Amendment #1 to H.1106

HOUSE . . . . . . . No. 4840

The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, July 9, 2024.

The committee on Ways and Means, to whom was referred the Bill relative to the regulation of money transmission by the Division of Banks (House, No. 1106), reports recommending that the same ought to pass with an amendment substituting therefor the accompanying bill (House, No. 4840).

For the committee,

AARON MICHLEWITZ.

FILED ON: 7/9/2024

HOUSE . . . . . . . . . . . . . . . No. 4840

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Third General Court
(2023-2024)

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An Act relative to the regulation of money transmission by the Division of Banks.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 167F of the General Laws is hereby amended by striking out section 4 and inserting in place thereof the following section:-

Section 4. A bank may engage directly in the business of selling, issuing or registering checks.

SECTION 2. Chapter 169 of the General Laws is hereby repealed.

SECTION 3. The General Laws are hereby amended by inserting after chapter 169A the following chapter:-

CHAPTER 169B

THE MONEY TRANSMISSION ACT

Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Acting in concert”, persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.

“Authorized delegate”, a person a licensee designates to engage in money transmission on behalf of the licensee.

“Average daily money transmission liability”, the amount of the licensee’s outstanding money transmission obligations in the commonwealth at the end of each day in a given period of time, added together and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any licensee required to do so, the given period of time shall be the quarters ending March 31, June 30, September 30 and December 31.

“Bank Secrecy Act”, the Bank Secrecy Act, 31 U.S.C. section 5311, et seq. and its implementing regulations, as amended and recodified from time to time.

“Closed loop stored value”, stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.

“Commissioner”, the commissioner of banks.

“Control”, the power to: (i) vote, directly or indirectly, at least 25 per cent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; or (iii) exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; provided, that for rebuttable presumptions of control a person shall be presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least 10 per cent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; and provided further, that a person presumed to exercise a controlling influence may rebut the presumption of control if the person is a passive investor. For purposes of determining the percentage of a person controlled by any other person, the person’s interest shall be aggregated with the interest of any other immediate family member, including the person’s spouse, parents, children, siblings, mothers- and fathers-in law, sons- and daughters-in-law, brothers- and sisters-in-law and any other person who shares such person’s home. Consistent with the authority described in subsection (b) of section 4, the commissioner may adopt regulations, policies and procedures as necessary, which may modify the definition of “control”.

“Division”, the division of banks.

“Eligible rating”, a credit rating of any of the 3 highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers such as “plus” or “minus” for S&P, or the equivalent for any other eligible rating service. Long-term credit ratings shall be deemed eligible if the rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating service. Short-term credit ratings shall be deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating service. In the event that ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating.

“Eligible rating service”, any nationally recognized statistical rating organization, as defined by the United States Securities and Exchange Commission, and any other organization designated by the commissioner by rule or order.

“Federally insured depository financial institution”, a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States, when such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company has federally insured deposits.

“Individual”, a natural person.

“In the commonwealth”, at a physical location within the commonwealth of Massachusetts for a transaction requested in person. For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is in the commonwealth by relying on other information provided by the person regarding the location of the individual’s residential address or a business entity’s principal place of business or other physical address location and any records associated with the person that the provider of money transmission may have that indicate such location, including, but not limited to, an address associated with an account.

“Key individual”, any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee.

“Licensee”, a person licensed under this chapter.

“Material litigation”, litigation, that according to United States generally accepted accounting principles, is significant to a person’s financial health and would be required to be disclosed in the person’s annual audited financial statements, report to shareholders or similar records.

“Monetary value”, a medium of exchange, whether or not redeemable in money.

“Money”, a medium of exchange that is authorized or adopted by the United States or a foreign government. Money shall include a monetary unit of account established by an intergovernmental organization or by agreement between 2 or more governments.

“Money transmission”, (i) selling or issuing payment instruments to a person located in the commonwealth; (ii) selling or issuing stored value to a person located in the commonwealth; or (iii) receiving money for transmission from a person located in the commonwealth. Money transmission shall apply only to those transactions engaged in by a person for personal, family or household purposes and shall not include the provision solely of online or telecommunications services or network access.

“MSB accredited state”, a state agency that is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators Association for money transmission licensing and supervision.

“Multistate licensing process”, any agreement entered into by and among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals.

“NMLS”, the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries.

“Outstanding money transmission obligations”, obligations that shall be established and extinguished in accordance with applicable state law and shall include: (i) any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or (ii) any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender or escheated in accordance with applicable abandoned property laws.

“Passive investor”, a person that: (i) does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; (ii) is not employed by and does not have any managerial duties of the licensee or person in control of a licensee; (iii) does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and (iv) either: (A) attests to (i), (ii) and (iii), in a form and in a medium prescribed by the commissioner; or (B) commits to the passivity characteristics of (i), (ii) and (iii) in a written document.

“Payment instrument”, a written or electronic check, draft, money order, traveler’s check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable. Payment instrument shall not include stored value or any instrument that is: (i) redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or (ii) not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program.

“Person”, any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation or other corporate entity identified by the commissioner.

“Prepaid access”, as defined by 31 C.F.R. 1010.100, as amended or recodified from time to time.

