
	77	+	declaration - repeal. (25) (a) The following agencies, functions, or both,6
	78	+	are scheduled for repeal on September 1, 2024:7
	79	+	(II) The licensing functions of the banking board and the state8
	80	+	bank commissioner specified in article 110 of title 11 regarding persons9
	81	+	who transmit money;10
	82	+	(31) (a) The following agencies, functions, or both, are scheduled11
	83	+	1328-2- for repeal on September 1, 2030:1
	84	+	(XI) THE FUNCTIONS OF THE BANKING BOARD AND THE STATE2
	85	+	BANK COMMISSIONER RELATED TO MONEY TRANSMITTERS SPECIFIED IN3
	86	+	ARTICLE 110 OF TITLE 11. 4
	87	+	SECTION 2. In Colorado Revised Statutes, amend 11-110-1215
	88	+	as follows:6
	89	+	11-110-121. Repeal of article - review of functions. (1) This7
	90	+	article 110 is repealed, effective September 1, 2024 2030.8
	91	+	(2) Prior to such BEFORE THE repeal, the licensing functions of the9
	92	+	commissioner and the banking board shall be reviewed as provided for in10
	93	+	THIS ARTICLE 110 IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH11
	94	+	section 24-34-104.12
	95	+	SECTION 3. In Colorado Revised Statutes, 11-110-115, amend13
	96	+	(1) and (2) introductory portion as follows:14
	97	+	11-110-115. Revocation, suspension, or surrender of license.15
	98	+	(1) The banking board may, upon ten days' notice served personally upon16
	99	+	the licensee stating the contemplated action and the grounds therefor FOR17
	100	+	THE ACTION, hold a hearing at which the licensee shall have HAS a18
	101	+	reasonable opportunity to be heard, for the purpose of determining19
	102	+	whether a license should be
	103	+	SUSPENDED OR revoked.20
57	104		(2) After the hearing the banking board may
58		-	SUSPEND OR ~~revoke any~~
59		-	license issued under this article 110 if it finds that:
60		-	SECTION 4. In Colorado Revised Statutes, 11-110-108, ~~amend~~
61		-	(1)(a), (1)(b), and (4) as follows:
	105	+	SUSPEND OR revoke21
	106	+	any license issued under this article 110 if it finds that:22
	107	+	SECTION 4. In Colorado Revised Statutes, 11-110-108, amend23
	108	+	(1)(a), (1)(b), and (4) as follows:24
62	109		11-110-108. Bond - condition - amount - rules. (1) (a) E
63		-	XCEPT AS
64		-	OTHERWISE PROVIDED IN THIS SUBSECTION
65		-	(1), each approved applicant
66		-	shall furnish a corporate surety bond in the principal sum of one million
67		-	dollars, except as otherwise provided in this subsection (1),
68		-	by a bonding
69		-	company or insurance company authorized to do business in this state, in
70		-	PAGE 2-HOUSE BILL 24-1328 which the applicant is named as obligor, to be approved by the banking
71		-	board, that shall run RUNS to the state of Colorado for the use and benefit
72		-	of the state and of any creditor of the licensee for any liability incurred on
73		-	any exchange issued
74		-	MONEY TRANSMISSION by the licensee. The bond shall
75		-	MUST BE APPROVED BY THE BANKING BOARD AND be conditioned that the
76		-	obligor will faithfully conform to and abide by the provisions of this article
77		-	110, and
78		-	will honestly and faithfully apply all funds received for the
79		-	performance of all obligations and undertakings for exchange issued and
80		-	sold under MONEY TRANSMISSION SUBJECT TO this article 110, and will pay
81		-	to the state and to any person all money that becomes due and owing to the
82		-	state or to the person under the provisions of this article 110 because of any
83		-	exchange sold or issued by the licensee MONEY TRANSMISSION. The bond
84		-	shall remain in force and effect until the surety is released from liability by
85		-	the banking board or until the bond is canceled by the surety; which EXCEPT
86		-	THAT A
87		-	cancellation may be had only upon ninety days' written notice to the
88		-	banking board. The cancellation shall
89		-	DOES not affect any liability incurred
90		-	or accrued prior to the termination of the ninety-day period. If the banking
91		-	board finds, at any time, any
92		-	A bond to be exhausted, THE LICENSEE SHALL
93		-	OBTAIN AND FILE
94		-	a replacement bond in an equal amount shall be filed bythe licensee within thirty days after THE written demand therefor IS
95		-	RECEIVED
96		-	.
