IN
Indiana Senate Bill SB0458

Indiana 2023 Regular Session

Indiana Senate Bill SB0458 Compare Versions

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1+*ES0458.1*
2+March 30, 2023
3+ENGROSSED
4+SENATE BILL No. 458
5+_____
6+DIGEST OF SB 458 (Updated March 30, 2023 10:31 am - DI 101)
7+Citations Affected: IC 4-21.5; IC 28-1; IC 28-8; IC 28-11; IC 35-52.
8+Synopsis: Money transmitters. Effective January 1, 2024, repeals the
9+Indiana Code chapter governing the licensing and regulation of money
10+transmitters by the department of financial institutions (department).
11+Adds to the Indiana Code a new chapter codifying the Money
12+Transmission Modernization Act (Act), to take effect January 1, 2024,
13+and to be administered by the division of consumer credit within the
14+(Continued next page)
15+Effective: January 1, 2024.
16+Bassler, Gaskill, Randolph Lonnie M
17+(HOUSE SPONSOR — SPEEDY)
18+January 19, 2023, read first time and referred to Committee on Insurance and Financial
19+Institutions.
20+February 2, 2023, amended, reported favorably — Do Pass.
21+February 13, 2023, read second time, ordered engrossed. Engrossed. Returned to second
22+reading.
23+February 20, 2023, re-read second time, amended, ordered engrossed.
24+February 21, 2023, re-engrossed. Read third time, passed. Yeas 45, nays 0.
25+HOUSE ACTION
26+February 28, 2023, read first time and referred to Committee on Financial Institutions.
27+March 30, 2023, amended, reported — Do Pass.
28+ES 458—LS 7472/DI 101 Digest Continued
29+department. Sets forth provisions contained in the Act that address the
30+following: (1) Purposes of the Act. (2) Definitions of terms. (3)
31+Exemptions from the Act's requirements. (4) The supervisory authority
32+of the department under the Act. (5) The licensing of money
33+transmitters. (6) The acquisition of control of a licensee. (7) Reporting
34+and records requirements. (8) Authorized delegates of licensees. (9)
35+Refunds of, and receipts for, money received for transmission. (10)
36+Prudential standards for licensees. (11) The enforcement authority of
37+the department. (12) The application of the Act to licensees that have
38+been issued a license under the current statute. (13) Criminal penalties.
39+Makes conforming references to provisions in the Indiana Code that
40+cite the current money transmission statute.
41+ES 458—LS 7472/DI 101ES 458—LS 7472/DI 101 March 30, 2023
142 First Regular Session of the 123rd General Assembly (2023)
243 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
344 Constitution) is being amended, the text of the existing provision will appear in this style type,
445 additions will appear in this style type, and deletions will appear in this style type.
546 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
647 provision adopted), the text of the new provision will appear in this style type. Also, the
748 word NEW will appear in that style type in the introductory clause of each SECTION that adds
849 a new provision to the Indiana Code or the Indiana Constitution.
950 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1051 between statutes enacted by the 2022 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 458
12-AN ACT to amend the Indiana Code concerning trade regulation.
52+ENGROSSED
53+SENATE BILL No. 458
54+A BILL FOR AN ACT to amend the Indiana Code concerning trade
55+regulation.
1356 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 4-21.5-3-6, AS AMENDED BY P.L.35-2016,
15-SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JANUARY 1, 2024]: Sec. 6. (a) Notice shall be given under this
17-section concerning the following:
18-(1) A safety order under IC 22-8-1.1.
19-(2) Any order that:
20-(A) imposes a sanction on a person or terminates a legal right,
21-duty, privilege, immunity, or other legal interest of a person;
22-(B) is not described in section 4 or 5 of this chapter or
23-IC 4-21.5-4; and
24-(C) by statute becomes effective without a proceeding under
25-this chapter if there is no request for a review of the order
26-within a specified period after the order is issued or served.
27-(3) A notice of program reimbursement or equivalent
28-determination or other notice regarding a hospital's
29-reimbursement issued by the office of Medicaid policy and
30-planning or by a contractor of the office of Medicaid policy and
31-planning regarding a hospital's year end cost settlement.
32-(4) A determination of audit findings or an equivalent
33-determination by the office of Medicaid policy and planning or by
34-SEA 458 — Concur 2
35-a contractor of the office of Medicaid policy and planning arising
36-from a Medicaid postpayment or concurrent audit of a hospital's
37-Medicaid claims.
38-(5) A license suspension or revocation under:
39-(A) IC 24-4.4-2;
40-(B) IC 24-4.5-3;
41-(C) IC 28-1-29;
42-(D) IC 28-7-5;
43-(E) IC 28-8-4; IC 28-8-4.1; or
44-(F) IC 28-8-5.
45-(6) An order issued by the secretary or the secretary's designee
46-against providers regulated by the division of aging or the bureau
47-of developmental disabilities services and not licensed by the
48-state Indiana department of health under IC 16-27 or IC 16-28.
49-(b) When an agency issues an order described by subsection (a), the
50-agency shall give notice to the following persons:
51-(1) Each person to whom the order is specifically directed.
52-(2) Each person to whom a law requires notice to be given.
53-A person who is entitled to notice under this subsection is not a party
54-to any proceeding resulting from the grant of a petition for review
55-under section 7 of this chapter unless the person is designated as a
56-party in the record of the proceeding.
57-(c) The notice must include the following:
58-(1) A brief description of the order.
59-(2) A brief explanation of the available procedures and the time
60-limit for seeking administrative review of the order under section
61-7 of this chapter.
62-(3) Any other information required by law.
63-(d) An order described in subsection (a) is effective fifteen (15) days
64-after the order is served, unless a statute other than this article specifies
65-a different date or the agency specifies a later date in its order. This
66-subsection does not preclude an agency from issuing, under
67-IC 4-21.5-4, an emergency or other temporary order concerning the
68-subject of an order described in subsection (a).
69-(e) If a petition for review of an order described in subsection (a) is
70-filed within the period set by section 7 of this chapter and a petition for
71-stay of effectiveness of the order is filed by a party or another person
72-who has a pending petition for intervention in the proceeding, an
73-administrative law judge shall, as soon as practicable, conduct a
74-preliminary hearing to determine whether the order should be stayed in
75-whole or in part. The burden of proof in the preliminary hearing is on
76-the person seeking the stay. The administrative law judge may stay the
77-SEA 458 — Concur 3
78-order in whole or in part. The order concerning the stay may be issued
79-after an order described in subsection (a) becomes effective. The
80-resulting order concerning the stay shall be served on the parties and
81-any person who has a pending petition for intervention in the
82-proceeding. It must include a statement of the facts and law on which
83-it is based.
84-SECTION 2. IC 28-1-2-30, AS AMENDED BY P.L.29-2022,
85-SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
86-JANUARY 1, 2024]: Sec. 30. (a) As used in this section, "financial
87-institution" means any bank, trust company, corporate fiduciary,
88-savings association, credit union, savings bank, bank of discount and
89-deposit, or industrial loan and investment company organized or
90-reorganized under the laws of this state, and includes licensees and
91-registrants under IC 24-4.4, IC 24-4.5, IC 24-7, IC 24-12, IC 28-1-29,
92-IC 28-7-5, IC 28-8-4, IC 28-8-4.1, IC 28-8-5, and 750 IAC 9.
93-(b) Except as otherwise provided, a member of the department or
94-the director or deputy, assistant, or any other person having access to
95-any such information may not disclose to any person, other than
96-officially to the department, by the report made to it, or to the board of
97-directors, partners, or owners, or in compliance with the order of a
98-court, the names of the depositors or shareholders in any financial
99-institution, or the amount of money on deposit in any financial
100-institution at any time in favor of any depositor, or any other
101-information concerning the affairs of any such financial institution.
102-SECTION 3. IC 28-8-4 IS REPEALED [EFFECTIVE JANUARY
103-1, 2024]. (Money Transmitters).
104-SECTION 4. IC 28-8-4.1 IS ADDED TO THE INDIANA CODE
105-AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
106-JANUARY 1, 2024]:
107-Chapter 4.1. Money Transmission Modernization Act
108-Sec. 101. This chapter shall be known as and may be cited as the
109-Money Transmission Modernization Act.
110-Sec. 102. This chapter is designed to replace state money
111-transmission laws codified at IC 28-8-4 (before its repeal on
112-January 1, 2024). The underlying purposes and policies of this
113-chapter are to:
114-(1) ensure states can coordinate in all areas of regulation,
115-licensing, and supervision to eliminate unnecessary regulatory
116-burden and more effectively use regulatory resources;
117-(2) enforce compliance with applicable state and federal laws;
118-(3) standardize the types of activities that are subject to
119-licensing or otherwise exempt from licensing; and
120-SEA 458 — Concur 4
121-(4) modernize safety and soundness requirements to ensure
122-customer funds are protected in an environment that supports
123-innovative and competitive business practices.
124-Sec. 201. The following definitions apply throughout this
125-chapter:
126-(1) "Acting in concert" means persons knowingly acting
127-together with a common goal of jointly acquiring control of a
128-licensee whether or not pursuant to an express agreement.
129-(2) "Authorized delegate" means a person a licensee
130-designates to engage in money transmission on behalf of the
131-licensee.
132-(3) "Average daily money transmission liability", with respect
133-to a calendar quarter, means:
134-(A) the sum of the amounts of a licensee's outstanding
135-money transmission obligations in Indiana at the end of
136-each day in the calendar quarter; divided by
137-(B) the total number of days in that calendar quarter.
138-For purposes of this subdivision, a "calendar quarter" is a
139-quarter ending on March 31, June 30, September 30, or
140-December 31.
141-(4) "Bank Secrecy Act" means:
142-(A) the Bank Secrecy Act (31 U.S.C. 5311 et seq.); and
143-(B) regulations adopted under the Bank Secrecy Act (31
144-U.S.C. 5311 et seq.).
145-(5) "Closed loop stored value" means stored value that is
146-redeemable by the issuer only for goods or services provided
147-by the issuer or the issuer's affiliate or by franchisees of the
148-issuer or the issuer's affiliate, except to the extent required by
149-applicable law to be redeemable in cash for its cash value.
150-(6) "Control" means any of the following:
151-(A) The power to vote, directly or indirectly, at least
152-twenty-five percent (25%) of the outstanding voting shares
153-or voting interests of a licensee or of a person in control of
154-a licensee.
155-(B) The power to elect or appoint a majority of key
156-individuals or executive officers, managers, directors,
157-trustees, or other persons exercising managerial authority
158-of a person in control of a licensee.
159-(C) The power to exercise, directly or indirectly, a
160-controlling influence over the management or policies of a
161-licensee or of a person in control of a licensee. For
162-purposes of this clause, a person is presumed to exercise a
163-SEA 458 — Concur 5
164-controlling influence if the person holds the power to vote,
165-directly or indirectly, at least ten percent (10%) of the
166-outstanding voting shares or voting interests of a licensee
167-or of a person in control of a licensee. However, a person
168-presumed to exercise a controlling influence under this
169-clause may rebut the presumption of control if the person
170-is a passive investor.
171-For purposes of this subdivision, the percentage of a person
172-controlled by any other person is determined by aggregating
173-the other person's interest with the interest of any other
174-immediate family member of that person, including the
175-person's spouse, parents, children, siblings, mothers-in-law
176-and fathers-in-law, sons-in-law and daughters-in-law, and any
177-other person who shares the person's home.
178-(7) "Department" refers to the members of the department of
179-financial institutions.
180-(8) "Director" refers to the director of the department
181-appointed under IC 28-11-2-1.
182-(9) "Eligible rating" means a credit rating of any of the three
183-(3) highest rating categories provided by an eligible rating
184-service, including any rating category modifiers, such as
185-"plus" or "minus" for S&P Global, or an equivalent modifier
186-for any other eligible rating service. The term includes the
187-following:
188-(A) A long term credit rating equal to at least A- by S&P
189-Global, or an equivalent long term credit rating for any
190-other eligible rating service.
191-(B) A short term credit rating equal to at least A-2 by S&P
192-Global, or an equivalent short term credit rating for any
193-other eligible rating service.
194-In any case in which the credit ratings differ among eligible
195-rating services, the highest rating applies in determining
196-whether the credit rating is an "eligible rating" as defined in
197-this subdivision.
198-(10) "Eligible rating service" means:
199-(A) a nationally recognized statistical rating organization,
200-as defined by the United States Securities and Exchange
201-Commission; or
202-(B) any other organization designated as such by the
203-director.
204-(11) "Federally insured depository financial institution"
205-means:
206-SEA 458 — Concur 6
207-(A) a bank;
208-(B) a credit union;
209-(C) a savings and loan association;
210-(D) a trust company;
211-(E) a corporate fiduciary;
212-(F) a savings association;
213-(G) a savings bank;
214-(H) an industrial bank; or
215-(I) an industrial loan company;
216-that is organized under the law of the United States or any
217-state of the United States and that has federally or privately
218-insured deposits as permitted by state or federal law.
219-(12) "In Indiana", with respect to the location of a
220-transaction, means the following:
221-(A) At a physical location in Indiana, for a transaction
222-requested in person.
223-(B) For a transaction requested electronically or by
224-telephone, a determination made by the provider of money
225-transmission, by relying on the following, that the person
226-requesting the transaction is in Indiana:
227-(i) Information, provided by the person, regarding the
228-location of the individual's residential address or the
229-business entity's principal place of business or other
230-physical address location, as applicable.
231-(ii) Any records associated with the person that the
232-provider of money transmission may have that indicate
233-the person's location, including an address associated
234-with an account.
235-(13) "Individual" means a natural person.
236-(14) "Key individual" means an individual ultimately
237-responsible for establishing or directing policies and
238-procedures of a licensee, such as an executive officer,
239-manager, director, or trustee.
240-(15) "Licensee" means a person licensed under this chapter.
241-(16) "Material litigation" means litigation that, according to
242-United States generally accepted accounting principles, is
243-significant to a person's financial health and would be
244-required to be disclosed in the person's annual audited
245-financial statements, report to shareholders, or similar
246-records.
247-(17) "Money" means a medium of exchange that is issued by
248-the United States government or by a foreign government.
249-SEA 458 — Concur 7
250-The term includes a monetary unit of account established by
251-an intergovernmental organization or by agreement between
252-two (2) or more governments.
253-(18) "Monetary value" means a medium of exchange, whether
254-or not redeemable in money.
255-(19) "Money transmission" means any of the following:
256-(A) Selling or issuing payment instruments to a person
257-located in Indiana.
258-(B) Selling or issuing stored value to a person located in
259-Indiana.
260-(C) Receiving money for transmission from a person
261-located in Indiana.
262-The term does not include the provision of solely online or
263-telecommunications services or network access.
264-(20) "MSB accredited state" means a state agency that is
265-accredited by the Conference of State Bank Supervisors and
266-Money Transmitter Regulators Association for money
267-transmission licensing and supervision.
268-(21) "Multistate licensing process" means an agreement
269-entered into by and among state regulators related to:
270-(A) coordinated processing of applications for money
271-transmission licenses;
272-(B) applications for the acquisition and control of a
273-licensee;
274-(C) control determinations; or
275-(D) notice and information requirements for a change of
276-key individuals.
277-(22) "NMLS" means the Nationwide Multistate Licensing
278-System and Registry:
279-(A) developed by the Conference of State Bank Supervisors
280-and the American Association of Residential Mortgage
281-Regulators; and
282-(B) owned and operated by the State Regulatory Registry,
283-LLC, or by any successor or affiliated entity;
284-for the licensing and registry of persons in financial services
285-industries.
286-(23) "Outstanding money transmission obligation", as
287-established and extinguished in accordance with applicable
288-state law, means:
289-(A) any payment instrument or stored value that:
290-(i) is issued or sold by a licensee to a person located in
291-the United States, or reported as sold by an authorized
292-SEA 458 — Concur 8
293-delegate of the licensee to a person located in the United
294-States; and
295-(ii) has not yet been paid or refunded by or for the
296-licensee, or escheated in accordance with applicable
297-abandoned property laws; or
298-(B) any money that:
299-(i) is received for transmission by a licensee, or by an
300-authorized delegate of the licensee, from a person located
301-in the United States; and
302-(ii) has not been received by the payee or refunded to the
303-seller, or escheated in accordance with applicable
304-abandoned property laws.
305-For purposes of this subdivision, a person is located "in the
306-United States" if the person is located in any state, territory,
307-or possession of the United States or in the District of
308-Columbia, the Commonwealth of Puerto Rico, or a United
309-States military installation located in a foreign country.
310-(24) "Passive investor" means a person that:
311-(A) does not have the power to elect a majority of key
312-individuals or executive officers, managers, directors,
313-trustees, or other persons exercising managerial authority
314-over a person in control of a licensee;
315-(B) is not employed by and does not have any managerial
316-duties with respect to the licensee or a person in control of
317-the licensee;
318-(C) does not have the power to exercise, directly or
319-indirectly, a controlling influence over the management or
320-policies of the licensee or a person in control of the
321-licensee; and
322-(D) either:
323-(i) attests to as facts the characteristics of passivity set
324-forth in clauses (A) through (C), in a form and by a
325-medium prescribed by the director; or
326-(ii) commits to the characteristics of passivity set forth in
327-clauses (A) through (C) in a written document.
328-(25) "Payment instrument" means a written or electronic
329-check, draft, money order, traveler's check, or other written
330-or electronic instrument for the transmission or payment of
331-money or monetary value, whether or not negotiable. The
332-term does not include:
333-(A) stored value; or
334-(B) any instrument that:
335-SEA 458 — Concur 9
336-(i) is redeemable by the issuer only for goods or services
337-provided by the issuer or its affiliate, or franchisees of
338-the issuer or its affiliate, except to the extent required by
339-applicable law to be redeemable in cash for its cash
340-value; or
341-(ii) is not sold to the public but is issued and distributed
342-as part of a loyalty, rewards, or promotional program.
343-(26) "Person" means any individual, general partnership,
344-limited partnership, limited liability company, corporation,
345-trust, association, joint stock corporation, or other corporate
346-entity, as so identified by the director.
347-(27) "Receiving money for transmission" means receiving
348-money or monetary value in the United States for
349-transmission within or outside the United States by electronic
350-or other means. The term "money received for transmission"
351-has a corresponding meaning.
352-(28) "Stored value" means monetary value representing a
353-claim, against the issuer, that is evidenced by an electronic or
354-digital record and that is intended and accepted for use as a
355-means of redemption for money or monetary value, or
356-payment for goods or services. The term includes "prepaid
357-access" as defined in 31 CFR 1010.100. The term does not
358-include:
359-(A) a payment instrument;
360-(B) closed loop stored value; or
361-(C) stored value not sold to the public but issued and
362-distributed as part of a loyalty, rewards, or promotional
363-program.
364-(29) "Tangible net worth" means the aggregate assets of a
365-licensee, excluding all intangible assets, less liabilities, as
366-determined in accordance with United States generally
367-accepted accounting principles.
368-Sec. 301. This chapter does not apply to the following:
369-(1) An operator of a payment system, to the extent that the
370-operator provides processing, clearing, or settlement services,
371-between or among licensees or persons exempt under this
372-section, in connection with wire transfers, credit card
373-transactions, debit card transactions, stored value
374-transactions, automated clearinghouse transactions, or
375-similar funds transfers.
376-(2) A person appointed as an agent of a payee to collect and
377-process a payment from a payor to the payee for goods or
378-SEA 458 — Concur 10
379-services, other than money transmission itself, provided to the
380-payor by the payee, if all of the following apply:
381-(A) There exists a written agreement, between the payee
382-and the agent, directing the agent to collect and process
383-payments from payors on the payee's behalf.
384-(B) The payee holds the agent out to the public as accepting
385-payments for goods or services on the payee's behalf.
386-(C) Payment for the goods and services is treated as
387-received by the payee upon receipt by the agent, so that the
388-payor's obligation is extinguished, and there is no risk of
389-loss to the payor, if the agent fails to remit the funds to the
390-payee.
391-(3) A person that acts as an intermediary by processing
392-payments between a person that has directly incurred an
393-outstanding money transmission obligation to a sender, and
394-the sender's designated recipient, if the person:
395-(A) is properly licensed or exempt from licensing
396-requirements under this chapter;
397-(B) provides a receipt, electronic record, or other written
398-confirmation to the sender identifying the person as the
399-provider of money transmission in the transaction; and
400-(C) bears sole responsibility to satisfy the outstanding
401-money transmission obligation to the sender, including the
402-obligation to make the sender whole in connection with any
403-failure to transmit the funds to the sender's designated
404-recipient.
405-(4) The United States, or a department, agency, or
406-instrumentality of the United States, or its agent.
407-(5) Money transmission by the United States Postal Service or
408-by an agent of the United States Postal Service.
409-(6) A state, county, or city, or any other:
410-(A) governmental agency; or
411-(B) governmental subdivision or instrumentality;
412-of a state, or its agent.
413-(7) A federally insured depository financial institution, bank
414-holding company, office of an international banking
415-corporation, foreign bank that establishes a federal branch
416-under the International Bank Act (12 U.S.C. 3102),
417-corporation organized under the Bank Service Corporation
418-Act (12 U.S.C. 1861-1867), or corporation organized under
419-the Edge Act (12 U.S.C. 611-633).
420-(8) Any of the following that is organized under the laws of
421-SEA 458 — Concur 11
422-any state of the United States:
423-(A) A trust company.
424-(B) A corporate fiduciary.
425-(C) An industrial loan corporation.
426-(9) Electronic funds transfer of governmental benefits for a
427-federal, state, county, or governmental agency by a contractor
428-on behalf of:
429-(A) the United States or a department, agency, or
430-instrumentality of the United States; or
431-(B) a state or governmental subdivision, agency, or
432-instrumentality.
433-(10) A:
434-(A) board of trade designated as a contract market under
435-the federal Commodity Exchange Act (7 U.S.C. 1-25); or
436-(B) person that, in the ordinary course of business,
437-provides clearance and settlement services for a board of
438-trade;
439-to the extent of its operation as or for such a board.
440-(11) A registered futures commission merchant under federal
441-commodities laws, to the extent of its operation as such a
442-merchant.
443-(12) A person registered as a securities broker-dealer under
444-federal or state securities laws, to the extent of its operation
445-as such a broker-dealer.
446-(13) An individual employed by:
447-(A) a licensee;
448-(B) an authorized delegate; or
449-(C) a person exempted from the licensing requirements of
450-this chapter;
451-when acting within the scope of employment and under the
452-supervision of the licensee, authorized delegate, or exempted
453-person as an employee and not as an independent contractor.
454-(14) A person expressly appointed as a third party service
455-provider to or agent of an entity exempt under subdivision (7),
456-solely to the extent that:
457-(A) the service provider or agent is engaging in money
458-transmission on behalf of, and pursuant to a written
459-agreement with, the exempt entity, and the agreement sets
460-forth the specific functions that the service provider or
461-agent is to perform; and
462-(B) the exempt entity assumes all risk of loss and all legal
463-responsibility for satisfying the outstanding money
464-SEA 458 — Concur 12
465-transmission obligations, owed to purchasers and holders
466-of those outstanding money transmission obligations, upon
467-the service provider's or agent's receipt of the purchasers'
468-or holders' money or monetary value.
469-(15) A person exempt by regulation or order if the director
470-finds that:
471-(A) an exemption is in the public interest; and
472-(B) regulation of the person is not necessary for the
473-purposes of this chapter.
474-Sec. 302. The director may require any person claiming to be
475-exempt from licensing under section 301 of this chapter to provide
476-information and documentation to the director demonstrating that
477-the person qualifies for any claimed exemption.
478-Sec. 401. (a) To carry out the purposes of this chapter, the
479-director may, subject to section 402(a) and 402(b) of this chapter,
480-do any of the following:
481-(1) Enter into agreements or relationships with other
482-government officials or federal and state regulatory agencies
483-and regulatory associations in order to improve efficiencies
484-and reduce regulatory burden by:
485-(A) standardizing methods or procedures; and
486-(B) sharing resources, records, or related information
487-obtained under this chapter.
488-(2) Use, contract for, or employ analytical systems, methods,
489-or software to examine or investigate any person subject to
490-this chapter.
491-(3) Accept, from other state or federal government agencies
492-or officials, licensing, examination, or investigation reports
493-made by those other state or federal government agencies or
494-officials.
495-(4) Accept audit reports made by an independent certified
496-public accountant or another qualified third party auditor for
497-an applicant or licensee and incorporate the audit report in
498-any report of examination or investigation.
499-(b) The department has broad administrative authority to:
500-(1) administer, interpret, and enforce this chapter;
501-(2) promulgate rules or regulations implementing this
502-chapter; and
503-(3) recover the cost of administering and enforcing this
504-chapter by imposing and collecting proportionate and
505-equitable fees and costs associated with applications,
506-examinations, investigations, and other actions required to
507-SEA 458 — Concur 13
508-achieve the purpose of this chapter.
509-Sec. 402. (a) Except as provided in subsection (b), the following
510-are confidential:
511-(1) All information or reports obtained by the department
512-from an applicant, licensee, or authorized delegate.
513-(2) All information contained in or related to an examination,
514-investigation, operating report, or condition report prepared
515-by, on behalf of, or for the use of the department.
516-(3) Financial statements, balance sheets, or authorized
517-delegate information.
518-(b) Subject to the confidentiality provisions contained in
519-IC 5-14-3 and this section, the director may regularly report
520-significant or recurring violations of this chapter to the NMLS.
521-(c) Subject to the confidentiality provisions contained in
522-IC 5-14-3 and this section, the director may report complaints
523-received regarding licensees to the NMLS.
524-(d) The director's authority to use the NMLS under this chapter
525-is subject to the following:
526-(1) Information stored in the NMLS is subject to the
527-confidentiality provisions of IC 5-14-3 and this section. A
528-person may not:
529-(A) obtain information from the NMLS, unless the person
530-is authorized to do so by statute;
531-(B) initiate any civil action based on information obtained
532-from the NMLS if the information is not otherwise
533-available to the person under any other state law; or
534-(C) initiate any civil action based on information obtained
535-from the NMLS if the person could not have initiated the
536-action based on information otherwise available to the
537-person under any other state law.
538-(2) Documents, materials, and other forms of information in
539-the control or possession of the NMLS that are confidential
540-under this section and that are:
541-(A) furnished by the director, the director's designee, or a
542-licensee; or
543-(B) otherwise obtained by the NMLS;
544-are confidential and privileged by law and are not subject to
545-inspection under IC 5-14-3, subject to subpoena, subject to
546-discovery, or admissible in evidence in any civil action.
547-However, the director may use the documents, materials, or
548-other information available to the director in furtherance of
549-any action brought in connection with the director's duties
550-SEA 458 — Concur 14
551-under this chapter.
552-(3) Disclosure of documents, materials, and information:
553-(A) to the director; or
554-(B) by the director;
555-under this subsection does not result in a waiver of any
556-applicable privilege or claim of confidentiality with respect to
557-the documents, materials, or information.
558-(4) Information provided to the NMLS is subject to IC 4-1-11.
559-(5) This subsection does not limit or impair a person's right
560-to:
561-(A) obtain information;
562-(B) use information as evidence in a civil action or
563-proceeding; or
564-(C) use information to initiate a civil action or proceeding;
565-if the information may be obtained from the director or the
566-director's designee under any law.
567-(6) The requirements under any federal law or IC 5-14-3
568-regarding the privacy or confidentiality of any information or
569-material provided to the NMLS, and any privilege arising
570-under federal or state law, including the rules of any federal
571-or state court, with respect to the information or material,
572-continue to apply to the information or material after the
573-information or material has been disclosed to the NMLS. The
574-information and material may be shared with all state and
575-federal regulatory officials with financial services industry
576-oversight authority without the loss of privilege or the loss of
577-confidentiality protections provided by federal law or
578-IC 5-14-3.