“Receiving money for transmission” or “money received for transmission”, receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means.

“Remit”, to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.

“Stored value”, monetary value representing a claim against the issuer evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services; provided, that stored value shall include, but shall not be limited to, prepaid access; and provided further, that stored value shall not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.

“Tangible net worth”, the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.

“United States”, (i) any state, territory or possession of the United States; (ii) the District of Columbia; (iii) the commonwealth of Puerto Rico; or (iv) a United States military installation located in a foreign country.

Section 2. (a) This chapter shall not apply to:

(i) an operator of a payment system to the extent that it provides processing, clearing or settlement services, between or among persons exempted by this subsection or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers or similar funds transfers;

(ii) a person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee; provided, that: (A) there exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee’s behalf; (B) the payee holds the agent out to the public as accepting payments for goods or services on the payee’s behalf; and (C) payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor’s obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee;

(iii) a person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender’s designated recipient; provided, that the entity: (A) is properly licensed or exempt from licensing requirements under this chapter; (B) provides a receipt, electronic record or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and (C) bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient;

(iv) the United States or a department, agency, or instrumentality thereof, or its agent.

(v) money transmission by the United States Postal Service or by an agent of the United States Postal Service;

(vi) a state, county, city or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent;

(vii) a federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C. section 3102, as amended or recodified from time to time, corporation organized pursuant to the Bank Service Corporation Act, 12 U.S.C. sections 1861 to 1867, inclusive, as amended or recodified from time to time or corporation organized under the Edge Act, 12 U.S.C. sections 611 to 633, inclusive, as amended or recodified from time to time;

(viii) electronic funds transfer of governmental benefits for a federal, state, county or governmental agency by a contractor on behalf of the United States or a department, agency or instrumentality thereof, or on behalf of a state or governmental subdivision, agency or instrumentality thereof;

(ix) a board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. sections 1 to 25, inclusive, as amended or recodified from time to time, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board;

(x) a registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant;

(xi) a person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer;

(xii) an individual employed by a licensee, authorized delegate or any person exempted from the licensing requirements of the chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate or exempted person as an employee and not as an independent contractor;

(xiii) a person expressly appointed as a third-party service provider to or agent of an entity exempt under clause (vii), solely to the extent that: (A) such service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and (B) the exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser’s or holder’s money or monetary value by the service provider or agent; and

(xiv) a person exempt by regulation or order if the commissioner finds such exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of this chapter.

(b) The commissioner may require that any person claiming to be exempt from licensing pursuant to subsection (a) shall provide information and documentation to the commissioner demonstrating that it qualifies for any claimed exemption.

Section 3. (a)(1) To carry out the purposes of this chapter, the commissioner may, subject to paragraphs (1) and (2) of subsection (b):

(i) enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations to improve efficiencies and reduce regulatory burden by standardizing methods or procedures and sharing resources, records or related information obtained under this chapter;

(ii) use, hire, contract or employ analytical systems, methods or software to examine or investigate any person subject to this chapter;

(iii) accept, from other state or federal government agencies or officials, licensing, examination or investigation reports made by such other state or federal government agencies or officials; and

(iv) accept audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.

(2) The commissioner may administer, interpret and enforce this chapter, promulgate rules or regulations implementing this chapter and recover the cost of administering and enforcing this chapter by imposing and collecting proportionate and equitable fees and costs associated with applications, examinations, investigations and other actions required to achieve the purpose of this chapter.

(b)(1) Except as otherwise provided in paragraph (2), all information or reports obtained by the commissioner from an applicant, licensee or authorized delegate and all information contained in or related to an examination, investigation, operating report or condition report prepared by, on behalf of or for the use of the commissioner, financial statements, balance sheets and authorized delegate information, shall be confidential and privileged, shall not be subject to subpoena, and shall not be subject to disclosure under chapter 66. For the purpose of this paragraph, records of investigation and reports of examinations shall include records of investigation and reports of examinations conducted by a financial regulatory agency of the federal government and any other state, and of any foreign government, which are considered confidential by the agency or foreign government and are in the possession of the commissioner. In any proceeding before a court, the court may issue a protective order to seal the record protecting the confidentiality in appropriate circumstances to protect the confidentiality of any such record, other than any such record on file with the court or filed in connection with the court proceeding, and the court may exclude the public from any portion of the proceeding at which any such record may be disclosed. Copies of the reports of examination shall be furnished to a licensee for its use only and shall not be exhibited to any other person, organization or agency without prior written approval by the commissioner. The commissioner may, in their discretion, furnish to regulatory agencies of the federal government, other states or foreign countries, and any law enforcement agency, the information, reports, inspections and statements relating to the licensees under the commissioner’s supervision.

(2) The commissioner may disclose information not otherwise subject to disclosure under paragraph (1): (i) to representatives of state or federal agencies who agree in writing that they will maintain the confidentiality of the information; or (ii) if the commissioner finds that the release is reasonably necessary for the protection and interest of the public in accordance with chapter 66.

(3) This subsection shall not prohibit the commissioner from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.