97		-	(b) The banking board shall by rule establish financial standards:
98		-	(I) By which to evaluate the financial condition or solvency of
99		-	licensees; and
100		-	(II) For the bond amount set under subsection (1)(a) of this section
101		-	to be decreased to not less than two hundred fifty thousand dollars,
102		-	following application by the licensee and an opportunity for hearing before
103		-	the banking board, in such amounts as necessary up to the amount provided
104		-	in subsection (1)(a) of this section to protect purchasers of exchange
105		-	MONEY
106		-	TRANSMISSION
107		-	.
108		-	(4) It is the intent of the general assembly that in applying the
109		-	provisions of this section the purpose of the required bond and permissible
110		-	investments is to protect the Colorado purchasers of exchange
111		-	MONEY
112		-	TRANSMISSION
113		-	, and the amount of the bond and investments that are
114		-	required of any licensee should not be more than is necessary to afford the
115		-	protection given the financial condition of the licensee as determined under
116		-	PAGE 3-HOUSE BILL 24-1328 generally accepted accounting principles.
117		-	SECTION 5. In Colorado Revised Statutes, 11-110-111, amend
118		-	(1)(a) and (2)(c) as follows:
119		-	11-110-111. Examination - fee - financial statements and reports
120		-	to commissioner - change in control - penalties. (1) (a) The
121		-	commissioner may examine the books and records of a licensee using
122		-	risk-based criteria and considering other available regulatory mechanisms
123		-	as directed by the banking board; shall make and file in the office of the
124		-	commissioner a correct report in detail disclosing the results of the
125		-	examination; and shall mail a copy of the report to the licensee examined.
126		-	If the licensee's records are located outside this state, the licensee shall, at
127		-	the option of the licensee, either make them available to the commissioner
128		-	at a convenient location within this state or pay the reasonable and
129		-	necessary expenses for the commissioner or the commissioner's
130		-	representative to examine them at the place where they are maintained. The
131		-	commissioner may designate representatives, including comparable officials
132		-	of the state in which the records are located, to inspect them on behalf of the
133		-	commissioner. For the examination, the commissioner shall charge a fee in
134		-	an amount set by the banking board pursuant to section 11-102-104 (11). If
135		-	any licensee refuses to permit the commissioner to make an examination,
136		-	the licensee shall be subject to such penalty as the commissioner may
137		-	assess, not in excess of one hundred
138		-	THOUSAND dollars for each day any
139		-	such THE refusal shall continue CONTINUES.
140		-	(2) (c) If any licensee fails to submit any statement or report to the
141		-	commissioner as required by this subsection (2), the licensee shall pay to the
142		-	commissioner a penalty of two
143		-	SEVEN hundred fifty dollars for each
144		-	additional day of delinquency as set by the banking board pursuant to
145		-	section 11-102-104 (11); except that, if in the opinion of the banking board
146		-	the delay is excusable for good cause shown, no penalty shall be paid
147		-	THE
148		-	LICENSEE IS NOT SUBJECT TO THE PENALTY
149		-	.
150		-	SECTION 6. In Colorado Revised Statutes, 11-110-107, amend (1)
151		-	introductory portion and (1)(e) as follows:
152		-	11-110-107. Application for license - rules. (1) Application for a
153		-	license shall
154		-	MUST be made in writing, under oath, to the banking board on
155		-	such form as it may prescribe. The application shall MUST:
156		-	PAGE 4-HOUSE BILL 24-1328 (e) (I) Contain a set of fingerprints for each of the owners, principal
157		-	shareholders, principal members, directors, trustees, officers, or other
158		-	managing officials,
159		-	WHO MUST PAY THE ACTUAL COSTS OF THE RECORD
160		-	CHECK
161		-	.