579-(7) Information or material that is subject to a privilege or
580-confidentiality under subdivision (6) is not subject to:
581-(A) disclosure under any federal or state law governing the
582-disclosure to the public of information held by an officer or
583-an agency of the federal government or the respective
584-state; or
585-(B) subpoena, discovery, or admission into evidence, in any
586-private civil action or administrative process, unless with
587-respect to any privileged information or material held by
588-the NMLS, the person to whom the information or
589-material pertains waives, in whole or in part, in the
590-discretion of the person, that privilege.
591-(e) Notwithstanding any other provision of law, all information
592-or reports obtained by the director from an applicant, a licensee,
593-SEA 458 — Concur 15
594-or an authorized delegate, whether obtained through reports,
595-applications, examination, audits, investigation, or otherwise,
596-including:
597-(1) all information contained in or related to:
598-(A) examination;
599-(B) investigation;
600-(C) operation; or
601-(D) condition;
602-reports prepared by, on behalf of, or for the use of the
603-director; or
604-(2) financial statements, balance sheets, or authorized
605-delegate information;
606-are confidential and may not be disclosed or distributed outside the
607-department by the director or any officer or employee of the
608-department, except as provided in subsection (b).
609-(f) The director may provide for the release of information to
610-representatives of:
611-(1) financial institution and money services business
612-supervisory agencies;
613-(2) law enforcement agencies; or
614-(3) prosecutorial agencies or offices;
615-of a state (as defined in IC 28-2-17-19), the United States, or a
616-foreign country. An agency or office that receives information
617-from the director under this subsection shall maintain the
618-confidentiality of the information as described in IC 28-1-2-30.
619-(g) This section does not prohibit the director from releasing to
57+1 SECTION 1. IC 4-21.5-3-6, AS AMENDED BY P.L.35-2016,
58+2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
59+3 JANUARY 1, 2024]: Sec. 6. (a) Notice shall be given under this
60+4 section concerning the following:
61+5 (1) A safety order under IC 22-8-1.1.
62+6 (2) Any order that:
63+7 (A) imposes a sanction on a person or terminates a legal right,
64+8 duty, privilege, immunity, or other legal interest of a person;
65+9 (B) is not described in section 4 or 5 of this chapter or
66+10 IC 4-21.5-4; and
67+11 (C) by statute becomes effective without a proceeding under
68+12 this chapter if there is no request for a review of the order
69+13 within a specified period after the order is issued or served.
70+14 (3) A notice of program reimbursement or equivalent
71+15 determination or other notice regarding a hospital's
72+ES 458—LS 7472/DI 101 2
73+1 reimbursement issued by the office of Medicaid policy and
74+2 planning or by a contractor of the office of Medicaid policy and
75+3 planning regarding a hospital's year end cost settlement.
76+4 (4) A determination of audit findings or an equivalent
77+5 determination by the office of Medicaid policy and planning or by
78+6 a contractor of the office of Medicaid policy and planning arising
79+7 from a Medicaid postpayment or concurrent audit of a hospital's
80+8 Medicaid claims.
81+9 (5) A license suspension or revocation under:
82+10 (A) IC 24-4.4-2;
83+11 (B) IC 24-4.5-3;
84+12 (C) IC 28-1-29;
85+13 (D) IC 28-7-5;
86+14 (E) IC 28-8-4; IC 28-8-4.1; or
87+15 (F) IC 28-8-5.
88+16 (6) An order issued by the secretary or the secretary's designee
89+17 against providers regulated by the division of aging or the bureau
90+18 of developmental disabilities services and not licensed by the
91+19 state Indiana department of health under IC 16-27 or IC 16-28.
92+20 (b) When an agency issues an order described by subsection (a), the
93+21 agency shall give notice to the following persons:
94+22 (1) Each person to whom the order is specifically directed.
95+23 (2) Each person to whom a law requires notice to be given.
96+24 A person who is entitled to notice under this subsection is not a party
97+25 to any proceeding resulting from the grant of a petition for review
98+26 under section 7 of this chapter unless the person is designated as a
99+27 party in the record of the proceeding.
100+28 (c) The notice must include the following:
101+29 (1) A brief description of the order.
102+30 (2) A brief explanation of the available procedures and the time
103+31 limit for seeking administrative review of the order under section
104+32 7 of this chapter.
105+33 (3) Any other information required by law.
106+34 (d) An order described in subsection (a) is effective fifteen (15) days
107+35 after the order is served, unless a statute other than this article specifies
108+36 a different date or the agency specifies a later date in its order. This
109+37 subsection does not preclude an agency from issuing, under
110+38 IC 4-21.5-4, an emergency or other temporary order concerning the
111+39 subject of an order described in subsection (a).
112+40 (e) If a petition for review of an order described in subsection (a) is
113+41 filed within the period set by section 7 of this chapter and a petition for
114+42 stay of effectiveness of the order is filed by a party or another person
115+ES 458—LS 7472/DI 101 3
116+1 who has a pending petition for intervention in the proceeding, an
117+2 administrative law judge shall, as soon as practicable, conduct a
118+3 preliminary hearing to determine whether the order should be stayed in
119+4 whole or in part. The burden of proof in the preliminary hearing is on
120+5 the person seeking the stay. The administrative law judge may stay the
121+6 order in whole or in part. The order concerning the stay may be issued
122+7 after an order described in subsection (a) becomes effective. The
123+8 resulting order concerning the stay shall be served on the parties and
124+9 any person who has a pending petition for intervention in the
125+10 proceeding. It must include a statement of the facts and law on which
126+11 it is based.
127+12 SECTION 2. IC 28-1-2-30, AS AMENDED BY P.L.29-2022,
128+13 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
129+14 JANUARY 1, 2024]: Sec. 30. (a) As used in this section, "financial
130+15 institution" means any bank, trust company, corporate fiduciary,
131+16 savings association, credit union, savings bank, bank of discount and
132+17 deposit, or industrial loan and investment company organized or
133+18 reorganized under the laws of this state, and includes licensees and
134+19 registrants under IC 24-4.4, IC 24-4.5, IC 24-7, IC 24-12, IC 28-1-29,
135+20 IC 28-7-5, IC 28-8-4, IC 28-8-4.1, IC 28-8-5, and 750 IAC 9.
136+21 (b) Except as otherwise provided, a member of the department or
137+22 the director or deputy, assistant, or any other person having access to
138+23 any such information may not disclose to any person, other than
139+24 officially to the department, by the report made to it, or to the board of
140+25 directors, partners, or owners, or in compliance with the order of a
141+26 court, the names of the depositors or shareholders in any financial
142+27 institution, or the amount of money on deposit in any financial
143+28 institution at any time in favor of any depositor, or any other
144+29 information concerning the affairs of any such financial institution.
145+30 SECTION 3. IC 28-8-4 IS REPEALED [EFFECTIVE JANUARY
146+31 1, 2024]. (Money Transmitters).
147+32 SECTION 4. IC 28-8-4.1 IS ADDED TO THE INDIANA CODE
148+33 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
149+34 JANUARY 1, 2024]:
150+35 Chapter 4.1. Money Transmission Modernization Act
151+36 Sec. 101. This chapter shall be known as and may be cited as the
152+37 Money Transmission Modernization Act.
153+38 Sec. 102. This chapter is designed to replace state money
154+39 transmission laws codified at IC 28-8-4 (before its repeal on
155+40 January 1, 2024). The underlying purposes and policies of this
156+41 chapter are to:
157+42 (1) ensure states can coordinate in all areas of regulation,
158+ES 458—LS 7472/DI 101 4
159+1 licensing, and supervision to eliminate unnecessary regulatory
160+2 burden and more effectively use regulatory resources;
161+3 (2) enforce compliance with applicable state and federal laws;
162+4 (3) standardize the types of activities that are subject to
163+5 licensing or otherwise exempt from licensing; and
164+6 (4) modernize safety and soundness requirements to ensure
165+7 customer funds are protected in an environment that supports
166+8 innovative and competitive business practices.
167+9 Sec. 201. The following definitions apply throughout this
168+10 chapter:
169+11 (1) "Acting in concert" means persons knowingly acting
170+12 together with a common goal of jointly acquiring control of a
171+13 licensee whether or not pursuant to an express agreement.
172+14 (2) "Authorized delegate" means a person a licensee
173+15 designates to engage in money transmission on behalf of the
174+16 licensee.
175+17 (3) "Average daily money transmission liability", with respect
176+18 to a calendar quarter, means:
177+19 (A) the sum of the amounts of a licensee's outstanding
178+20 money transmission obligations in Indiana at the end of
179+21 each day in the calendar quarter; divided by
180+22 (B) the total number of days in that calendar quarter.
181+23 For purposes of this subdivision, a "calendar quarter" is a
182+24 quarter ending on March 31, June 30, September 30, or
183+25 December 31.
184+26 (4) "Bank Secrecy Act" means:
185+27 (A) the Bank Secrecy Act (31 U.S.C. 5311 et seq.); and
186+28 (B) regulations adopted under the Bank Secrecy Act (31
187+29 U.S.C. 5311 et seq.).
188+30 (5) "Closed loop stored value" means stored value that is
189+31 redeemable by the issuer only for goods or services provided
190+32 by the issuer or the issuer's affiliate or by franchisees of the
191+33 issuer or the issuer's affiliate, except to the extent required by
192+34 applicable law to be redeemable in cash for its cash value.
193+35 (6) "Control" means any of the following:
194+36 (A) The power to vote, directly or indirectly, at least
195+37 twenty-five percent (25%) of the outstanding voting shares
196+38 or voting interests of a licensee or of a person in control of
197+39 a licensee.
198+40 (B) The power to elect or appoint a majority of key
199+41 individuals or executive officers, managers, directors,
200+42 trustees, or other persons exercising managerial authority
201+ES 458—LS 7472/DI 101 5
202+1 of a person in control of a licensee.
203+2 (C) The power to exercise, directly or indirectly, a
204+3 controlling influence over the management or policies of a
205+4 licensee or of a person in control of a licensee. For
206+5 purposes of this clause, a person is presumed to exercise a
207+6 controlling influence if the person holds the power to vote,
208+7 directly or indirectly, at least ten percent (10%) of the
209+8 outstanding voting shares or voting interests of a licensee
210+9 or of a person in control of a licensee. However, a person
211+10 presumed to exercise a controlling influence under this
212+11 clause may rebut the presumption of control if the person
213+12 is a passive investor.
214+13 For purposes of this subdivision, the percentage of a person
215+14 controlled by any other person is determined by aggregating
216+15 the other person's interest with the interest of any other
217+16 immediate family member of that person, including the
218+17 person's spouse, parents, children, siblings, mothers-in-law
219+18 and fathers-in-law, sons-in-law and daughters-in-law, and any
220+19 other person who shares the person's home.
221+20 (7) "Department" refers to the members of the department of
222+21 financial institutions.
223+22 (8) "Director" refers to the director of the department
224+23 appointed under IC 28-11-2-1.
225+24 (9) "Eligible rating" means a credit rating of any of the three
226+25 (3) highest rating categories provided by an eligible rating
227+26 service, including any rating category modifiers, such as
228+27 "plus" or "minus" for S&P Global, or an equivalent modifier
229+28 for any other eligible rating service. The term includes the
230+29 following:
231+30 (A) A long term credit rating equal to at least A- by S&P
232+31 Global, or an equivalent long term credit rating for any
233+32 other eligible rating service.
234+33 (B) A short term credit rating equal to at least A-2 by S&P
235+34 Global, or an equivalent short term credit rating for any
236+35 other eligible rating service.
237+36 In any case in which the credit ratings differ among eligible
238+37 rating services, the highest rating applies in determining
239+38 whether the credit rating is an "eligible rating" as defined in
240+39 this subdivision.
241+40 (10) "Eligible rating service" means:
242+41 (A) a nationally recognized statistical rating organization,
243+42 as defined by the United States Securities and Exchange
244+ES 458—LS 7472/DI 101 6
245+1 Commission; or
246+2 (B) any other organization designated as such by the
247+3 director.
248+4 (11) "Federally insured depository financial institution"
249+5 means:
250+6 (A) a bank;
251+7 (B) a credit union;
252+8 (C) a savings and loan association;
253+9 (D) a trust company;
254+10 (E) a corporate fiduciary;
255+11 (F) a savings association;
256+12 (G) a savings bank;
257+13 (H) an industrial bank; or
258+14 (I) an industrial loan company;
259+15 that is organized under the law of the United States or any
260+16 state of the United States and that has federally or privately
261+17 insured deposits as permitted by state or federal law.
262+18 (12) "In Indiana", with respect to the location of a
263+19 transaction, means the following:
264+20 (A) At a physical location in Indiana, for a transaction
265+21 requested in person.
266+22 (B) For a transaction requested electronically or by
267+23 telephone, a determination made by the provider of money
268+24 transmission, by relying on the following, that the person
269+25 requesting the transaction is in Indiana:
270+26 (i) Information, provided by the person, regarding the
271+27 location of the individual's residential address or the
272+28 business entity's principal place of business or other
273+29 physical address location, as applicable.
274+30 (ii) Any records associated with the person that the
275+31 provider of money transmission may have that indicate
276+32 the person's location, including an address associated
277+33 with an account.
278+34 (13) "Individual" means a natural person.
279+35 (14) "Key individual" means an individual ultimately
280+36 responsible for establishing or directing policies and
281+37 procedures of a licensee, such as an executive officer,
282+38 manager, director, or trustee.
283+39 (15) "Licensee" means a person licensed under this chapter.
284+40 (16) "Material litigation" means litigation that, according to
285+41 United States generally accepted accounting principles, is
286+42 significant to a person's financial health and would be
287+ES 458—LS 7472/DI 101 7
288+1 required to be disclosed in the person's annual audited
289+2 financial statements, report to shareholders, or similar
290+3 records.
291+4 (17) "Money" means a medium of exchange that is issued by
292+5 the United States government or by a foreign government.
293+6 The term includes a monetary unit of account established by
294+7 an intergovernmental organization or by agreement between
295+8 two (2) or more governments.
296+9 (18) "Monetary value" means a medium of exchange, whether
297+10 or not redeemable in money.
298+11 (19) "Money transmission" means any of the following:
299+12 (A) Selling or issuing payment instruments to a person
300+13 located in Indiana.
301+14 (B) Selling or issuing stored value to a person located in
302+15 Indiana.
303+16 (C) Receiving money for transmission from a person
304+17 located in Indiana.
305+18 The term does not include the provision of solely online or
306+19 telecommunications services or network access.
307+20 (20) "MSB accredited state" means a state agency that is
308+21 accredited by the Conference of State Bank Supervisors and
309+22 Money Transmitter Regulators Association for money
310+23 transmission licensing and supervision.
311+24 (21) "Multistate licensing process" means an agreement
312+25 entered into by and among state regulators related to:
313+26 (A) coordinated processing of applications for money
314+27 transmission licenses;
315+28 (B) applications for the acquisition and control of a
316+29 licensee;
317+30 (C) control determinations; or
318+31 (D) notice and information requirements for a change of
319+32 key individuals.
320+33 (22) "NMLS" means the Nationwide Multistate Licensing
321+34 System and Registry:
322+35 (A) developed by the Conference of State Bank Supervisors
323+36 and the American Association of Residential Mortgage
324+37 Regulators; and
325+38 (B) owned and operated by the State Regulatory Registry,
326+39 LLC, or by any successor or affiliated entity;
327+40 for the licensing and registry of persons in financial services
328+41 industries.
329+42 (23) "Outstanding money transmission obligation", as
330+ES 458—LS 7472/DI 101 8
331+1 established and extinguished in accordance with applicable
332+2 state law, means:
333+3 (A) any payment instrument or stored value that:
334+4 (i) is issued or sold by a licensee to a person located in
335+5 the United States, or reported as sold by an authorized
336+6 delegate of the licensee to a person located in the United
337+7 States; and
338+8 (ii) has not yet been paid or refunded by or for the
339+9 licensee, or escheated in accordance with applicable
340+10 abandoned property laws; or
341+11 (B) any money that:
342+12 (i) is received for transmission by a licensee, or by an
343+13 authorized delegate of the licensee, from a person located
344+14 in the United States; and
345+15 (ii) has not been received by the payee or refunded to the
346+16 seller, or escheated in accordance with applicable
347+17 abandoned property laws.
348+18 For purposes of this subdivision, a person is located "in the
349+19 United States" if the person is located in any state, territory,
350+20 or possession of the United States or in the District of
351+21 Columbia, the Commonwealth of Puerto Rico, or a United
352+22 States military installation located in a foreign country.
353+23 (24) "Passive investor" means a person that:
354+24 (A) does not have the power to elect a majority of key
355+25 individuals or executive officers, managers, directors,
356+26 trustees, or other persons exercising managerial authority
357+27 over a person in control of a licensee;
358+28 (B) is not employed by and does not have any managerial
359+29 duties with respect to the licensee or a person in control of
360+30 the licensee;
361+31 (C) does not have the power to exercise, directly or
362+32 indirectly, a controlling influence over the management or
363+33 policies of the licensee or a person in control of the
364+34 licensee; and
365+35 (D) either:
366+36 (i) attests to as facts the characteristics of passivity set
367+37 forth in clauses (A) through (C), in a form and by a
368+38 medium prescribed by the director; or
369+39 (ii) commits to the characteristics of passivity set forth in
370+40 clauses (A) through (C) in a written document.
371+41 (25) "Payment instrument" means a written or electronic
372+42 check, draft, money order, traveler's check, or other written
373+ES 458—LS 7472/DI 101 9
374+1 or electronic instrument for the transmission or payment of
375+2 money or monetary value, whether or not negotiable. The
376+3 term does not include:
377+4 (A) stored value; or
378+5 (B) any instrument that:
379+6 (i) is redeemable by the issuer only for goods or services
380+7 provided by the issuer or its affiliate, or franchisees of
381+8 the issuer or its affiliate, except to the extent required by
382+9 applicable law to be redeemable in cash for its cash
383+10 value; or
384+11 (ii) is not sold to the public but is issued and distributed
385+12 as part of a loyalty, rewards, or promotional program.
386+13 (26) "Person" means any individual, general partnership,
387+14 limited partnership, limited liability company, corporation,
388+15 trust, association, joint stock corporation, or other corporate
389+16 entity, as so identified by the director.
390+17 (27) "Receiving money for transmission" means receiving
391+18 money or monetary value in the United States for
392+19 transmission within or outside the United States by electronic
393+20 or other means. The term "money received for transmission"
394+21 has a corresponding meaning.
395+22 (28) "Stored value" means monetary value representing a
396+23 claim, against the issuer, that is evidenced by an electronic or
397+24 digital record and that is intended and accepted for use as a
398+25 means of redemption for money or monetary value, or
399+26 payment for goods or services. The term includes "prepaid
400+27 access" as defined in 31 CFR 1010.100. The term does not
401+28 include:
402+29 (A) a payment instrument;
403+30 (B) closed loop stored value; or
404+31 (C) stored value not sold to the public but issued and
405+32 distributed as part of a loyalty, rewards, or promotional
406+33 program.
407+34 (29) "Tangible net worth" means the aggregate assets of a
408+35 licensee, excluding all intangible assets, less liabilities, as
409+36 determined in accordance with United States generally
410+37 accepted accounting principles.
411+38 Sec. 301. This chapter does not apply to the following:
412+39 (1) An operator of a payment system, to the extent that the
413+40 operator provides processing, clearing, or settlement services,
414+41 between or among licensees or persons exempt under this
415+42 section, in connection with wire transfers, credit card
416+ES 458—LS 7472/DI 101 10
417+1 transactions, debit card transactions, stored value
418+2 transactions, automated clearinghouse transactions, or
419+3 similar funds transfers.
420+4 (2) A person appointed as an agent of a payee to collect and
421+5 process a payment from a payor to the payee for goods or
422+6 services, other than money transmission itself, provided to the
423+7 payor by the payee, if all of the following apply:
424+8 (A) There exists a written agreement, between the payee
425+9 and the agent, directing the agent to collect and process
426+10 payments from payors on the payee's behalf.
427+11 (B) The payee holds the agent out to the public as accepting
428+12 payments for goods or services on the payee's behalf.
429+13 (C) Payment for the goods and services is treated as
430+14 received by the payee upon receipt by the agent, so that the
431+15 payor's obligation is extinguished, and there is no risk of
432+16 loss to the payor, if the agent fails to remit the funds to the
433+17 payee.
434+18 (3) A person that acts as an intermediary by processing
435+19 payments between a person that has directly incurred an
436+20 outstanding money transmission obligation to a sender, and
437+21 the sender's designated recipient, if the person:
438+22 (A) is properly licensed or exempt from licensing
439+23 requirements under this chapter;
440+24 (B) provides a receipt, electronic record, or other written
441+25 confirmation to the sender identifying the person as the
442+26 provider of money transmission in the transaction; and
443+27 (C) bears sole responsibility to satisfy the outstanding
444+28 money transmission obligation to the sender, including the
445+29 obligation to make the sender whole in connection with any
446+30 failure to transmit the funds to the sender's designated
447+31 recipient.
448+32 (4) The United States, or a department, agency, or
449+33 instrumentality of the United States, or its agent.
450+34 (5) Money transmission by the United States Postal Service or
451+35 by an agent of the United States Postal Service.
452+36 (6) A state, county, or city, or any other:
453+37 (A) governmental agency; or
454+38 (B) governmental subdivision or instrumentality;
455+39 of a state, or its agent.
456+40 (7) A federally insured depository financial institution, bank
457+41 holding company, office of an international banking
458+42 corporation, foreign bank that establishes a federal branch
459+ES 458—LS 7472/DI 101 11
460+1 under the International Bank Act (12 U.S.C. 3102),
461+2 corporation organized under the Bank Service Corporation
462+3 Act (12 U.S.C. 1861-1867), or corporation organized under
463+4 the Edge Act (12 U.S.C. 611-633).
464+5 (8) Any of the following that is organized under the laws of
465+6 any state of the United States:
466+7 (A) A trust company.
467+8 (B) A corporate fiduciary.
468+9 (C) An industrial loan corporation.
469+10 (9) Electronic funds transfer of governmental benefits for a
470+11 federal, state, county, or governmental agency by a contractor
471+12 on behalf of:
472+13 (A) the United States or a department, agency, or
473+14 instrumentality of the United States; or
474+15 (B) a state or governmental subdivision, agency, or
475+16 instrumentality.
476+17 (10) A:
477+18 (A) board of trade designated as a contract market under
478+19 the federal Commodity Exchange Act (7 U.S.C. 1-25); or
479+20 (B) person that, in the ordinary course of business,
480+21 provides clearance and settlement services for a board of
481+22 trade;
482+23 to the extent of its operation as or for such a board.
483+24 (11) A registered futures commission merchant under federal
484+25 commodities laws, to the extent of its operation as such a
485+26 merchant.
486+27 (12) A person registered as a securities broker-dealer under
487+28 federal or state securities laws, to the extent of its operation
488+29 as such a broker-dealer.
489+30 (13) An individual employed by:
490+31 (A) a licensee;
491+32 (B) an authorized delegate; or
492+33 (C) a person exempted from the licensing requirements of
493+34 this chapter;
494+35 when acting within the scope of employment and under the
495+36 supervision of the licensee, authorized delegate, or exempted
496+37 person as an employee and not as an independent contractor.
497+38 (14) A person expressly appointed as a third party service
498+39 provider to or agent of an entity exempt under subdivision (7),
499+40 solely to the extent that:
500+41 (A) the service provider or agent is engaging in money
501+42 transmission on behalf of, and pursuant to a written
502+ES 458—LS 7472/DI 101 12
503+1 agreement with, the exempt entity, and the agreement sets
504+2 forth the specific functions that the service provider or
505+3 agent is to perform; and
506+4 (B) the exempt entity assumes all risk of loss and all legal
507+5 responsibility for satisfying the outstanding money
508+6 transmission obligations, owed to purchasers and holders
509+7 of those outstanding money transmission obligations, upon
510+8 the service provider's or agent's receipt of the purchasers'
511+9 or holders' money or monetary value.
512+10 (15) A person exempt by regulation or order if the director
513+11 finds that:
514+12 (A) an exemption is in the public interest; and
515+13 (B) regulation of the person is not necessary for the
516+14 purposes of this chapter.
517+15 Sec. 302. The director may require any person claiming to be
518+16 exempt from licensing under section 301 of this chapter to provide
519+17 information and documentation to the director demonstrating that
520+18 the person qualifies for any claimed exemption.
521+19 Sec. 401. (a) To carry out the purposes of this chapter, the
522+20 director may, subject to section 402(a) and 402(b) of this chapter,
523+21 do any of the following:
524+22 (1) Enter into agreements or relationships with other
525+23 government officials or federal and state regulatory agencies
526+24 and regulatory associations in order to improve efficiencies
527+25 and reduce regulatory burden by:
528+26 (A) standardizing methods or procedures; and
529+27 (B) sharing resources, records, or related information
530+28 obtained under this chapter.
531+29 (2) Use, contract for, or employ analytical systems, methods,
532+30 or software to examine or investigate any person subject to
533+31 this chapter.
534+32 (3) Accept, from other state or federal government agencies
535+33 or officials, licensing, examination, or investigation reports
536+34 made by those other state or federal government agencies or
537+35 officials.
538+36 (4) Accept audit reports made by an independent certified
539+37 public accountant or another qualified third party auditor for
540+38 an applicant or licensee and incorporate the audit report in
541+39 any report of examination or investigation.
542+40 (b) The department has broad administrative authority to:
543+41 (1) administer, interpret, and enforce this chapter;
544+42 (2) promulgate rules or regulations implementing this
545+ES 458—LS 7472/DI 101 13
546+1 chapter; and
547+2 (3) recover the cost of administering and enforcing this
548+3 chapter by imposing and collecting proportionate and
549+4 equitable fees and costs associated with applications,
550+5 examinations, investigations, and other actions required to
551+6 achieve the purpose of this chapter.
552+7 Sec. 402. (a) Except as provided in subsection (b), the following
553+8 are confidential:
554+9 (1) All information or reports obtained by the department
555+10 from an applicant, licensee, or authorized delegate.
556+11 (2) All information contained in or related to an examination,
557+12 investigation, operating report, or condition report prepared
558+13 by, on behalf of, or for the use of the department.
559+14 (3) Financial statements, balance sheets, or authorized
560+15 delegate information.
561+16 (b) Subject to the confidentiality provisions contained in
562+17 IC 5-14-3 and this section, the director may regularly report
563+18 significant or recurring violations of this chapter to the NMLS.
564+19 (c) Subject to the confidentiality provisions contained in
565+20 IC 5-14-3 and this section, the director may report complaints
566+21 received regarding licensees to the NMLS.
567+22 (d) The director's authority to use the NMLS under this chapter
568+23 is subject to the following:
569+24 (1) Information stored in the NMLS is subject to the
570+25 confidentiality provisions of IC 5-14-3 and this section. A
571+26 person may not:
572+27 (A) obtain information from the NMLS, unless the person
573+28 is authorized to do so by statute;
574+29 (B) initiate any civil action based on information obtained
575+30 from the NMLS if the information is not otherwise
576+31 available to the person under any other state law; or
577+32 (C) initiate any civil action based on information obtained
578+33 from the NMLS if the person could not have initiated the
579+34 action based on information otherwise available to the
580+35 person under any other state law.
581+36 (2) Documents, materials, and other forms of information in
582+37 the control or possession of the NMLS that are confidential
583+38 under this section and that are:
584+39 (A) furnished by the director, the director's designee, or a
585+40 licensee; or
586+41 (B) otherwise obtained by the NMLS;
587+42 are confidential and privileged by law and are not subject to
588+ES 458—LS 7472/DI 101 14
589+1 inspection under IC 5-14-3, subject to subpoena, subject to
590+2 discovery, or admissible in evidence in any civil action.
591+3 However, the director may use the documents, materials, or
592+4 other information available to the director in furtherance of
593+5 any action brought in connection with the director's duties
594+6 under this chapter.
595+7 (3) Disclosure of documents, materials, and information:
596+8 (A) to the director; or
597+9 (B) by the director;
598+10 under this subsection does not result in a waiver of any
599+11 applicable privilege or claim of confidentiality with respect to
600+12 the documents, materials, or information.