(4) Information contained in the records of the division that is not confidential and may be made available to the public either on the division’s website, upon receipt by the division of a written request or in NMLS shall include:

(i) the name, business address, telephone number and unique identifier of a licensee;

(ii) the business address of a licensee’s registered agent for service;

(iii) the name, business address and telephone number of all authorized delegates;

(iv) the terms of or a copy of any bond filed by a licensee; provided, that confidential information, including, but not limited to, prices and fees for such bond shall be redacted;

(v) copies of any non-confidential final orders of the division relating to any violation of this chapter or regulations implementing this chapter; and

(vi) imposition of an administrative fine or penalty under this chapter.

(c)(1) The commissioner may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and enforce this chapter, regulations implementing this chapter, and as authorized by other applicable law, including the Bank Secrecy Act and the USA Patriot Act, Pub. Law 107-56.

(2) The commissioner may:

(i) conduct an examination either on-site or off-site as the commissioner may reasonably require;

(ii) conduct an examination in conjunction with an examination conducted by representatives of other state agencies or agencies of another state or of the federal government;

(iii) accept the examination report of an agency of another state or of the federal government or a report prepared by an independent accounting firm, which on being accepted shall be considered for all purposes as an official report of the commissioner; and

(iv) summon and examine under oath a key individual or employee of a licensee or authorized delegate and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.

(3) A licensee or authorized delegate shall provide, and the commissioner shall have full and complete access to, all records the commissioner may reasonably require to conduct a complete examination. The records shall be provided at the location and in the format specified by the commissioner; provided, that the commissioner may utilize multistate record production standards and examination procedures when such standards will reasonably achieve the requirements of this paragraph.

(4) Unless otherwise directed by the commissioner, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee or the licensee’s authorized delegates.

(d)(1) The commissioner may participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, the Money Transmitter Regulators Association and affiliates and successors thereof for all licensees that hold licenses in the commonwealth and other states. As a participant in multistate supervision, the commissioner may:

(i) cooperate, coordinate and share information with other state and federal regulators in accordance with subsection (b);

(ii) enter into written cooperation, coordination or information-sharing contracts or agreements with organizations the membership of which is made up of state or federal governmental agencies; and

(iii) cooperate, coordinate and share information with organizations the membership of which is made up of state or federal governmental agencies; provided, that the organizations shall agree in writing to maintain the confidentiality and security of the shared information in accordance with subsection (b).

(2) The commissioner shall not waive, and nothing in this subsection shall constitute a waiver of, the commissioner’s authority to conduct an examination or investigation or otherwise take independent action authorized by this chapter or a rule adopted or order issued under this chapter to enforce compliance with applicable state or federal law.

(3) A joint examination or investigation, or acceptance of an examination or investigation report, shall not waive an examination assessment provided for in this chapter.

(e)(1) In the event state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission shall be governed by the applicable federal law to the extent of the inconsistency.

(2) In the event of any inconsistencies between this chapter and a federal law that governs pursuant to paragraph (1), the commissioner may provide interpretive guidance that:

(i) identifies the inconsistency; and

(ii) identifies the appropriate means of compliance with federal law.

Section 4. (a)(1) A person shall not engage in the business of money transmission or advertise, solicit or hold itself out as providing money transmission unless the person is licensed under this chapter.

(2) This subsection shall not apply to:

(i) a person that is an authorized delegate of a person licensed under this chapter acting within the scope of authority conferred by a written contract with the licensee; or

(ii) a person that is exempt pursuant to subsection (a) of section 2 and does not engage in money transmission outside the scope of such exemption.

(3) A license issued under subsection (e) is not transferable or assignable.

(b)(1) To establish consistent licensing between the commonwealth and other states, the commissioner may: (i) implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted laws that are consistent with this chapter or multistate licensing processes; and (ii) participate in nationwide protocols for licensing cooperation and coordination among state regulators to the extent that such protocols are consistent with this chapter.

(2) In order to administer this chapter, the commissioner may establish relationships or contracts with NMLS or other entities designated by NMLS to enable the commissioner to: (i) collect and maintain records; (ii) coordinate multistate licensing processes and supervision processes; (iii) process fees; and (iv) facilitate communication between the division and licensees or other persons subject to this chapter.

(3) The commissioner may participate in a multistate licensing process and the NMLS for the sharing of regulatory information and for the application, by electronic or other means, and licensing of persons engaged in money transmission. The commissioner may establish requirements for participation by an applicant in the NMLS that vary from the provisions of this chapter. The applicant shall pay directly to the NMLS any additional fee relating to participation in such multistate licensing system.

(4) The commissioner may utilize NMLS forms, processes and functionalities in accordance with this chapter. If NMLS does not provide functionality, forms or processes for a provision of this chapter, the commissioner may implement the requirements in a manner that facilitates uniformity with respect to licensing, supervision, reporting and regulation of licensees that are licensed in multiple jurisdictions.

(5) For the purpose of participating in the NMLS, the commissioner may waive or modify, in whole or in part, by rule, regulation or order, any or all of the requirements and to establish new requirements as reasonably necessary to participate in the NMLS.