	110	+	XCEPT25
	111	+	AS OTHERWISE PROVIDED IN THIS SUBSECTION (1), each approved26
	112	+	applicant shall furnish a corporate surety bond in the principal sum of one27
	113	+	1328
	114	+	-3- million dollars, except as otherwise provided in this subsection (1), by a1
	115	+	bonding company or insurance company authorized to do business in this2
	116	+	state, in which the applicant is named as obligor, to be approved by the3
	117	+	banking board, that shall run RUNS to the state of Colorado for the use and4
	118	+	benefit of the state and of any creditor of the licensee for any liability5
	119	+	incurred on any exchange issued MONEY TRANSMISSION by the licensee.6
	120	+	The bond shall MUST BE APPROVED BY THE BANKING BOARD AND be7
	121	+	conditioned that the obligor will faithfully conform to and abide by the8
	122	+	provisions of this article 110, and will honestly and faithfully apply all9
	123	+	funds received for the performance of all obligations and undertakings for10
	124	+	exchange issued and sold under MONEY TRANSMISSION SUBJECT TO this11
	125	+	article 110, and will pay to the state and to any person all money that12
	126	+	becomes due and owing to the state or to the person under the provisions13
	127	+	of this article 110 because of any exchange sold or issued by the licensee14
	128	+	MONEY TRANSMISSION. The bond shall remain in force and effect until the15
	129	+	surety is released from liability by the banking board or until the bond is16
	130	+	canceled by the surety; which EXCEPT THAT A cancellation may be had17
	131	+	only upon ninety days' written notice to the banking board. The18
	132	+	cancellation shall DOES not affect any liability incurred or accrued prior19
	133	+	to the termination of the ninety-day period. If the banking board finds, at20
	134	+	any time, any A bond to be exhausted, THE LICENSEE SHALL OBTAIN AND21
	135	+	FILE a replacement bond in an equal amount shall be filed by the licensee22
	136	+	within thirty days after
	137	+	THE written demand therefor
	138	+	IS RECEIVED.23
	139	+	(b) The banking board shall by rule establish financial standards:24
	140	+	(I) By which to evaluate the financial condition or solvency of25
	141	+	licensees; and26
	142	+	(II) For the bond amount set under subsection (1)(a) of this section27
	143	+	1328
	144	+	-4- to be decreased to not less than two hundred fifty thousand dollars,1
	145	+	following application by the licensee and an opportunity for hearing2
	146	+	before the banking board, in such amounts as necessary up to the amount3
	147	+	provided in subsection (1)(a) of this section to protect purchasers of4
	148	+	exchange MONEY TRANSMISSION.5
	149	+	(4) It is the intent of the general assembly that in applying the6
	150	+	provisions of this section the purpose of the required bond and7
	151	+	permissible investments is to protect the Colorado purchasers of exchange8
	152	+	MONEY TRANSMISSION, and the amount of the bond and investments that9
	153	+	are required of any licensee should not be more than is necessary to afford10
	154	+	the protection given the financial condition of the licensee as determined11
	155	+	under generally accepted accounting principles.12
	156	+	SECTION 5. In Colorado Revised Statutes, 11-110-111, amend13
	157	+	(1)(a) and (2)(c) as follows:14
	158	+	11-110-111. Examination - fee - financial statements and15
	159	+	reports to commissioner - change in control - penalties. (1) (a) The16
	160	+	commissioner may examine the books and records of a licensee using17
	161	+	risk-based criteria and considering other available regulatory mechanisms18
	162	+	as directed by the banking board; shall make and file in the office of the19
	163	+	commissioner a correct report in detail disclosing the results of the20
	164	+	examination; and shall mail a copy of the report to the licensee examined.21
	165	+	If the licensee's records are located outside this state, the licensee shall,22
	166	+	at the option of the licensee, either make them available to the23
	167	+	commissioner at a convenient location within this state or pay the24
	168	+	reasonable and necessary expenses for the commissioner or the25
	169	+	commissioner's representative to examine them at the place where they26
	170	+	are maintained. The commissioner may designate representatives,27
	171	+	1328
	172	+	-5- including comparable officials of the state in which the records are1
	173	+	located, to inspect them on behalf of the commissioner. For the2
	174	+	examination, the commissioner shall charge a fee in an amount set by the3
	175	+	banking board pursuant to section 11-102-104 (11). If any licensee4
	176	+	refuses to permit the commissioner to make an examination, the licensee5
	177	+	shall be subject to such penalty as the commissioner may assess, not in6
	178	+	excess of one hundred THOUSAND dollars for each day any such THE7
	179	+	refusal shall continue CONTINUES.8
	180	+	(2) (c) If any licensee fails to submit any statement or report to the9
	181	+	commissioner as required by this subsection (2), the licensee shall pay to10
	182	+	the commissioner a penalty of two SEVEN hundred fifty dollars for each11
	183	+	additional day of delinquency as set by the banking board pursuant to12
	184	+	section 11-102-104 (11); except that, if in the opinion of the banking13
	185	+	board the delay is excusable for good cause shown, no penalty shall be14
	186	+	paid THE LICENSEE IS NOT SUBJECT TO THE PENALTY.15
	187	+	SECTION 6. In Colorado Revised Statutes, 11-110-107, amend16
	188	+	(1) introductory portion and (1)(e) as follows:17
	189	+	11-110-107. Application for license - rules. (1) Application for18
	190	+	a license shall MUST be made in writing, under oath, to the banking board19
	191	+	on such form as it may prescribe. The application shall MUST:20
	192	+	(e) (I) Contain a set of fingerprints for each of the owners,21
	193	+	principal shareholders, principal members, directors, trustees, officers, or22
	194	+	other managing officials,
	195	+	WHO MUST PAY THE ACTUAL COSTS OF THE23
	196	+	RECORD CHECK.24
162	197		(II) The commissioner shall forward
163		-	PERFORM A
164		-	FINGERPRINT
165		-	-BASED CRIMINAL HISTORY RECORD CHECK OF THE PERSONS
166		-	DESCRIBED IN SUBSECTION
167		-	(1)(e)(I) OF THIS SECTION BY FORWARDING the
168		-	fingerprints to
169		-	EITHER the FEDERAL BUREAU OF INVESTIGATION OR THE
170		-	Colorado bureau of investigation. for the purpose of obtaining a
171		-	fingerprint-based criminal history record check.
