General Assembly: 80 (2003 Regular GA) - Chapter 96 - Uniform money services Act


Published: 2003-05-01

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201 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

be required in order to achieve a binding settlement were the settlement to be approved by the court. 2. Except as otherwise provided in subsection 3, or as to a modification or termination of

a trust under section 633.2203, interested persons may enter into a binding nonjudicial settle- ment agreement with respect to any matter involving a trust. 3. A nonjudicial settlement is valid only to the extent the settlement does not violate amate-

rial purpose of the trust and includes terms and conditions that could be properly approved by the court under this trust code or other applicable law. 4. Matters that may be resolved by a nonjudicial settlement agreement include any of the

following: a. The interpretation or construction of the terms of the trust. b. The approval of a trustee’s report or accounting. c. Direction to a trustee to refrain from performing a particular act or the grant to a trustee

of any necessary or desirable power. d. The resignation or appointment of a trustee and the determination of a trustee’s compen-

sation. e. The transfer of a trust’s principal place of administration. f. The liability of a trustee for an action relating to the trust. 5. Any interested person may request the court to approve a nonjudicial settlement agree-

ment, to determine whether the representation provided was adequate, and to determine whether theagreement contains termsandconditions the court couldhaveproperly approved.

Sec. 23. Section 450.91, Code 2003, is repealed.

Sec. 24. Sections 1, 2, 3, 4, and 23 of this Act apply to estates of decedents dying on or after July 1, 2003.

Approved May 1, 2003

_________________________

CH. 96CH. 96

CHAPTER 96

UNIFORM MONEY SERVICES ACT

S.F. 372

AN ACT relating to the licensing of persons providing money transmission and currency ex- change services, providing penalties, and providing an effective date.

Be It Enacted by the General Assembly of the State of Iowa:

ARTICLE 1 GENERAL PROVISIONS

Section 1. NEW SECTION. 533C.101 SHORT TITLE. This chapter may be cited as the “Uniform Money Services Act”.

Sec. 2. NEW SECTION. 533C.102 DEFINITIONS. In this chapter: 1. “Applicant” means a person that files an application for a license under this chapter.

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2. “Authorized delegate” means a person a licensee designates to provide money services on behalf of the licensee. 3. “Bank” means an institution organized under federal or state law which does any of the

following: a. Accepts demand deposits or deposits that the depositormay use for payment to third par-

ties and engages in the business of making commercial loans. b. Engages in credit card operations and maintains only one office that accepts deposits,

does not accept demand deposits or deposits that the depositor may use for payments to third parties, does not accept a savings or time deposit less than one hundred thousand dollars, and does not engage in the business of making commercial loans. 4. “Compensation” means any fee, commission, or other benefit. 5. “Conducting the business” means engaging in activities of a licensee or money transmit-

ter more than ten times in any calendar year for compensation. 6. “Control” means any of the following: a. Ownership of, or the power to vote, directly or indirectly, at least twenty-five percent of

a class of voting securities or voting interests of a licensee or person in control of a licensee. b. Power to elect amajority of executive officers,managers, directors, trustees, or other per-

sons exercising managerial authority of a licensee or person in control of a licensee. c. Thepower to exercise, directly or indirectly, a controlling influenceover themanagement

or policies of a licensee or person in control of a licensee. 7. “Credit union” means a cooperative, nonprofit association incorporated under chapter

533 or the Federal Credit Union Act, 12 U.S.C. § 1751 et seq., that is insured by the national credit union administration and includes an office of a credit union. 8. “Currency exchange”means receipt of compensation from the exchange ofmoney of one

government for money of another government. 9. “Executive officer” means a president, chairperson of the executive committee, chief fi-

nancial officer, responsible individual, or other individual who performs similar functions. 10. “Licensee” means a person licensed under this chapter. 11. “Location”means a place of business atwhich activity conducted by a licensee ormoney

transmitter occurs. 12. “Monetary value” means a medium of exchange, whether or not redeemable in money. 13. “Money” means a medium of exchange authorized or adopted by a domestic or foreign

government as a part of its currency and that is customarily used and accepted as a medium of exchange in the country of issuance. The term includes a monetary unit of account estab- lished by an intergovernmental organization or by agreement between two or more govern- ments. 14. “Money services” means money transmission or currency exchange. 15. “Money transmission” means any of the following: a. Selling payment instruments to one or more persons or issuing payment instruments

which are sold to one or more persons. b. Conducting the business of receiving money or monetary value for transmission. c. Conducting the business of receiving money for obligors for the purpose of paying obli-

gors’ bills, invoices, or accounts. 16. “Outstanding”, with respect to a payment instrument, means issued or sold by or for the

licensee and reported as sold but not yet paid by or for the licensee. 17. “Payment instrument” means a check, draft, money order, traveler’s check, stored-

value, or other instrument or order for the transmission or payment ofmoney ormonetary val- ue, sold to one or more persons, whether or not that instrument or order is negotiable. “Pay- ment instrument” does not include an instrument that is redeemable by the issuer or an affili- ate in merchandise or service, a credit card voucher, or a letter of credit. 18. “Person” means an individual, corporation, business trust, estate, trust, partnership,

limited liability company, association, joint venture, government; governmental subdivision, agency or instrumentality; public corporation; or any other legal or commercial entity. 19. “Proceeds” means property acquired or derived directly or indirectly from, produced

203 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

through, realized through, or caused by an act or omission and includes any property of any kind. 20. “Property”meansanythingof value, and includes any interest in property, includingany

benefit, privilege, claim, or right with respect to anything of value, whether real or personal, tangible or intangible, without reduction for expenses incurred for acquisition, maintenance, production, or any other purpose. 21. “Record” means information that is inscribed on a tangible medium or that is stored in

an electronic or other medium and is retrievable in perceivable form. 22. “Responsible individual” means an individual who is employed by a licensee and has

principal managerial authority over the provision of money services by the licensee in this state. 23. “State” means a state of the United States, the District of Columbia, Puerto Rico, the