(c)(1) The application for a license shall be in a form prescribed by the commissioner and shall contain the name and address or addresses where the business of the applicant is located and if the applicant is a partnership, association, corporation or other form of business organization, the names and addresses of each member, director and principal officer thereof. The application shall also include a description of the activities of the applicant, in such detail and for such periods as the commissioner may require and such further information as the commissioner may require.

(2) Each application for a license shall be accompanied by an investigation fee and a license fee. The investigation and license fees shall be determined annually by the secretary of administration and finance under section 3B of chapter 7.

(d)(1) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the commissioner through NMLS the following items:

(i) the individual’s fingerprints for submission to the Federal Bureau of Investigation and the commissioner for purposes of a national criminal history background check unless the person currently resides outside of the United States and has resided outside of the United States for the last 10 years;

(ii) personal history and experience in a form and in a medium prescribed by the commissioner, to obtain: (A) an independent credit report from a consumer reporting agency unless the individual does not have a Social Security number, in which case, this requirement shall be waived; (B) information related to any criminal convictions or pending charges; and (C) information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.

(2)(A) If the individual has resided outside of the United States at any time in the last 10 years, the individual shall also provide an investigative background report prepared by an independent search firm that shall, at a minimum: (i) demonstrate that it has sufficient knowledge, resources and employs accepted and reasonable methodologies to conduct the research of the background report; and (ii) not be affiliated with or have an interest in the individual it is researching.

(B) At a minimum, the investigative background report shall be written in English and shall contain the following:

(i) if available in the individual’s current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns and contiguous areas where the individual resided and worked;

(ii) criminal records information for the past 10 years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of law in the countries, provinces, states, cities, towns and contiguous areas where the individual resided and worked;

(iii) employment history;

(iv) media history, including an electronic search of national and local publications, wire services and business applications; and

(v) financial services-related regulatory history, including but not limited to, money transmission, securities, banking, insurance and mortgage-related industries.

(3) The commissioner may, as part of an investigation or examination of a licensee, require a background investigation by means of state criminal history record checks by the department of criminal justice information services pursuant to section 172 of chapter 6 on a manager of a location from which an authorized delegate engages in money transmission.

(e)(1) When an application for an original license under this chapter appears to include all the items and addresses all of the matters that are required, the application shall be considered complete and the commissioner shall promptly notify the applicant in writing of the date on which the application is determined to be complete.

(2) A determination by the commissioner that an application is complete and is accepted for processing shall mean only that the application, on its face, appears to include all of the items, including the criminal background check response from the FBI, and address all of the matters that are required, and shall not be considered an assessment of the substance of the application or of the sufficiency of the information provided.

(3) When an application is filed and considered complete under this subsection, the commissioner shall investigate the applicant’s financial condition and responsibility, financial and business experience, character, and general fitness. The commissioner may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant shall pay. The commissioner shall issue a license to an applicant under this subsection if the commissioner finds that: (i) the applicant has complied with subsection (c) and subsection (d); and (ii) the financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant, and the competence, experience, character and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.

(4) The commissioner may accept the results of an investigation conducted by another state regulatory agency for the purpose of paragraph (3) if a licensee avails itself of or is otherwise subject to the multistate licensing process.

(5) The commissioner shall issue a formal written notice of the denial of a license application within 30 days of the decision to deny the application. The commissioner shall set forth in the notice of denial the specific reasons for the denial of the application. An applicant whose application is denied by the commissioner under this paragraph may appeal pursuant to the procedures set forth in chapter 30A.

(6) The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.

(f)(1) A license may be renewed upon the filing of a renewal application in such form and containing all such information as the commissioner may prescribe.

(2) An annual renewal fee to be determined annually by the secretary of administration and finance under the provisions of section 3B of chapter 7 shall be paid upon submission of the renewal application.

(3) The renewal term shall be for a period of 1 year and shall begin on January 1 of each year after the initial license term and shall expire on December 31 of the year the renewal term begins.

(g)(1) If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the commissioner may suspend or revoke the licensee’s license in accordance with the procedures established by this chapter or chapter 30A.

(2) An applicant for a money transmission license shall demonstrate that it meets or will meet, and a money transmission licensee shall at all times meet, the requirements in subsections (a) to (c), inclusive, of section 9.

(h) A licensee shall annually, not later than a date to be determined by the commissioner, file a report with the commissioner containing such information as the commissioner may require concerning the business and operations during the preceding calendar year. A licensee neglecting to file such report or failing to amend the same within 15 days of notice from the commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not due to willful neglect, pay to the commonwealth $50 for each day during which such neglect or failure continues.

Section 5. (a)(1) Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall, in cooperation with the licensee, file a notice, in a form and in a medium prescribed by the commissioner, with the commissioner prior to acquiring control. An addition or replacement of a key individual pursuant to subsection (b) shall not be deemed to be an acquisition of control of a licensee and shall not be subject to this section.

(2) Upon request, the commissioner may permit a licensee or the person, or group of persons acting in concert, to submit some or all information required by the commissioner pursuant to paragraph (1) without using NMLS.

(3) The notice required by paragraph (1) shall include information required by subsection (d) of section 4 for any new key individuals that have not previously completed the requirements of said subsection (d) of said section 4 for a licensee.