601+13 (4) Information provided to the NMLS is subject to IC 4-1-11.
602+14 (5) This subsection does not limit or impair a person's right
603+15 to:
604+16 (A) obtain information;
605+17 (B) use information as evidence in a civil action or
606+18 proceeding; or
607+19 (C) use information to initiate a civil action or proceeding;
608+20 if the information may be obtained from the director or the
609+21 director's designee under any law.
610+22 (6) The requirements under any federal law or IC 5-14-3
611+23 regarding the privacy or confidentiality of any information or
612+24 material provided to the NMLS, and any privilege arising
613+25 under federal or state law, including the rules of any federal
614+26 or state court, with respect to the information or material,
615+27 continue to apply to the information or material after the
616+28 information or material has been disclosed to the NMLS. The
617+29 information and material may be shared with all state and
618+30 federal regulatory officials with financial services industry
619+31 oversight authority without the loss of privilege or the loss of
620+32 confidentiality protections provided by federal law or
621+33 IC 5-14-3.
622+34 (7) Information or material that is subject to a privilege or
623+35 confidentiality under subdivision (6) is not subject to:
624+36 (A) disclosure under any federal or state law governing the
625+37 disclosure to the public of information held by an officer or
626+38 an agency of the federal government or the respective
627+39 state; or
628+40 (B) subpoena, discovery, or admission into evidence, in any
629+41 private civil action or administrative process, unless with
630+42 respect to any privileged information or material held by
631+ES 458—LS 7472/DI 101 15
632+1 the NMLS, the person to whom the information or
633+2 material pertains waives, in whole or in part, in the
634+3 discretion of the person, that privilege.
635+4 (e) Notwithstanding any other provision of law, all information
636+5 or reports obtained by the director from an applicant, a licensee,
637+6 or an authorized delegate, whether obtained through reports,
638+7 applications, examination, audits, investigation, or otherwise,
639+8 including:
640+9 (1) all information contained in or related to:
641+10 (A) examination;
642+11 (B) investigation;
643+12 (C) operation; or
644+13 (D) condition;
645+14 reports prepared by, on behalf of, or for the use of the
646+15 director; or
647+16 (2) financial statements, balance sheets, or authorized
648+17 delegate information;
649+18 are confidential and may not be disclosed or distributed outside the
650+19 department by the director or any officer or employee of the
651+20 department, except as provided in subsection (b).
652+21 (f) The director may provide for the release of information to
653+22 representatives of:
654+23 (1) financial institution and money services business
655+24 supervisory agencies;
656+25 (2) law enforcement agencies; or
657+26 (3) prosecutorial agencies or offices;
658+27 of a state (as defined in IC 28-2-17-19), the United States, or a
659+28 foreign country. An agency or office that receives information
660+29 from the director under this subsection shall maintain the
661+30 confidentiality of the information as described in IC 28-1-2-30.
662+31 (g) This section does not prohibit the director from releasing to
663+32 the public a list of persons licensed under this chapter or from
664+33 releasing aggregated financial data with respect to such licensees.
665+34 Sec. 403. (a) The director may conduct an examination or
666+35 investigation of a licensee or an authorized delegate or otherwise
667+36 take independent action authorized by this chapter, or by a rule
668+37 adopted or order issued under this chapter, as reasonably
669+38 necessary or appropriate to administer and enforce this chapter,
670+39 regulations implementing this chapter, and other applicable law,
671+40 including the Bank Secrecy Act and the USA Patriot Act of 2001
672+41 (P.L. 107-56). The director may:
673+42 (1) conduct an examination either onsite or offsite as the
674+ES 458—LS 7472/DI 101 16
675+1 director may reasonably require;
676+2 (2) conduct an examination in conjunction with an
677+3 examination conducted by other state agencies or agencies of
678+4 another state or of the federal government;
679+5 (3) accept the examination report of another state agency or
680+6 an agency of another state or of the federal government, or a
681+7 report prepared by an independent accounting firm, with any
682+8 such report considered, upon being accepted and for all
683+9 purposes, as an official report of the director; and
684+10 (4) summon and examine under oath a key individual or
685+11 employee of a licensee or authorized delegate and require the
686+12 person to produce records regarding any matter related to the
687+13 condition and business of the licensee or authorized delegate.
688+14 (b) A licensee or an authorized delegate shall provide, and the
689+15 director shall have full and complete access to, all records the
690+16 director may reasonably require to conduct a complete
691+17 examination. The records must be provided at the location and in
692+18 the format specified by the director. The director may use
693+19 multistate record production standards and examination
694+20 procedures when those standards will reasonably achieve the
695+21 purposes of this subsection.
696+22 (c) Unless otherwise directed by the director, a licensee shall pay
697+23 all costs reasonably incurred in connection with an examination of
698+24 the licensee or the licensee's authorized delegates.
699+25 (d) The director shall determine the sufficiency of the licensee's
700+26 records and whether the licensee has made the required
701+27 information reasonably available.
702+28 (e) To discover violations of this chapter, the director may
703+29 investigate and examine the records of any person the director
704+30 believes is operating without a license, when a license is required
705+31 under this chapter. The person examined must pay the reasonably
706+32 incurred costs of the examination.
707+33 Sec. 404. (a) To efficiently and effectively administer and
708+34 enforce this chapter and to minimize regulatory burden, the
709+35 director may participate in multistate supervisory processes
710+36 established between states and coordinated through the Conference
711+37 of State Bank Supervisors, the Money Transmitter Regulators
712+38 Association, and the affiliates and successors of either organization,
713+39 for all licensees that hold licenses in Indiana and other states. As a
714+40 participant in multistate supervision, the director may:
715+41 (1) cooperate, coordinate, and share information with other
716+42 state and federal regulators in accordance with section 402 of
717+ES 458—LS 7472/DI 101 17
718+1 this chapter;
719+2 (2) enter into written cooperation, coordination, or
720+3 information sharing contracts or agreements with
721+4 organizations the membership of which is made up of state or
722+5 federal governmental agencies; and
723+6 (3) cooperate, coordinate, and share information with
724+7 organizations the membership of which is made up of state or
725+8 federal governmental agencies, as long as the organizations
726+9 agree in writing to maintain the confidentiality and security
727+10 of the shared information in accordance with section 402 of
728+11 this chapter.
729+12 (b) The director may not waive, and nothing in this section
730+13 constitutes a waiver of, the director's authority to conduct an
731+14 examination or investigation or to otherwise take independent
732+15 action authorized by this chapter, or by a rule adopted or order
733+16 issued under this chapter, to enforce compliance with applicable
734+17 state or federal law.
735+18 (c) The performance of a joint examination or investigation, or
736+19 acceptance of an examination or investigation report, does not
737+20 waive the director's authority to perform an examination
738+21 assessment provided for in this chapter.
739+22 Sec. 405. (a) In the event state money transmission jurisdiction
740+23 is conditioned on a federal law, any inconsistencies between a
741+24 provision of this chapter and the federal law governing money
742+25 transmission shall be governed by the applicable federal law to the
743+26 extent of the inconsistency.
744+27 (b) In the event of any inconsistencies between this chapter and
745+28 a federal law that governs under subsection (a), the director may
746+29 provide interpretive guidance that:
747+30 (1) identifies the inconsistency; and
748+31 (2) identifies the appropriate means of compliance with
749+32 federal law.
750+33 Sec. 406. If a licensee contracts with an outside vendor to
751+34 provide a service that would otherwise be undertaken internally by
752+35 the licensee and be subject to the department's routine examination
753+36 procedures, the person that provides the service to the licensee
754+37 shall, at the request of the director, submit to an examination by
755+38 the department. If the director determines that an examination
756+39 under this section is necessary or desirable, the examination may
757+40 be made at the expense of the person to be examined. If the person
758+41 to be examined under this section refuses to permit the
759+42 examination to be made, the director may order any licensee that
760+ES 458—LS 7472/DI 101 18
761+1 receives services from the person refusing the examination to:
762+2 (1) discontinue receiving one (1) or more services from the
763+3 person; or
764+4 (2) otherwise cease conducting business with the person.
765+5 Sec. 501. (a) A person may not:
766+6 (1) engage in the business of money transmission; or
767+7 (2) advertise, solicit, or hold itself out as providing money
768+8 transmission;
769+9 unless the person is licensed under this chapter.
770+10 (b) Subsection (a) does not apply to:
771+11 (1) a person that is:
772+12 (A) an authorized delegate of a person licensed under this
773+13 chapter; and
774+14 (B) acting within the scope of authority conferred by a
775+15 written contract with the licensee; or
776+16 (2) a person that is exempt under section 301 of this chapter
777+17 and does not engage in money transmission outside the scope
778+18 of the exemption.
779+19 (c) A license issued under section 505 of this chapter is not
780+20 transferable or assignable.
781+21 Sec. 502. (a) To establish consistent licensing between this state
782+22 and other states, the director may:
783+23 (1) implement all licensing provisions of this chapter in a
784+24 manner that is consistent with other states that have adopted:
785+25 (A) a law containing the same provisions of this chapter; or
786+26 (B) multistate licensing processes; and
787+27 (2) participate in nationwide protocols for licensing
788+28 cooperation and coordination among state regulators if those
789+29 protocols are consistent with this chapter.
790+30 (b) To fulfill the purposes of this chapter, the director may
791+31 establish relationships or contracts with the NMLS or other
792+32 entities designated by the NMLS to enable the director to:
793+33 (1) collect and maintain records;
794+34 (2) coordinate multistate licensing processes and supervision
795+35 processes;
796+36 (3) process fees; and
797+37 (4) facilitate communication between the state and licensees
798+38 or other persons subject to this chapter.
799+39 (c) The director may use the NMLS for all aspects of licensing
800+40 in accordance with this chapter, including license applications,
801+41 applications for acquisitions of control, surety bonds, reporting,
802+42 criminal history background checks, credit checks, fee processing,
803+ES 458—LS 7472/DI 101 19
804+1 and examinations.
805+2 (d) The director may use NMLS forms, processes, and
806+3 functionalities in accordance with this chapter. If the NMLS does
807+4 not provide functionality, forms, or processes for a provision of this
808+5 chapter, the director may implement the requirements in a manner
809+6 that facilitates uniformity with respect to licensing, supervision,
810+7 reporting, and regulation of licensees that are licensed in multiple
811+8 jurisdictions.
812+9 (e) For the purpose of participating in the NMLS, the director
813+10 is authorized to waive or modify, in whole or in part, by rule,
814+11 regulation or order, any or all of the requirements for licensure
815+12 and to establish new requirements as reasonably necessary to
816+13 participate in the NMLS.
817+14 Sec. 503. (a) Applicants for a license shall apply in a form and
818+15 by a medium prescribed by the director. Each application must
819+16 contain the content set forth by rule, regulation, instruction, or
820+17 procedure of the department. The required content for an
821+18 application may be changed or updated in accordance with
822+19 applicable law in order to carry out the purposes of this chapter
823+20 and maintain consistency with NMLS licensing standards and
824+21 practices. Each application submitted to the department must state
825+22 or contain the following, as applicable:
826+23 (1) The legal name and residential and business addresses of
827+24 the applicant and any fictitious or trade name used by the
828+25 applicant in conducting its business.
829+26 (2) A list of any criminal convictions of the applicant and any
830+27 material litigation in which the applicant has been involved in
831+28 the ten (10) year period immediately preceding the submission
832+29 of the application.
833+30 (3) A description of any money transmission previously
834+31 provided by the applicant and the money transmission that
835+32 the applicant seeks to provide in Indiana.
836+33 (4) A list of the applicant's proposed authorized delegates and
837+34 the locations in Indiana where the applicant and its
838+35 authorized delegates propose to engage in money
839+36 transmission.
840+37 (5) A list of other states in which the applicant is licensed to
841+38 engage in money transmission and any license revocations,
842+39 suspensions, or other disciplinary action taken against the
843+40 applicant in another state.
844+41 (6) Information concerning any bankruptcy or receivership
845+42 proceedings affecting the applicant or a person in control of
846+ES 458—LS 7472/DI 101 20
847+1 the applicant.
848+2 (7) A sample contract form for authorized delegates, if
849+3 applicable.
850+4 (8) A form of payment instrument or stored value, as
851+5 applicable.
852+6 (9) The name and address of any federally insured depository
853+7 financial institution through which the applicant plans to
854+8 conduct money transmission.
855+9 (10) Any other information the director or the NMLS
856+10 reasonably requires with respect to the applicant.
857+11 (b) If an applicant is a corporation, limited liability company,
858+12 partnership, or another legal entity, the applicant shall also
859+13 provide the following:
860+14 (1) The:
861+15 (A) date of the applicant's incorporation or formation; and
862+16 (B) state or country of incorporation or formation.
863+17 (2) If applicable, a certificate of good standing from the state
864+18 or country in which the applicant was incorporated or
865+19 formed.
866+20 (3) A brief description of the structure or organization of the
867+21 applicant, including any parents or subsidiaries of the
868+22 applicant, and whether any parents or subsidiaries are
869+23 publicly traded.
870+24 (4) For the ten (10) year period immediately preceding the
871+25 submission of the application, the legal name, any fictitious or
872+26 trade name, all business and residential addresses, and the
873+27 employment, as applicable, of each:
874+28 (A) key individual with respect to; and
875+29 (B) person in control of:
876+30 the applicant.
877+31 (5) For the ten (10) year period immediately preceding the
878+32 submission of the application, a list of any criminal
879+33 convictions and material litigation in which a person, other
880+34 than an individual, in control of the applicant has been
881+35 involved.
882+36 (6) A copy of audited financial statements of the applicant for
883+37 the most recent fiscal year and for the two (2) year period
884+38 immediately preceding the submission of the application or,
885+39 if determined to be acceptable by the director, certified
886+40 unaudited financial statements for the most recent fiscal year
887+41 or for another period acceptable to the director.
888+42 (7) A certified copy of unaudited financial statements of the
889+ES 458—LS 7472/DI 101 21
890+1 applicant for the most recent fiscal quarter.
891+2 (8) If the applicant is a publicly traded corporation, a copy of
892+3 the most recent report filed with the United States Securities
893+4 and Exchange Commission under Section 13 of the federal
894+5 Securities Exchange Act of 1934 (15 U.S.C. 78m).
895+6 (9) If the applicant is a wholly owned subsidiary of:
896+7 (A) a corporation publicly traded in the United States, a
897+8 copy of audited financial statements for the parent
898+9 corporation for the most recent fiscal year or a copy of the
899+10 parent corporation's most recent report filed under
900+11 Section 13 of the federal Securities Exchange Act of 1934
901+12 (15 U.S.C. 78m); or
902+13 (B) a corporation publicly traded outside the United States,
903+14 a copy of similar documentation filed with the regulator of
904+15 the parent corporation's domicile outside the United
905+16 States.
906+17 (10) The name and address of the applicant's registered agent
907+18 in Indiana.
908+19 (11) Any other information the director reasonably requires
909+20 with respect to the applicant.
910+21 (c) A nonrefundable application fee, as set by the department,
911+22 and a license fee, as set by the department, must accompany an
912+23 application for a license under this section.
913+24 (d) The director may:
914+25 (1) waive one (1) or more requirements set forth in subsection
915+26 (a) or (b); or
916+27 (2) permit an applicant to submit other information instead of
917+28 one (1) or more of the requirements set forth in subsection (a)
918+29 or (b).
919+30 Sec. 504. (a) An individual in control of a licensee or an
920+31 applicant, an individual who seeks to acquire control of a licensee,
921+32 and each key individual with respect to a licensee or an applicant
922+33 shall furnish to the department through the NMLS the following
923+34 items:
924+35 (1) The individual's fingerprints for submission to the Federal
925+36 Bureau of Investigation and the department for purposes of
926+37 a national criminal history background check unless the
927+38 person currently resides outside the United States and has
928+39 resided outside the United States for the last ten (10) years.
929+40 (2) Personal history and experience, in a form and by a
930+41 medium prescribed by the director, including the following:
931+42 (A) An independent credit report from a consumer
932+ES 458—LS 7472/DI 101 22
933+1 reporting agency unless the individual does not have a
934+2 Social Security number, in which case a credit report is not
935+3 required.
936+4 (B) Information related to any criminal convictions with
937+5 respect to, or pending charges against, the individual.
938+6 (C) Information related to any:
939+7 (i) regulatory or administrative action; or
940+8 (ii) civil litigation;
941+9 involving claims of fraud, misrepresentation, conversion,
942+10 mismanagement of funds, breach of fiduciary duty, or
943+11 breach of contract.
944+12 (b) If an individual described in subsection (a) has resided
945+13 outside the United States at any time in the last ten (10) years, the
946+14 individual shall also provide an investigative background report
947+15 prepared by an independent search firm that meets the following
948+16 requirements:
949+17 (1) At a minimum, the search firm shall:
950+18 (A) demonstrate that it has sufficient knowledge and
951+19 resources, and employs accepted and reasonable
952+20 methodologies, to conduct the research for the background
953+21 report; and
954+22 (B) not be affiliated with, or have an interest with respect
955+23 to, the individual it is researching.
956+24 (2) The investigative background report must be written in
957+25 the English language and must, at a minimum, contain the
958+26 following information with respect to the individual during
959+27 the ten (10) years covered by the investigative background
960+28 report:
961+29 (A) If available in the individual's current jurisdiction of
962+30 residency, a comprehensive credit report, or any
963+31 equivalent information obtained or generated by the
964+32 independent search firm to produce such a report,
965+33 including a search of court data in the countries, provinces,
966+34 states, cities, towns, and contiguous areas, as applicable, in
967+35 which the individual resided and worked.
968+36 (B) Criminal records information, including convictions
969+37 for felonies or misdemeanors, or similar convictions for
970+38 violations of law, in the countries, provinces, states, cities,
971+39 towns, and contiguous areas, as applicable, in which the
972+40 individual resided and worked.
973+41 (C) Employment history.
974+42 (D) Media history, including an electronic search of
975+ES 458—LS 7472/DI 101 23
976+1 national and local publications, wire services, and business
977+2 applications.
978+3 (E) Regulatory history in the financial services industry,
979+4 including money transmission, securities, banking,
980+5 insurance, and mortgage related industries.
981+6 (c) The director may:
982+7 (1) waive one (1) or more requirements set forth in subsection
983+8 (a) or (b); or
984+9 (2) permit an applicant to submit other information instead of
985+10 one (1) or more of the requirements set forth in subsection (a)
986+11 or (b).
987+12 Sec. 505. (a) Subject to subsection (b), when an application for
988+13 an original license under this chapter appears to include all the
989+14 items, and to address all the matters, that are required for an
990+15 application under this chapter, as determined by the director, the
991+16 application is considered complete, and the director shall promptly
992+17 notify the applicant, in a record, of the date on which the
993+18 application is determined to be complete, and:
994+19 (1) the department shall approve or deny the application not
995+20 later than one hundred twenty (120) days after the completion
996+21 date, as determined in accordance with this subsection; or
997+22 (2) if the application is not approved or denied not later than
998+23 one hundred twenty (120) days after the completion date:
999+24 (A) the application is considered approved; and
1000+25 (B) the license takes effect as of the first business day after
1001+26 expiration of the one hundred twenty (120) day period.
1002+27 However, the director may for good cause extend the one hundred
1003+28 twenty (120) day period described in this subsection.
1004+29 (b) A determination by the director that an application is
1005+30 complete and is accepted for processing means only that the
1006+31 application, on its face, appears to:
1007+32 (1) include all of the items, including the criminal background
1008+33 check response from the Federal Bureau of Investigations;
1009+34 and
1010+35 (2) address all of the matters;
1011+36 that are required for an application for an original license under
1012+37 this chapter, and is not an assessment of the substance of the
1013+38 application or of the sufficiency of the information provided.
1014+39 (c) When an application is filed and considered complete under
1015+40 this section, the director shall investigate the applicant's financial
1016+41 condition and responsibility, financial and business experience,
1017+42 character, and general fitness. The director may conduct an onsite
1018+ES 458—LS 7472/DI 101 24
1019+1 investigation of the applicant, the reasonable cost of which the
1020+2 applicant shall pay. The department shall issue a license to an
1021+3 applicant under this section if the department finds that all of the
1022+4 following conditions have been met:
1023+5 (1) The applicant has complied with sections 503 and 504 of
1024+6 this chapter.
1025+7 (2) Both the:
1026+8 (A) financial condition and responsibility, financial and
1027+9 business experience, competence, character, and general
1028+10 fitness of the applicant; and
1029+11 (B) competence, experience, character, and general fitness
1030+12 of the key individuals with respect to, and persons in
1031+13 control of, the applicant;
1032+14 indicate that it is in the interest of the public to permit the
1033+15 applicant to engage in money transmission.
1034+16 (d) If an applicant avails itself or is otherwise subject to a
1035+17 multistate licensing process:
1036+18 (1) the director may accept the investigation results of a lead
1037+19 investigative state for the purpose of subsection (c), if the lead
1038+20 investigative state has sufficient staffing, expertise, and
1039+21 minimum standards; or
1040+22 (2) if Indiana is a lead investigative state, the director may
1041+23 investigate the applicant pursuant to subsection (c) and to the
1042+24 timeframes established by agreement through the multistate
1043+25 licensing process, as long as the time frames established
1044+26 comply with the time frame set forth subsection (a)(1) for the
1045+27 approval or denial of the application.
1046+28 (e) The department shall issue a formal written notice of the
1047+29 denial of a license application not later than thirty (30) days after
1048+30 the decision to deny the application. The department shall set forth
1049+31 in the notice of denial the specific reasons for the denial of the
1050+32 application. An applicant whose application is denied by the
1051+33 department under this subsection may appeal the denial to the
1052+34 department for an administrative review under IC 4-21.5-3.
1053+35 (f) The initial license term begins on the day the application is
1054+36 approved. The license expires on December 31 of the year in which
1055+37 the license term begins, unless the initial license date is between
1056+38 November 1 and December 31, in which case the initial license
1057+39 term runs through December 31 of the following year.
1058+40 Sec. 506. (a) A license under this chapter shall be renewed
1059+41 annually as follows:
1060+42 (1) An annual renewal fee, as set by the department, shall be
1061+ES 458—LS 7472/DI 101 25
1062+1 paid not later than December 31 of each year.
1063+2 (2) The renewal term is for a period of one (1) year and:
1064+3 (A) begins on January 1 of each year after the initial
1065+4 license term; and
1066+5 (B) expires on December 31 of the year the renewal term
1067+6 begins.
1068+7 (b) A licensee shall submit a renewal report with the renewal
1069+8 fee, in a form and by a medium prescribed by the director. The
1070+9 renewal report must state or contain a description of each material
1071+10 change in the information submitted by the licensee in its original
1072+11 license application, if such change has not been previously reported
1073+12 to the department.
1074+13 (c) The director may grant an extension of the renewal date for
1075+14 good cause.
1076+15 (d) The director may use the NMLS to process license renewals,
1077+16 as long as the functionality of the NMLS for such purpose is
1078+17 consistent with this section.
1079+18 Sec. 507. (a) If a licensee does not continue to meet the
1080+19 qualifications or satisfy the requirements that apply to an applicant
1081+20 for a new money transmission license, the department may suspend
1082+21 or revoke the licensee's license in accordance with the procedures
1083+22 established by this chapter or other applicable state law for such
1084+23 suspension or revocation.
1085+24 (b) An applicant for a money transmission license must
1086+25 demonstrate that it meets or will meet, and a money transmission
1087+26 licensee must at all times meet, the requirements set forth in
1088+27 sections 1001, 1002, and 1003 of this chapter.
1089+28 Sec. 601. (a) Any person, or group of persons acting in concert,
1090+29 seeking to acquire control of a licensee shall obtain the written
1091+30 approval of the department before acquiring control. An
1092+31 individual:
1093+32 (1) is not considered to acquire control of a licensee; and
1094+33 (2) is not subject to the acquisition of control provisions set
1095+34 forth in this chapter;
1096+35 when that individual becomes a key individual in the ordinary
1097+36 course of business.
1098+37 (b) A person, or group of persons acting in concert, seeking to
1099+38 acquire control of a licensee shall, in cooperation with the licensee,
1100+39 submit:
1101+40 (1) an application in a form and by a medium prescribed by
1102+41 the director; and
1103+42 (2) a nonrefundable fee, as determined by the department,
1104+ES 458—LS 7472/DI 101 26
1105+1 with the request for approval.
1106+2 (c) Upon request, the director may permit a licensee or:
1107+3 (1) the person; or
1108+4 (2) group of persons acting in concert;
1109+5 seeking to acquire control of the licensee, to submit some or all
1110+6 information required in an application under subsection (b)(1)
1111+7 without using the NMLS.
1112+8 (d) The application required under subsection (b)(1) shall
1113+9 include information required by section 504 of this chapter for any
1114+10 new key individuals that have not previously completed the
1115+11 requirements of section 504 of this chapter for a licensee.
1116+12 (e) Subject to subsection (f), when an application for acquisition
1117+13 of control appears to include all the items, and to address all the
1118+14 matters, that are required for an application for change in control,
1119+15 as determined by the director, the application is considered
1120+16 complete, and the director shall promptly notify the applicant, in
1121+17 a record, of the date on which the application is determined to be
1122+18 complete, and:
1123+19 (1) the department shall approve or deny the application not
1124+20 later than sixty (60) days after the completion date, as
1125+21 determined in accordance with this subsection; or
1126+22 (2) if the application is not approved or denied not later than
1127+23 sixty (60) days after the completion date:
1128+24 (A) the application is considered approved; and
1129+25 (B) the person, or group of persons acting in concert,
1130+26 seeking to acquire control of the licensee are not prohibited
1131+27 from acquiring control.
1132+28 However, the director may for good cause extend the sixty (60) day
1133+29 period described in this subsection.
1134+30 (f) A determination by the director that an application is
1135+31 complete and is accepted for processing means only that the
1136+32 application, on its face, appears to:
1137+33 (1) include all of the items; and
1138+34 (2) address all of the matters;
1139+35 that are required for an application for acquisition of control
1140+36 under this chapter, and is not an assessment of the substance of the
1141+37 application or of the sufficiency of the information provided.
1142+38 (g) When an application is filed and considered complete under
1143+39 subsection (e), the director shall investigate the financial condition
1144+40 and responsibility, financial and business experience, character,
1145+41 and general fitness of the person, or group of persons acting in
1146+42 concert, seeking to acquire control. The department shall approve
1147+ES 458—LS 7472/DI 101 27
1148+1 an acquisition of control under this section if the department finds
1149+2 that all of the following conditions have been met:
1150+3 (1) The requirements set forth in subsections (b) and (d) have
1151+4 been met, as applicable.
1152+5 (2) Both the:
1153+6 (A) financial condition and responsibility, financial and
1154+7 business experience, competence, character, and general
1155+8 fitness of the person, or group of persons acting in concert,
1156+9 seeking to acquire control; and
1157+10 (B) competence, experience, character, and general fitness
1158+11 of the key individuals and persons that would be in control
1159+12 of the licensee after the acquisition of control;
1160+13 indicate that it is in the interest of the public to permit the
1161+14 person, or group of persons acting in concert, to control the
1162+15 licensee.
1163+16 (h) If an applicant avails itself or is otherwise subject to a
1164+17 multistate licensing process:
1165+18 (1) the director may accept the investigation results of a lead
1166+19 investigative state for the purpose of subsection (g) if the lead
1167+20 investigative state has sufficient staffing, expertise, and
1168+21 minimum standards; or
1169+22 (2) if Indiana is a lead investigative state, the director may
1170+23 investigate the applicant pursuant to subsection (g) and to the
1171+24 time frames established by agreement through the multistate
1172+25 licensing process.
1173+26 (i) The department shall issue a formal written notice of the
1174+27 denial of an application to acquire control not later than thirty (30)
1175+28 days after the decision to deny the application. The department
1176+29 shall set forth in the notice of denial the specific reasons for the
1177+30 denial of the application. An applicant whose application is denied
1178+31 by the department under this subsection may appeal the denial to
1179+32 the department for an administrative review under IC 4-21.5-3.