United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. 24. “Stored-value” means a monetary value that is evidenced by an electronic record. 25. “Superintendent” means the superintendent of banking for the state of Iowa. 26. “Transaction” includes a purchase, sale, trade, loan, pledge, investment, gift, transfer,

transmission, delivery, deposit, withdrawal, payment, transfer between accounts, exchange of currency, extension of credit, purchase or sale of anymonetary instrument or stored-value, use of a safedeposit box, or anyother acquisitionor dispositionof propertybywhatevermeans effected. 27. “Unsafe or unsound practice” means a practice or conduct by a person licensed to en-

gage inmoney transmission or an authorized delegate of such a personwhich creates the like- lihood of material loss, insolvency, or dissipation of the licensee’s assets, or otherwisemateri- ally prejudices the interests of its customers.

Sec. 3. NEW SECTION. 533C.103 EXCLUSIONS. This chapter does not apply to: 1. The United States or a department, agency, or instrumentality thereof. 2. A money transmission by the United States postal service or by a contractor on behalf of

the United States postal service. 3. A state, county, city, or any other governmental agency or governmental subdivision of

a state. 4. A bank, bank holding company, savings and loan association, savings bank, credit union,

office of an international banking corporation, branch of a foreign bank, corporation orga- nized pursuant to the federal Bank Service Company Act, 12 U.S.C. § 1861-1867, or corpora- tion organized under the federal Edge Act, 12U.S.C. § 611-633, under the laws of a state or the United States. 5. Electronic funds transfer of governmental benefits for a federal, state, county, or govern-

mental agency by a contractor on behalf of the United States or a department, agency, or in- strumentality thereof, or a state or governmental subdivision, agency, or instrumentality thereof. 6. A board of trade designated as a contractmarket under the federal Commodity Exchange

Act, 7 U.S.C. § 1-25, 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. 7. A registered futures commissionmerchant under the federal commodities laws to the ex-

tent of its operation as such a merchant. 8. A person that provides clearance or settlement services pursuant to a registration as a

clearing agency or an exemption from such registration granted under the federal securities laws to the extent of its operation as such a provider. 9. An operator of a payment system to the extent that it provides processing, clearing, or

settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, au- tomated clearing house transfers, or similar funds transfers.

204LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 96

10. 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. 11. A delayed deposit services business as defined in chapter 533D. 12. A real estate broker or salesperson as defined in chapter 543B. 13. Pari-mutuel wagering, racetracks, and excursion gambling boats as provided in chap-

ters 99D and 99F. 14. A person engaging in the business of debt management that is licensed or exempt from

licensing pursuant to section 533A.2. 15. An insurance company organized under chapter 508, 514, 514B, 515, 518, 518A, or 520,

or authorized to do the business of insurance in Iowa to the extent of its operation as an insur- ance company. 16. An insurance producer as defined in section 522B.1 to the extent of its operation as an

insurance producer.

ARTICLE 2 MONEY TRANSMISSION LICENSES

Sec. 4. NEW SECTION. 533C.201 LICENSE REQUIRED. 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: a. Is licensed under this article. b. Is an authorized delegate of a person licensed under this article. 2. A license under this article is not transferable or assignable.

Sec. 5. NEW SECTION. 533C.202 APPLICATION FOR LICENSE. 1. In this section, “material litigation”means litigation that according to generally accepted

accounting principles is significant to an applicant’s or a licensee’s financial health andwould be required to bedisclosed in the applicant’s or licensee’s annual audited financial statements, report to shareholders, or similar records. 2. A person applying for a license under this article shall do so in a form prescribed by the

superintendent. The application must state or contain: a. The legal name and residential and business addresses of the applicant and any fictitious

or trade name used by the applicant in conducting its business. b. A list of any criminal convictions of the applicant and anymaterial litigation in which the

applicant has been involved in the ten-year period next preceding the submission of the ap- plication. c. A description of anymoney services previously provided by the applicant and themoney

services that the applicant seeks to provide in this state. d. A list of the applicant’s proposed authorized delegates and the locations in this state

where the applicant and its authorized delegates propose to engage inmoney transmission or provide other money services. e. A list of other states in which the applicant is licensed to engage in money transmission

or provide other money services and any license revocations, suspensions, or other disciplin- ary action taken against the applicant in another state. f. Information concerning any bankruptcy or receivership proceedings affecting the licens-

ee. g. A sample form of contract for authorized delegates, if applicable, and a sample form of

payment instrument or instrument upon which stored-value is recorded, if applicable. h. The name and address of any bank through which the applicant’s payment instruments

and stored-value will be paid. i. A description of the source of money and credit to be used by the applicant to provide

money services. j. Any other information the superintendent reasonably requires with respect to the appli-

cant.

205 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

3. If an applicant is a corporation, limited liability company, partnership, or other entity, the applicant shall also provide all of the following: a. The date of the applicant’s incorporation or formation and state or country of incorpora-

tion or formation. b. If applicable, a certificate of good standing from the state or country in which the appli-

cant is incorporated or formed. c. A brief description of the structure or organization of the applicant, including any parent

or subsidiary of the applicant, and whether any parent or subsidiary is publicly traded. d. The legal name, any fictitious or trade name, all business and residential addresses, and

the employment, in the ten-year period next preceding the submission of the application of each executive officer, manager, director, or person that has control, of the applicant. e. A list of any criminal convictions and material litigation in which any executive officer,

manager, director, or person in control of the applicant has been involved in the ten-year peri- od next preceding the submission of the application. f. A copy of the applicant’s audited financial statements for the most recent fiscal year and,

if available, for the two-year period next preceding the submission of the application. g. A copy of the applicant’s unconsolidated financial statements for the current fiscal year,

whether audited or not, and, if available, for the two-year period next preceding the submis- sion of the application. h. If the applicant is publicly traded, a copy of the most recent report filed with the United