(4) When a notice is filed, the commissioner shall investigate, as the commissioner determines is necessary, the person, or group of persons acting in concert, seeking to acquire control. The commissioner shall not object to an acquisition of control pursuant to this subsection if the commissioner finds that: (i) the requirements of paragraphs (1) and (3) have been met, as applicable; and (ii) the financial condition and responsibility, character and general fitness of the person, or group of persons acting in concert, seeking to acquire control, and the competence, experience, character and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control, indicate that it is in the interest of the public consistent with the purposes of this chapter to permit the person, or group of persons acting in concert, to control the licensee.

(5) The requirements of paragraph (1) shall not apply to:

(i) a person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee;

(ii) a person that acquires control of a licensee by devise or descent;

(iii) a person that acquires control of a licensee as a personal representative, custodian, guardian, conservator or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law;

(iv) a person that is exempt under paragraph (7) of subsection (a) of section 2;

(v) a public offering of securities of a licensee or a person in control of a licensee; or

(vi) an internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same.

(6) Persons in clauses (ii) through (iv), inclusive, of paragraph (5) in cooperation with the licensee shall notify the commissioner within 15 days after the acquisition of control.

(7) The commissioner may accept the determination pursuant to this subsection of another state regulatory agency if a licensee avails itself or is otherwise subject to the multistate licensing process.

(b)(1) A licensee adding or replacing any key individual shall: (i) provide notice in a manner prescribed by the commissioner within 15 days after the effective date of the key individual’s appointment; and (ii) provide information as required by subsection (d) of section 4.

(2) When a notification pursuant to this section is filed, the commissioner shall investigate as deemed necessary the key individual. The commissioner shall not object to the change of key individual pursuant to this section if the commissioner finds that the financial responsibility, character and general fitness of the key individual would indicate that it is in the interest of the public consistent with the purposes of this chapter.

(3) The commissioner may accept the determination pursuant to this subsection of another state regulatory agency if the licensee avails itself or is otherwise subject to the multistate licensing process.

Section 6. (a)(1) Each licensee shall submit a report of condition within 45 days of the end of the calendar quarter, or within any extended time as the commissioner may prescribe.

(2) The report of condition shall include:

(i) financial information at the licensee level;

(ii) nationwide and state-specific money transmission transaction information in every jurisdiction in the United States where the licensee is licensed to engage in money transmission;

(iii) permissible investments report;

(iv) transaction destination country reporting for money received for transmission, if applicable; and

(v) any other information the commissioner reasonably requires with respect to the licensee.

(3) The commissioner may utilize NMLS for the submission of the report required by paragraph (1) and may change or update as necessary the requirements of this subsection to carry out the purposes of this chapter and maintain consistency with NMLS reporting.

(4) The information required by clause (iv) of paragraph (2) shall only be included in a report of condition submitted within 45 days of the end of the fourth calendar quarter.

(b)(1) Each licensee shall, within 90 days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner:

(i) an audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles; and

(ii) any other information as the commissioner may reasonably require.

(2) The audited financial statements shall be prepared by an independent certified public accountant and shall include or be accompanied by a certificate of opinion of the independent certified public accountant that is satisfactory in form and content to the commissioner. If the certificate or opinion is qualified, the commissioner may order the licensee to take any action as the commissioner may find necessary to enable the independent or certified public accountant or independent public accountant to remove the qualification.

(c)(1) Each licensee shall submit a report of authorized delegates within 45 days of the end of the calendar quarter. The commissioner may utilize NMLS for the submission of the report required by this paragraph; provided, that such functionality is consistent with the requirements of this subsection.

(2) The authorized delegate report shall include, at a minimum, each authorized delegate’s: (i) company legal name; (ii) taxpayer employer identification number; (iii) principal provider identifier; (iv) physical and mailing addresses; (v) business conducted in other states, if any; (vi) fictitious or trade name, if any; (vii) contact person name, phone number and email; (viii) start date as licensee’s authorized delegate; (ix) end date acting as licensee’s authorized delegate, if applicable; and (x) other information, as the commissioner reasonably requires.

(d)(1) A licensee shall file a report with the commissioner within 1 business day after the licensee has reason to know of the occurrence of any of the following events:

(i) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. section 101-110, as amended or recodified from time to time, for bankruptcy or reorganization;

(ii) the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; or

(iii) the commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed.

(2) A licensee shall file a report with the commissioner within 3 business day after the licensee has reason to know of the occurrence of a charge or conviction of the licensee, a key individual, a person in control of the licensee or an authorized delegate for a felony.

(e) A licensee and an authorized delegate shall file all reports required by federal currency reporting, record keeping and suspicious activity reporting requirements as set forth in the Bank Secrecy Act and other federal and state laws pertaining to money laundering. The timely filing of a complete and accurate report required under this subsection with the appropriate federal agency shall be deemed compliant with the requirements of this subsection.

(f)(1) A licensee shall maintain the following records for not less than 3 years, for determining its compliance with this chapter:

(i) a record of each outstanding money transmission obligation sold;

(ii) a general ledger posted at least monthly containing all asset, liability, capital, income and expense accounts;

(iii) bank statements and bank reconciliation records;

(iv) records of outstanding money transmission obligations;

(v) records of each outstanding money transmission obligation paid within the 3-year period;

(vi) a list of the last known names and addresses of all of the licensee’s authorized delegates; and

(vii) any other records the commissioner reasonably requires by rule or regulation.