1180+33 (j) The requirements of subsections (a) and (b) do not apply to
1181+34 any of the following:
1182+35 (1) A person that acts as a proxy for the sole purpose of voting
1183+36 at a designated meeting of the:
1184+37 (A) shareholders;
1185+38 (B) holders of voting shares; or
1186+39 (C) voting interests;
1187+40 of a licensee or a person in control of a licensee.
1188+41 (2) A person that acquires control of a licensee as a
1189+42 conservator or as an officer appointed by a court of
1190+ES 458—LS 7472/DI 101 28
1191+1 competent jurisdiction or by operation of law.
1192+2 (3) A person that is exempt under section 301(7) of this
1193+3 chapter.
1194+4 (4) A person that the director determines is not subject to
1195+5 subsection (a) based on the public interest.
1196+6 (5) A public offering of securities of a licensee or of a person
1197+7 in control of a licensee.
1198+8 (6) An internal reorganization of a person in control of the
1199+9 license if the ultimate person in control of the licensee remains
1200+10 the same.
1201+11 (k) A person described in subsection (j)(2), (j)(3), (j)(5), or (j)(6),
1202+12 in cooperation with the licensee, shall notify the director not later
1203+13 than fifteen (15) days after the acquisition of control.
1204+14 (l) The requirements of subsections (a) and (b) do not apply to
1205+15 a person that has complied with, and received approval to engage
1206+16 in money transmission under, this chapter or that was identified as
1207+17 a person in control in a prior application filed with and approved
1208+18 by the department or by an MSB accredited state pursuant to a
1209+19 multistate licensing process, if all of the following apply:
1210+20 (1) The person has not:
1211+21 (A) had a license revoked or suspended; or
1212+22 (B) controlled a licensee that has had a license revoked or
1213+23 suspended while the person was in control of the licensee;
1214+24 in the most recent five (5) years.
1215+25 (2) If the person is a licensee, the person is well managed and
1216+26 has received at least a satisfactory rating for compliance at its
1217+27 most recent examination by an MSB accredited state, if a
1218+28 rating was given.
1219+29 (3) The licensee to be acquired is projected to meet the
1220+30 requirements of sections 1001, 1002, and 1003 of this chapter
1221+31 after the acquisition of control is completed, and if the person
1222+32 acquiring control is a licensee, that licensee is also projected
1223+33 to meet the requirements of sections 1001, 1002, and 1003 of
1224+34 this chapter after the acquisition of control is completed.
1225+35 (4) The licensee to be acquired will not implement any
1226+36 material changes to its business plan as a result of the
1227+37 acquisition of control, and if the person acquiring control is a
1228+38 licensee, the person acquiring also will not implement any
1229+39 material changes to its business plan as a licensee as a result
1230+40 of the acquisition of control.
1231+41 (5) The person provides notice of the acquisition in
1232+42 cooperation with the licensee and attests to meeting the
1233+ES 458—LS 7472/DI 101 29
1234+1 requirements set forth in subdivisions (1) through (4) in a
1235+2 form and by a medium prescribed by the director.
1236+3 If the notice described in subdivision (5) is not disapproved within
1237+4 thirty (30) days after the date on which the notice is determined to
1238+5 be complete by the director, the notice is considered approved.
1239+6 (m) Before filing an application for approval to acquire control
1240+7 of a licensee, a person may request in writing a determination from
1241+8 the director as to whether the person would be considered a person
1242+9 in control of a licensee upon consummation of a proposed
1243+10 transaction. If the director determines that the person would not
1244+11 be a person in control of a licensee, the proposed person and
1245+12 transaction is not subject to the requirements of subsections (a)
1246+13 and (b).
1247+14 (n) If a multistate licensing process includes a determination
1248+15 described in subsection (m), and an applicant avails itself or is
1249+16 otherwise subject to the multistate licensing process:
1250+17 (1) the director may accept the control determination of a lead
1251+18 investigative state with sufficient staffing, expertise, and
1252+19 minimum standards for the purpose of subsection (m); or
1253+20 (2) if Indiana is a lead investigative state, the director may
1254+21 investigate the applicant pursuant to subsection (m) and to the
1255+22 time frames established by agreement through the multistate
1256+23 licensing process.
1257+24 Sec. 602. (a) A licensee adding or replacing any key individual
1258+25 shall:
1259+26 (1) provide notice in a manner prescribed by the director not
1260+27 later than fifteen (15) days after the effective date of the key
1261+28 individual's appointment; and
1262+29 (2) provide information as required by section 504 of this
1263+30 chapter not later than forty-five (45) days after the effective
1264+31 date.
1265+32 (b) Not later than ninety (90) days after the date on which a
1266+33 notice provided under subsection (a) is determined by the director
1267+34 to be complete, the department may issue a notice of disapproval
1268+35 of a key individual if the competence, experience, character, or
1269+36 integrity of the individual would not be in the best interests of:
1270+37 (1) the public; or
1271+38 (2) the customers of the licensee;
1272+39 so as to permit the individual to be a key individual of such
1273+40 licensee.
1274+41 (c) A notice of disapproval under subsection (b) must contain a
1275+42 statement of the basis for disapproval and shall be sent to the
1276+ES 458—LS 7472/DI 101 30
1277+1 licensee and the disapproved individual. A licensee that receives a
1278+2 notice of disapproval under subsection (b) may appeal the denial
1279+3 to the department for an administrative review under IC 4-21.5-3.
1280+4 (d) If a notice provided under subsection (a) is not disapproved
1281+5 within ninety (90) days after the date on which the notice was
1282+6 determined by the director to be complete, the key individual is
1283+7 considered approved.
1284+8 (e) If a multistate licensing process includes a key individual
1285+9 notice and review and approval process as described in this section,
1286+10 and a licensee avails itself or is otherwise subject to the multistate
1287+11 licensing process:
1288+12 (1) the director may accept the determination of another state
1289+13 if the investigating state has sufficient staffing, expertise, and
1290+14 minimum standards for the purpose of this section; or
1291+15 (2) if Indiana is a lead investigative state, the director may
1292+16 investigate the applicant pursuant to this section and to the
1293+17 time frames established by agreement through the multistate
1294+18 licensing process.
1295+19 Sec. 701. (a) A licensee shall submit a report of condition not
1296+20 later than forty-five (45) days after the end of each calendar
1297+21 quarter, or within any extended time as the director may prescribe.
1298+22 (b) A report of condition under this section must include the
1299+23 following:
1300+24 (1) Financial information at the licensee level.
1301+25 (2) Nationwide and state specific money transmission
1302+26 transaction information in every jurisdiction in the United
1303+27 States in which the licensee is licensed to engage in money
1304+28 transmission.
1305+29 (3) A permissible investments report.
1306+30 (4) Transaction destination country reporting for money
1307+31 received for transmission, if applicable.
1308+32 (5) Any other information the director reasonably requires
1309+33 with respect to the licensee. The director:
1310+34 (A) may use the NMLS for the submission of the report
1311+35 required by this section; and
1312+36 (B) is authorized to change or update as necessary the
1313+37 requirements of this section to carry out the purposes of
1314+38 this chapter and maintain consistency with NMLS
1315+39 reporting.
1316+40 (c) The information required by subsection (b)(4) must only be
1317+41 included in a report of condition submitted not later than forty-five
1318+42 (45) days after the end of the fourth calendar quarter.
1319+ES 458—LS 7472/DI 101 31
1320+1 Sec. 702. (a) A licensee shall, not later than ninety (90) days
1321+2 after the end of each fiscal year, or within any extended time as the
1322+3 director may prescribe, file with the director the following:
1323+4 (1) An audited financial statement of the licensee for the fiscal
1324+5 year just ended, prepared in accordance with United States
1325+6 generally accepted accounting principles.
1326+7 (2) Any other information as the director may reasonably
1327+8 require.
1328+9 (b) An audited financial statement required under this section
1329+10 shall be prepared by:
1330+11 (1) an independent certified public accountant; or
1331+12 (2) an independent public accountant;
1332+13 who is satisfactory to the director.
1333+14 (c) An audited financial statement required under this section
1334+15 must include or be accompanied by a certificate of opinion, of the
1335+16 independent certified public accountant or independent public
1336+17 accountant, that is satisfactory in form and content to the director.
1337+18 If the certificate or opinion is qualified, the director may order the
1338+19 licensee to take any action that the director finds necessary to
1339+20 enable the independent certified public accountant or independent
1340+21 public accountant to remove the qualification.
1341+22 Sec. 703. (a) A licensee shall submit a report of authorized
1342+23 delegates not later than forty-five (45) days after the end of each
1343+24 calendar quarter. The director may use the NMLS for the
1344+25 submission of the report required by this section, as long as the
1345+26 functionality of the NMLS for such purpose is consistent with this
1346+27 section.
1347+28 (b) An authorized delegate report under this section must
1348+29 include, at a minimum, the following information for each
1349+30 authorized delegate:
1350+31 (1) Company legal name.
1351+32 (2) Taxpayer employer identification number.
1352+33 (3) Principal provider identifier.
1353+34 (4) Physical address.
1354+35 (5) Mailing address.
1355+36 (6) Any business conducted in other states.
1356+37 (7) Any fictitious or trade name.
1357+38 (8) The name, telephone number, and electronic mail address
1358+39 for the authorized delegate's contact person.
1359+40 (9) Start date as the licensee's authorized delegate.
1360+41 (10) End date for acting as licensee's authorized delegate, if
1361+42 applicable.
1362+ES 458—LS 7472/DI 101 32
1363+1 (11) Court orders issued under section 803 of this chapter
1364+2 against the authorized delegate.
1365+3 (12) Any other information the director reasonably requires
1366+4 with respect to the authorized delegate.
1367+5 Sec. 704. (a) A licensee shall file a report with the director not
1368+6 later than one (1) business day after the licensee has reason to
1369+7 know of the occurrence of any of the following events:
1370+8 (1) The filing of a petition by or against the licensee under the
1371+9 federal Bankruptcy Code (11 U.S.C. 101-110) for bankruptcy
1372+10 or reorganization.
1373+11 (2) The filing of a petition by or against the licensee for
1374+12 receivership, the commencement of any other judicial or
1375+13 administrative proceeding for its dissolution or
1376+14 reorganization, or the making of a general assignment for the
1377+15 benefit of its creditors.
1378+16 (3) The commencement of a proceeding to revoke or suspend
1379+17 the licensee's license in a state or country in which the licensee
1380+18 engages in business or is licensed.
1381+19 (b) A licensee shall file a report with the director not later than
1382+20 three (3) business days after the licensee has reason to know of the
1383+21 occurrence of any of the following events:
1384+22 (1) A charge or conviction of:
1385+23 (A) the licensee;
1386+24 (B) a key individual with respect to the licensee; or
1387+25 (C) a person in control of the licensee;
1388+26 for a felony.
1389+27 (2) A charge or conviction of an authorized delegate for a
1390+28 felony.
1391+29 Sec. 705. A licensee and an authorized delegate shall file all
1392+30 reports required by federal currency reporting, record keeping,
1393+31 and suspicious activity reporting requirements as set forth in the
1394+32 Bank Secrecy Act and other federal and state laws pertaining to
1395+33 money laundering. The timely filing of a complete and accurate
1396+34 report required under this section with the appropriate federal
1397+35 agency satisfies the requirements of this section.
1398+36 Sec. 706. (a) A licensee shall maintain the following records, for
1399+37 use in determining its compliance with this chapter, for at least
1400+38 three (3) years:
1401+39 (1) A record of each outstanding money transmission
1402+40 obligation sold.
1403+41 (2) A general ledger, posted at least monthly, containing all
1404+42 asset, liability, capital, income, and expense accounts.
1405+ES 458—LS 7472/DI 101 33
1406+1 (3) Bank statements and bank reconciliation records.
1407+2 (4) Records of outstanding money transmission obligations.
1408+3 (5) Records of each outstanding money transmission
1409+4 obligation paid during the three (3) year period described in
1410+5 this section.
1411+6 (6) A list of known names and addresses of all the licensee's
1412+7 authorized delegates.
1413+8 (7) Any other records the director reasonably requires by
1414+9 rule.
1415+10 (b) The items described in subsection (a) may be maintained in
1416+11 any form of record.
1417+12 (c) The records described in this section may be maintained
1418+13 outside Indiana if they are made accessible to the department upon
1419+14 at least seven (7) business days advance notice that is sent by the
1420+15 director in a record.
1421+16 (d) All records maintained by the licensee under this section are
1422+17 open to inspection by the department under section 403(a) of this
1423+18 chapter.
1424+19 Sec. 801. (a) As used in this section, "remit" means to:
1425+20 (1) make direct payments of money to a licensee or its
1426+21 representative authorized to receive money; or
1427+22 (2) deposit money in a bank in an account specified by the
1428+23 licensee.
1429+24 (b) Before conducting business through an authorized delegate
1430+25 or allowing a person to act as an authorized delegate on its behalf,
1431+26 a licensee must:
1432+27 (1) adopt, and update as necessary, written policies and
1433+28 procedures reasonably designed to ensure that the licensee's
1434+29 authorized delegates comply with applicable state and federal
1435+30 law;
1436+31 (2) enter into a written contract that complies with subsection
1437+32 (d); and
1438+33 (3) conduct a reasonable risk based background investigation
1439+34 sufficient for the licensee to determine whether the authorized
1440+35 delegate has complied and will likely comply with applicable
1441+36 state and federal law.
1442+37 (c) An authorized delegate must operate in full compliance with
1443+38 this chapter.
1444+39 (d) The written contract required by subsection (b)(2) must be
1445+40 signed by the licensee and the authorized delegate and, at a
1446+41 minimum, must do the following:
1447+42 (1) Appoint the person signing the contract as the licensee's
1448+ES 458—LS 7472/DI 101 34
1449+1 authorized delegate with the authority to conduct money
1450+2 transmission on behalf of the licensee.
1451+3 (2) Set forth:
1452+4 (A) the nature and scope of the relationship between the
1453+5 licensee and the authorized delegate; and
1454+6 (B) the respective rights and responsibilities of the parties.
1455+7 (3) Require the authorized delegate to agree to fully comply
1456+8 with all applicable state and federal laws, rules, and
1457+9 regulations pertaining to money transmission, including this
1458+10 chapter and regulations implementing this chapter, and
1459+11 relevant provisions of the Bank Secrecy Act and the USA
1460+12 Patriot Act of 2001 (P.L. 107-56).
1461+13 (4) Require the authorized delegate to remit and handle
1462+14 money and monetary value in accordance with the terms of
1463+15 the contract between the licensee and the authorized delegate.
1464+16 (5) Impose a trust on money and monetary value, net of fees,
1465+17 received for money transmission, for the benefit of the
1466+18 licensee.
1467+19 (6) Require the authorized delegate to prepare and maintain
1468+20 records as required by this chapter or regulations
1469+21 implementing this chapter, or as reasonably requested by the
1470+22 director.
1471+23 (7) Include an acknowledgment that the authorized delegate
1472+24 consents to examination or investigation by the director.
1473+25 (8) State that the licensee is subject to regulation by the
1474+26 department and that, as part of that regulation, the
1475+27 department may suspend or revoke an authorized delegate
1476+28 designation or require the licensee to terminate an authorized
1477+29 delegate designation.
1478+30 (9) Include an acknowledgment of the authorized delegate's
1479+31 receipt of the written policies and procedures required under
1480+32 subsection (b)(1).
1481+33 (e) If a licensee's license is suspended, revoked, surrendered, or
1482+34 expired, the licensee must, not later than five (5) business days
1483+35 after receiving notice of the action taken, provide documentation
1484+36 to the director that the licensee has notified all of the licensee's
1485+37 applicable authorized delegates, whose names are in a record filed
1486+38 with the director, of the suspension, revocation, surrender, or
1487+39 expiration of the license. Upon suspension, revocation, surrender,
1488+40 or expiration of a license, applicable authorized delegates shall
1489+41 immediately cease to provide money transmission as an authorized
1490+42 delegate of the licensee.
1491+ES 458—LS 7472/DI 101 35
1492+1 (f) An authorized delegate of a licensee holds in trust for the
1493+2 benefit of the licensee all money, net of fees, received from money
1494+3 transmission. If an authorized delegate commingles any funds
1495+4 received from money transmission with any other funds or
1496+5 property owned or controlled by the authorized delegate, all
1497+6 commingled funds and other property are considered held in trust
1498+7 in favor of the licensee in an amount equal to the amount of money,
1499+8 net of fees, received from money transmission.
1500+9 (g) An authorized delegate may not use a subdelegate to conduct
1501+10 money transmission on behalf of a licensee.
1502+11 Sec. 802. (a) A person shall not engage in the business of money
1503+12 transmission on behalf of a person who is not:
1504+13 (1) licensed under this chapter; or
1505+14 (2) exempt under section 301 of this chapter.
1506+15 (b) A person that engages in the business of money transmission
1507+16 on behalf of a person described in subsection (a)(1) or (a)(2):
1508+17 (1) provides money transmission to the same extent as if the
1509+18 person were a licensee; and
1510+19 (2) is jointly and severally liable with the unlicensed or
1511+20 nonexempt person.
1512+21 Sec. 803. (a) In an action brought by a licensee against an
1513+22 authorized delegate, the circuit or superior court of Marion
1514+23 County shall have jurisdiction to grant appropriate equitable or
1515+24 legal relief, including:
1516+25 (1) prohibiting the authorized delegate from directly or
1517+26 indirectly acting as an authorized delegate for any licensee in
1518+27 Indiana; and
1519+28 (2) ordering the payment of restitution, damages, or other
1520+29 monetary relief;
1521+30 if the court finds that the authorized delegate failed to remit money
1522+31 in accordance with the written contract required by section
1523+32 801(b)(2) of this chapter, or as otherwise directed by the licensee
1524+33 or required by law.
1525+34 (b) If the court issues an order under subsection (a) prohibiting
1526+35 a person from acting as an authorized delegate for any licensee, the
1527+36 licensee that brought the action shall:
1528+37 (1) report the order to the director not later than thirty (30)
1529+38 days after the issuance of the order; and
1530+39 (2) report the order through the NMLS not later than ninety
1531+40 (90) days after the issuance of the order.
1532+41 (c) An authorized delegate who:
1533+42 (1) holds money in trust for the benefit of a licensee; and
1534+ES 458—LS 7472/DI 101 36
1535+1 (2) knowingly fails to remit any amount of such money;
1536+2 commits a Class A misdemeanor, if the amount of money described
1537+3 in subdivision (2) is not more than seven hundred fifty dollars
1538+4 ($750).
1539+5 (d) An authorized delegate who:
1540+6 (1) holds money in trust for the benefit of a licensee; and
1541+7 (2) knowingly fails to remit any amount of such money;
1542+8 commits a Level 6 felony, if the amount of money described in
1543+9 subdivision (2) is more than seven hundred fifty dollars ($750) but
1544+10 less than fifty thousand dollars ($50,000).
1545+11 (e) An authorized delegate who:
1546+12 (1) holds money in trust for the benefit of a licensee; and
1547+13 (2) knowingly fails to remit any amount of such money;
1548+14 commits a Level 5 felony, if the amount of money described in
1549+15 subdivision (2) is at least fifty thousand dollars ($50,000).
1550+16 Sec. 901. (a) A licensee shall forward all money received for
1551+17 transmission in accordance with the terms of the agreement
1552+18 between the licensee and the sender unless the licensee has a
1553+19 reasonable belief or a reasonable basis to believe that:
1554+20 (1) the sender may be a victim of fraud; or
1555+21 (2) a crime or violation of a law, rule, or regulation has
1556+22 occurred, is occurring, or may occur.
1557+23 (b) If a licensee fails to forward money received for transmission
1558+24 in accordance with this section, the licensee must respond to
1559+25 inquiries from the sender by providing the reason for the failure
1560+26 unless providing a response would violate a state or federal law,
1561+27 rule, or regulation.
1562+28 Sec. 902. (a) This section does not apply to the following:
1563+29 (1) Money received for transmission that is subject to the
1564+30 federal Remittance Rule (12 CFR Part 1005, Subpart B).
1565+31 (2) Money received for transmission pursuant to a written
1566+32 agreement between the licensee and payee to process
1567+33 payments for goods or services provided by the payee.
1568+34 (b) A licensee shall refund to a sender, not later than ten (10)
1569+35 days after receipt of the sender's written request for a refund, any
1570+36 and all money received for transmission, unless any of the
1571+37 following occurs:
1572+38 (1) The money has been forwarded within ten (10) days after
1573+39 the date on which the money was received for transmission.
1574+40 (2) Instructions have been given committing an equivalent
1575+41 amount of money to the person designated by the sender
1576+42 within ten (10) days after the date on which the money was
1577+ES 458—LS 7472/DI 101 37
1578+1 received for transmission.
1579+2 (3) The agreement between the licensee and the sender
1580+3 instructs the licensee to forward the money at a time that is
1581+4 more than ten (10) days after the date on which the money
1582+5 was received for transmission, and the money has been
1583+6 forwarded in accordance with the terms of the agreement.
1584+7 However, if funds have not yet been forwarded in accordance
1585+8 with the terms of the agreement between the licensee and the
1586+9 sender, the licensee shall issue a refund in accordance with the
1587+10 other provisions of this section.
1588+11 (4) The refund is requested for a transaction that the licensee
1589+12 has not completed based on a reasonable belief or a
1590+13 reasonable basis to believe that a crime or violation of law,
1591+14 rule, or regulation has occurred, is occurring, or may occur.
1592+15 (5) The refund request does not enable the licensee to:
1593+16 (A) identify the sender's name and:
1594+17 (i) address; or
1595+18 (ii) telephone number; or
1596+19 (B) identify the particular transaction to be refunded if the
1597+20 sender has multiple transactions outstanding.
1598+21 Sec. 903. (a) This section does not apply to the following:
1599+22 (1) Money received for transmission that is subject to the
1600+23 federal Remittance Rule (12 CFR Part 1005, Subpart B).
1601+24 (2) Money received for transmission that is not primarily for
1602+25 personal, family, or household purposes.
1603+26 (3) Money received for transmission pursuant to a written
1604+27 agreement between the licensee and payee to process
1605+28 payments for goods or services provided by the payee.
1606+29 (b) As used in this section, "receipt", with respect to a
1607+30 transaction, means:
1608+31 (1) a paper receipt;
1609+32 (2) an electronic record; or
1610+33 (3) another written confirmation.
1611+34 (c) A licensee or the licensee's authorized delegate shall provide
1612+35 a sender a receipt for money received for transmission. For a
1613+36 transaction conducted in person, a receipt may be provided
1614+37 electronically if the sender requests or agrees to receive an
1615+38 electronic receipt. For a transaction conducted electronically or by
1616+39 telephone, a receipt may be provided electronically. All electronic
1617+40 receipts shall be provided in a retainable form.
1618+41 (d) The receipt required by this section must contain the
1619+42 following information, as applicable:
1620+ES 458—LS 7472/DI 101 38
1621+1 (1) The name of the sender.
1622+2 (2) The name of the designated recipient.
1623+3 (3) The date of the transaction.
1624+4 (4) The unique transaction or identification number.
1625+5 (5) The name of the licensee, the licensee's NMLS unique
1626+6 identification number, the licensee's business address, and the
1627+7 licensee's customer service telephone number.
1628+8 (6) The amount of the transaction in United States dollars.
1629+9 (7) Any fee charged by the licensee to the sender for the
1630+10 transaction.
1631+11 (8) Any taxes collected by the licensee from the sender for the
1632+12 transaction.
1633+13 (e) The receipt required by this section must be in:
1634+14 (1) English; and
1635+15 (2) the language principally used by the licensee or authorized
1636+16 delegate to advertise, solicit, or negotiate, either orally or in
1637+17 writing, for a transaction conducted in person, electronically,
1638+18 or by phone, if other than English.
1639+19 Sec. 1001. (a) A licensee under this chapter shall maintain at all
1640+20 times a tangible net worth of at least the greater of:
1641+21 (1) one hundred thousand dollars ($100,000); or
1642+22 (2) the total of the following:
1643+23 (A) Three percent (3%) of the first one hundred million
1644+24 dollars ($100,000,000) of the licensee's total assets.
1645+25 (B) Two percent (2%) of additional assets that are greater
1646+26 than one hundred million dollars ($100,000,000) but not
1647+27 greater than one billion dollars ($1,000,000,000).
1648+28 (C) One-half of one percent (0.5%) of additional assets that
1649+29 are greater than one billion dollars ($1,000,000,000).
1650+30 (b) Tangible net worth must be demonstrated at the time of an
1651+31 initial application for licensure by means of the applicant's most
1652+32 recent audited or unaudited financial statements under section
1653+33 503(b)(6) of this chapter, as applicable.
1654+34 (c) Notwithstanding subsections (a) and (b), the director may,
1655+35 for good cause shown, exempt, in whole or in part, any applicant
1656+36 or licensee from the requirements of this section.
1657+37 Sec. 1002. (a) An applicant for a money transmission license
1658+38 must provide, and a licensee at all times must maintain, security
1659+39 consisting of a surety bond in a form satisfactory to the director.
1660+40 (b) Subject to subsections (c) and (d), the amount of the required
1661+41 security under this section is the greater of:
1662+42 (1) three hundred thousand dollars ($300,000); or
1663+ES 458—LS 7472/DI 101 39
1664+1 (2) an amount equal to the licensee's average daily money
1665+2 transmission liability in Indiana calculated for the most
1666+3 recently completed calendar quarter, up to a maximum of five
1667+4 hundred thousand dollars ($500,000).
1668+5 (c) A licensee that maintains a bond in the maximum amount of
1669+6 five hundred thousand dollars ($500,000) set forth in subsection
1670+7 (b)(2) is not required to calculate the licensee's average daily
1671+8 money transmission liability in Indiana for purposes of this section.
1672+9 (d) A licensee may exceed the maximum required bond amount
1673+10 pursuant to section 1004(a)(5) of this chapter.
1674+11 Sec. 1003. (a) A licensee shall maintain at all times permissible
1675+12 investments that have a market value computed in accordance with
1676+13 United States generally accepted accounting principles of not less
1677+14 than the aggregate amount of all of the licensee's outstanding
1678+15 money transmission obligations.
1679+16 (b) Except for permissible investments set forth in section
1680+17 1004(a) of this chapter, the department, with respect to any
1681+18 licensee, may by rule or order limit the extent to which a specific
1682+19 investment maintained by a licensee within a class of permissible
1683+20 investments may be considered a permissible investment, if the
1684+21 specific investment represents undue risk to customers, not
1685+22 reflected in the market value of investments.
1686+23 (c) Permissible investments, even if commingled with other
1687+24 assets of the licensee, are held in trust for the benefit of the
1688+25 purchasers and holders of the licensee's outstanding money
1689+26 transmission obligations in the event of:
1690+27 (1) insolvency of the licensee;
1691+28 (2) the filing of a petition by or against the licensee under the
1692+29 federal Bankruptcy Code (11 U.S.C. 101-110) for bankruptcy
1693+30 or reorganization;
1694+31 (3) the filing of a petition by or against the licensee for
1695+32 receivership;
1696+33 (4) the commencement of any other judicial or administrative
1697+34 proceeding for the dissolution or reorganization of the
1698+35 licensee; or
1699+36 (5) an action against the licensee by a creditor who is not a
1700+37 beneficiary of the statutory trust established by this
1701+38 subsection.
1702+39 The permissible investments impressed with a trust under this
1703+40 subsection are not subject to attachment, levy of execution, or
1704+41 sequestration by order of any court, except for a beneficiary of the
1705+42 statutory trust established by this subsection.