States securities and exchange commission under section 13 of the federal Securities Ex- change Act of 1934, 15 U.S.C. § 78m. i. If the applicant is a wholly owned subsidiary of: (1) A corporation publicly traded in the United States, a copy of audited financial state-

ments for the parent corporation for themost recent fiscal year or a copy of the parent corpora- tion’smost recent report filed under section 13 of the federal Securities Exchange Act of 1934, 15 U.S.C. § 78m. (2) Acorporationpublicly tradedoutside theUnitedStates, a copyof similar documentation

filed with the regulator of the parent corporation’s domicile outside the United States. j. If the applicant has a registered agent in this state, the nameand address of the applicant’s

registered agent in this state. k. Any other information the superintendent reasonably requires with respect to the appli-

cant. 4. A nonrefundable application fee of one thousand dollars and a license feemust accompa-

ny an application for a license under this article. The license fee must be refunded if the ap- plication is denied. The license fee shall be the sum of five hundred dollars plus an additional ten dollars for each location in this state at which business is conducted through authorized delegates or employees of the licensee, but shall not exceed five thousand dollars. Fees for locations added after the initial application shall be submitted with the quarterly reports pur- suant to section 533C.503, subsection 2. If the licensee has no locations in this state at which business is conducted through authorized delegates or employees of the licensee, the license fee shall be set by the superintendent, but shall not exceed five thousand dollars. A license under this article expires on the next September 30 after its issuance. The initial license fee is considered an annual fee and the superintendent shall prorate the license fee, refunding any amount due to a partial license year. However, no refund of a license fee shall be made when a license is suspended, revoked, or surrendered. 5. The superintendent may waive one or more requirements of subsections 2 and 3, or per-

mit an applicant to submit other information in lieu of the required information.

Sec. 6. NEW SECTION. 533C.203 SECURITY.

1. Except as otherwise provided in subsection 2, a surety bond, letter of credit, or other simi- lar security acceptable to the superintendent in the amount of fifty thousand dollars plus ten thousand dollars per location, not exceeding a total addition of three hundred thousand

206LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 96

dollars, must accompany an application for a license. If the licensee has no locations in this state, the superintendent shall set the bond amount not to exceed three hundred thousand dol- lars. 2. Security must be in a form satisfactory to the superintendent and payable to the state for

the benefit of any claimant against the licensee to secure the faithful performance of the ob- ligations of the licensee with respect to money transmission. 3. The aggregate liability on a surety bond shall not exceed the principal sum of the bond.

A claimant against a licensee maymaintain an action on the bond, or the superintendent may maintain an action on behalf of the claimant. 4. A surety bond must cover claims for so long as the superintendent specifies, but for at

least five years after the licensee ceases to provide money services in this state. However, the superintendentmaypermit the amount of security to be reduced or eliminatedbefore the expi- ration of that time to the extent the amount of the licensee’s payment instruments or stored- value obligations outstanding in this state is reduced. The superintendentmaypermit a licens- ee to substitute another form of security acceptable to the superintendent for the security effective at the time the licensee ceases to provide money services in this state. 5. In lieu of the security prescribed in this section, an applicant for a license or a licensee

may provide security in a form prescribed by the superintendent. 6. The superintendent may increase the amount of security required to a maximum of one

million dollars if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.

Sec. 7. NEW SECTION. 533C.204 ISSUANCE OF LICENSE. 1. When an application is filed under this article, the superintendent shall investigate the

applicant’s financial condition and responsibility, financial and business experience, charac- ter, and general fitness. The superintendentmay conduct an on-site investigation of the appli- cant, the reasonable cost of which the applicant must pay. The superintendent shall issue a license to an applicant under this article if the superintendent finds that all of the following conditions have been fulfilled: a. The applicant has complied with sections 533C.202, 533C.203, and 533C.206. b. The applicant has not been convicted of or pled guilty to a felony or an indictable misde-

meanor for financial gain within the past ten years. c. The applicant has paid a fee set by the department of public safety, division of criminal

investigation and bureau of identification, to defray the costs associated with the search of criminal history records of the applicant. If the applicant is a corporation, the applicant shall pay the fee associated with a criminal history record check for the directors and officers of the corporation. If the applicant is a partnership, the applicant shall pay the fee associated with a criminal history record check for each of the partners. The superintendent may require the applicant toprovideadditional information from theapplicant if thedepartment of public safe- ty records indicate that a person with the same name has a criminal history. If the applicant is a publicly traded corporation or a subsidiary or affiliate of a publicly traded corporation, no criminal history record check shall be required. 2. When an application for an original license under this article is complete, the superinten-

dent shall promptly notify the applicant of the date on which the application was determined to be complete and the superintendent shall approve or deny the application within one hun- dred twenty days after that date. 3. The superintendent may for good cause extend the application period. 4. An applicant whose application is denied by the superintendent under this article may

appeal, within thirty days after receipt of the notice of the denial, from the denial and request a hearing. The denial of a license shall not be deemed a contested case.