(2) The items specified in paragraph (1) may be maintained in any form of record.

(3) Records specified in paragraph (1) may be maintained outside the commonwealth if they are made accessible to the commissioner on 7 business-days’ notice that is sent in writing.

(4) All records maintained by the licensee as required in clauses (i) through (iii), inclusive, of paragraph (1) shall be subject to inspection by the commissioner pursuant to paragraph (1) of subsection (c) of section 3.

Section 7. (a)(1) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee’s authorized delegate, the licensee shall:

(i) adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee’s authorized delegates comply with applicable state and federal law;

(ii) enter into a written contract that complies with paragraph (3); and

(iii) conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.

(2) An authorized delegate shall operate in full compliance with this chapter.

(3) The written contract required by paragraph (1) shall be signed by the licensee and the authorized delegate and, at a minimum, shall:

(i) appoint the person signing the contract as the licensee’s authorized delegate with the authority to conduct money transmission on behalf of the licensee;

(ii) set forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;

(iii) require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules and regulations pertaining to money transmission, including, but not limited to, this chapter and regulations implementing this chapter, and relevant provisions of the Bank Secrecy Act and the Patriot Act, Pub. Law 107-56;

(iv) require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;

(v) impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;

(vi) require the authorized delegate to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably requested by the commissioner;

(vii) acknowledge that the authorized delegate consents to examination or investigation by the commissioner;

(viii) state that the licensee shall be subject to regulation by the commissioner and that, as part of that regulation, the commissioner may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and

(ix) acknowledge receipt of the written policies and procedures required under clause (i) of paragraph (1).

(4) If the licensee’s license is suspended, revoked, surrendered or expired, the licensee shall, within 5 business days, provide documentation to the commissioner that the licensee has notified all applicable authorized delegates of the licensee whose names are in a record filed with the commissioner of the suspension, revocation, surrender or expiration of a license. Upon suspension, revocation, surrender or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee.

(5) An authorized delegate of a licensee shall hold in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.

(6) An authorized delegate shall not use a subdelegate to conduct money transmission on behalf of a licensee.

(b) A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter or not exempt pursuant to section 2. A person that engages in such activity shall be considered to provide money transmission to the same extent as if the person were a licensee and shall be jointly and severally liable with the unlicensed or nonexempt person.

Section 8. (a)(1) Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a crime or violation of law, rule or regulation has occurred, is occurring or may occur.

(2) If a licensee fails to forward money received for transmission in accordance with this section, the licensee shall respond to inquiries by the sender with the reason for the failure unless providing a response would violate a state or federal law, rule or regulation.

(b)(1) This subsection shall not apply to:

(i) money received for transmission subject to the federal Remittance Rule, 12 C.F.R. Part 1005, Subpart B, as amended or recodified from time to time; or

(ii) money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

(2) Every licensee shall refund to the sender within 10 days of receipt of the sender’s written request for a refund of any and all money received for transmission unless:

(i) the money has been forwarded within 10 days of the date on which the money was received for transmission;

(ii) instructions have been given committing an equivalent amount of money to the person designated by the sender within 10 days of the date on which the money was received for transmission;

(iii) the agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond 10 days of the date on which the money was received for transmission; provided, that if funds have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender, the licensee shall issue a refund in accordance with the other provisions of this subsection;

(iv) the refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule or regulation has occurred, is occurring or may occur; or

(v) the refund request does not enable the licensee to: (A) identify the sender’s name and address or telephone number; or (B) identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.

(c)(1) This section shall not apply to:

(i) money received for transmission subject to the federal Remittance Rule 12 C.F.R. Part 1005, Subpart B, as amended or recodified from time to time;

(ii) money received for transmission that is not primarily for personal, family or household purposes; or

(iii) money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

(2) For purposes of this section, “receipt” shall mean a paper receipt, electronic record or other written confirmation. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by phone, a receipt may be provided electronically. All electronic receipts shall be provided in a retainable form.

(3)(1) Every licensee or its authorized delegate shall provide the sender a receipt for money received for transmission. The receipt shall contain the following information, as applicable:

(i) the name of the sender;

(ii) the name of the designated recipient;

(iii) the date of the transaction;

(iv) the unique transaction or identification number;

(v) the name of the licensee, NMLS Unique ID, the licensee’s business address and the licensee’s customer service telephone number;

(vi) the amount of the transaction in United States dollars;

(vii) any fee charged by the licensee to the sender for the transaction; and

(viii) any taxes collected by the licensee from the sender for the transaction.

(2) The receipt required by this section shall be in English and in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English.

Section 9. (a)(1) A licensee under this chapter shall maintain at all times: (i) a tangible net worth of the greater of $100,000 or 3 per cent of total assets for the first $100,000,000; (ii) 2 per cent of additional assets for $100,000,000 to $1,000,000,000; and (iii) 0.5 per cent of additional assets for over $1,000,000,000.