172		-	(III) Upon receipt of fingerprints and payment for the costs, the
173		-	Colorado bureau of investigation shall conduct a state and national
174		-	fingerprint-based criminal history record check utilizing records of the
175		-	Colorado bureau of investigation and the federal bureau of investigation.
	198	+	PERFORM A25
	199	+	FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK OF THE PERSONS26
	200	+	DESCRIBED IN SUBSECTION (1)(e)(I) OF THIS SECTION BY FORWARDING the27
	201	+	1328
	202	+	-6- fingerprints to EITHER the FEDERAL BUREAU OF INVESTIGATION OR THE1
	203	+	Colorado bureau of investigation. for the purpose of obtaining a2
	204	+	fingerprint-based criminal history record check.3
	205	+	(III) Upon receipt of fingerprints and payment for the costs, the4
	206	+	Colorado bureau of investigation shall conduct a state and national5
	207	+	fingerprint-based criminal history record check utilizing records of the6
	208	+	Colorado bureau of investigation and the federal bureau of investigation.7
176	209		T
177		-	HE COLORADO BUREAU OF INVESTIGATION SHALL RETURN THE ~~RESULTS OF~~
178		-	ITS CRIMINAL HISTORY RECORD CHECK TO THE BOARD
179		-	~~, AND the board shall~~
180		-	be IS the authorized agency to receive information regarding ~~the result of~~
181		-	any national criminal history record check. Only the actual ~~costs of the~~
182		-	record check shall be borne by the applicant THE RESULTS OF ~~THE FEDERAL~~
183		-	BUREAU OF INVESTIGATION
184		-	~~'S CRIMINAL HISTORY RECORD CHECK .~~
185		-	~~SECTION 7.~~ ~~In Colorado Revised Statutes, 11-110-201, repeal~~
186		-	(1)~~(b) as follows:~~
187		-	~~11-~~110~~-201. Agent information - rules. (1) A money transmitter~~
188		-	~~licensed pursuant~~ to ~~part 1 of this article 110 shall annually send the~~
189		-	~~following information to the banking board on such form as it may~~
190		-	~~prescribe:~~
191		-	~~(b) The name, address, and telephone number of each~~ of the ~~owners~~
192		-	of the agent ~~holding more than~~ a ~~ten percent interest in the business if the~~
193		-	~~agent is a partnership or an entity created pursuant to title~~ 7;
194		-	SECTION 8. In Colorado Revised Statutes, 11-110-119, ~~add (1)(d)~~
195		-	as follows:
196		-	11-110-119. Civil remedies - restraining orders -
	210	+	HE COLORADO BUREAU OF INVESTIGATION SHALL RETURN THE RESULTS8
	211	+	OF ITS CRIMINAL HISTORY RECORD CHECK TO THE BOARD , AND the board9
	212	+	shall be
	213	+	IS the authorized agency to receive information regarding the10
	214	+	result of any national criminal history record check. Only the actual costs11
	215	+	of the record check shall be borne by the applicant THE RESULTS OF THE12
	216	+	FEDERAL BUREAU OF INVESTIGATION'S CRIMINAL HISTORY RECORD CHECK.13
	217	+	SECTION 7. In Colorado Revised Statutes, 11-110-201, repeal14
	218	+	(1)(b) as follows:15
	219	+	11-110-201. Agent information - rules. (1) A money transmitter16
	220	+	licensed pursuant to part 1 of this article 110 shall annually send the17
	221	+	following information to the banking board on such form as it may18
	222	+	prescribe:19
	223	+	(b) The name, address, and telephone number of each of the20
	224	+	owners of the agent holding more than a ten percent interest in the21
	225	+	business if the agent is a partnership or an entity created pursuant to title22
	226	+	7;23
	227	+	SECTION 8. In Colorado Revised Statutes, 11-110-119, add24
	228	+	(1)(d) as follows:25
	229	+	11-110-119. Civil remedies - restraining orders -26
197	230		cease-and-desist orders - injunctions. (1) (d) (I) (A) I
198		-	F THE
199		-	PAGE 5-HOUSE BILL 24-1328 COMMISSIONER HAS CREDIBLE EVIDENCE THAT A PERSON IS VIOLATING OR
200		-	HAS VIOLATED THIS ARTICLE
201		-	110 AND THE VIOLATION CAUSES AN IMMINENT
202		-	RISK OF HARM TO THE PUBLIC
203		-	, THE COMMISSIONER MAY ISSUE AN ORDER TO
204		-	CEASE AND DESIST FROM THE VIOLATION
205		-	. THE ORDER MUST SET FORTH THE
206		-	STATUTES AND RULES ALLEGED TO HAVE BEEN VIOLATED
207		-	, THE FACTS
208		-	ALLEGED TO HAVE CONSTITUTED THE VIOLATION
209		-	, AND THE REQUIREMENT
210		-	THAT VIOLATIONS OR UNLICENSED PRACTICE IMMEDIATELY CEASE
211		-	.