Sec. 8. NEW SECTION. 533C.205 RENEWAL OF LICENSE. 1. A licensee under this article shall pay an annual renewal fee as determined below by no

later than September 1 of the year of expiration. The renewal fee shall be five hundred dollars

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plus an additional ten dollars for each location in this state at which business is conducted through authorized delegates or employees of the licensee, but shall not exceed five thousand dollars. Fees for locations added after submission of the renewal application shall be sub- mitted with the quarterly reports pursuant to section 533C.503, subsection 2. If the licensee has no locations in this state at which business is conducted through authorized delegates or employees of the licensee, the license fee shall be set by the superintendent, but shall not ex- ceed five thousand dollars. Licenses issued under chapter 533B, Code 2003, will be initially renewed as provided in section 533C.904. 2. A licensee under this article shall submit a renewal report with the renewal fee, in a form

prescribed by the superintendent. The renewal report must state or contain: a. A copy of the licensee’s most recent audited annual financial statement or, if the licensee

is a wholly owned subsidiary of another corporation, the most recent audited consolidated annual financial statement of the parent corporation or the licensee’smost recent audited con- solidated annual financial statement. b. The number and monetary amount of payment instruments sold by the licensee in this

state which have not been included in a renewal report, and themonetary amount of payment instruments and stored-value currently outstanding. c. Adescriptionof eachmaterial change in information submittedby the licensee in its origi-

nal license application which has not been reported to the superintendent on any required re- port. d. A list of the licensee’s permissible investments and acertification that the licensee contin-

ues to maintain permissible investments according to the requirements set forth in sections 533C.601 and 533C.602. e. Proof that the licensee continues to maintain adequate security as required by section

533C.203; and f. A list of the locations in this state where the licensee or an authorized delegate of the li-

censee engages in money transmission or provides other money services. 3. If a licensee does not file a renewal report or pay its renewal fee by September 1, or any

extension of time granted by the superintendent, the superintendent may assess a late fee of one hundred dollars per day.

Sec. 9. NEW SECTION. 533C.206 NET WORTH. A licensee under this article shallmaintain a net worth of at least one hundred thousand dol-

lars plus ten thousand dollars per authorized delegate not to exceed five hundred thousand dollars determined in accordancewith generally accepted accounting principles. If the licens- ee has no locations in this state at which business is conducted through authorized delegates or employees of the licensee, the minimum net worth, not to exceed five hundred thousand dollars, shall be set by the superintendent.

ARTICLE 3 CURRENCY EXCHANGE LICENSES

Sec. 10. NEW SECTION. 533C.301 LICENSE REQUIRED. 1. A person shall not engage in currency exchange or advertise, solicit, or hold itself out as

providingcurrency exchange forwhich theperson receives revenues equal or greater than five percent of total revenues unless the person: a. Is licensed under this article. b. Is licensed for money transmission under article 2. c. Is an authorized delegate of a person licensed under article 2. 2. A license under this article is not transferable or assignable.

Sec. 11. NEW SECTION. 533C.302 APPLICATION FOR LICENSE. 1. A person applying for a license under this article shall do so in a form prescribed by the

superintendent. The application must state or contain:

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a. The legal name and residential and business addresses of the applicant, if the applicant is an individual, or, if the applicant is not an individual, the name of each partner, executive officer, manager, and director. b. The location of the principal office of the applicant. c. The complete addresses of other locations in this state where the applicant proposes to

engage in currency exchange, including all limited stations and mobile locations. d. A description of the source of money and credit to be used by the applicant to engage in

currency exchange. e. Other information the superintendent reasonably requires with respect to the applicant,

but not more than the superintendent may require under article 2. 2. A nonrefundable application fee of one thousand dollars and the license feemust accom-

pany an application for a license under this article. The license fee shall be the sumof five hun- dred dollars plus an additional one hundred dollars for each location at which business is con- ducted, but not to exceed two thousand dollars. Fees for locations added after the initial application shall be submittedwith thequarterly reports pursuant to section 533C.503, subsec- tion 2. The license feemust be refunded if the application is denied. A licenseunder this article expires on the next September 30 of an odd-ending year after its issuance. The initial license fee is considered a biennial fee and the superintendent shall prorate the license fee, refunding any amount due to a partial license period. However, no refund of a license fee shall be made when a license is suspended, revoked, or surrendered.

Sec. 12. NEW SECTION. 533C.303 ISSUANCE OF LICENSE. 1. Upon the filing of an application under this article, the superintendent shall investigate

the applicant’s financial condition and responsibility, financial andbusiness experience, char- acter, and general fitness. The superintendentmay conduct an on-site investigation of the ap- plicant, the reasonable cost of which the applicant must pay. The superintendent shall issue a license to an applicant under this article if the superintendent finds that all of the following conditions have been fulfilled: a. The applicant has complied with section 533C.302. b. The applicant has not been convicted of or pled guilty to any felony or an indictable mis-

demeanor for financial gain within the past ten years. c. The applicant has paid a fee set by the department of public safety, division of criminal

investigation and bureau of identification, to defray the costs associated with the search of criminal history records of the applicant. If the applicant is a corporation, the applicant shall pay the fee associated with a criminal history record check for the directors and officers of the corporation. If the applicant is a partnership, the applicant shall pay the fee associated with a criminal history record check for each of the partners. The superintendent may require the applicant toprovideadditional information from theapplicant if thedepartment of public safe- ty records indicate that a person with the same name has a criminal history. If the applicant is a publicly traded corporation or a subsidiary or affiliate of a publicly traded corporation, no criminal history record check shall be required. d. The financial condition and responsibility, financial and business experience, compe-

tence, character, andgeneral fitness of the applicant; and the competence, experience, charac- ter, and general fitness of the executive officers, managers, directors, and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in currency exchange. 2. When an application for an original license under this article is complete, the superinten-

dent shall promptly notify the applicant of the date on which the application was determined to be complete and the superintendent shall approve or deny the application within one hun- dred twenty days after that date. 3. The superintendent may for good cause extend the application period. 4. An applicant whose application is denied a license by the superintendent under this

article may appeal, within thirty days after receipt of the notice of the denial, from the denial

209 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

and request a hearing. The denial of a license shall not be deemed a contested case.