(2) Tangible net worth shall be demonstrated at initial application by the applicant’s most recent audited or reviewed financial statements.

(3) The commissioner may, for good cause shown, exempt, in-part or in whole, any applicant or licensee from the requirements of this section.

(b)(1) An applicant for a money transmission license shall provide, and a licensee at all times shall maintain, security consisting of a surety bond in a form satisfactory to the commissioner.

(2) The amount of the required security shall be the greater of $100,000 or an amount equal to 100 per cent of the licensee’s average daily money transmission liability in the commonwealth calculated for the most recently completed 3-month period not greater than $500,000.

(3) A licensee that maintains a bond in the maximum amount provided for in paragraphs (1) and (2) shall not be required to calculate its average daily money transmission liability in the commonwealth for purposes of this subsection.

(4) A licensee may exceed the maximum required bond amount pursuant to clause (v) of paragraph (1) of subsection d.

(c)(1) A licensee shall maintain at all times permissible investments, pursuant to subsection (d), that have a market value computed in accordance with the United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.

(2) Except for permissible investments enumerated in paragraph (1) of subsection (d), the commissioner, with respect to any licensee, may limit, by rule or order, the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.

(3) Permissible investments, even if commingled with other assets of the licensee, shall be held in trust for the benefit of the purchasers and holders of the licensee’s outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee pursuant to the United States Bankruptcy Code, 11 U.S.C. section 101-110, as amended or recodified from time to time, for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization or in the event of an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this paragraph shall be subject to attachment, levy of execution or sequestration by order of any court, except for a beneficiary of this statutory trust.

(4) Upon the establishment of a statutory trust in accordance with paragraph (3) or when any funds are drawn on a letter of credit pursuant to clause (iv) of paragraph (1) of subsection (d), the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice shall be deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee’s outstanding money transmission obligations, shall be deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in the commonwealth, and other states, as applicable. Any statutory trust established hereunder shall be terminated upon extinguishment of all of the licensee’s outstanding money transmission obligations.

(5) The commissioner may, by rule or order, allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment. The commissioner may participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.

(d)(1)The following investments shall be permissible under subsection (c):

(i) cash, including demand deposits, savings deposits and funds in such accounts held for the benefit of the licensee’s customers in a federally insured depository financial institution and cash equivalents, including ACH items in transit to the licensee and ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank or money market mutual funds rated AAA by S&P or the equivalent from any eligible rating service;

(ii) certificates of deposit or senior debt obligations of an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. section 1813, as amended or recodified from time to time, or as defined in the Federal Credit Union Act, 12 U.S.C. section 1781, as amended or recodified from time to time;

(iii) an obligation of the United States or a commission, agency or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States or an obligation of a state or a governmental subdivision, agency or instrumentality thereof;

(iv) the full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner under such terms as the commissioner may define by regulation, policies, procedures or other guidance;

(v) 100 per cent of the surety bond provided for under subsection (b) that exceeds the average daily money transmission liability in the commonwealth.

(2) Unless permitted by the commissioner by rule or by order to exceed the limit as set forth herein, the following investments shall be permissible under subsection (c) to the extent specified:

(i) receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than 7 days old, up to 50 per cent of the aggregate value of the licensee’s total permissible investments;

(ii) of the receivables permissible under clause (i) of paragraph (2), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed 10 per cent of the aggregate value of the licensee’s total permissible investments;

(iii) the following shall be permissible up to 20 per cent per category and combined up to 50 per cent of the aggregate value of the licensee’s total permissible investments:

(A) a short-term, not more than 6 months, investment bearing an eligible rating;

(B) commercial paper bearing an eligible rating;

(D) United States tri-party repurchase agreements collateralized at 100 per cent or more with United States government or agency securities, municipal bonds or other securities bearing an eligible rating;

(E) money market mutual funds rated less than AAA and equal to or higher than A- by S&P or the equivalent from any other eligible rating service; and

(F) a mutual fund or other investment fund composed solely and exclusively of 1 or more permissible investments listed in clauses (i) through (iii), inclusive, of paragraph (1);

(iv) cash, including demand deposits, savings deposits and funds in such accounts held for the benefit of the licensee’s customers, at foreign depository institutions, shall be permissible up to 10 per cent of the aggregate value of the licensee’s total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution:

(A) has an eligible rating;

(B) is registered under the federal Foreign Account Tax Compliance Act;

(C) is not located in any country subject to sanctions from the Office of Foreign Asset Control of the United States Treasury; and

(D) is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.

Section 10. (a)(1) The commissioner may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if:

(i) the licensee violates this chapter or a rule adopted or an order issued under this chapter;

(ii) the licensee does not cooperate with an examination or investigation by the commissioner;

(iii) the licensee engages in fraud, intentional misrepresentation or gross negligence;

(iv) an authorized delegate is convicted of a violation of a state or federal anti-money laundering statute, or violates a rule adopted or an order issued under this chapter, as a result of the licensee’s willful misconduct or willful blindness;

(v) the competence, experience, character or general fitness of the licensee, authorized delegate, person in control of a licensee, key individual or responsible person of the authorized delegate indicates that it is not in the public interest to permit the person to provide money transmission;

(vi) the licensee engages in an unsafe or unsound practice;

(vii) the licensee is insolvent, suspends payment of its obligations or makes a general assignment for the benefit of its creditors; or

(viii) the licensee does not remove an authorized delegate after the commissioner issues and serves upon the licensee a final order including a finding that the authorized delegate has violated this chapter.