	231	+	F THE27
	232	+	1328
	233	+	-7- COMMISSIONER HAS CREDIBLE EVIDENCE THAT A PERSON IS VIOLATING OR1
	234	+	HAS VIOLATED THIS ARTICLE 110 AND THE VIOLATION CAUSES AN2
	235	+	IMMINENT RISK OF HARM TO THE PUBLIC, THE COMMISSIONER MAY ISSUE3
	236	+	AN ORDER TO CEASE AND DESIST FROM THE VIOLATION . THE ORDER MUST4
	237	+	SET FORTH THE STATUTES AND RULES ALLEGED TO HAVE BEEN VIOLATED ,5
	238	+	THE FACTS ALLEGED TO HAVE CONSTITUTED THE VIOLATION , AND THE6
	239	+	REQUIREMENT THAT VIOLATIONS OR UNLICENSED PRACTICE IMMEDIATELY7
	240	+	CEASE.8
212	241		(B) W
213		-	ITHIN TEN DAYS AFTER SERVICE OF THE ORDER TO CEASE AND
214		-	DESIST PURSUANT TO SUBSECTION
215		-	(1)(d)(I)(A) OF THIS SECTION, THE
216		-	RESPONDENT MAY REQUEST A HEARING ON THE QUESTION OF WHETHER A
217		-	VIOLATION OF THIS ARTICLE
218		-	110 HAS OCCURRED.
	242	+	ITHIN TEN DAYS AFTER SERVICE OF THE ORDER TO CEASE9
	243	+	AND DESIST PURSUANT TO SUBSECTION (1)(d)(I)(A) OF THIS SECTION, THE10
	244	+	RESPONDENT MAY REQUEST A HEARING ON THE QUESTION OF WHETHER A11
	245	+	VIOLATION OF THIS ARTICLE 110 HAS OCCURRED.12
219	246		(II) (A) I
220		-	F THE COMMISSIONER HAS CREDIBLE EVIDENCE THAT A
221		-	PERSON IS VIOLATING OR HAS VIOLATED THIS ARTICLE
222		-	110, THE
223		-	COMMISSIONER MAY ISSUE AN ORDER TO SHOW CAUSE AS TO WHY THE
224		-	COMMISSIONER SHOULD NOT ISSUE A FINAL ORDER DIRECTING THE PERSON
225		-	TO CEASE AND DESIST FROM THE UNLAWFUL ACT OR UNLICENSED PRACTICE
226		-	.
227		-	T
228		-	HE COMMISSIONER SHALL PROMPTLY NOTIFY THE PERSON OF THE ISSUANCE
229		-	OF THE ORDER TO SHOW CAUSE AND SHALL INCLUDE IN THE NOTICE A COPY
230		-	OF THE ORDER AND THE FACTUAL AND LEGAL BASIS FOR THE ORDER
231		-	.
	247	+	F THE COMMISSIONER HAS CREDIBLE EVIDENCE THAT A13
	248	+	PERSON IS VIOLATING OR HAS VIOLATED THIS ARTICLE 110, THE14
	249	+	COMMISSIONER MAY ISSUE AN ORDER TO SHOW CAUSE AS TO WHY THE15
	250	+	COMMISSIONER SHOULD NOT ISSUE A FINAL ORDER DIRECTING THE PERSON16
	251	+	TO CEASE AND DESIST FROM THE UNLAWFUL ACT OR UNLICENSED17
	252	+	PRACTICE. THE COMMISSIONER SHALL PROMPTLY NOTIFY THE PERSON OF18
	253	+	THE ISSUANCE OF THE ORDER TO SHOW CAUSE AND SHALL INCLUDE IN THE19
	254	+	NOTICE A COPY OF THE ORDER AND THE FACTUAL AND LEGAL BASIS FOR20
	255	+	THE ORDER.21
232	256		(B) I
233		-	F THE COMMISSIONER REASONABLY FINDS FOLLOWING A
234		-	HEARING THAT THE PERSON AGAINST WHOM THE COMMISSIONER ISSUED THE
235		-	ORDER TO SHOW CAUSE IS ACTING OR HAS ACTED WITHOUT THE REQUIRED
236		-	LICENSE OR HAS OR IS ABOUT TO ENGAGE IN ACTS OR PRACTICES
237		-	CONSTITUTING VIOLATIONS OF THIS ARTICLE
238		-	110, THE COMMISSIONER MAY
239		-	ISSUE A FINAL CEASE
240		-	-AND-DESIST ORDER DIRECTING THE PERSON TO CEASE
241		-	AND DESIST FROM FURTHER UNLAWFUL ACTS OR PRACTICES
242		-	.