Sec. 13. NEW SECTION. 533C.304 RENEWAL OF LICENSE. 1. A licensee under this article shall pay a biennial renewal fee no later than September 1

of an odd-ending year. The biennial renewal fee shall be the sum of five hundred dollars plus an additional one hundred dollars for each location at which business is conducted, but shall not exceed two thousand dollars. Fees for locations added after the initial application shall be submitted with the quarterly reports pursuant to section 533C.503, subsection 2. 2. A licensee under this article shall submit a renewal report with the renewal fee, in a form

prescribed by the superintendent. The renewal report must state or contain: a. A description of eachmaterial change in information submitted by the licensee in its orig-

inal license application that has not been reported to the superintendent on any required re- port. b. A list of the locations in this state where the licensee or an authorized delegate of the li-

censee engages in currency exchange. 3. If a licensee does not file a renewal report and pay its renewal fee by September 1 of an

odd-ending year, or any extension of time granted by the superintendent, the superintendent may assess a late fee of one hundred dollars per day. 4. The superintendent for good cause may grant an extension of the renewal date.

ARTICLE 4 AUTHORIZED DELEGATES

Sec. 14. NEW SECTION. 533C.401 RELATIONSHIP BETWEEN LICENSEE AND AU- THORIZED DELEGATE. 1. In this section, “remit”means tomake direct payments ofmoney to a licensee or its repre-

sentative authorized to receive money or to deposit money in a bank in an account specified by the licensee. 2. A contract between a licensee and an authorized delegate must require the authorized

delegate to operate in full compliance with this chapter. The licensee shall furnish in a record to each authorized delegate policies and procedures for the operation of the money services business. 3. An authorized delegate shall remit all money owing to the licensee in accordance with

the terms of the contract between the licensee and the authorized delegate. 4. If a license is suspended or revoked or a licensee does not renew its license, the superin-

tendent shall notify all authorized delegates of the licensee whose names are in a record filed with the superintendent of the suspension, revocation, or nonrenewal. After notice is sent or publication is made, an authorized delegate shall immediately cease to provide money ser- vices as a delegate of the licensee. 5. An authorized delegate shall not providemoney services outside the scope of activity per-

missible under the contract between the authorized delegate and the licensee, except activity inwhich the authorized delegate is licensed to engage under article 2 or 3. An authorized dele- gate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. 6. A person operating under awritten contract with a licensee as required under subsection

2 shall not be deemed to be conducting unauthorizedmoney services because the licensee has failed to properly designate the person as an authorized delegate under this chapter provided that the person is otherwise operating in full compliance with this chapter.

Sec. 15. NEW SECTION. 533C.402 UNAUTHORIZED ACTIVITIES. A person shall not provide money services on behalf of another person not licensed under

this chapter. A personwhoengages in that activity providesmoney services to the sameextent as if the person were a licensee.

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ARTICLE 5 EXAMINATIONS — REPORTS — RECORDS

Sec. 16. NEW SECTION. 533C.501 AUTHORITY TO CONDUCT EXAMINATIONS. 1. The superintendent may conduct an annual examination of a licensee upon reasonable

notice in a record to the licensee. The superintendent may conduct an annual examination of anyauthorizeddelegateof a licenseeupon reasonablenotice in a record to theauthorizeddele- gate and the licensee. 2. The superintendent may examine a licensee or its authorized delegate, at any time, with-

out notice, if the superintendent has reason to believe that the licensee or authorized delegate is engaging in an unsafe or unsound practice or has violated or is violating this chapter or a rule adopted or an order issued under this chapter. 3. The licensee shall pay the reasonable cost of the examination. 4. Information obtained during an examination under this chapter may be disclosed only

as provided in section 533C.507.

Sec. 17. NEW SECTION. 533C.502 JOINT EXAMINATIONS. 1. The superintendent may conduct an on-site examination of records listed in section

533C.505 in conjunction with representatives of other state agencies or agencies of another state or of the federal government. Instead of an examination, the superintendentmay accept the examination report of an agency of this state or of another state or of the federal govern- ment or a report prepared by an independent licensed or certified public accountant. 2. A joint examination or an acceptance of an examination report does not preclude the su-

perintendent from conducting an examination as provided by law. A joint report or a report accepted under this section is an official report of the superintendent for all purposes.

Sec. 18. NEW SECTION. 533C.503 REPORTS. 1. A licensee shall file with the superintendent within fifteen business days any material

changes in information provided in a licensee’s application as prescribed by the superinten- dent. 2. A licensee shall file with the superintendent within forty-five days after the end of each

fiscal quarter a current list of all authorized delegates and locations in this state where the li- censee or an authorized delegate of the licensee provides money services. The licensee shall state the name and street address of each location and authorized delegate. 3. A licensee shall file a report with the superintendent within one business day after the

licensee has reason to know of the occurrence of any of the following events: a. The filingof apetitionbyoragainst the licenseeunder theUnitedStates bankruptcy code,

11 U.S.C. § 101 et seq., for bankruptcy or reorganization. b. 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. c. 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. d. The cancellation or other impairment of the licensee’s bond or other security. e. A charge or conviction of the licensee or of an executive officer, manager, or director of,

or person in control of, the licensee for a felony. f. A charge or conviction of an authorized delegate for a felony.

Sec. 19. NEW SECTION. 533C.504 CHANGE OF CONTROL. 1. A licensee shall: a. Request approval from the superintendent of a proposed change of control. b. Submit a nonrefundable fee of one thousand dollars with the request. 2. After reviewof a request for approval under subsection 1, the superintendentmay require

211 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

the licensee to provide additional information concerning the proposed persons in control of the licensee. The additional information must be limited to the same types required of the li- censeeorpersons in control of the licenseeaspart of its original licenseor renewal application. 3. The superintendent shall approve a request for change of control under subsection 1 if,

after investigation, the superintendent determines that thepersonorgroupofpersons request- ing approval has the competence, experience, character, and general fitness to operate the li- censee or person in control of the licensee in a lawful and proper manner and that the public interest will not be jeopardized by the change of control. 4. Whenanapplication for a changeof control under this article is complete, the superinten-

dent shall notify the licensee in a record of the date on which the request was determined to be complete and shall approve or deny the request within one hundred twenty days after that date. 5. The superintendent, by rule or order, may exempt a person from any of the requirements

of subsection 1, paragraph “b”, if it is in the public interest to do so. 6. Subsection 1 does not apply to a public offering of securities. 7. Before filing a request for approval to acquire control of a licensee or person in control

of a licensee, a person may request in a record a determination from the superintendent as to whether the personwould be considered a person in control of a licensee upon consummation of a proposed transaction. If the superintendent determines that the person would not be a person in control of a licensee, the superintendent shall enter an order to that effect and the proposed person and transaction is not subject to the requirements of subsections 1 through 3.