1706+ES 458—LS 7472/DI 101 40
1707+1 (d) Upon the establishment of a statutory trust in accordance
1708+2 with subsection (c) or when any funds are drawn on a letter of
1709+3 credit pursuant to section 1004(a)(4) of this chapter, the director
1710+4 shall notify the applicable regulator of each state in which the
1711+5 licensee is licensed to engage in money transmission, if any, of the
1712+6 establishment of the trust or the funds drawn on the letter of
1713+7 credit, as applicable. The notice required by this subsection is
1714+8 considered satisfied if performed pursuant to a multistate
1715+9 agreement or through the NMLS. Funds drawn on a letter of
1716+10 credit, and any other permissible investments held in trust for the
1717+11 benefit of the purchasers and holders of the licensee's outstanding
1718+12 money transmission obligations, are considered held in trust for
1719+13 the benefit of those purchasers and holders on a pro rata and
1720+14 equitable basis in accordance with statutes pursuant to which
1721+15 permissible investments are required to be held in Indiana, and in
1722+16 other states, as applicable. Any statutory trust established under
1723+17 this section is terminated upon extinguishment of all of the
1724+18 licensee's outstanding money transmission obligations.
1725+19 (e) The department by rule or by order may allow other types
1726+20 of investments that the department determines are of sufficient
1727+21 liquidity and quality to be a permissible investment. The
1728+22 department may participate in efforts with other state regulators
1729+23 to determine that other types of investments are of sufficient
1730+24 liquidity and quality to be a permissible investment.
1731+25 Sec. 1004. (a) The following investments are permissible under
1732+26 section 1003 of this chapter:
1733+27 (1) Cash (including demand deposits, savings deposits, and
1734+28 funds in such accounts held, for the benefit of the licensee's
1735+29 customers, in a federally insured depository financial
1736+30 institution) and cash equivalents, including Automated
1737+31 Clearing House (ACH) items in transit to the licensee and
1738+32 ACH items or international wires in transit to a payee, cash
1739+33 in transit via armored car, cash in smart safes, cash at
1740+34 licensee owned locations, debit card or credit card funded
1741+35 transmission receivables owed by any bank, or money market
1742+36 mutual funds rated "AAA" by S&P Global, or the equivalent
1743+37 from any eligible rating service.
1744+38 (2) Certificates of deposit or senior debt obligations of an
1745+39 insured depository institution (as defined in Section 3 of the
1746+40 Federal Deposit Insurance Act (12 U.S.C. 1813) or as defined
1747+41 under the federal Credit Union Act (12 U.S.C. 1781)).
1748+42 (3) An obligation of the United States (or of a commission,
1749+ES 458—LS 7472/DI 101 41
1750+1 agency, or instrumentality of the United States), an obligation
1751+2 that is guaranteed fully as to principal and interest by the
1752+3 United States, or an obligation of a state (or of a governmental
1753+4 subdivision, agency, or instrumentality of a state).
1754+5 (4) The full drawable amount of an irrevocable standby letter
1755+6 of credit that names the department as the stated beneficiary
1756+7 and that stipulates that the beneficiary need only draw a sight
1757+8 draft under the letter of credit and present it to obtain funds,
1758+9 up to the letter of credit amount, subject to the following:
1759+10 (A) The letter of credit must:
1760+11 (i) be issued by a person that is a federally insured
1761+12 depository financial institution, a foreign bank
1762+13 authorized under federal law to maintain a federal
1763+14 agency or federal branch office in a state or states, or a
1764+15 foreign bank authorized under state law to maintain a
1765+16 branch in a state, and that bears an eligible rating or
1766+17 whose parent company bears an eligible rating, and that
1767+18 is regulated, supervised, and examined by United States
1768+19 federal or state authorities having regulatory authority
1769+20 over banks, credit unions, and trust companies;
1770+21 (ii) be irrevocable and unconditional and indicate that it
1771+22 is not subject to any condition or qualifications outside
1772+23 of the letter of credit;
1773+24 (iii) not contain reference to any other agreements,
1774+25 documents, or entities, or otherwise provide for any
1775+26 security interest in the licensee; and
1776+27 (iv) contain an issue date and expiration date, and
1777+28 expressly provide for automatic extension, without a
1778+29 written amendment, for an additional period of one (1)
1779+30 year from the current or each future expiration date,
1780+31 unless the issuer of the letter of credit notifies the
1781+32 director in writing by certified or registered mail or
1782+33 courier mail or other receipted means, at least sixty (60)
1783+34 days before any expiration date, that the irrevocable
1784+35 letter of credit will not be extended.
1785+36 (B) In the event of any notice of expiration or nonextension
1786+37 of a letter of credit described in clause (A)(iv), the licensee
1787+38 must demonstrate to the satisfaction of the department, at
1788+39 least fifteen (15) days before the expiration, that the
1789+40 licensee maintains and will maintain permissible
1790+41 investments in accordance with this subsection upon the
1791+42 expiration of the letter of credit. If the licensee is not able
1792+ES 458—LS 7472/DI 101 42
1793+1 to do so, the department may draw on the letter of credit
1794+2 in an amount up to the amount necessary to meet the
1795+3 licensee's requirements to maintain permissible
1796+4 investments in accordance with this subsection. Any such
1797+5 draw shall be offset against the licensee's outstanding
1798+6 money transmission obligations. The drawn funds shall be
1799+7 held in trust by the department or the department's
1800+8 designated agent, to the extent authorized by law, as agent
1801+9 for the benefit of the purchasers and holders of the
1802+10 licensee's outstanding money transmission obligations.
1803+11 (C) The letter of credit must provide that the issuer of the
1804+12 letter of credit will honor, at sight, the beneficiary's
1805+13 presentation, to the issuer, of the original letter of credit,
1806+14 including any amendments. The presentation under this
1807+15 clause must be made not later than the expiration date of
1808+16 the letter of credit and must be accompanied by a written
1809+17 statement from the beneficiary stating that any of the
1810+18 following events has occurred, as applicable:
1811+19 (i) The filing of a petition by or against the licensee under
1812+20 the federal Bankruptcy Code (11 U.S.C. 101-110) for
1813+21 bankruptcy or reorganization.
1814+22 (ii) The filing of a petition by or against the licensee for
1815+23 receivership, or the commencement of any other judicial
1816+24 or administrative proceeding for its dissolution or
1817+25 reorganization.
1818+26 (iii) The seizure of assets of the licensee by a state
1819+27 pursuant to an emergency order issued in accordance
1820+28 with applicable law, on the basis of an action, violation,
1821+29 or condition that has caused or is likely to cause the
1822+30 insolvency of the licensee.
1823+31 (iv) The beneficiary has received notice of expiration or
1824+32 nonextension of a letter of credit, and the licensee failed
1825+33 to demonstrate to the satisfaction of the beneficiary that
1826+34 the licensee will maintain permissible investments in
1827+35 accordance with this subsection upon the expiration or
1828+36 nonextension of the letter of credit.
1829+37 The letter of credit must stipulate that the beneficiary may
1830+38 obtain funds, up to the letter of credit amount, within
1831+39 seven (7) days of presentment of the original letter of
1832+40 credit, including any amendments, and the statement
1833+41 under this clause.
1834+42 (D) The director may designate an agent to serve on the
1835+ES 458—LS 7472/DI 101 43
1836+1 department's behalf as beneficiary to a letter of credit so
1837+2 long as the agent and letter of credit meet requirements
1838+3 established by the department. The director's agent may
1839+4 serve as agent for multiple licensing authorities for a single
1840+5 irrevocable letter of credit if the proceeds of the drawable
1841+6 amount for the purposes of this subdivision are assigned to
1842+7 the department.
1843+8 (E) The department may participate in multistate
1844+9 processes designed to facilitate the issuance and
1845+10 administration of letters of credit, including services
1846+11 provided by the NMLS and the State Regulatory Registry,
1847+12 LLC.
1848+13 (5) The amount of the surety bond required under section
1849+14 1002 of this chapter that exceeds the licensee's average daily
1850+15 money transmission liability in Indiana.
1851+16 (b) Unless permitted by the department by rule or by order to
1852+17 exceed the limit as set forth in this subsection, the following
1853+18 investments are permissible under this section to the extent
1854+19 specified:
1855+20 (1) Receivables that are payable to a licensee from its
1856+21 authorized delegates in the ordinary course of business that
1857+22 are less than seven (7) days of age, are permissible in an
1858+23 amount not to exceed fifty percent (50%) of the aggregate
1859+24 value of the licensee's total permissible investments.
1860+25 (2) Of the receivables permissible under subdivision (1),
1861+26 receivables that are payable to a licensee from a single
1862+27 authorized delegate in the ordinary course of business may
1863+28 not exceed ten percent (10%) of the aggregate value of the
1864+29 licensee's total permissible investments.
1865+30 (3) The following investments are permissible up to twenty
1866+31 percent (20%) per category, and combined up to fifty percent
1867+32 (50%), of the aggregate value of the licensee's total
1868+33 permissible investments:
1869+34 (A) A short term (up to six (6) months) investment bearing
1870+35 an eligible rating.
1871+36 (B) Commercial paper bearing an eligible rating.
1872+37 (C) A bill, note, bond, or debenture bearing an eligible
1873+38 rating.
1874+39 (D) A United States tri party repurchase agreement
1875+40 collateralized at least one hundred percent (100%) with:
1876+41 (i) United States government or agency securities;
1877+42 (ii) municipal bonds; or
1878+ES 458—LS 7472/DI 101 44
1879+1 (iii) other securities bearing an eligible rating.
1880+2 (E) Money market mutual funds rated less than "AAA"
1881+3 and at least "A-" by S&P Global, or the equivalent from
1882+4 any other eligible rating service.
1883+5 (F) A mutual fund or other investment fund composed
1884+6 solely and exclusively of one (1) or more permissible
1885+7 investments listed in subsection (a)(1) through (a)(3).
1886+8 (4) Cash (including demand deposits, savings deposits, and
1887+9 funds in such accounts held for the benefit of the licensee's
1888+10 customers) at foreign depository institutions are permissible
1889+11 up to ten percent (10%) of the aggregate value of the
1890+12 licensee's total permissible investments if the licensee has
1891+13 received a satisfactory rating in its most recent examination
1892+14 and the foreign depository institution:
1893+15 (A) has an eligible rating;
1894+16 (B) is registered under the Foreign Account Tax
1895+17 Compliance Act;
1896+18 (C) is not located in any country subject to sanctions from
1897+19 the federal Office of Foreign Assets Control; and
1898+20 (D) is not located in a high risk or noncooperative
1899+21 jurisdiction as designated by the Financial Action Task
1900+22 Force.
1901+23 Sec. 1005. A licensee shall maintain a policy of insurance, issued
1902+24 by an insurer authorized to do business in Indiana, that insures the
1903+25 applicant against loss by a criminal act or by an act of dishonesty.
1904+26 The principal sum of the policy shall be at least equal to the
1905+27 amount of the surety bond required under section 1002 of this
1906+28 chapter.
1907+29 Sec. 1101. (a) The director may issue to a licensee an order to
1908+30 show cause why the licensee's license should not be revoked or
1909+31 suspended for a period determined by the department.
1910+32 (b) An order issued under subsection (a) must:
1911+33 (1) include:
1912+34 (A) a statement of the place, date, and time for a meeting
1913+35 with the department, which date may not be less than ten
1914+36 (10) days from the date of the order;
1915+37 (B) a description of the action contemplated by the
1916+38 department; and
1917+39 (C) a statement of the facts or conduct supporting the
1918+40 issuance of the order; and
1919+41 (2) be accompanied by a notice stating that the licensee is
1920+42 entitled to:
1921+ES 458—LS 7472/DI 101 45
1922+1 (A) a reasonable opportunity to be heard; and
1923+2 (B) show the licensee's compliance with all lawful
1924+3 requirements for retention of the license;
1925+4 at the meeting described in subdivision (1)(A).
1926+5 (c) After the meeting described in subsection (b)(1)(A), the
1927+6 department may revoke or suspend the license if the department
1928+7 finds that:
1929+8 (1) the licensee has repeatedly and willfully violated:
1930+9 (A) this chapter or any applicable rule, order, or guidance
1931+10 document adopted or issued by the department; or
1932+11 (B) any other state or federal law, regulation, or rule
1933+12 applicable to the business of money transmission;
1934+13 (2) the licensee does not meet the licensing qualifications set
1935+14 forth in this chapter;
1936+15 (3) the licensee obtained the license for the benefit of, or on
1937+16 behalf of, a person who does not qualify for the license;
1938+17 (4) the licensee knowingly or intentionally made material
1939+18 misrepresentations to, or concealed material information
1940+19 from, the department;
1941+20 (5) the licensee did not cooperate with an examination or
1942+21 investigation by the director;
1943+22 (6) the licensee engaged in fraud, intentional
1944+23 misrepresentation, or gross negligence;
1945+24 (7) an authorized delegate has been convicted of a violation of
1946+25 a state or federal money laundering statute, or has violated a
1947+26 rule adopted or an order issued under this chapter, as a result
1948+27 of the licensee's willful misconduct or willful ignorance of the
1949+28 situation;
1950+29 (8) the competence, experience, character, or general fitness
1951+30 of the licensee, an authorized delegate of the licensee, a person
1952+31 in control of the licensee, a key individual with respect to the
1953+32 licensee, or a responsible person of an authorized delegate of
1954+33 the licensee indicates that it is not in the public interest to
1955+34 permit the person to provide money transmission;
1956+35 (9) the licensee has engaged in an unsafe or unsound practice;
1957+36 (10) the licensee is insolvent, has suspended payment of its
1958+37 obligations, or has made a general assignment for the benefit
1959+38 of its creditors;
1960+39 (11) the licensee has not removed an authorized delegate after
1961+40 the department has issued and served upon the licensee a final
1962+41 order that included a finding that the authorized delegate has
1963+42 violated this chapter; or
1964+ES 458—LS 7472/DI 101 46
1965+1 (12) facts or conditions exist that, had they existed at the time
1966+2 the licensee applied for the license, would have been grounds
1967+3 for the department to deny the issuance of the license.
1968+4 (d) In determining whether a licensee is engaging in an unsafe
1969+5 or unsound practice, the director may consider the size and
1970+6 condition of the licensee's money transmission, the magnitude of
1971+7 the loss, the gravity of the violation of this chapter, and the
1972+8 previous conduct of the person involved.
1973+9 (e) Whenever the department revokes or suspends a license, the
1974+10 department shall enter an order to that effect and notify the
1975+11 licensee of:
1976+12 (1) the revocation or suspension;
1977+13 (2) if a suspension has been ordered, the duration of the
1978+14 suspension;
1979+15 (3) the procedure for appealing the revocation or suspension
1980+16 under IC 4-21.5-3-6; and
1981+17 (4) any other terms and conditions that apply to the
1982+18 revocation or suspension.
1983+19 Not later than five (5) days after the entry of the order, the
1984+20 department shall deliver to the licensee a copy of the order and the
1985+21 findings supporting the order.
1986+22 (f) Any person holding a license to engage in the business of
1987+23 money transmission may relinquish the license by notifying the
1988+24 department in writing of the relinquishment. However, a
1989+25 relinquishment under this subsection does not affect the person's
1990+26 liability for acts previously committed and coming within the scope
1991+27 of this chapter.
1992+28 (g) If the director determines it to be in the public interest, the
1993+29 director may pursue the revocation of a license of a licensee that
1994+30 has relinquished the license under subsection (f).
1995+31 (h) If a person's license is revoked, suspended, or relinquished,
1996+32 the revocation, suspension, or relinquishment does not impair or
1997+33 affect any obligation owed by any person under any existing lawful
1998+34 contract.
1999+35 (i) If the director has just cause to believe an emergency exists
2000+36 from which it is necessary to protect the interests of the public, the
2001+37 director may proceed with the revocation of a license through an
2002+38 emergency or another temporary order.
2003+39 Sec. 1102. (a) The director may issue to a licensee an order to
2004+40 show cause why the licensee should not be prohibited from
2005+41 designating a current authorized delegate of the licensee as an
2006+42 authorized delegate, or from having the licensee's ability to
2007+ES 458—LS 7472/DI 101 47
2008+1 designate a current authorized delegate as an authorized delegate
2009+2 for a period determined by the department.
2010+3 (b) An order issued under subsection (a) must:
2011+4 (1) include:
2012+5 (A) a statement of the place, date, and time for a meeting
2013+6 with the department, which date may not be less than ten
2014+7 (10) days from the date of the order;
2015+8 (B) a description of the action contemplated by the
2016+9 department; and
2017+10 (C) a statement of the facts or conduct supporting the
2018+11 issuance of the order; and
2019+12 (2) be accompanied by a notice stating that the licensee is
2020+13 entitled to:
2021+14 (A) a reasonable opportunity to be heard; and
2022+15 (B) show the licensee's compliance with all lawful
2023+16 requirements concerning the designation of an authorized
2024+17 delegate;
2025+18 at the meeting described in subdivision (1)(A).
2026+19 (c) After the meeting described in subsection (b)(1)(A), the
2027+20 department may prohibit the licensee from designating, or suspend
2028+21 the licensee's ability to designate, a current authorized delegate as
2029+22 an authorized delegate if the department finds that:
2030+23 (1) the authorized delegate has repeatedly and willfully
2031+24 violated:
2032+25 (A) this chapter or any applicable rule, order, or guidance
2033+26 document adopted or issued by the department; or
2034+27 (B) any other state or federal law, regulation, or rule
2035+28 applicable to the business of money transmission;
2036+29 (2) the authorized delegate does not meet the authorized
2037+30 delegate qualifications set forth in this chapter;
2038+31 (3) the authorized delegate obtained the designation for the
2039+32 benefit of, or on behalf of, a person who does not qualify for
2040+33 the authorized delegate designation;
2041+34 (4) the authorized delegate knowingly or intentionally made
2042+35 material misrepresentations to, or concealed material
2043+36 information from, the department;
2044+37 (5) the authorized delegate did not cooperate with an
2045+38 examination or investigation by the director;
2046+39 (6) the authorized delegate engaged in fraud, intentional
2047+40 misrepresentation, or gross negligence;
2048+41 (7) the authorized delegate has been convicted of a violation
2049+42 of a state or federal money laundering statute;
2050+ES 458—LS 7472/DI 101 48
2051+1 (8) the competence, experience, character, or general fitness
2052+2 of the licensee, the authorized delegate, a person in control of
2053+3 the licensee, a key individual, or a responsible person of the
2054+4 authorized delegate indicates that it is not in the public
2055+5 interest to permit the person to provide money transmission;
2056+6 or
2057+7 (9) the authorized delegate has engaged in an unsafe or
2058+8 unsound practice.
2059+9 (d) Whenever the department prohibits a licensee from
2060+10 designating, or suspends a licensee's ability to designate, an
2061+11 authorized delegate, the department shall enter an order to that
2062+12 effect and notify the licensee of:
2063+13 (1) the prohibition or suspension;
2064+14 (2) if a suspension has been ordered, the duration of the
2065+15 suspension;
2066+16 (3) the procedure for appealing the prohibition or suspension
2067+17 under IC 4-21.5-3-6; and
2068+18 (4) any other terms and conditions that apply to the
2069+19 prohibition or suspension.
2070+20 Not later than five (5) days after the entry of the order, the
2071+21 department shall deliver to the licensee a copy of the order and the
2072+22 findings supporting the order.
2073+23 (e) Any authorized delegate may relinquish its designation as an
2074+24 authorized delegate by notifying the department in writing of the
2075+25 relinquishment. However, a relinquishment under this subsection
2076+26 does not affect the authorized delegate's liability for acts previously
2077+27 committed and coming within the scope of this chapter.
2078+28 (f) If the director determines it to be in the public interest, the
2079+29 director may pursue an order either prohibiting the licensee from
2080+30 designating a current authorized delegate as an authorized
2081+31 delegate, or suspending the licensee from designating a current
2082+32 authorized delegate as an authorized delegate for a period of time,
2083+33 after the authorized delegate has relinquished its designation under
2084+34 subsection (e).
2085+35 (g) If an authorized delegate's designation as an authorized
2086+36 delegate is revoked, suspended, or relinquished, the revocation,
2087+37 suspension, or relinquishment does not impair or affect any
2088+38 obligation owed by that person under any existing lawful contracts.
2089+39 (h) If the director has just cause to believe an emergency exists
2090+40 from which it is necessary to protect the interests of the public, the
2091+41 director may proceed with the revocation of an authorized
2092+42 delegate's designation as an authorized delegate through an
2093+ES 458—LS 7472/DI 101 49
2094+1 emergency or another temporary order.
2095+2 Sec. 1103. (a) A license issued by the department under this
2096+3 chapter may be revoked or suspended by the department if the
2097+4 person fails to:
2098+5 (1) file any renewal form required by the department; or
2099+6 (2) pay any license renewal fee described under section
2100+7 506(a)(1) of this chapter;
2101+8 not later than sixty (60) days after the due date.
2102+9 (b) A person whose license is revoked or suspended under this
2103+10 section may:
2104+11 (1) pay all delinquent fees and apply for a reinstatement of the
2105+12 person's license; or
2106+13 (2) appeal the revocation or suspension to the department for
2107+14 an administrative review under IC 4-21.5-3.
2108+15 Pending the decision resulting from a hearing under IC 4-21.5-3
2109+16 concerning license revocation or suspension, a license remains in
2110+17 force.
2111+18 Sec. 1104. Except as otherwise provided, IC 4-21.5 applies to
2112+19 and governs all agency action taken by the department under this
2113+20 chapter. A proceeding for administrative review under IC 4-21.5-3
2114+21 or judicial review under IC 4-21.5-5 must be held in Marion
2115+22 County.
2116+23 Sec. 1105. (a) If the department determines, after notice and an
2117+24 opportunity to be heard, that a person has violated this chapter,
2118+25 the department may, in addition to or instead of all other remedies
2119+26 available under this chapter, impose upon the person a civil
2120+27 penalty not greater than ten thousand dollars ($10,000) per
2121+28 violation.
2122+29 (b) A penalty collected under this section shall be deposited into
2123+30 the financial institutions fund established by IC 28-11-2-9.
2124+31 Sec. 1106. The director, in the exercise of reasonable judgment,
2125+32 is authorized to compromise, settle, and collect civil penalties from
2126+33 a person for a violation of:
2127+34 (1) a provision of this chapter; or
2128+35 (2) an order issued or promulgated pursuant to this chapter.
2129+36 Sec. 1107. If it appears to the director that a person has
2130+37 committed or is about to commit a violation of a provision of this
2131+38 chapter or an order of the director, the director may apply to a
2132+39 court having jurisdiction for:
2133+40 (1) an order enjoining such person from violating or
2134+41 continuing to violate this chapter or such other order as the
2135+42 nature of the case may require; or
2136+ES 458—LS 7472/DI 101 50
2137+1 (2) injunctive or such other relief as the nature of the case
2138+2 may require.
2139+3 Sec. 1108. (a) The director may enter into a consent order with
2140+4 a person to resolve a matter arising under this chapter.
2141+5 (b) A consent order must:
2142+6 (1) be signed by the person to whom it is issued or an
2143+7 authorized representative of that person; and
2144+8 (2) indicate agreement to the terms contained within the
2145+9 consent order.
2146+10 (c) A consent order does not:
2147+11 (1) constitute an admission by a person that a provision of this
2148+12 chapter or an order promulgated or issued under this chapter
2149+13 has been violated; or
2150+14 (2) constitute a finding by the director that the person has
2151+15 violated a provision of this chapter or an order promulgated
2152+16 or issued under this chapter.
2153+17 (d) Notwithstanding the issuance of a consent order, the director
2154+18 may seek civil or criminal penalties or compromise civil penalties
2155+19 concerning matters encompassed by the consent order, unless the
2156+20 consent order by its terms expressly precludes the director from
2157+21 doing so.
2158+22 Sec. 1109. (a) A person who knowingly or intentionally:
2159+23 (1) makes a material, false statement, or omits a material
2160+24 entry, in a document filed or required to be filed under this
2161+25 chapter, with the intent to deceive the recipient of the
2162+26 document; or
2163+27 (2) fails to file a document required to be filed under this
2164+28 chapter;
2165+29 commits a Class A misdemeanor, except as otherwise provided in
2166+30 this section.
2167+31 (b) The offense described in subsection (a) is a Level 6 felony if
2168+32 one (1) or more of the following apply:
2169+33 (1) The offense is committed not later than seven (7) years
2170+34 from the date the person:
2171+35 (A) was convicted of a prior unrelated offense under this
2172+36 chapter or under IC 35-43; or
2173+37 (B) was released from a term of incarceration, probation,
2174+38 or parole (whichever occurred last) imposed for a prior
2175+39 unrelated conviction for an offense under this chapter or
2176+40 under IC 35-43;
2177+41 whichever occurred last.
2178+42 (2) The amount of money or property involved is at least
2179+ES 458—LS 7472/DI 101 51
2180+1 seven hundred fifty dollars ($750) but less than fifty thousand
2181+2 dollars ($50,000).
2182+3 (3) The victim is:
2183+4 (A) an endangered adult (as defined in IC 12-10-3-2(a)); or
2184+5 (B) less than eighteen (18) years of age.
2185+6 (4) The offense is committed by a person who is confined in:
2186+7 (A) the department of correction;
2187+8 (B) a county jail; or
2188+9 (C) a secure juvenile facility.
2189+10 (c) The offense described in subsection (a) is a Level 5 felony if
2190+11 one (1) or more of the following apply:
2191+12 (1) The amount of money or property involved is at least fifty
2192+13 thousand dollars ($50,000).
2193+14 (2) The amount of money or property involved is at least
2194+15 seven hundred fifty dollars ($750) and the victim is:
2195+16 (A) an endangered adult (as defined in IC 12-10-3-2(a)); or
2196+17 (B) less than eighteen (18) years of age.
2197+18 Sec. 1110. (a) Rules and regulations promulgated by the director
2198+19 or the department under authority conferred by this chapter must
2199+20 be adopted in accordance with IC 4-22-2.
2200+21 (b) At the time the director or department files a notice of
2201+22 proposed adoption, amendment, or repeal of a rule under this
2202+23 chapter for public comment, a copy of the notice must be sent by
2203+24 first class mail postage prepaid to all licensees and applicants for
2204+25 licenses under this chapter as of the time the notice is sent.
2205+26 Sec. 1201. In applying and construing this chapter,
2206+27 consideration may be given to the need to promote uniformity of
2207+28 the law with respect to its subject matter among states that enact
2208+29 it.
2209+30 Sec. 1202. The provisions of this chapter are severable in the
2210+31 manner provided by IC 1-1-1-8(b).
2211+32 Sec. 1203. (a) A person licensed in Indiana to engage in the
2212+33 business of money transmission under IC 24-8-4 (before its repeal
2213+34 on January 1, 2024) is not subject to the provisions of this chapter,
2214+35 to the extent that the provisions of this chapter:
2215+36 (1) conflict with IC 24-8-4 (before its repeal on January 1,
2216+37 2024); or
2217+38 (2) establish new requirements not imposed under IC 24-8-4
2218+39 (before its repeal on January 1, 2024);
2219+40 until after December 31, 2023.
2220+41 (b) Notwithstanding subsection (a), a person licensed in Indiana
2221+42 to engage in the business of money transmission under IC 24-8-4
2222+ES 458—LS 7472/DI 101 52
2223+1 (before its repeal on January 1, 2024) shall be required to amend
2224+2 its authorized delegated contracts so that such contracts comply
2225+3 with this chapter only with respect to contracts entered into or
2226+4 amended after December 31, 2023.
2227+5 (c) Nothing in this section shall be construed as limiting an
2228+6 authorized delegate's obligations to operate in full compliance with
2229+7 this chapter, as required by section 801(c) of this chapter, after
2230+8 December 31, 2023.
2231+9 Sec. 1204. A licensee that is a corporation or a limited liability
2232+10 company must at all times be in good standing with the secretary
2233+11 of state of the state in which the licensee was incorporated.
2234+12 Sec. 1205. If the department of state revenue notifies the
2235+13 department that a person is on the most recent tax warrant list, the
2236+14 department shall not issue or renew the person's license until:
2237+15 (1) the person provides to the department a statement from
2238+16 the department of state revenue that the person's tax warrant
2239+17 has been satisfied; or
2240+18 (2) the department receives a notice from the commissioner of
2241+19 the department of state revenue under IC 6-8.1-8-2(k).