	257	+	F THE COMMISSIONER REASONABLY FINDS FOLLOWING A22
	258	+	HEARING THAT THE PERSON AGAINST WHOM THE COMMISSIONER ISSUED23
	259	+	THE ORDER TO SHOW CAUSE IS ACTING OR HAS ACTED WITHOUT THE24
	260	+	REQUIRED LICENSE OR HAS OR IS ABOUT TO ENGAGE IN ACTS OR PRACTICES25
	261	+	CONSTITUTING VIOLATIONS OF THIS ARTICLE 110, THE COMMISSIONER MAY26
	262	+	ISSUE A FINAL CEASE-AND-DESIST ORDER DIRECTING THE PERSON TO27
	263	+	1328
	264	+	-8- CEASE AND DESIST FROM FURTHER UNLAWFUL ACTS OR PRACTICES .1
243	265		(C) T
244		-	HE COMMISSIONER SHALL PROVIDE NOTICE OF THE FINAL
245		-	CEASE
246		-	-AND-DESIST ORDER WITHIN TEN CALENDAR DAYS AFTER THE
247		-	REQUIRED HEARING
248		-	. THE FINAL ORDER IS EFFECTIVE WHEN ISSUED AND
249		-	CONSTITUTES A FINAL ORDER FOR PURPOSES OF JUDICIAL REVIEW
250		-	.
	266	+	HE COMMISSIONER SHALL PROVIDE NOTICE OF THE FINAL2
	267	+	CEASE-AND-DESIST ORDER WITHIN TEN CALENDAR DAYS AFTER THE3
	268	+	REQUIRED HEARING. THE FINAL ORDER IS EFFECTIVE WHEN ISSUED AND4
	269	+	CONSTITUTES A FINAL ORDER FOR PURPOSES OF JUDICIAL REVIEW .5
251	270		(III) T
252		-	HE COMMISSIONER SHALL TRANSMIT NOTICES AND ORDERS
253		-	REQUIRED BY THIS SUBSECTION
254		-	(1)(d) BY PERSONAL SERVICE , BY
255		-	FIRST
256		-	-CLASS UNITED STATES MAIL, POSTAGE PREPAID, OR BY OTHER
257		-	REASONABLY PRACTICABLE MEANS UPON ANY PERSON AGAINST WHOM THE
258		-	ORDER IS ISSUED
259		-	. PERSONAL SERVICE OR PROOF OF RECEIPT OF MAILING OF
260		-	PAGE 6-HOUSE BILL 24-1328 A NOTICE OR ORDER OR OTHER REASONABLY EFFECTIVE DOCUMENTATION OF
261		-	RECEIPT CONSTITUTES NOTICE TO THE PERSON OF THE EXISTENCE AND
262		-	CONTENTS OF THE NOTICE OR ORDER
263		-	.
	271	+	HE COMMISSIONER SHALL TRANSMIT NOTICES AND ORDERS6
	272	+	REQUIRED BY THIS SUBSECTION (1)(d) BY PERSONAL SERVICE , BY7
	273	+	FIRST-CLASS UNITED STATES MAIL, POSTAGE PREPAID, OR BY OTHER8
	274	+	REASONABLY PRACTICABLE MEANS UPON ANY PERSON AGAINST WHOM9
	275	+	THE ORDER IS ISSUED. PERSONAL SERVICE OR PROOF OF RECEIPT OF10
	276	+	MAILING OF A NOTICE OR ORDER OR OTHER REASONABLY EFFECTIVE11
	277	+	DOCUMENTATION OF RECEIPT CONSTITUTES NOTICE TO THE PERSON OF THE12
	278	+	EXISTENCE AND CONTENTS OF THE NOTICE OR ORDER .13
264	279		(IV) A
265		-	NY HEARING REQUIRED BY THIS SUBSECTION (1)(d) AND THE
266		-	RELATED PROCEDURES ARE GOVERNED BY ARTICLE
267		-	4 OF TITLE 24.