Sec. 20. NEW SECTION. 533C.505 RECORDS. 1. A licensee shall maintain the following records for determining its compliance with this

chapter for at least three years: a. A record of each payment instrument sold. b. A general ledger posted at least monthly containing all asset, liability, capital, income,

and expense accounts. c. Bank statements and bank reconciliation records. d. Records of outstanding payment instruments and stored-value obligations. e. Records of each payment instrument and stored-value obligation paid within the three-

year period. f. A list of the last known names and addresses of all of the licensee’s authorized delegates. g. Any other records the superintendent reasonably requires by rule. 2. The items specified in subsection 1 may be maintained in any form of record. 3. Records may be maintained outside this state if they are made accessible to the superin-

tendent on seven business-days’ notice that is sent in a record. 4. All records maintained by the licensee as required in subsections 1 through 3 shall be

open to inspection by the superintendent pursuant to 533C.501. 5. A licensee, authorized delegate, or any officer, employee, agent, or any public official or

governmental employeewho keeps or files a record pursuant to this section or who communi- cates or discloses information or records under this section is not liable to its customer, to a state or local agency, or to any person for any loss or damage caused in whole or in part by the making, filing, or governmental use of the record, or any information contained in that record. 6. The licensee shall keep such records as the superintendentmay require in order to deter-

minewhether such licensee is complyingwith the provisions of this chapter andwith the rules and orders lawfully made by the superintendent under this chapter.

Sec. 21. NEW SECTION. 533C.506 MONEY LAUNDERING REPORTS. A licensee and an authorized delegate shall file all reports required by federal currency re-

porting, recordkeeping, and suspicious activity reporting requirements as set forth in 31 U.S.C. § 5311-5330, and 31 C.F.R. § 103.11-103.170.

212LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 96

Sec. 22. NEW SECTION. 533C.507 DISCLOSURE. 1. Except as otherwise provided by this chapter, the records of the superintendent relating

to examinations or supervision and regulation of a person licensed pursuant to this chapter, or authorized delegates of a person licensed pursuant to this chapter, are not public records and are not subject to disclosure under chapter 22. Neither the superintendent nor anymem- ber of the superintendent’s staff shall disclose any information obtained in the discharge of the superintendent’s official duties to any person not connected with the department, except that the superintendent or the superintendent’s designee may disclose the information: a. To representatives of federal agencies insuring accounts in the financial institution. b. To representatives of state or federal agencies and foreign countries having regulatory

or supervisory authority over the activities of the financial institution or similar financial insti- tutions if those representatives are permitted to and do, upon request of the superintendent, disclose similar information respecting those financial institutions under their regulation or supervision or to those representatives who state in writing under oath that they will maintain the confidentiality of that information. c. To the attorney general of this state. d. To a federal or state grand jury in response to a lawful subpoena, or pursuant to a county

attorney subpoena. e. To the auditor of this state for the purpose of conducting audits authorized by law. 2. The superintendent may: a. Disclose the fact of filing of applications with the department pursuant to this chapter,

give notice of a hearing, if any, regarding those applications, and announce the superinten- dent’s action thereon. b. Disclose final decisions in connection with proceedings for the suspension or revocation

of licenses or certificates issued pursuant to this chapter. c. Prepare and circulate reports reflecting the assets and liabilities of licensees on an aggre-

gate basis, including other information considered pertinent to the purpose of each report for general statistical information. d. Prepare and circulate reports provided by law. 3. Every official report of the department is prima facie evidence of the facts therein stated

in any action or proceeding wherein the superintendent is a party. 4. Nothing in this section shall be construed to prevent the disclosure of information that

is: a. Admissible in evidence in any civil or criminal proceeding brought by or at the request

of the superintendent or this state to enforce or prosecute violations of this chapter, chapter 706B, or the rules adopted, or orders issued pursuant to this chapter. b. Requested by or provided to a federal agency, including but not limited to the department

of defense, department of energy, department of homeland security, nuclear regulatory com- mission, and centers for disease control and prevention, to assist state and local government with domestic preparedness for acts of terrorism. 5. The attorney general or the department of public safety may report any possible viola-

tions indicated by analysis of the reports required by this chapter to any appropriate law en- forcement or regulatory agency for use in the proper discharge of its official duties. The attor- ney general or the department of public safety shall provide copies of the reports required by this chapter to any appropriate prosecutorial or law enforcement agency upon being provided with a written request for records relating to a specific individual or entity and stating that the agency has an articulable suspicion that such individual or entity has committed a felony of- fense or a violation of this chapter to which the reports are relevant. A person who releases information receivedpursuant to this subsection except in theproperdischargeof theperson’s official duties is guilty of a serious misdemeanor. 6. Any report, record, information, analysis, or request obtained by the attorney general or

department of public safety pursuant to this chapter is not a public record as defined in chapter 22 and is not subject to disclosure.