2242+20 Sec. 1206. The division of consumer credit within the
2243+21 department is responsible for the administration of this chapter.
2244+22 SECTION 5. IC 28-11-1-3, AS AMENDED BY P.L.159-2017,
2245+23 SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2246+24 JANUARY 1, 2024]: Sec. 3. (a) The ultimate authority for and the
2247+25 powers, duties, management, and control of the department are vested
2248+26 in the following seven (7) members:
2249+27 (1) The director of the department, who serves as an ex officio,
2250+28 voting member.
2251+29 (2) The following six (6) members appointed by the governor as
2252+30 follows:
2253+31 (A) Three (3) members must have practical experience at the
2254+32 executive level of a:
2255+33 (i) state chartered bank;
2256+34 (ii) state chartered savings association; or
2257+35 (iii) state chartered savings bank.
2258+36 (B) One (1) member must have practical experience at the
2259+37 executive level as a:
2260+38 (i) lender licensed under IC 24-4.5;
2261+39 (ii) mortgage lender licensed under IC 24-4.4;
2262+40 (iii) registrant under IC 24-7;
2263+41 (iv) licensee under IC 28-1-29;
2264+42 (v) licensee under IC 28-7-5;
2265+ES 458—LS 7472/DI 101 53
2266+1 (vi) licensee under IC 28-8-4; IC 28-8-4.1; or
2267+2 (vii) licensee under IC 28-8-5.
2268+3 (C) One (1) member must have practical experience at the
2269+4 executive level of a state chartered credit union.
2270+5 (D) One (1) member must be appointed with due regard for the
2271+6 consumer, agricultural, industrial, and commercial interests of
2272+7 Indiana.
2273+8 (b) Not more than three (3) members appointed by the governor
2274+9 under subsection (a)(2) after June 30, 2006, may be affiliated with the
2275+10 same political party.
2276+11 SECTION 6. IC 35-52-28-10, AS ADDED BY P.L.169-2014,
2277+12 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2278+13 JANUARY 1, 2024]: Sec. 10. IC 28-8-4-58 IC 28-8-4.1-803 defines a
2279+14 crime concerning financial services.
2280+15 SECTION 7. IC 35-52-28-10.5 IS ADDED TO THE INDIANA
2281+16 CODE AS A NEW SECTION TO READ AS FOLLOWS
2282+17 [EFFECTIVE JANUARY 1, 2024]: Sec. 10.5. IC 28-8-4.1-1109
2283+18 defines a crime concerning financial services.
2284+ES 458—LS 7472/DI 101 54
2285+COMMITTEE REPORT
2286+Madam President: The Senate Committee on Insurance and
2287+Financial Institutions, to which was referred Senate Bill No. 458, has
2288+had the same under consideration and begs leave to report the same
2289+back to the Senate with the recommendation that said bill be
2290+AMENDED as follows:
2291+Page 4, line 31, delete "and" and insert "or".
2292+Page 7, line 19, delete "providing only online services," and insert
2293+"the provision of solely online or telecommunications services or
2294+network access.".
2295+Page 7, delete line 20.
2296+Page 9, line 39, delete "and" and insert "or".
2297+Page 16, between lines 1 and 2, begin a new paragraph and insert:
2298+"(g) This section does not prohibit the director from releasing to
6202299 the public a list of persons licensed under this chapter or from
621-releasing aggregated financial data with respect to such licensees.
622-Sec. 403. (a) The director may conduct an examination or
623-investigation of a licensee or an authorized delegate or otherwise
624-take independent action authorized by this chapter, or by a rule
625-adopted or order issued under this chapter, as reasonably
626-necessary or appropriate to administer and enforce this chapter,
627-regulations implementing this chapter, and other applicable law,
628-including the Bank Secrecy Act and the USA Patriot Act of 2001
629-(P.L. 107-56). The director may:
630-(1) conduct an examination either onsite or offsite as the
631-director may reasonably require;
632-(2) conduct an examination in conjunction with an
633-examination conducted by other state agencies or agencies of
634-another state or of the federal government;
635-(3) accept the examination report of another state agency or
636-SEA 458 — Concur 16
637-an agency of another state or of the federal government, or a
638-report prepared by an independent accounting firm, with any
639-such report considered, upon being accepted and for all
640-purposes, as an official report of the director; and
641-(4) summon and examine under oath a key individual or
642-employee of a licensee or authorized delegate and require the
643-person to produce records regarding any matter related to the
644-condition and business of the licensee or authorized delegate.
645-(b) A licensee or an authorized delegate shall provide, and the
646-director shall have full and complete access to, all records the
647-director may reasonably require to conduct a complete
648-examination. The records must be provided at the location and in
649-the format specified by the director. The director may use
650-multistate record production standards and examination
651-procedures when those standards will reasonably achieve the
652-purposes of this subsection.
653-(c) Unless otherwise directed by the director, a licensee shall pay
654-all costs reasonably incurred in connection with an examination of
655-the licensee or the licensee's authorized delegates.
656-(d) The director shall determine the sufficiency of the licensee's
657-records and whether the licensee has made the required
658-information reasonably available.
659-(e) To discover violations of this chapter, the director may
660-investigate and examine the records of any person the director
661-believes is operating without a license, when a license is required
662-under this chapter. The person examined must pay the reasonably
663-incurred costs of the examination.
664-Sec. 404. (a) To efficiently and effectively administer and
665-enforce this chapter and to minimize regulatory burden, the
666-director may participate in multistate supervisory processes
667-established between states and coordinated through the Conference
668-of State Bank Supervisors, the Money Transmitter Regulators
669-Association, and the affiliates and successors of either organization,
670-for all licensees that hold licenses in Indiana and other states. As a
671-participant in multistate supervision, the director may:
672-(1) cooperate, coordinate, and share information with other
673-state and federal regulators in accordance with section 402 of
674-this chapter;
675-(2) enter into written cooperation, coordination, or
676-information sharing contracts or agreements with
677-organizations the membership of which is made up of state or
678-federal governmental agencies; and
679-SEA 458 — Concur 17
680-(3) cooperate, coordinate, and share information with
681-organizations the membership of which is made up of state or
682-federal governmental agencies, as long as the organizations
683-agree in writing to maintain the confidentiality and security
684-of the shared information in accordance with section 402 of
685-this chapter.
686-(b) The director may not waive, and nothing in this section
687-constitutes a waiver of, the director's authority to conduct an
688-examination or investigation or to otherwise take independent
689-action authorized by this chapter, or by a rule adopted or order
690-issued under this chapter, to enforce compliance with applicable
691-state or federal law.
692-(c) The performance of a joint examination or investigation, or
693-acceptance of an examination or investigation report, does not
694-waive the director's authority to perform an examination
695-assessment provided for in this chapter.
696-Sec. 405. (a) In the event state money transmission jurisdiction
697-is conditioned on a federal law, any inconsistencies between a
698-provision of this chapter and the federal law governing money
699-transmission shall be governed by the applicable federal law to the
700-extent of the inconsistency.
701-(b) In the event of any inconsistencies between this chapter and
702-a federal law that governs under subsection (a), the director may
703-provide interpretive guidance that:
704-(1) identifies the inconsistency; and
705-(2) identifies the appropriate means of compliance with
706-federal law.
707-Sec. 406. If a licensee contracts with an outside vendor to
708-provide a service that would otherwise be undertaken internally by
709-the licensee and be subject to the department's routine examination
710-procedures, the person that provides the service to the licensee
711-shall, at the request of the director, submit to an examination by
712-the department. If the director determines that an examination
713-under this section is necessary or desirable, the examination may
714-be made at the expense of the person to be examined. If the person
715-to be examined under this section refuses to permit the
716-examination to be made, the director may order any licensee that
717-receives services from the person refusing the examination to:
718-(1) discontinue receiving one (1) or more services from the
719-person; or
720-(2) otherwise cease conducting business with the person.
721-Sec. 501. (a) A person may not:
722-SEA 458 — Concur 18
723-(1) engage in the business of money transmission; or
724-(2) advertise, solicit, or hold itself out as providing money
725-transmission;
726-unless the person is licensed under this chapter.
727-(b) Subsection (a) does not apply to:
728-(1) a person that is:
729-(A) an authorized delegate of a person licensed under this
730-chapter; and
731-(B) acting within the scope of authority conferred by a
732-written contract with the licensee; or
733-(2) a person that is exempt under section 301 of this chapter
734-and does not engage in money transmission outside the scope
735-of the exemption.
736-(c) A license issued under section 505 of this chapter is not
737-transferable or assignable.
738-Sec. 502. (a) To establish consistent licensing between this state
739-and other states, the director may:
740-(1) implement all licensing provisions of this chapter in a
741-manner that is consistent with other states that have adopted:
742-(A) a law containing the same provisions of this chapter; or
743-(B) multistate licensing processes; and
744-(2) participate in nationwide protocols for licensing
745-cooperation and coordination among state regulators if those
746-protocols are consistent with this chapter.
747-(b) To fulfill the purposes of this chapter, the director may
748-establish relationships or contracts with the NMLS or other
749-entities designated by the NMLS to enable the director to:
750-(1) collect and maintain records;
751-(2) coordinate multistate licensing processes and supervision
752-processes;
753-(3) process fees; and
754-(4) facilitate communication between the state and licensees
755-or other persons subject to this chapter.
756-(c) The director may use the NMLS for all aspects of licensing
757-in accordance with this chapter, including license applications,
758-applications for acquisitions of control, surety bonds, reporting,
759-criminal history background checks, credit checks, fee processing,
760-and examinations.
761-(d) The director may use NMLS forms, processes, and
762-functionalities in accordance with this chapter. If the NMLS does
763-not provide functionality, forms, or processes for a provision of this
764-chapter, the director may implement the requirements in a manner
765-SEA 458 — Concur 19
766-that facilitates uniformity with respect to licensing, supervision,
767-reporting, and regulation of licensees that are licensed in multiple
768-jurisdictions.
769-(e) For the purpose of participating in the NMLS, the director
770-is authorized to waive or modify, in whole or in part, by rule,
771-regulation or order, any or all of the requirements for licensure
772-and to establish new requirements as reasonably necessary to
773-participate in the NMLS.
774-Sec. 503. (a) Applicants for a license shall apply in a form and
775-by a medium prescribed by the director. Each application must
776-contain the content set forth by rule, regulation, instruction, or
777-procedure of the department. The required content for an
778-application may be changed or updated in accordance with
779-applicable law in order to carry out the purposes of this chapter
780-and maintain consistency with NMLS licensing standards and
781-practices. Each application submitted to the department must state
782-or contain the following, as applicable:
783-(1) The legal name and residential and business addresses of
784-the applicant and any fictitious or trade name used by the
785-applicant in conducting its business.
786-(2) A list of any criminal convictions of the applicant and any
787-material litigation in which the applicant has been involved in
788-the ten (10) year period immediately preceding the submission
789-of the application.
790-(3) A description of any money transmission previously
791-provided by the applicant and the money transmission that
792-the applicant seeks to provide in Indiana.
793-(4) A list of the applicant's proposed authorized delegates and
794-the locations in Indiana where the applicant and its
795-authorized delegates propose to engage in money
796-transmission.
797-(5) A list of other states in which the applicant is licensed to
798-engage in money transmission and any license revocations,
799-suspensions, or other disciplinary action taken against the
800-applicant in another state.
801-(6) Information concerning any bankruptcy or receivership
802-proceedings affecting the applicant or a person in control of
803-the applicant.
804-(7) A sample contract form for authorized delegates, if
805-applicable.
806-(8) A form of payment instrument or stored value, as
807-applicable.
808-SEA 458 — Concur 20
809-(9) The name and address of any federally insured depository
810-financial institution through which the applicant plans to
811-conduct money transmission.
812-(10) Any other information the director or the NMLS
813-reasonably requires with respect to the applicant.
814-(b) If an applicant is a corporation, limited liability company,
815-partnership, or another legal entity, the applicant shall also
816-provide the following:
817-(1) The:
818-(A) date of the applicant's incorporation or formation; and
819-(B) state or country of incorporation or formation.
820-(2) If applicable, a certificate of good standing from the state
821-or country in which the applicant was incorporated or
822-formed.
823-(3) A brief description of the structure or organization of the
824-applicant, including any parents or subsidiaries of the
825-applicant, and whether any parents or subsidiaries are
826-publicly traded.
827-(4) For the ten (10) year period immediately preceding the
828-submission of the application, the legal name, any fictitious or
829-trade name, all business and residential addresses, and the
830-employment, as applicable, of each:
831-(A) key individual with respect to; and
832-(B) person in control of:
833-the applicant.
834-(5) For the ten (10) year period immediately preceding the
835-submission of the application, a list of any criminal
836-convictions and material litigation in which a person, other
837-than an individual, in control of the applicant has been
838-involved.
839-(6) A copy of audited financial statements of the applicant for
840-the most recent fiscal year and for the two (2) year period
841-immediately preceding the submission of the application or,
842-if determined to be acceptable by the director, certified
843-unaudited financial statements for the most recent fiscal year
844-or for another period acceptable to the director.
845-(7) A certified copy of unaudited financial statements of the
846-applicant for the most recent fiscal quarter.
847-(8) If the applicant is a publicly traded corporation, a copy of
848-the most recent report filed with the United States Securities
849-and Exchange Commission under Section 13 of the federal
850-Securities Exchange Act of 1934 (15 U.S.C. 78m).
851-SEA 458 — Concur 21
852-(9) If the applicant is a wholly owned subsidiary of:
853-(A) a corporation publicly traded in the United States, a
854-copy of audited financial statements for the parent
855-corporation for the most recent fiscal year or a copy of the
856-parent corporation's most recent report filed under
857-Section 13 of the federal Securities Exchange Act of 1934
858-(15 U.S.C. 78m); or
859-(B) a corporation publicly traded outside the United States,
860-a copy of similar documentation filed with the regulator of
861-the parent corporation's domicile outside the United
862-States.
863-(10) The name and address of the applicant's registered agent
864-in Indiana.
865-(11) Any other information the director reasonably requires
866-with respect to the applicant.
867-(c) A nonrefundable application fee, as set by the department,
868-and a license fee, as set by the department, must accompany an
869-application for a license under this section.
870-(d) The director may:
2300+releasing aggregated financial data with respect to such licensees.".
2301+Page 19, line 27, delete "director." and insert "department.".
2302+Page 21, line 35, delete "of" and insert "set forth in".
2303+Page 21, line 37, after "of" insert "one (1) or more of the
2304+requirements set forth in subsection (a) or (b).".
2305+Page 21, delete line 38.
2306+Page 23, between lines 14 and 15, begin a new paragraph and insert:
2307+"(c) The director may:
8712308 (1) waive one (1) or more requirements set forth in subsection
8722309 (a) or (b); or
8732310 (2) permit an applicant to submit other information instead of
8742311 one (1) or more of the requirements set forth in subsection (a)
875-or (b).
876-Sec. 504. (a) An individual in control of a licensee or an
877-applicant, an individual who seeks to acquire control of a licensee,
878-and each key individual with respect to a licensee or an applicant
879-shall furnish to the department through the NMLS the following
880-items:
881-(1) The individual's fingerprints for submission to the Federal
882-Bureau of Investigation and the department for purposes of
883-a national criminal history background check unless the
884-person currently resides outside the United States and has
885-resided outside the United States for the last ten (10) years.
886-(2) Personal history and experience, in a form and by a
887-medium prescribed by the director, including the following:
888-(A) An independent credit report from a consumer
889-reporting agency unless the individual does not have a
890-Social Security number, in which case a credit report is not
891-required.
892-(B) Information related to any criminal convictions with
893-respect to, or pending charges against, the individual.
894-SEA 458 — Concur 22
895-(C) Information related to any:
896-(i) regulatory or administrative action; or
897-(ii) civil litigation;
898-involving claims of fraud, misrepresentation, conversion,
899-mismanagement of funds, breach of fiduciary duty, or
900-breach of contract.
901-(b) If an individual described in subsection (a) has resided
902-outside the United States at any time in the last ten (10) years, the
903-individual shall also provide an investigative background report
904-prepared by an independent search firm that meets the following
905-requirements:
906-(1) At a minimum, the search firm shall:
907-(A) demonstrate that it has sufficient knowledge and
908-resources, and employs accepted and reasonable
909-methodologies, to conduct the research for the background
910-report; and
911-(B) not be affiliated with, or have an interest with respect
912-to, the individual it is researching.
913-(2) The investigative background report must be written in
914-the English language and must, at a minimum, contain the
915-following information with respect to the individual during
916-the ten (10) years covered by the investigative background
917-report:
918-(A) If available in the individual's current jurisdiction of
919-residency, a comprehensive credit report, or any
920-equivalent information obtained or generated by the
921-independent search firm to produce such a report,
922-including a search of court data in the countries, provinces,
923-states, cities, towns, and contiguous areas, as applicable, in
924-which the individual resided and worked.
925-(B) Criminal records information, including convictions
926-for felonies or misdemeanors, or similar convictions for
927-violations of law, in the countries, provinces, states, cities,
928-towns, and contiguous areas, as applicable, in which the
929-individual resided and worked.
930-(C) Employment history.
931-(D) Media history, including an electronic search of
932-national and local publications, wire services, and business
933-applications.
934-(E) Regulatory history in the financial services industry,
935-including money transmission, securities, banking,
936-insurance, and mortgage related industries.
937-SEA 458 — Concur 23
938-(c) The director may:
939-(1) waive one (1) or more requirements set forth in subsection
940-(a) or (b); or
941-(2) permit an applicant to submit other information instead of
942-one (1) or more of the requirements set forth in subsection (a)
943-or (b).
944-Sec. 505. (a) Subject to subsection (b), when an application for
945-an original license under this chapter appears to include all the
946-items, and to address all the matters, that are required for an
947-application under this chapter, as determined by the director, the
948-application is considered complete, and the director shall promptly
949-notify the applicant, in a record, of the date on which the
950-application is determined to be complete, and:
951-(1) the department shall approve or deny the application not
952-later than one hundred twenty (120) days after the completion
953-date, as determined in accordance with this subsection; or
954-(2) if the application is not approved or denied not later than
955-one hundred twenty (120) days after the completion date:
956-(A) the application is considered approved; and
957-(B) the license takes effect as of the first business day after
958-expiration of the one hundred twenty (120) day period.
959-However, the director may for good cause extend the one hundred
960-twenty (120) day period described in this subsection.
961-(b) A determination by the director that an application is
962-complete and is accepted for processing means only that the
963-application, on its face, appears to:
964-(1) include all of the items, including the criminal background
965-check response from the Federal Bureau of Investigations;
966-and
967-(2) address all of the matters;
968-that are required for an application for an original license under
969-this chapter, and is not an assessment of the substance of the
970-application or of the sufficiency of the information provided.
971-(c) When an application is filed and considered complete under
972-this section, the director shall investigate the applicant's financial
973-condition and responsibility, financial and business experience,
974-character, and general fitness. The director may conduct an onsite
975-investigation of the applicant, the reasonable cost of which the
976-applicant shall pay. The department shall issue a license to an
977-applicant under this section if the department finds that all of the
978-following conditions have been met:
979-(1) The applicant has complied with sections 503 and 504 of
980-SEA 458 — Concur 24
981-this chapter.
982-(2) Both the:
983-(A) financial condition and responsibility, financial and
984-business experience, competence, character, and general
985-fitness of the applicant; and
986-(B) competence, experience, character, and general fitness
987-of the key individuals with respect to, and persons in
988-control of, the applicant;
989-indicate that it is in the interest of the public to permit the
990-applicant to engage in money transmission.
991-(d) If an applicant avails itself or is otherwise subject to a
992-multistate licensing process:
993-(1) the director may accept the investigation results of a lead
994-investigative state for the purpose of subsection (c), if the lead
995-investigative state has sufficient staffing, expertise, and
996-minimum standards; or
997-(2) if Indiana is a lead investigative state, the director may
998-investigate the applicant pursuant to subsection (c) and to the
999-timeframes established by agreement through the multistate
1000-licensing process, as long as the time frames established
1001-comply with the time frame set forth subsection (a)(1) for the
1002-approval or denial of the application.
1003-(e) The department shall issue a formal written notice of the
1004-denial of a license application not later than thirty (30) days after
1005-the decision to deny the application. The department shall set forth
1006-in the notice of denial the specific reasons for the denial of the
1007-application. An applicant whose application is denied by the
1008-department under this subsection may appeal the denial to the
1009-department for an administrative review under IC 4-21.5-3.
1010-(f) The initial license term begins on the day the application is
1011-approved. The license expires on December 31 of the year in which
1012-the license term begins, unless the initial license date is between
1013-November 1 and December 31, in which case the initial license
1014-term runs through December 31 of the following year.
1015-Sec. 506. (a) A license under this chapter shall be renewed
1016-annually as follows:
1017-(1) An annual renewal fee, as set by the department, shall be
1018-paid not later than December 31 of each year.
1019-(2) The renewal term is for a period of one (1) year and:
1020-(A) begins on January 1 of each year after the initial
1021-license term; and
1022-(B) expires on December 31 of the year the renewal term
1023-SEA 458 — Concur 25
1024-begins.
1025-(b) A licensee shall submit a renewal report with the renewal
1026-fee, in a form and by a medium prescribed by the director. The
1027-renewal report must state or contain a description of each material
1028-change in the information submitted by the licensee in its original
1029-license application, if such change has not been previously reported
1030-to the department.
1031-(c) The director may grant an extension of the renewal date for
1032-good cause.
1033-(d) The director may use the NMLS to process license renewals,
1034-as long as the functionality of the NMLS for such purpose is
1035-consistent with this section.
1036-Sec. 507. (a) If a licensee does not continue to meet the
1037-qualifications or satisfy the requirements that apply to an applicant
1038-for a new money transmission license, the department may suspend
1039-or revoke the licensee's license in accordance with the procedures
1040-established by this chapter or other applicable state law for such
1041-suspension or revocation.
1042-(b) An applicant for a money transmission license must
1043-demonstrate that it meets or will meet, and a money transmission
1044-licensee must at all times meet, the requirements set forth in
1045-sections 1001, 1002, and 1003 of this chapter.
1046-Sec. 601. (a) Any person, or group of persons acting in concert,
1047-seeking to acquire control of a licensee shall obtain the written
1048-approval of the department before acquiring control. An
1049-individual:
1050-(1) is not considered to acquire control of a licensee; and
1051-(2) is not subject to the acquisition of control provisions set
1052-forth in this chapter;
1053-when that individual becomes a key individual in the ordinary
1054-course of business.
1055-(b) A person, or group of persons acting in concert, seeking to
1056-acquire control of a licensee shall, in cooperation with the licensee,
1057-submit:
1058-(1) an application in a form and by a medium prescribed by
1059-the director; and
1060-(2) a nonrefundable fee, as determined by the department,
1061-with the request for approval.
1062-(c) Upon request, the director may permit a licensee or:
2312+or (b).".
2313+Page 23, line 22, delete "director" and insert "department".
2314+Page 24, line 5, delete "director" and insert "department".
2315+Page 24, line 6, delete "director" and insert "department".
2316+Page 24, line 31, delete "director" and insert "department".
2317+Page 24, line 33, delete "director" and insert "department".
2318+Page 25, line 4, delete "sixty (60) days before the license expires."
2319+and insert "December 31 of each year.".
2320+Page 25, line 33, delete "director" and insert "department".
2321+Page 25, line 40, after "the" delete "licensee" and insert "licensee,".
2322+Page 26, line 4, delete "or the" and insert "or:
10632323 (1) the person; or
10642324 (2) group of persons acting in concert;
10652325 seeking to acquire control of the licensee, to submit some or all
1066-SEA 458 — Concur 26
2326+ES 458—LS 7472/DI 101 55
10672327 information required in an application under subsection (b)(1)
1068-without using the NMLS.
1069-(d) The application required under subsection (b)(1) shall
1070-include information required by section 504 of this chapter for any
1071-new key individuals that have not previously completed the
1072-requirements of section 504 of this chapter for a licensee.
1073-(e) Subject to subsection (f), when an application for acquisition
1074-of control appears to include all the items, and to address all the
1075-matters, that are required for an application for change in control,
1076-as determined by the director, the application is considered
1077-complete, and the director shall promptly notify the applicant, in
1078-a record, of the date on which the application is determined to be
1079-complete, and:
1080-(1) the department shall approve or deny the application not
1081-later than sixty (60) days after the completion date, as
1082-determined in accordance with this subsection; or
1083-(2) if the application is not approved or denied not later than
1084-sixty (60) days after the completion date:
1085-(A) the application is considered approved; and
1086-(B) the person, or group of persons acting in concert,
1087-seeking to acquire control of the licensee are not prohibited
1088-from acquiring control.
1089-However, the director may for good cause extend the sixty (60) day
1090-period described in this subsection.
1091-(f) A determination by the director that an application is
1092-complete and is accepted for processing means only that the
1093-application, on its face, appears to:
1094-(1) include all of the items; and
1095-(2) address all of the matters;
1096-that are required for an application for acquisition of control
1097-under this chapter, and is not an assessment of the substance of the
1098-application or of the sufficiency of the information provided.
1099-(g) When an application is filed and considered complete under
1100-subsection (e), the director shall investigate the financial condition
1101-and responsibility, financial and business experience, character,
1102-and general fitness of the person, or group of persons acting in
1103-concert, seeking to acquire control. The department shall approve
1104-an acquisition of control under this section if the department finds
1105-that all of the following conditions have been met:
1106-(1) The requirements set forth in subsections (b) and (d) have
1107-been met, as applicable.
1108-(2) Both the:
1109-SEA 458 — Concur 27
1110-(A) financial condition and responsibility, financial and
1111-business experience, competence, character, and general
1112-fitness of the person, or group of persons acting in concert,
1113-seeking to acquire control; and
1114-(B) competence, experience, character, and general fitness
1115-of the key individuals and persons that would be in control
1116-of the licensee after the acquisition of control;
1117-indicate that it is in the interest of the public to permit the
1118-person, or group of persons acting in concert, to control the
1119-licensee.
1120-(h) If an applicant avails itself or is otherwise subject to a
1121-multistate licensing process:
1122-(1) the director may accept the investigation results of a lead
1123-investigative state for the purpose of subsection (g) if the lead
1124-investigative state has sufficient staffing, expertise, and
1125-minimum standards; or
1126-(2) if Indiana is a lead investigative state, the director may
1127-investigate the applicant pursuant to subsection (g) and to the
1128-time frames established by agreement through the multistate
1129-licensing process.
1130-(i) The department shall issue a formal written notice of the
1131-denial of an application to acquire control not later than thirty (30)
1132-days after the decision to deny the application. The department
1133-shall set forth in the notice of denial the specific reasons for the
1134-denial of the application. An applicant whose application is denied
1135-by the department under this subsection may appeal the denial to
1136-the department for an administrative review under IC 4-21.5-3.
1137-(j) The requirements of subsections (a) and (b) do not apply to
1138-any of the following:
1139-(1) A person that acts as a proxy for the sole purpose of voting
1140-at a designated meeting of the:
1141-(A) shareholders;
1142-(B) holders of voting shares; or
1143-(C) voting interests;
1144-of a licensee or a person in control of a licensee.
1145-(2) A person that acquires control of a licensee as a
1146-conservator or as an officer appointed by a court of
1147-competent jurisdiction or by operation of law.
1148-(3) A person that is exempt under section 301(7) of this
1149-chapter.
1150-(4) A person that the director determines is not subject to
1151-subsection (a) based on the public interest.
1152-SEA 458 — Concur 28
1153-(5) A public offering of securities of a licensee or of a person
1154-in control of a licensee.
1155-(6) An internal reorganization of a person in control of the
1156-license if the ultimate person in control of the licensee remains
1157-the same.
1158-(k) A person described in subsection (j)(2), (j)(3), (j)(5), or (j)(6),
1159-in cooperation with the licensee, shall notify the director not later
1160-than fifteen (15) days after the acquisition of control.