268		-	SECTION 9. In Colorado Revised Statutes, amend 11-110-106 as
269		-	follows:
	280	+	NY HEARING REQUIRED BY THIS SUBSECTION (1)(d) AND THE14
	281	+	RELATED PROCEDURES ARE GOVERNED BY ARTICLE 4 OF TITLE 24.15
	282	+	SECTION 9. In Colorado Revised Statutes, amend 11-110-10616
	283	+	as follows:17
270	284		11-110-106. Exemptions. Nothing in
271		-	This article 110 shall DOES
272		-	NOT
273		-	apply: To departments or agencies of the United States of America; orto any state or municipal government; or to corporations organized under
274		-	the general banking, savings and loan, or credit union laws of this state,
275		-	OF
276		-	OTHER STATES
277		-	, or of the United States. or to the receipt of money by an
278		-	incorporated telegraph or cable company at any office or agency thereof for
279		-	immediate transmission by telegraph or cable.
280		-	SECTION 10. In Colorado Revised Statutes, 11-110-107, amend
281		-	(1)(a) as follows:
282		-	11-110-107. Application for license. (1) Application for a license
283		-	shall be made in writing, under oath, to the banking board on such form as
284		-	it may prescribe. The application shall:
285		-	(a) State the name of the applicant and the address of his or her
286		-	THE
287		-	APPLICANT
288		-	'S principal office;
289		-	SECTION 11. In Colorado Revised Statutes, 11-110-109, amend
290		-	(1), (2), and (3) as follows:
291		-	11-110-109. Issuance of license. (1) Upon the filing of an
292		-	application, the commissioner shall investigate the applicant. The applicant
293		-	shall pay for the cost of the investigation. If the board finds that the
294		-	applicant is of good moral character and financially responsible and can
295		-	comply with this article 110, the board shall approve the application and
296		-	notify the applicant in writing that its
297		-	THE approval expires six months after
298		-	the approval date. Once the approved applicant has notified the board that
299		-	he or she
300		-	THE APPLICANT is prepared to commence operations in Colorado,
301		-	posted the required bond, and paid the license fee, the board shall issue to
302		-	PAGE 7-HOUSE BILL 24-1328 the applicant a license to engage in the business of money transmission
303		-	subject to this article 110.
304		-	(2) No license THE COMMISSIONER shall be issued NOT ISSUE A
305		-	LICENSE
306		-	to an applicant, if a natural person, unless he or she
307		-	THE APPLICANT
308		-	is over twenty-one years of age; or, if a partnership or syndicate, unless each
309		-	of the partners is over twenty-one years of age; or, if a joint stock
310		-	association, common law trust, unincorporated company or association, or
311		-	corporation, unless each of the officers, directors, trustees, or other
312		-	managing officials is over twenty-one years of age.
313		-	(3) If the board denies an application, the board shall, within thirty
314		-	days thereafter
315		-	AFTER THE DENIAL, prepare and file in its office a written
316		-	order of denial, which must contain the board's findings and reasons
317		-	supporting the denial. and,
318		-	Within ten days after filing the order OF DENIAL,
319		-	the board shall notify the applicant and send him or her THE APPLICANT a
320		-	copy of the order. The applicant may request a hearing by the board by
321		-	submitting a written request to the board within sixty days after receiving
322		-	notice as specified in section 24-4-104 (9), and, if so requested, the board
323		-	shall hold a hearing as specified in section 24-4-105.
324		-	SECTION 12. In Colorado Revised Statutes, 11-110-115, amend
325		-	(3) as follows:
326		-	11-110-115. Revocation or surrender of license. (3) A licensee
327		-	may surrender any license by delivering to the banking board written notice
328		-	that he or she
329		-	THE PERSON surrenders the license, but the surrender shall
330		-	DOES not:
331		-	(a) Affect the licensee's civil or criminal liability for acts committed
332		-	prior to the surrender; or
333		-	(b) Affect the liability on any bond; or
334		-	(c) Entitle the licensee to a return of any part of any license fee.
335		-	SECTION 13. Act subject to petition - effective date. This act
336		-	takes effect at 12:01 a.m. on the day following the expiration of the
337		-	ninety-day period after final adjournment of the general assembly; except
338		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
339		-	PAGE 8-HOUSE BILL 24-1328 of the state constitution against this act or an item, section, or part of this act
340		-	within such period, then the act, item, section, or part will not take effect
341		-	unless approved by the people at the general election to be held in
342		-	November 2024 and, in such case, will take effect on the date of the official
343		-	declaration of the vote thereon by the governor.