213 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

ARTICLE 6 PERMISSIBLE INVESTMENTS

Sec. 23. NEW SECTION. 533C.601 MAINTENANCE OF PERMISSIBLE INVEST- MENTS. 1. A licensee shall maintain at all times permissible investments that have a market value

computed in accordancewith generally accepted accounting principles of not less than the ag- gregate amount of all of its outstanding payment instruments and stored-value obligations is- sued or sold and money transmitted by the licensee in the United States. 2. The superintendent, with respect to any licensees, may limit the extent to which a type

of investment within a class of permissible investments may be considered a permissible in- vestment, except for money and certificates of deposit issued by a bank. The superintendent by rulemay prescribe or by order allow other types of investments that the superintendent de- termines to have a safety substantially equivalent to other permissible investments. 3. Permissible investments, even if commingled with other assets of the licensee, are held

in trust for the benefit of the purchasers and holders of the licensee’s outstanding payment in- struments and stored-valueobligations in theevent of bankruptcyor receivershipof the licens- ee.

Sec. 24. NEW SECTION. 533C.602 TYPES OF PERMISSIBLE INVESTMENTS. 1. Except to the extent otherwise limited by the superintendent pursuant to section

533C.601, the following investments are permissible under section 533C.601: a. Cash, a certificate of deposit, or senior debt obligation of an insured depositary institu-

tion, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813. b. Banker’s acceptance or bill of exchange that is eligible for purchase upon endorsement

by a member bank of the federal reserve system and is eligible for purchase by a federal re- serve bank. c. An investment bearing a rating of one of the three highest grades as defined by anational-

ly recognized organization that rates securities. d. An investment security that is an obligation of theUnited States or a department, agency,

or instrumentality thereof; an investment in an obligation that is guaranteed fully as to princi- pal and interest by the United States; or an investment in an obligation of a state or a govern- mental subdivision, agency, or instrumentality thereof. e. Receivables that are payable to a licensee from its authorized delegates, in the ordinary

course of business, pursuant to contracts which are not past due or doubtful of collection if the aggregate amount of receivables under this paragraph does not exceed twenty percent of the total permissible investments of a licensee and the licensee does not hold at one time receiv- ables under this paragraph in any one person aggregatingmore than ten percent of the licens- ee’s total permissible investments. f. A share or a certificate issued by an open-end management investment company that is

registered with the United States securities and exchange commission under the federal In- vestment Companies Act of 1940, 15 U.S.C. § 80a-1-80a-64, and whose portfolio is restricted by themanagement investment company’s investment policy to investments specified in para- graphs “a” through “d”. 2. The following investments are permissible under section 533C.601, but only to the extent

specified: a. An interest-bearing bill, note, bond, or debenture of a person whose equity shares are

tradedonanational securities exchangeoronanational over-the-countermarket, if the aggre- gate of investments under this paragraphdoes not exceed twenty percent of the total permissi- ble investments of a licensee and the licensee does not at one time hold investments under this paragraph in any one person aggregatingmore than ten percent of the licensee’s total permis- sible investments. b. A share of a person traded on a national securities exchange or a national over-the-count-

er market or a share or a certificate issued by an open-endmanagement investment company

214LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 96

that is registeredwith theUnitedStates securities and exchange commissionunder the federal Investment Companies Act of 1940, 15U.S.C. § 80a-1-80a-64, andwhose portfolio is restricted by the management investment company’s investment policy to shares of a person traded on a national securities exchange or a national over-the-counter market, if the aggregate of in- vestmentsunder this paragraphdoesnot exceed twenty percent of the total permissible invest- ments of a licensee and the licensee does not at one time hold investments in any one person aggregating more than ten percent of the licensee’s total permissible investments. c. Ademand-borrowingagreementmadewith a corporation or a subsidiary of a corporation

whose securities are traded on a national securities exchange if the aggregate of the amount of principal and interest outstanding under demand-borrowing agreements under this para- graph does not exceed twenty percent of the total permissible investments of a licensee and the licensee does not at one time hold principal and interest outstanding under demand- borrowing agreements under this paragraph with any one person aggregating more than ten percent of the licensee’s total permissible investments. d. Any other investment the superintendent designates, to the extent specified by the super-

intendent. 3. The aggregate of investments under subsection 2maynot exceed fifty percent of the total

permissible investments of a licensee calculated in accordance with section 533C.601.

ARTICLE 7 ENFORCEMENT

Sec. 25. NEW SECTION. 533C.701 SUSPENSION AND REVOCATION — RECEIVER- SHIP. 1. The superintendent may suspend or revoke a license, place a licensee in receivership, or

order a licensee to revoke the designation of an authorized delegate if: a. The licensee violates this chapter or a rule adopted or an order issued under this chapter. b. The licensee does not cooperate with an examination or investigation by the superinten-

dent. c. The licensee engages in fraud, intentional misrepresentation, or gross negligence. d. An authorized delegate is convicted of a violation of a state or federal anti-money laun-

dering 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. e. The competence, experience, character, or general fitness of the licensee, authorized del-

egate, person in control of a licensee, or responsible individual of the licensee or authorized delegate indicates that it is not in the public interest to permit the person to provide money services. f. The licensee engages in an unsafe or unsound practice. g. The licensee is insolvent, suspends payment of its obligations, ormakes a general assign-

ment for the benefit of its creditors. h. The licensee does not remove an authorized delegate after the superintendent issues and

serves upon the licensee a final order finding that the authorized delegate has violated this chapter. 2. In determining whether a licensee is engaging in an unsafe or unsound practice, the su-

perintendent 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.

Sec. 26. NEW SECTION. 533C.702 SUSPENSION AND REVOCATION OF AU- THORIZED DELEGATES. 1. The superintendent may issue an order suspending or revoking the designation of an au-

thorized delegate if the superintendent finds that: a. The authorized delegate violated this chapter or a rule adopted or an order issued under

this chapter.