1161-(l) The requirements of subsections (a) and (b) do not apply to
1162-a person that has complied with, and received approval to engage
1163-in money transmission under, this chapter or that was identified as
1164-a person in control in a prior application filed with and approved
1165-by the department or by an MSB accredited state pursuant to a
1166-multistate licensing process, if all of the following apply:
1167-(1) The person has not:
1168-(A) had a license revoked or suspended; or
1169-(B) controlled a licensee that has had a license revoked or
1170-suspended while the person was in control of the licensee;
1171-in the most recent five (5) years.
1172-(2) If the person is a licensee, the person is well managed and
1173-has received at least a satisfactory rating for compliance at its
1174-most recent examination by an MSB accredited state, if a
1175-rating was given.
1176-(3) The licensee to be acquired is projected to meet the
1177-requirements of sections 1001, 1002, and 1003 of this chapter
1178-after the acquisition of control is completed, and if the person
1179-acquiring control is a licensee, that licensee is also projected
1180-to meet the requirements of sections 1001, 1002, and 1003 of
1181-this chapter after the acquisition of control is completed.
1182-(4) The licensee to be acquired will not implement any
1183-material changes to its business plan as a result of the
1184-acquisition of control, and if the person acquiring control is a
1185-licensee, the person acquiring also will not implement any
1186-material changes to its business plan as a licensee as a result
1187-of the acquisition of control.
1188-(5) The person provides notice of the acquisition in
1189-cooperation with the licensee and attests to meeting the
1190-requirements set forth in subdivisions (1) through (4) in a
1191-form and by a medium prescribed by the director.
1192-If the notice described in subdivision (5) is not disapproved within
1193-thirty (30) days after the date on which the notice is determined to
1194-be complete by the director, the notice is considered approved.
1195-SEA 458 — Concur 29
1196-(m) Before filing an application for approval to acquire control
1197-of a licensee, a person may request in writing a determination from
1198-the director as to whether the person would be considered a person
1199-in control of a licensee upon consummation of a proposed
1200-transaction. If the director determines that the person would not
1201-be a person in control of a licensee, the proposed person and
1202-transaction is not subject to the requirements of subsections (a)
1203-and (b).
1204-(n) If a multistate licensing process includes a determination
1205-described in subsection (m), and an applicant avails itself or is
1206-otherwise subject to the multistate licensing process:
1207-(1) the director may accept the control determination of a lead
1208-investigative state with sufficient staffing, expertise, and
1209-minimum standards for the purpose of subsection (m); or
1210-(2) if Indiana is a lead investigative state, the director may
1211-investigate the applicant pursuant to subsection (m) and to the
1212-time frames established by agreement through the multistate
1213-licensing process.
1214-Sec. 602. (a) A licensee adding or replacing any key individual
1215-shall:
1216-(1) provide notice in a manner prescribed by the director not
1217-later than fifteen (15) days after the effective date of the key
1218-individual's appointment; and
1219-(2) provide information as required by section 504 of this
1220-chapter not later than forty-five (45) days after the effective
1221-date.
1222-(b) Not later than ninety (90) days after the date on which a
1223-notice provided under subsection (a) is determined by the director
1224-to be complete, the department may issue a notice of disapproval
1225-of a key individual if the competence, experience, character, or
1226-integrity of the individual would not be in the best interests of:
1227-(1) the public; or
1228-(2) the customers of the licensee;
1229-so as to permit the individual to be a key individual of such
1230-licensee.
1231-(c) A notice of disapproval under subsection (b) must contain a
1232-statement of the basis for disapproval and shall be sent to the
1233-licensee and the disapproved individual. A licensee that receives a
1234-notice of disapproval under subsection (b) may appeal the denial
1235-to the department for an administrative review under IC 4-21.5-3.
1236-(d) If a notice provided under subsection (a) is not disapproved
1237-within ninety (90) days after the date on which the notice was
1238-SEA 458 — Concur 30
1239-determined by the director to be complete, the key individual is
1240-considered approved.
1241-(e) If a multistate licensing process includes a key individual
1242-notice and review and approval process as described in this section,
1243-and a licensee avails itself or is otherwise subject to the multistate
1244-licensing process:
1245-(1) the director may accept the determination of another state
1246-if the investigating state has sufficient staffing, expertise, and
1247-minimum standards for the purpose of this section; or
1248-(2) if Indiana is a lead investigative state, the director may
1249-investigate the applicant pursuant to this section and to the
1250-time frames established by agreement through the multistate
1251-licensing process.
1252-Sec. 701. (a) A licensee shall submit a report of condition not
1253-later than forty-five (45) days after the end of each calendar
1254-quarter, or within any extended time as the director may prescribe.
1255-(b) A report of condition under this section must include the
1256-following:
1257-(1) Financial information at the licensee level.
1258-(2) Nationwide and state specific money transmission
1259-transaction information in every jurisdiction in the United
1260-States in which the licensee is licensed to engage in money
1261-transmission.
1262-(3) A permissible investments report.
1263-(4) Transaction destination country reporting for money
1264-received for transmission, if applicable.
1265-(5) Any other information the director reasonably requires
1266-with respect to the licensee. The director:
1267-(A) may use the NMLS for the submission of the report
1268-required by this section; and
1269-(B) is authorized to change or update as necessary the
1270-requirements of this section to carry out the purposes of
1271-this chapter and maintain consistency with NMLS
1272-reporting.
1273-(c) The information required by subsection (b)(4) must only be
1274-included in a report of condition submitted not later than forty-five
1275-(45) days after the end of the fourth calendar quarter.
1276-Sec. 702. (a) A licensee shall, not later than ninety (90) days
1277-after the end of each fiscal year, or within any extended time as the
1278-director may prescribe, file with the director the following:
1279-(1) An audited financial statement of the licensee for the fiscal
1280-year just ended, prepared in accordance with United States
1281-SEA 458 — Concur 31
1282-generally accepted accounting principles.
1283-(2) Any other information as the director may reasonably
1284-require.
1285-(b) An audited financial statement required under this section
1286-shall be prepared by:
1287-(1) an independent certified public accountant; or
1288-(2) an independent public accountant;
1289-who is satisfactory to the director.
1290-(c) An audited financial statement required under this section
1291-must include or be accompanied by a certificate of opinion, of the
1292-independent certified public accountant or independent public
1293-accountant, that is satisfactory in form and content to the director.
1294-If the certificate or opinion is qualified, the director may order the
1295-licensee to take any action that the director finds necessary to
1296-enable the independent certified public accountant or independent
1297-public accountant to remove the qualification.
1298-Sec. 703. (a) A licensee shall submit a report of authorized
1299-delegates not later than forty-five (45) days after the end of each
1300-calendar quarter. The director may use the NMLS for the
1301-submission of the report required by this section, as long as the
1302-functionality of the NMLS for such purpose is consistent with this
1303-section.
1304-(b) An authorized delegate report under this section must
1305-include, at a minimum, the following information for each
1306-authorized delegate:
1307-(1) Company legal name.
1308-(2) Taxpayer employer identification number.
1309-(3) Principal provider identifier.
1310-(4) Physical address.
1311-(5) Mailing address.
1312-(6) Any business conducted in other states.
1313-(7) Any fictitious or trade name.
1314-(8) The name, telephone number, and electronic mail address
1315-for the authorized delegate's contact person.
1316-(9) Start date as the licensee's authorized delegate.
1317-(10) End date for acting as licensee's authorized delegate, if
1318-applicable.
1319-(11) Court orders issued under section 803 of this chapter
1320-against the authorized delegate.
1321-(12) Any other information the director reasonably requires
1322-with respect to the authorized delegate.
1323-Sec. 704. (a) A licensee shall file a report with the director not
1324-SEA 458 — Concur 32
1325-later than one (1) business day after the licensee has reason to
1326-know of the occurrence of any of the following events:
1327-(1) The filing of a petition by or against the licensee under the
1328-federal Bankruptcy Code (11 U.S.C. 101-110) for bankruptcy
1329-or reorganization.
1330-(2) The filing of a petition by or against the licensee for
1331-receivership, the commencement of any other judicial or
1332-administrative proceeding for its dissolution or
1333-reorganization, or the making of a general assignment for the
1334-benefit of its creditors.
1335-(3) The commencement of a proceeding to revoke or suspend
1336-the licensee's license in a state or country in which the licensee
1337-engages in business or is licensed.
1338-(b) A licensee shall file a report with the director not later than
1339-three (3) business days after the licensee has reason to know of the
1340-occurrence of any of the following events:
1341-(1) A charge or conviction of:
1342-(A) the licensee;
1343-(B) a key individual with respect to the licensee; or
1344-(C) a person in control of the licensee;
1345-for a felony.
1346-(2) A charge or conviction of an authorized delegate for a
1347-felony.
1348-Sec. 705. A licensee and an authorized delegate shall file all
1349-reports required by federal currency reporting, record keeping,
1350-and suspicious activity reporting requirements as set forth in the
1351-Bank Secrecy Act and other federal and state laws pertaining to
1352-money laundering. The timely filing of a complete and accurate
1353-report required under this section with the appropriate federal
1354-agency satisfies the requirements of this section.
1355-Sec. 706. (a) A licensee shall maintain the following records, for
1356-use in determining its compliance with this chapter, for at least
1357-three (3) years:
1358-(1) A record of each outstanding money transmission
1359-obligation sold.
1360-(2) A general ledger, posted at least monthly, containing all
1361-asset, liability, capital, income, and expense accounts.
1362-(3) Bank statements and bank reconciliation records.
1363-(4) Records of outstanding money transmission obligations.
1364-(5) Records of each outstanding money transmission
1365-obligation paid during the three (3) year period described in
1366-this section.
1367-SEA 458 — Concur 33
1368-(6) A list of known names and addresses of all the licensee's
1369-authorized delegates.
1370-(7) Any other records the director reasonably requires by
1371-rule.
1372-(b) The items described in subsection (a) may be maintained in
1373-any form of record.
1374-(c) The records described in this section may be maintained
1375-outside Indiana if they are made accessible to the department upon
1376-at least seven (7) business days advance notice that is sent by the
1377-director in a record.
1378-(d) All records maintained by the licensee under this section are
1379-open to inspection by the department under section 403(a) of this
1380-chapter.
1381-Sec. 801. (a) As used in this section, "remit" means to:
1382-(1) make direct payments of money to a licensee or its
1383-representative authorized to receive money; or
1384-(2) deposit money in a bank in an account specified by the
1385-licensee.
1386-(b) Before conducting business through an authorized delegate
1387-or allowing a person to act as an authorized delegate on its behalf,
1388-a licensee must:
1389-(1) adopt, and update as necessary, written policies and
1390-procedures reasonably designed to ensure that the licensee's
1391-authorized delegates comply with applicable state and federal
1392-law;
1393-(2) enter into a written contract that complies with subsection
1394-(d); and
1395-(3) conduct a reasonable risk based background investigation
1396-sufficient for the licensee to determine whether the authorized
1397-delegate has complied and will likely comply with applicable
1398-state and federal law.
1399-(c) An authorized delegate must operate in full compliance with
1400-this chapter.
1401-(d) The written contract required by subsection (b)(2) must be
1402-signed by the licensee and the authorized delegate and, at a
1403-minimum, must do the following:
1404-(1) Appoint the person signing the contract as the licensee's
1405-authorized delegate with the authority to conduct money
1406-transmission on behalf of the licensee.
1407-(2) Set forth:
1408-(A) the nature and scope of the relationship between the
1409-licensee and the authorized delegate; and
1410-SEA 458 — Concur 34
1411-(B) the respective rights and responsibilities of the parties.
1412-(3) Require the authorized delegate to agree to fully comply
1413-with all applicable state and federal laws, rules, and
1414-regulations pertaining to money transmission, including this
1415-chapter and regulations implementing this chapter, and
1416-relevant provisions of the Bank Secrecy Act and the USA
1417-Patriot Act of 2001 (P.L. 107-56).
1418-(4) Require the authorized delegate to remit and handle
1419-money and monetary value in accordance with the terms of
1420-the contract between the licensee and the authorized delegate.
1421-(5) Impose a trust on money and monetary value, net of fees,
1422-received for money transmission, for the benefit of the
1423-licensee.
1424-(6) Require the authorized delegate to prepare and maintain
1425-records as required by this chapter or regulations
1426-implementing this chapter, or as reasonably requested by the
1427-director.
1428-(7) Include an acknowledgment that the authorized delegate
1429-consents to examination or investigation by the director.
1430-(8) State that the licensee is subject to regulation by the
1431-department and that, as part of that regulation, the
1432-department may suspend or revoke an authorized delegate
1433-designation or require the licensee to terminate an authorized
1434-delegate designation.
1435-(9) Include an acknowledgment of the authorized delegate's
1436-receipt of the written policies and procedures required under
1437-subsection (b)(1).
1438-(e) If a licensee's license is suspended, revoked, surrendered, or
1439-expired, the licensee must, not later than five (5) business days
1440-after receiving notice of the action taken, provide documentation
1441-to the director that the licensee has notified all of the licensee's
1442-applicable authorized delegates, whose names are in a record filed
1443-with the director, of the suspension, revocation, surrender, or
1444-expiration of the license. Upon suspension, revocation, surrender,
1445-or expiration of a license, applicable authorized delegates shall
1446-immediately cease to provide money transmission as an authorized
1447-delegate of the licensee.
1448-(f) An authorized delegate of a licensee holds in trust for the
1449-benefit of the licensee all money, net of fees, received from money
1450-transmission. If an authorized delegate commingles any funds
1451-received from money transmission with any other funds or
1452-property owned or controlled by the authorized delegate, all
1453-SEA 458 — Concur 35
1454-commingled funds and other property are considered held in trust
1455-in favor of the licensee in an amount equal to the amount of money,
1456-net of fees, received from money transmission.
1457-(g) An authorized delegate may not use a subdelegate to conduct
1458-money transmission on behalf of a licensee.
1459-Sec. 802. (a) A person shall not engage in the business of money
1460-transmission on behalf of a person who is not:
1461-(1) licensed under this chapter; or
1462-(2) exempt under section 301 of this chapter.
1463-(b) A person that engages in the business of money transmission
1464-on behalf of a person described in subsection (a)(1) or (a)(2):
1465-(1) provides money transmission to the same extent as if the
1466-person were a licensee; and
1467-(2) is jointly and severally liable with the unlicensed or
1468-nonexempt person.
1469-Sec. 803. (a) In an action brought by a licensee against an
1470-authorized delegate, the circuit or superior court of Marion
1471-County shall have jurisdiction to grant appropriate equitable or
1472-legal relief, including:
1473-(1) prohibiting the authorized delegate from directly or
1474-indirectly acting as an authorized delegate for any licensee in
1475-Indiana; and
1476-(2) ordering the payment of restitution, damages, or other
1477-monetary relief;
1478-if the court finds that the authorized delegate failed to remit money
1479-in accordance with the written contract required by section
1480-801(b)(2) of this chapter, or as otherwise directed by the licensee
1481-or required by law.
1482-(b) If the court issues an order under subsection (a) prohibiting
1483-a person from acting as an authorized delegate for any licensee, the
1484-licensee that brought the action shall:
1485-(1) report the order to the director not later than thirty (30)
1486-days after the issuance of the order; and
1487-(2) report the order through the NMLS not later than ninety
1488-(90) days after the issuance of the order.
1489-(c) An authorized delegate who:
1490-(1) holds money in trust for the benefit of a licensee; and
1491-(2) knowingly fails to remit any amount of such money;
1492-commits a Class A misdemeanor, if the amount of money described
1493-in subdivision (2) is not more than seven hundred fifty dollars
1494-($750).
1495-(d) An authorized delegate who:
1496-SEA 458 — Concur 36
1497-(1) holds money in trust for the benefit of a licensee; and
1498-(2) knowingly fails to remit any amount of such money;
1499-commits a Level 6 felony, if the amount of money described in
1500-subdivision (2) is more than seven hundred fifty dollars ($750) but
1501-less than fifty thousand dollars ($50,000).
1502-(e) An authorized delegate who:
1503-(1) holds money in trust for the benefit of a licensee; and
1504-(2) knowingly fails to remit any amount of such money;
1505-commits a Level 5 felony, if the amount of money described in
1506-subdivision (2) is at least fifty thousand dollars ($50,000).
1507-Sec. 901. (a) A licensee shall forward all money received for
1508-transmission in accordance with the terms of the agreement
1509-between the licensee and the sender unless the licensee has a
1510-reasonable belief or a reasonable basis to believe that:
1511-(1) the sender may be a victim of fraud; or
1512-(2) a crime or violation of a law, rule, or regulation has
1513-occurred, is occurring, or may occur.
1514-(b) If a licensee fails to forward money received for transmission
1515-in accordance with this section, the licensee must respond to
1516-inquiries from the sender by providing the reason for the failure
1517-unless providing a response would violate a state or federal law,
1518-rule, or regulation.
1519-Sec. 902. (a) This section does not apply to the following:
1520-(1) Money received for transmission that is subject to the
1521-federal Remittance Rule (12 CFR Part 1005, Subpart B).
1522-(2) Money received for transmission pursuant to a written
1523-agreement between the licensee and payee to process
1524-payments for goods or services provided by the payee.
1525-(b) A licensee shall refund to a sender, not later than ten (10)
1526-days after receipt of the sender's written request for a refund, any
1527-and all money received for transmission, unless any of the
1528-following occurs:
1529-(1) The money has been forwarded within ten (10) days after
1530-the date on which the money was received for transmission.
1531-(2) Instructions have been given committing an equivalent
1532-amount of money to the person designated by the sender
1533-within ten (10) days after the date on which the money was
1534-received for transmission.
1535-(3) The agreement between the licensee and the sender
1536-instructs the licensee to forward the money at a time that is
1537-more than ten (10) days after the date on which the money
1538-was received for transmission, and the money has been
1539-SEA 458 — Concur 37
1540-forwarded in accordance with the terms of the agreement.
1541-However, if funds have not yet been forwarded in accordance
1542-with the terms of the agreement between the licensee and the
1543-sender, the licensee shall issue a refund in accordance with the
1544-other provisions of this section.
1545-(4) The refund is requested for a transaction that the licensee
1546-has not completed based on a reasonable belief or a
1547-reasonable basis to believe that a crime or violation of law,
1548-rule, or regulation has occurred, is occurring, or may occur.
1549-(5) The refund request does not enable the licensee to:
1550-(A) identify the sender's name and:
1551-(i) address; or
1552-(ii) telephone number; or
1553-(B) identify the particular transaction to be refunded if the
1554-sender has multiple transactions outstanding.
1555-Sec. 903. (a) This section does not apply to the following:
1556-(1) Money received for transmission that is subject to the
1557-federal Remittance Rule (12 CFR Part 1005, Subpart B).
1558-(2) Money received for transmission that is not primarily for
1559-personal, family, or household purposes.
1560-(3) Money received for transmission pursuant to a written
1561-agreement between the licensee and payee to process
1562-payments for goods or services provided by the payee.
1563-(b) As used in this section, "receipt", with respect to a
1564-transaction, means:
1565-(1) a paper receipt;
1566-(2) an electronic record; or
1567-(3) another written confirmation.
1568-(c) A licensee or the licensee's authorized delegate shall provide
1569-a sender a receipt for money received for transmission. For a
1570-transaction conducted in person, a receipt may be provided
1571-electronically if the sender requests or agrees to receive an
1572-electronic receipt. For a transaction conducted electronically or by
1573-telephone, a receipt may be provided electronically. All electronic
1574-receipts shall be provided in a retainable form.
1575-(d) The receipt required by this section must contain the
1576-following information, as applicable:
1577-(1) The name of the sender.
1578-(2) The name of the designated recipient.
1579-(3) The date of the transaction.
1580-(4) The unique transaction or identification number.
1581-(5) The name of the licensee, the licensee's NMLS unique
1582-SEA 458 — Concur 38
1583-identification number, the licensee's business address, and the
1584-licensee's customer service telephone number.
1585-(6) The amount of the transaction in United States dollars.
1586-(7) Any fee charged by the licensee to the sender for the
1587-transaction.
1588-(8) Any taxes collected by the licensee from the sender for the
1589-transaction.
1590-(e) The receipt required by this section must be in:
1591-(1) English; and
1592-(2) the language principally used by the licensee or authorized
1593-delegate to advertise, solicit, or negotiate, either orally or in
1594-writing, for a transaction conducted in person, electronically,
1595-or by phone, if other than English.
1596-Sec. 1001. (a) A licensee under this chapter shall maintain at all
1597-times a tangible net worth of at least the greater of:
1598-(1) one hundred thousand dollars ($100,000); or
1599-(2) the total of the following:
1600-(A) Three percent (3%) of the first one hundred million
1601-dollars ($100,000,000) of the licensee's total assets.
1602-(B) Two percent (2%) of additional assets that are greater
1603-than one hundred million dollars ($100,000,000) but not
1604-greater than one billion dollars ($1,000,000,000).
1605-(C) One-half of one percent (0.5%) of additional assets that
1606-are greater than one billion dollars ($1,000,000,000).
1607-(b) Tangible net worth must be demonstrated at the time of an
1608-initial application for licensure by means of the applicant's most
1609-recent audited or unaudited financial statements under section
1610-503(b)(6) of this chapter, as applicable.
1611-(c) Notwithstanding subsections (a) and (b), the director may,
1612-for good cause shown, exempt, in whole or in part, any applicant
1613-or licensee from the requirements of this section.
1614-Sec. 1002. (a) An applicant for a money transmission license
1615-must provide, and a licensee at all times must maintain, security
1616-consisting of a surety bond in a form satisfactory to the director.
1617-(b) Subject to subsections (c) and (d), the amount of the required
1618-security under this section is the greater of:
1619-(1) three hundred thousand dollars ($300,000); or
1620-(2) an amount equal to the licensee's average daily money
1621-transmission liability in Indiana calculated for the most
1622-recently completed calendar quarter, up to a maximum of five
1623-hundred thousand dollars ($500,000).
1624-(c) A licensee that maintains a bond in the maximum amount of
1625-SEA 458 — Concur 39
1626-five hundred thousand dollars ($500,000) set forth in subsection
1627-(b)(2) is not required to calculate the licensee's average daily
1628-money transmission liability in Indiana for purposes of this section.
1629-(d) A licensee may exceed the maximum required bond amount
1630-pursuant to section 1004(a)(5) of this chapter.
1631-Sec. 1003. (a) A licensee shall maintain at all times permissible
1632-investments that have a market value computed in accordance with
1633-United States generally accepted accounting principles of not less
1634-than the aggregate amount of all of the licensee's outstanding
1635-money transmission obligations.
1636-(b) Except for permissible investments set forth in section
1637-1004(a) of this chapter, the department, with respect to any
1638-licensee, may by rule or order limit the extent to which a specific
1639-investment maintained by a licensee within a class of permissible
1640-investments may be considered a permissible investment, if the
1641-specific investment represents undue risk to customers, not
1642-reflected in the market value of investments.
1643-(c) Permissible investments, even if commingled with other
1644-assets of the licensee, are held in trust for the benefit of the
1645-purchasers and holders of the licensee's outstanding money
1646-transmission obligations in the event of:
1647-(1) insolvency of the licensee;
1648-(2) the filing of a petition by or against the licensee under the
1649-federal Bankruptcy Code (11 U.S.C. 101-110) for bankruptcy
1650-or reorganization;
1651-(3) the filing of a petition by or against the licensee for
1652-receivership;
1653-(4) the commencement of any other judicial or administrative
1654-proceeding for the dissolution or reorganization of the
1655-licensee; or
1656-(5) an action against the licensee by a creditor who is not a
1657-beneficiary of the statutory trust established by this
1658-subsection.
1659-The permissible investments impressed with a trust under this
1660-subsection are not subject to attachment, levy of execution, or
1661-sequestration by order of any court, except for a beneficiary of the
1662-statutory trust established by this subsection.
1663-(d) Upon the establishment of a statutory trust in accordance
1664-with subsection (c) or when any funds are drawn on a letter of
1665-credit pursuant to section 1004(a)(4) of this chapter, the director
1666-shall notify the applicable regulator of each state in which the
1667-licensee is licensed to engage in money transmission, if any, of the
1668-SEA 458 — Concur 40
1669-establishment of the trust or the funds drawn on the letter of
1670-credit, as applicable. The notice required by this subsection is
1671-considered satisfied if performed pursuant to a multistate
1672-agreement or through the NMLS. Funds drawn on a letter of
1673-credit, and any other permissible investments held in trust for the
1674-benefit of the purchasers and holders of the licensee's outstanding
1675-money transmission obligations, are considered held in trust for
1676-the benefit of those purchasers and holders on a pro rata and
1677-equitable basis in accordance with statutes pursuant to which
1678-permissible investments are required to be held in Indiana, and in
1679-other states, as applicable. Any statutory trust established under
1680-this section is terminated upon extinguishment of all of the
1681-licensee's outstanding money transmission obligations.
1682-(e) The department by rule or by order may allow other types
1683-of investments that the department determines are of sufficient
1684-liquidity and quality to be a permissible investment. The
1685-department may participate in efforts with other state regulators
1686-to determine that other types of investments are of sufficient
1687-liquidity and quality to be a permissible investment.
1688-Sec. 1004. (a) The following investments are permissible under
1689-section 1003 of this chapter:
1690-(1) Cash (including demand deposits, savings deposits, and
1691-funds in such accounts held, for the benefit of the licensee's
1692-customers, in a federally insured depository financial
1693-institution) and cash equivalents, including Automated
1694-Clearing House (ACH) items in transit to the licensee and
1695-ACH items or international wires in transit to a payee, cash
1696-in transit via armored car, cash in smart safes, cash at
1697-licensee owned locations, debit card or credit card funded
1698-transmission receivables owed by any bank, or money market
1699-mutual funds rated "AAA" by S&P Global, or the equivalent
1700-from any eligible rating service.
1701-(2) Certificates of deposit or senior debt obligations of an
1702-insured depository institution (as defined in Section 3 of the
1703-Federal Deposit Insurance Act (12 U.S.C. 1813) or as defined
1704-under the federal Credit Union Act (12 U.S.C. 1781)).
1705-(3) An obligation of the United States (or of a commission,
1706-agency, or instrumentality of the United States), an obligation
1707-that is guaranteed fully as to principal and interest by the
1708-United States, or an obligation of a state (or of a governmental
1709-subdivision, agency, or instrumentality of a state).
1710-(4) The full drawable amount of an irrevocable standby letter
1711-SEA 458 — Concur 41
1712-of credit that names the department as the stated beneficiary
1713-and that stipulates that the beneficiary need only draw a sight
1714-draft under the letter of credit and present it to obtain funds,
1715-up to the letter of credit amount, subject to the following:
1716-(A) The letter of credit must:
1717-(i) be issued by a person that is a federally insured
1718-depository financial institution, a foreign bank
1719-authorized under federal law to maintain a federal
1720-agency or federal branch office in a state or states, or a
1721-foreign bank authorized under state law to maintain a
1722-branch in a state, and that bears an eligible rating or
1723-whose parent company bears an eligible rating, and that
1724-is regulated, supervised, and examined by United States
1725-federal or state authorities having regulatory authority
1726-over banks, credit unions, and trust companies;
1727-(ii) be irrevocable and unconditional and indicate that it
1728-is not subject to any condition or qualifications outside
1729-of the letter of credit;
1730-(iii) not contain reference to any other agreements,
1731-documents, or entities, or otherwise provide for any
1732-security interest in the licensee; and
1733-(iv) contain an issue date and expiration date, and
1734-expressly provide for automatic extension, without a
1735-written amendment, for an additional period of one (1)
1736-year from the current or each future expiration date,
1737-unless the issuer of the letter of credit notifies the
1738-director in writing by certified or registered mail or
1739-courier mail or other receipted means, at least sixty (60)
1740-days before any expiration date, that the irrevocable
1741-letter of credit will not be extended.