344		-	____________________________ ____________________________
345		-	Julie McCluskie Steve Fenberg
346		-	SPEAKER OF THE HOUSE PRESIDENT OF
347		-	OF REPRESENTATIVES THE SENATE
348		-	____________________________ ____________________________
349		-	Robin Jones Cindi L. Markwell
350		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
351		-	OF REPRESENTATIVES THE SENATE
352		-	APPROVED________________________________________
353		-	(Date and Time)
354		-	_________________________________________
355		-	Jared S. Polis
356		-	GOVERNOR OF THE STATE OF COLORADO
357		-	PAGE 9-HOUSE BILL 24-1328
	285	+	This article 110 shall DOES18
	286	+	NOT apply: To departments or agencies of the United States of America;19
	287	+	or to any state or municipal government; or to corporations organized20
	288	+	under the general banking, savings and loan, or credit union laws of this21
	289	+	state,
	290	+	OF OTHER STATES, or of the United States. or to the receipt of money
	291	+	22
	292	+	by an incorporated telegraph or cable company at any office or agency23
	293	+	thereof for immediate transmission by telegraph or cable.24
	294	+	SECTION 10. In Colorado Revised Statutes, 11-110-107, amend25
	295	+	(1)(a) as follows:26
	296	+	11-110-107. Application for license. (1) Application for a27
	297	+	1328
	298	+	-9- license shall be made in writing, under oath, to the banking board on such1
	299	+	form as it may prescribe. The application shall:2
	300	+	(a) State the name of the applicant and the address of his or her3
	301	+	THE APPLICANT'S principal office;4
	302	+	SECTION 11. In Colorado Revised Statutes, 11-110-109, amend5
	303	+	(1), (2), and (3) as follows:6
	304	+	11-110-109. Issuance of license. (1) Upon the filing of an7
	305	+	application, the commissioner shall investigate the applicant. The8
	306	+	applicant shall pay for the cost of the investigation. If the board finds that9
	307	+	the applicant is of good moral character and financially responsible and10
	308	+	can comply with this article 110, the board shall approve the application11
	309	+	and notify the applicant in writing that its THE approval expires six12
	310	+	months after the approval date. Once the approved applicant has notified13
	311	+	the board that he or she THE APPLICANT is prepared to commence14
	312	+	operations in Colorado, posted the required bond, and paid the license15
	313	+	fee, the board shall issue to the applicant a license to engage in the16
	314	+	business of money transmission subject to this article 110.17
	315	+	(2) No license THE COMMISSIONER shall be issued NOT ISSUE A18
	316	+	LICENSE to an applicant, if a natural person, unless he or she THE19
	317	+	APPLICANT is over twenty-one years of age; or, if a partnership or20
	318	+	syndicate, unless each of the partners is over twenty-one years of age; or,21
	319	+	if a joint stock association, common law trust, unincorporated company22
	320	+	or association, or corporation, unless each of the officers, directors,23
	321	+	trustees, or other managing officials is over twenty-one years of age.24
	322	+	(3) If the board denies an application, the board shall, within thirty25
	323	+	days thereafter AFTER THE DENIAL, prepare and file in its office a written26
	324	+	order of denial, which must contain the board's findings and reasons27
	325	+	1328
	326	+	-10- supporting the denial. and, Within ten days after filing the order OF1
	327	+	DENIAL, the board shall notify the applicant and send him or her THE2
	328	+	APPLICANT a copy of the order. The applicant may request a hearing by3
	329	+	the board by submitting a written request to the board within sixty days4
	330	+	after receiving notice as specified in section 24-4-104 (9), and, if so5
	331	+	requested, the board shall hold a hearing as specified in section 24-4-105.6
	332	+	SECTION 12. In Colorado Revised Statutes, 11-110-115, amend7
	333	+	(3) as follows:8
	334	+	11-110-115. Revocation or surrender of license. (3) A licensee9
	335	+	may surrender any license by delivering to the banking board written10
	336	+	notice that he or she THE PERSON surrenders the license, but the surrender11
	337	+	shall DOES not:12
	338	+	(a) Affect the licensee's civil or criminal liability for acts13
	339	+	committed prior to the surrender; or14
	340	+	(b) Affect the liability on any bond; or15
	341	+	(c) Entitle the licensee to a return of any part of any license fee.16
	342	+	SECTION 13. Act subject to petition - effective date. This act17
	343	+	takes effect at 12:01 a.m. on the day following the expiration of the18
	344	+	ninety-day period after final adjournment of the general assembly; except19
	345	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V20
	346	+	of the state constitution against this act or an item, section, or part of this21
	347	+	act within such period, then the act, item, section, or part will not take22
	348	+	effect unless approved by the people at the general election to be held in23
	349	+	November 2024 and, in such case, will take effect on the date of the24
	350	+	official declaration of the vote thereon by the governor.25
	351	+	1328
	352	+	-11-