(2) In determining whether a licensee is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the licensee’s money transmission, the magnitude of the loss, the gravity of the violation of this chapter and the previous conduct of the person involved.

(b)(1) The commissioner may issue an order suspending or revoking the designation of an authorized delegate, if the commissioner finds that:

(i) the authorized delegate violated this chapter or a rule adopted or an order issued under this chapter;

(ii) the authorized delegate did not cooperate with an examination or investigation by the commissioner;

(iii) the authorized delegate engaged in fraud, intentional misrepresentation or gross negligence;

(iv) the authorized delegate has been convicted of a violation of a state or federal anti-money laundering statute;

(v) the competence, experience, character, or general fitness of the authorized delegate or a person in control of the authorized delegate indicates that it is not in the public interest to permit the authorized delegate to provide money transmission; or

(vi) the authorized delegate is engaging in an unsafe or unsound practice.

(2) In determining whether an authorized delegate is engaging in an unsafe or unsound practice, the commissioner may consider the size and condition of the authorized delegate’s provision of money transmission, the magnitude of the loss, the gravity of the violation of this chapter or a rule adopted or order issued under this chapter and the previous conduct of the authorized delegate.

(3) An authorized delegate may apply for relief from a suspension or revocation of designation as an authorized delegate according to procedures prescribed by the commissioner.

(c)(1) If the commissioner determines, after giving notice of and opportunity for a hearing, that a person or entity has engaged in or is about to engage in an act or practice constituting a violation of this chapter or a rule, regulation or order hereunder, the commissioner may order such person or entity to cease and desist from such unlawful act or practice and take such affirmative action as in their judgment shall effect the purposes of this chapter.

(2) If the commissioner makes written findings of fact that the public interest will be irreparably harmed by delay in issuing an order pursuant to subsection (a), the commissioner may issue a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the commissioner shall promptly notify, in writing, the person or entity affected thereby that such order has been so entered, the reasons therefor, and that within 20 days after the receipt of a written request from such person or entity, the matter shall be scheduled for a hearing to determine whether or not such temporary order shall become permanent and final. If no such hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after giving notice of and opportunity for a hearing to the person or entity subject to said order, shall, by written finding of facts and conclusions of law, vacate, modify or make permanent the order.

(3) No order under this section, except an order issued pursuant to subsection (b), may be entered without prior notice of and opportunity for a hearing. The commissioner may vacate or modify an order under this section upon finding that the conditions that required such an order have changed and that it is in the public interest to so vacate or modify.

(4) Any order issued pursuant to this section shall be subject to review as provided in chapter 30A.

(d) The commissioner may assess a civil penalty against a person or entity that violates this chapter or a rule adopted or an order issued under this chapter in an amount not to exceed $2,000 per day for each day the violation is outstanding or per transaction, plus the commonwealth’s costs and expenses for the investigation and prosecution of the matter, including reasonable attorney’s fees.

(e) The commissioner may enforce the provisions of this chapter or restrain violations thereof by filing a civil action in the superior court department of the trial court.

Section 11. In applying and construing this act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

SECTION 4. (a) A license issued pursuant to chapter 169 of the General Laws or section 4 of chapter 167F of the General Laws, including all authorized delegate location designations, that is in effect immediately before the effective date of chapter 169B of the General Laws shall remain in effect as a license pursuant to said chapter 169 or said section 4 of said chapter 167F. Such licensees shall file a renewal application in accordance with section 5 of said chapter 169B, as inserted by section 3.

(b) Any person that was not required to obtain a license pursuant to chapter 169 of the General Laws or pursuant to section 4 of chapter 167F of the General Laws, but that is now required to obtain a license pursuant to chapter 169B of the General Laws shall file an application for a license within 6 months of the effective date of section 45 of said chapter 169B, as inserted by section 3, to continue conducting money transmission in the commonwealth directly or through authorized delegates. If such application is timely filed and pending with the commissioner, that person may continue to conduct money transmission in the commonwealth, until such time as the application has been approved, withdrawn or denied.

(c) All authorized delegate designations pursuant to section 4 of chapter 167F of the General Laws that are in effect as of the effective date of chapter 169B of the General Laws shall be deemed in compliance with said chapter 169B.

(d) A licensee shall only be required to amend its authorized delegate contracts for contracts entered into or amended after the effective date of chapter 169B of the General Laws. Nothing herein shall be construed as limiting an authorized delegate’s obligations to operate in full compliance with said chapter 169B.

SECTION 5. Sections 1 and 2 shall take effect 9 months after the effective date of this act.

SECTION 6. Sections 1, 2 and 4 to 11, inclusive, of chapter 169B of the General Laws, inserted by section 3, shall take effect 9 months after the effective date of this act.

SECTION 7. Section 3 of chapter 169B of the General Laws, inserted by section 3, shall take effect upon passage.