1742-(B) In the event of any notice of expiration or nonextension
1743-of a letter of credit described in clause (A)(iv), the licensee
1744-must demonstrate to the satisfaction of the department, at
1745-least fifteen (15) days before the expiration, that the
1746-licensee maintains and will maintain permissible
1747-investments in accordance with this subsection upon the
1748-expiration of the letter of credit. If the licensee is not able
1749-to do so, the department may draw on the letter of credit
1750-in an amount up to the amount necessary to meet the
1751-licensee's requirements to maintain permissible
1752-investments in accordance with this subsection. Any such
1753-draw shall be offset against the licensee's outstanding
1754-SEA 458 — Concur 42
1755-money transmission obligations. The drawn funds shall be
1756-held in trust by the department or the department's
1757-designated agent, to the extent authorized by law, as agent
1758-for the benefit of the purchasers and holders of the
1759-licensee's outstanding money transmission obligations.
1760-(C) The letter of credit must provide that the issuer of the
1761-letter of credit will honor, at sight, the beneficiary's
1762-presentation, to the issuer, of the original letter of credit,
1763-including any amendments. The presentation under this
1764-clause must be made not later than the expiration date of
1765-the letter of credit and must be accompanied by a written
1766-statement from the beneficiary stating that any of the
1767-following events has occurred, as applicable:
1768-(i) The filing of a petition by or against the licensee under
1769-the federal Bankruptcy Code (11 U.S.C. 101-110) for
1770-bankruptcy or reorganization.
1771-(ii) The filing of a petition by or against the licensee for
1772-receivership, or the commencement of any other judicial
1773-or administrative proceeding for its dissolution or
1774-reorganization.
1775-(iii) The seizure of assets of the licensee by a state
1776-pursuant to an emergency order issued in accordance
1777-with applicable law, on the basis of an action, violation,
1778-or condition that has caused or is likely to cause the
1779-insolvency of the licensee.
1780-(iv) The beneficiary has received notice of expiration or
1781-nonextension of a letter of credit, and the licensee failed
1782-to demonstrate to the satisfaction of the beneficiary that
1783-the licensee will maintain permissible investments in
1784-accordance with this subsection upon the expiration or
1785-nonextension of the letter of credit.
1786-The letter of credit must stipulate that the beneficiary may
1787-obtain funds, up to the letter of credit amount, within
1788-seven (7) days of presentment of the original letter of
1789-credit, including any amendments, and the statement
1790-under this clause.
1791-(D) The director may designate an agent to serve on the
1792-department's behalf as beneficiary to a letter of credit so
1793-long as the agent and letter of credit meet requirements
1794-established by the department. The director's agent may
1795-serve as agent for multiple licensing authorities for a single
1796-irrevocable letter of credit if the proceeds of the drawable
1797-SEA 458 — Concur 43
1798-amount for the purposes of this subdivision are assigned to
1799-the department.
1800-(E) The department may participate in multistate
1801-processes designed to facilitate the issuance and
1802-administration of letters of credit, including services
1803-provided by the NMLS and the State Regulatory Registry,
1804-LLC.
1805-(5) The amount of the surety bond required under section
1806-1002 of this chapter that exceeds the licensee's average daily
1807-money transmission liability in Indiana.
1808-(b) Unless permitted by the department by rule or by order to
1809-exceed the limit as set forth in this subsection, the following
1810-investments are permissible under this section to the extent
1811-specified:
1812-(1) Receivables that are payable to a licensee from its
1813-authorized delegates in the ordinary course of business that
1814-are less than seven (7) days of age, are permissible in an
1815-amount not to exceed fifty percent (50%) of the aggregate
1816-value of the licensee's total permissible investments.
1817-(2) Of the receivables permissible under subdivision (1),
1818-receivables that are payable to a licensee from a single
1819-authorized delegate in the ordinary course of business may
1820-not exceed ten percent (10%) of the aggregate value of the
1821-licensee's total permissible investments.
1822-(3) The following investments are permissible up to twenty
1823-percent (20%) per category, and combined up to fifty percent
1824-(50%), of the aggregate value of the licensee's total
1825-permissible investments:
1826-(A) A short term (up to six (6) months) investment bearing
1827-an eligible rating.
1828-(B) Commercial paper bearing an eligible rating.
1829-(C) A bill, note, bond, or debenture bearing an eligible
1830-rating.
1831-(D) A United States tri party repurchase agreement
2328+without using the NMLS.".
2329+Page 26, delete lines 5 through 7.
2330+Page 26, line 19, delete "director" and insert "department".
2331+Page 26, line 25, delete "persons," and insert "persons acting in
2332+concert,".
2333+Page 27, line 26, delete "director" and insert "department".
2334+Page 27, line 28, delete "director" and insert "department".
2335+Page 29, line 34, delete "director" and insert "department".
2336+Page 33, between lines 5 and 6, begin a new line block indented and
2337+insert:
2338+"(6) A list of known names and addresses of all the licensee's
2339+authorized delegates.".
2340+Page 33, line 6, delete "(6)" and insert "(7)".
2341+Page 38, line 31, delete "equal to" and insert "of".
2342+Page 40, line 30, delete "director" and insert "department".
2343+Page 40, line 31, delete "director" and insert "department".
2344+Page 40, line 32, delete "director" and insert "department".
2345+Page 42, line 23, delete "a presentation made by" and insert "the
2346+beneficiary's presentation, to the issuer, of the original letter of
2347+credit, including any amendments. The presentation under this
2348+clause must be made not later than the expiration date of the letter
2349+of credit and must be accompanied by a written statement from the
2350+beneficiary stating that any of the following events has occurred,
2351+as applicable:".
2352+Page 42, delete lines 24 through 28.
2353+Page 43, line 13, delete "director." and insert "department.".
2354+Page 44, between lines 6 and 7, begin a new line double block
2355+indented and insert:
2356+"(D) A United States tri party repurchase agreement
18322357 collateralized at least one hundred percent (100%) with:
18332358 (i) United States government or agency securities;
18342359 (ii) municipal bonds; or
1835-(iii) other securities bearing an eligible rating.
1836-(E) Money market mutual funds rated less than "AAA"
1837-and at least "A-" by S&P Global, or the equivalent from
1838-any other eligible rating service.
1839-(F) A mutual fund or other investment fund composed
1840-SEA 458 — Concur 44
1841-solely and exclusively of one (1) or more permissible
1842-investments listed in subsection (a)(1) through (a)(3).
1843-(4) Cash (including demand deposits, savings deposits, and
1844-funds in such accounts held for the benefit of the licensee's
1845-customers) at foreign depository institutions are permissible
1846-up to ten percent (10%) of the aggregate value of the
1847-licensee's total permissible investments if the licensee has
1848-received a satisfactory rating in its most recent examination
1849-and the foreign depository institution:
1850-(A) has an eligible rating;
1851-(B) is registered under the Foreign Account Tax
1852-Compliance Act;
1853-(C) is not located in any country subject to sanctions from
1854-the federal Office of Foreign Assets Control; and
1855-(D) is not located in a high risk or noncooperative
1856-jurisdiction as designated by the Financial Action Task
1857-Force.
1858-Sec. 1005. A licensee shall maintain a policy of insurance, issued
1859-by an insurer authorized to do business in Indiana, that insures the
1860-applicant against loss by a criminal act or by an act of dishonesty.
1861-The principal sum of the policy shall be at least equal to the
1862-amount of the surety bond required under section 1002 of this
1863-chapter.
1864-Sec. 1101. (a) The director may issue to a licensee an order to
1865-show cause why the licensee's license should not be revoked or
1866-suspended for a period determined by the department.
1867-(b) An order issued under subsection (a) must:
1868-(1) include:
1869-(A) a statement of the place, date, and time for a meeting
1870-with the department, which date may not be less than ten
1871-(10) days from the date of the order;
1872-(B) a description of the action contemplated by the
1873-department; and
1874-(C) a statement of the facts or conduct supporting the
1875-issuance of the order; and
1876-(2) be accompanied by a notice stating that the licensee is
1877-entitled to:
1878-(A) a reasonable opportunity to be heard; and
1879-(B) show the licensee's compliance with all lawful
1880-requirements for retention of the license;
1881-at the meeting described in subdivision (1)(A).
1882-(c) After the meeting described in subsection (b)(1)(A), the
1883-SEA 458 — Concur 45
1884-department may revoke or suspend the license if the department
1885-finds that:
1886-(1) the licensee has repeatedly and willfully violated:
1887-(A) this chapter or any applicable rule, order, or guidance
1888-document adopted or issued by the department; or
1889-(B) any other state or federal law, regulation, or rule
1890-applicable to the business of money transmission;
1891-(2) the licensee does not meet the licensing qualifications set
1892-forth in this chapter;
1893-(3) the licensee obtained the license for the benefit of, or on
1894-behalf of, a person who does not qualify for the license;
1895-(4) the licensee knowingly or intentionally made material
1896-misrepresentations to, or concealed material information
1897-from, the department;
1898-(5) the licensee did not cooperate with an examination or
1899-investigation by the director;
1900-(6) the licensee engaged in fraud, intentional
1901-misrepresentation, or gross negligence;
1902-(7) an authorized delegate has been convicted of a violation of
1903-a state or federal money laundering statute, or has violated a
1904-rule adopted or an order issued under this chapter, as a result
1905-of the licensee's willful misconduct or willful ignorance of the
1906-situation;
1907-(8) the competence, experience, character, or general fitness
1908-of the licensee, an authorized delegate of the licensee, a person
1909-in control of the licensee, a key individual with respect to the
1910-licensee, or a responsible person of an authorized delegate of
1911-the licensee indicates that it is not in the public interest to
1912-permit the person to provide money transmission;
1913-(9) the licensee has engaged in an unsafe or unsound practice;
1914-(10) the licensee is insolvent, has suspended payment of its
1915-obligations, or has made a general assignment for the benefit
1916-of its creditors;
1917-(11) the licensee has not removed an authorized delegate after
1918-the department has issued and served upon the licensee a final
1919-order that included a finding that the authorized delegate has
1920-violated this chapter; or
1921-(12) facts or conditions exist that, had they existed at the time
1922-the licensee applied for the license, would have been grounds
1923-for the department to deny the issuance of the license.
1924-(d) In determining whether a licensee is engaging in an unsafe
1925-or unsound practice, the director may consider the size and
1926-SEA 458 — Concur 46
1927-condition of the licensee's money transmission, the magnitude of
1928-the loss, the gravity of the violation of this chapter, and the
1929-previous conduct of the person involved.
1930-(e) Whenever the department revokes or suspends a license, the
1931-department shall enter an order to that effect and notify the
1932-licensee of:
1933-(1) the revocation or suspension;
1934-(2) if a suspension has been ordered, the duration of the
1935-suspension;
1936-(3) the procedure for appealing the revocation or suspension
1937-under IC 4-21.5-3-6; and
1938-(4) any other terms and conditions that apply to the
1939-revocation or suspension.
1940-Not later than five (5) days after the entry of the order, the
1941-department shall deliver to the licensee a copy of the order and the
1942-findings supporting the order.
1943-(f) Any person holding a license to engage in the business of
1944-money transmission may relinquish the license by notifying the
1945-department in writing of the relinquishment. However, a
1946-relinquishment under this subsection does not affect the person's
1947-liability for acts previously committed and coming within the scope
1948-of this chapter.
1949-(g) If the director determines it to be in the public interest, the
1950-director may pursue the revocation of a license of a licensee that
1951-has relinquished the license under subsection (f).
1952-(h) If a person's license is revoked, suspended, or relinquished,
1953-the revocation, suspension, or relinquishment does not impair or
1954-affect any obligation owed by any person under any existing lawful
1955-contract.
1956-(i) If the director has just cause to believe an emergency exists
1957-from which it is necessary to protect the interests of the public, the
1958-director may proceed with the revocation of a license through an
1959-emergency or another temporary order.
1960- Sec. 1102. (a) The director may issue to a licensee an order to
1961-show cause why the licensee should not be prohibited from
1962-designating a current authorized delegate of the licensee as an
1963-authorized delegate, or from having the licensee's ability to
1964-designate a current authorized delegate as an authorized delegate
1965-for a period determined by the department.
1966-(b) An order issued under subsection (a) must:
1967-(1) include:
1968-(A) a statement of the place, date, and time for a meeting
1969-SEA 458 — Concur 47
1970-with the department, which date may not be less than ten
1971-(10) days from the date of the order;
1972-(B) a description of the action contemplated by the
1973-department; and
1974-(C) a statement of the facts or conduct supporting the
1975-issuance of the order; and
1976-(2) be accompanied by a notice stating that the licensee is
1977-entitled to:
1978-(A) a reasonable opportunity to be heard; and
1979-(B) show the licensee's compliance with all lawful
1980-requirements concerning the designation of an authorized
1981-delegate;
1982-at the meeting described in subdivision (1)(A).
1983-(c) After the meeting described in subsection (b)(1)(A), the
1984-department may prohibit the licensee from designating, or suspend
1985-the licensee's ability to designate, a current authorized delegate as
1986-an authorized delegate if the department finds that:
1987-(1) the authorized delegate has repeatedly and willfully
1988-violated:
1989-(A) this chapter or any applicable rule, order, or guidance
1990-document adopted or issued by the department; or
1991-(B) any other state or federal law, regulation, or rule
1992-applicable to the business of money transmission;
1993-(2) the authorized delegate does not meet the authorized
1994-delegate qualifications set forth in this chapter;
1995-(3) the authorized delegate obtained the designation for the
1996-benefit of, or on behalf of, a person who does not qualify for
1997-the authorized delegate designation;
1998-(4) the authorized delegate knowingly or intentionally made
1999-material misrepresentations to, or concealed material
2000-information from, the department;
2001-(5) the authorized delegate did not cooperate with an
2002-examination or investigation by the director;
2003-(6) the authorized delegate engaged in fraud, intentional
2004-misrepresentation, or gross negligence;
2005-(7) the authorized delegate has been convicted of a violation
2006-of a state or federal money laundering statute;
2007-(8) the competence, experience, character, or general fitness
2008-of the licensee, the authorized delegate, a person in control of
2009-the licensee, a key individual, or a responsible person of the
2010-authorized delegate indicates that it is not in the public
2011-interest to permit the person to provide money transmission;
2012-SEA 458 — Concur 48
2013-or
2014-(9) the authorized delegate has engaged in an unsafe or
2015-unsound practice.
2016-(d) Whenever the department prohibits a licensee from
2017-designating, or suspends a licensee's ability to designate, an
2018-authorized delegate, the department shall enter an order to that
2019-effect and notify the licensee of:
2020-(1) the prohibition or suspension;
2021-(2) if a suspension has been ordered, the duration of the
2022-suspension;
2023-(3) the procedure for appealing the prohibition or suspension
2024-under IC 4-21.5-3-6; and
2025-(4) any other terms and conditions that apply to the
2026-prohibition or suspension.
2027-Not later than five (5) days after the entry of the order, the
2028-department shall deliver to the licensee a copy of the order and the
2029-findings supporting the order.
2030-(e) Any authorized delegate may relinquish its designation as an
2031-authorized delegate by notifying the department in writing of the
2032-relinquishment. However, a relinquishment under this subsection
2033-does not affect the authorized delegate's liability for acts previously
2034-committed and coming within the scope of this chapter.
2035-(f) If the director determines it to be in the public interest, the
2036-director may pursue an order either prohibiting the licensee from
2037-designating a current authorized delegate as an authorized
2038-delegate, or suspending the licensee from designating a current
2039-authorized delegate as an authorized delegate for a period of time,
2040-after the authorized delegate has relinquished its designation under
2041-subsection (e).
2042-(g) If an authorized delegate's designation as an authorized
2043-delegate is revoked, suspended, or relinquished, the revocation,
2044-suspension, or relinquishment does not impair or affect any
2045-obligation owed by that person under any existing lawful contracts.
2046-(h) If the director has just cause to believe an emergency exists
2047-from which it is necessary to protect the interests of the public, the
2048-director may proceed with the revocation of an authorized
2049-delegate's designation as an authorized delegate through an
2050-emergency or another temporary order.
2051-Sec. 1103. (a) A license issued by the department under this
2052-chapter may be revoked or suspended by the department if the
2053-person fails to:
2054-(1) file any renewal form required by the department; or
2055-SEA 458 — Concur 49
2056-(2) pay any license renewal fee described under section
2057-506(a)(1) of this chapter;
2058-not later than sixty (60) days after the due date.
2059-(b) A person whose license is revoked or suspended under this
2060-section may:
2061-(1) pay all delinquent fees and apply for a reinstatement of the
2062-person's license; or
2063-(2) appeal the revocation or suspension to the department for
2064-an administrative review under IC 4-21.5-3.
2065-Pending the decision resulting from a hearing under IC 4-21.5-3
2066-concerning license revocation or suspension, a license remains in
2067-force.
2068-Sec. 1104. Except as otherwise provided, IC 4-21.5 applies to
2069-and governs all agency action taken by the department under this
2070-chapter. A proceeding for administrative review under IC 4-21.5-3
2071-or judicial review under IC 4-21.5-5 must be held in Marion
2072-County.
2073-Sec. 1105. (a) If the department determines, after notice and an
2074-opportunity to be heard, that a person has violated this chapter,
2075-the department may, in addition to or instead of all other remedies
2076-available under this chapter, impose upon the person a civil
2077-penalty not greater than ten thousand dollars ($10,000) per
2078-violation.
2079-(b) A penalty collected under this section shall be deposited into
2080-the financial institutions fund established by IC 28-11-2-9.
2081-Sec. 1106. The director, in the exercise of reasonable judgment,
2082-is authorized to compromise, settle, and collect civil penalties from
2083-a person for a violation of:
2084-(1) a provision of this chapter; or
2085-(2) an order issued or promulgated pursuant to this chapter.
2086-Sec. 1107. If it appears to the director that a person has
2087-committed or is about to commit a violation of a provision of this
2088-chapter or an order of the director, the director may apply to a
2089-court having jurisdiction for:
2090-(1) an order enjoining such person from violating or
2091-continuing to violate this chapter or such other order as the
2092-nature of the case may require; or
2093-(2) injunctive or such other relief as the nature of the case
2094-may require.
2095-Sec. 1108. (a) The director may enter into a consent order with
2096-a person to resolve a matter arising under this chapter.
2097-(b) A consent order must:
2098-SEA 458 — Concur 50
2099-(1) be signed by the person to whom it is issued or an
2100-authorized representative of that person; and
2101-(2) indicate agreement to the terms contained within the
2102-consent order.
2103-(c) A consent order does not:
2104-(1) constitute an admission by a person that a provision of this
2105-chapter or an order promulgated or issued under this chapter
2106-has been violated; or
2107-(2) constitute a finding by the director that the person has
2108-violated a provision of this chapter or an order promulgated
2109-or issued under this chapter.
2110-(d) Notwithstanding the issuance of a consent order, the director
2111-may seek civil or criminal penalties or compromise civil penalties
2112-concerning matters encompassed by the consent order, unless the
2113-consent order by its terms expressly precludes the director from
2114-doing so.
2115-Sec. 1109. (a) A person who knowingly or intentionally:
2360+(iii) other securities bearing an eligible rating.".
2361+Page 44, line 7, delete "(D)" and insert "(E)".
2362+Page 44, line 10, delete "(E)" and insert "(F)".
2363+and when so amended that said bill do pass.
2364+(Reference is to SB 458 as introduced.)
2365+BALDWIN, Chairperson
2366+ES 458—LS 7472/DI 101 56
2367+Committee Vote: Yeas 9, Nays 0.
2368+_____
2369+SENATE MOTION
2370+Madam President: I move that Engrossed Senate Bill 458, which is
2371+eligible for third reading, be returned to second reading for purposes of
2372+amendment.
2373+BASSLER
2374+_____
2375+SENATE MOTION
2376+Madam President: I move that Senate Bill 458 be amended to read
2377+as follows:
2378+Page 51, delete lines 6 through 15, begin a new paragraph and
2379+insert:
2380+"Sec. 1109. (a) A person who knowingly or intentionally:
21162381 (1) makes a material, false statement, or omits a material
21172382 entry, in a document filed or required to be filed under this
21182383 chapter, with the intent to deceive the recipient of the
21192384 document; or
21202385 (2) fails to file a document required to be filed under this
21212386 chapter;
21222387 commits a Class A misdemeanor, except as otherwise provided in
21232388 this section.
21242389 (b) The offense described in subsection (a) is a Level 6 felony if
21252390 one (1) or more of the following apply:
21262391 (1) The offense is committed not later than seven (7) years
21272392 from the date the person:
21282393 (A) was convicted of a prior unrelated offense under this
21292394 chapter or under IC 35-43; or
21302395 (B) was released from a term of incarceration, probation,
21312396 or parole (whichever occurred last) imposed for a prior
21322397 unrelated conviction for an offense under this chapter or
21332398 under IC 35-43;
21342399 whichever occurred last.
21352400 (2) The amount of money or property involved is at least
21362401 seven hundred fifty dollars ($750) but less than fifty thousand
2402+ES 458—LS 7472/DI 101 57
21372403 dollars ($50,000).
21382404 (3) The victim is:
21392405 (A) an endangered adult (as defined in IC 12-10-3-2(a)); or
21402406 (B) less than eighteen (18) years of age.
2141-SEA 458 — Concur 51
21422407 (4) The offense is committed by a person who is confined in:
21432408 (A) the department of correction;
21442409 (B) a county jail; or
21452410 (C) a secure juvenile facility.
21462411 (c) The offense described in subsection (a) is a Level 5 felony if
21472412 one (1) or more of the following apply:
21482413 (1) The amount of money or property involved is at least fifty
21492414 thousand dollars ($50,000).
21502415 (2) The amount of money or property involved is at least
21512416 seven hundred fifty dollars ($750) and the victim is:
21522417 (A) an endangered adult (as defined in IC 12-10-3-2(a)); or
2153-(B) less than eighteen (18) years of age.
2154-Sec. 1110. (a) Rules and regulations promulgated by the director
2155-or the department under authority conferred by this chapter must
2156-be adopted in accordance with IC 4-22-2.
2157-(b) At the time the director or department files a notice of
2158-proposed adoption, amendment, or repeal of a rule under this
2159-chapter for public comment, a copy of the notice must be sent by
2160-first class mail postage prepaid to all licensees and applicants for
2161-licenses under this chapter as of the time the notice is sent.
2162-Sec. 1201. In applying and construing this chapter,
2163-consideration may be given to the need to promote uniformity of
2164-the law with respect to its subject matter among states that enact
2165-it.
2166-Sec. 1202. The provisions of this chapter are severable in the
2167-manner provided by IC 1-1-1-8(b).
2168-Sec. 1203. (a) A person licensed in Indiana to engage in the
2169-business of money transmission under IC 24-8-4 (before its repeal
2170-on January 1, 2024) is not subject to the provisions of this chapter,
2171-to the extent that the provisions of this chapter:
2172-(1) conflict with IC 24-8-4 (before its repeal on January 1,
2173-2024); or
2174-(2) establish new requirements not imposed under IC 24-8-4
2175-(before its repeal on January 1, 2024);
2176-until after December 31, 2023.
2177-(b) Notwithstanding subsection (a), a person licensed in Indiana
2178-to engage in the business of money transmission under IC 24-8-4
2179-(before its repeal on January 1, 2024) shall be required to amend
2180-its authorized delegated contracts so that such contracts comply
2181-with this chapter only with respect to contracts entered into or
2182-amended after December 31, 2023.
2183-(c) Nothing in this section shall be construed as limiting an
2184-SEA 458 — Concur 52
2185-authorized delegate's obligations to operate in full compliance with
2186-this chapter, as required by section 801(c) of this chapter, after
2187-December 31, 2023.
2188-Sec. 1204. A licensee that is a corporation or a limited liability
2189-company must at all times be in good standing with the secretary
2190-of state of the state in which the licensee was incorporated.
2191-Sec. 1205. If the department of state revenue notifies the
2192-department that a person is on the most recent tax warrant list, the
2193-department shall not issue or renew the person's license until:
2194-(1) the person provides to the department a statement from
2195-the department of state revenue that the person's tax warrant
2196-has been satisfied; or
2197-(2) the department receives a notice from the commissioner of
2198-the department of state revenue under IC 6-8.1-8-2(k).
2199-Sec. 1206. The division of consumer credit within the
2200-department is responsible for the administration of this chapter.
2201-SECTION 5. IC 28-11-1-3, AS AMENDED BY P.L.159-2017,
2202-SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2203-JANUARY 1, 2024]: Sec. 3. (a) The ultimate authority for and the
2204-powers, duties, management, and control of the department are vested
2205-in the following seven (7) members:
2206-(1) The director of the department, who serves as an ex officio,
2207-voting member.
2208-(2) The following six (6) members appointed by the governor as
2209-follows:
2210-(A) Three (3) members must have practical experience at the
2211-executive level of a:
2212-(i) state chartered bank;
2213-(ii) state chartered savings association; or
2214-(iii) state chartered savings bank.
2215-(B) One (1) member must have practical experience at the
2216-executive level as a:
2217-(i) lender licensed under IC 24-4.5;
2218-(ii) mortgage lender licensed under IC 24-4.4;
2219-(iii) registrant under IC 24-7;
2220-(iv) licensee under IC 28-1-29;
2221-(v) licensee under IC 28-7-5;
2222-(vi) licensee under IC 28-8-4; IC 28-8-4.1; or
2223-(vii) licensee under IC 28-8-5.
2224-(C) One (1) member must have practical experience at the
2225-executive level of a state chartered credit union.
2226-(D) One (1) member must be appointed with due regard for the
2227-SEA 458 — Concur 53
2228-consumer, agricultural, industrial, and commercial interests of
2229-Indiana.
2230-(b) Not more than three (3) members appointed by the governor
2231-under subsection (a)(2) after June 30, 2006, may be affiliated with the
2232-same political party.
2233-SECTION 6. IC 35-52-28-10, AS ADDED BY P.L.169-2014,
2234-SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2235-JANUARY 1, 2024]: Sec. 10. IC 28-8-4-58 IC 28-8-4.1-803 defines a
2236-crime concerning financial services.
2237-SECTION 7. IC 35-52-28-10.5 IS ADDED TO THE INDIANA
2238-CODE AS A NEW SECTION TO READ AS FOLLOWS
2239-[EFFECTIVE JANUARY 1, 2024]: Sec. 10.5. IC 28-8-4.1-1109
2240-defines a crime concerning financial services.
2241-SEA 458 — Concur President of the Senate
2242-President Pro Tempore
2243-Speaker of the House of Representatives
2244-Governor of the State of Indiana
2245-Date: Time:
2246-SEA 458 — Concur
2418+(B) less than eighteen (18) years of age.".
2419+(Reference is to SB 458 as printed February 3, 2023.)
2420+YOUNG M
2421+_____
2422+SENATE MOTION
2423+Madam President: I move that Senate Bill 458 be amended to read
2424+as follows:
2425+Page 7, line 18, delete "The term includes payroll processing
2426+services.".
2427+Page 9, delete lines 14 through 25.
2428+Page 9, line 26, delete "(27)" and insert "(26)".
2429+Page 9, line 30, delete "(28)" and insert "(27)".
2430+Page 9, line 35, delete "(29)" and insert "(28)".
2431+Page 10, line 5, delete "(30)" and insert "(29)".
2432+Page 37, delete line 42.
2433+Page 38, delete lines 33 through 42.
2434+Page 39, delete lines 1 through 2.
2435+(Reference is to SB 458 as printed February 3, 2023.)
2436+BASSLER
2437+ES 458—LS 7472/DI 101 58
2438+COMMITTEE REPORT
2439+Mr. Speaker: Your Committee on Financial Institutions, to which
2440+was referred Senate Bill 458, has had the same under consideration and
2441+begs leave to report the same back to the House with the
2442+recommendation that said bill be amended as follows:
2443+Page 2, line 19, strike "state" and insert "Indiana".
2444+Page 17, line 39, delete "subsection" and insert "section".
2445+Page 17, line 41, delete "subsection" and insert "section".
2446+and when so amended that said bill do pass.
2447+(Reference is to SB 458 as reprinted February 21, 2023.)
2448+SPEEDY
2449+Committee Vote: yeas 12, nays 0.
2450+ES 458—LS 7472/DI 101