215 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

b. The authorized delegate did not cooperate with an examination or investigation by the superintendent. c. The authorized delegate engaged in fraud, intentional misrepresentation, or gross negli-

gence. d. The authorized delegate is convicted of a violation of a state or federal anti-money laun-

dering statute. e. 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 services. f. The authorized delegate is engaging in an unsafe or unsound practice. 2. In determiningwhether an authorizeddelegate is engaging in anunsafe or unsoundprac-

tice, the superintendent may consider the size and condition of the authorized delegate’s pro- vision of money services, 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 autho- rized delegate. 3. An authorized delegate may apply for relief from a suspension or revocation of designa-

tion as an authorized delegate according to procedures prescribed by the superintendent.

Sec. 27. NEW SECTION. 533C.703 ORDERS TO CEASE AND DESIST. 1. If the superintendent determines that a violation of this chapter or of a rule adopted or

an order issued under this chapter by a licensee or authorized delegate is likely to cause imme- diate and irreparable harm to the licensee, its customers, or the public as a result of the viola- tion, or cause insolvency or significant dissipation of assets of the licensee, the superintendent may issue an order requiring the licensee or authorized delegate to cease and desist from the violation. The order becomes effective upon service of it upon the licensee or authorized dele- gate. 2. The superintendentmay issue an order against a licensee to cease anddesist fromprovid-

ing money services through an authorized delegate that is the subject of a separate order by the superintendent. 3. An order to cease and desist remains effective and enforceable pending the completion

of an administrative proceeding pursuant to section 533C.701 or 533C.702. 4. A licensee or an authorized delegate who is served with an order to cease and desist may

petition the appropriate court, for a judicial order setting aside, limiting, or suspending the en- forcement, operation, or effectiveness of the order pending the completion of an administra- tive proceeding pursuant to section 533C.701 or 533C.702. 5. An order to cease and desist expires unless the superintendent commences an adminis-

trative proceeding pursuant to section 533C.701 or 533C.702 within ten days after it is issued.

Sec. 28. NEW SECTION. 533C.704 CONSENT ORDERS. The superintendent may enter into a consent order at any time with a person to resolve a

matter arising under this chapter or a rule adopted or order issued under this chapter. A con- sent ordermust be signed by the person towhom it is issued or by the person’s authorized rep- resentative, and must indicate agreement with the terms contained in the order. A consent order may provide that it does not constitute an admission by a person that this chapter or a rule adopted or an order issued under this chapter has been violated.

Sec. 29. NEW SECTION. 533C.705 CIVIL PENALTIES. The superintendent may assess a civil penalty against a person who violates this chapter or

a rule adopted or an order issued under this chapter in an amount not to exceed one thousand dollars per day for each day the violation is outstanding, plus this state’s costs and expenses for the investigation and prosecution of the matter, including reasonable attorney fees.

Sec. 30. NEW SECTION. 533C.706 CRIMINAL PENALTIES. 1. A personwho intentionallymakes a false statement,misrepresentation, or false certifica-

216LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 96

tion in a record filed or required to be maintained under this chapter or who intentionally makes a false entry or omits a material entry in such a record is guilty of a class “D” felony. 2. A person who knowingly engages in an activity for which a license is required under this

chapter without being licensed under this chapter is guilty of an aggravated misdemeanor. 3. It shall be unlawful for any person to do any of the following: a. With intent to disguise the fact that money or a payment instrument is the proceeds of

criminal conduct, or with intent to promote, manage, establish, carry on, or facilitate the promotion,management, establishment, or carrying on of any criminal conduct, to knowingly furnish or provide to a licensee, authorized delegate, financial institution, person engaged in a trade or business, or any officer, employee, agent, or authorized delegate of any of them, or to the attorney general or department of public safety, any false, inaccurate, or incomplete in- formation; or to knowingly conceal a material fact in connection with a transaction for which a report is required to be filed pursuant to this chapter. b. With the intent to disguise the fact that money or a payment instrument is the proceeds

of criminal conduct, or with intent to promote, manage, establish, carry on, or facilitate the promotion,management, establishment, or carrying on of any criminal conduct, orwith intent to evade the making or filing of a report required under this chapter, or with intent to cause the making or filing of a report that contains a material omission or misstatement of fact, to conduct or structure a transaction or series of transactions by or through one or more licens- ees, authorized delegates, financial institutions, or persons engaged in a trade or business. 4. A person who violates subsection 3 is guilty of a class “C” felony and is also subject to a

civil penalty of three times the value of the property involved in the transaction, or, if no trans- action is involved, five thousand dollars. 5. Notwithstanding any other provision of law, each violation of this section constitutes a

separate, punishable offense.

Sec. 31. NEW SECTION. 533C.707 UNLICENSED PERSONS. 1. If the superintendent has reason to believe that a person has violated or is violating sec-

tion 533C.201, 533C.301, 533C.401, or 533C.402, the superintendent may issue an order to show cause why an order to cease and desist should not issue requiring that the person cease and desist from the violation of section 533C.201, 533C.301, 533C.401, or 533C.402. 2. In an emergency, the superintendent may petition the district court for the issuance of

a temporary restraining order ex parte pursuant to the rules of civil procedure. 3. An order to cease and desist becomes effective upon service of it upon the person. 4. An order to cease and desist remains effective and enforceable pending the completion

of an administrative proceeding pursuant to sections 533C.701 and 533C.702. 5. A person who is served with an order to cease and desist under this section may petition

the district court for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of an administrative proceed- ing pursuant to sections 533C.701 and 533C.702. 6. An order to cease and desist expires unless the superintendent commences an adminis-

trative proceeding within ten days after it is issued.

Sec. 32. NEW SECTION. 533C.708 INVESTIGATIONS. 1. The attorneygeneral or county attorneymay conduct investigationswithin or outside this

state to determine if any licensee, authorized delegate, or person engaged in a trade or busi- ness has failed to file a report required by this chapter or has engaged or is engaging in any act, practice, or transaction that constitutes a violation of this chapter. 2. Upon presentation of a subpoena from a prosecuting attorney, all licensees, authorized

delegates, and financial institutions shall make their books and records available to the attor- ney general or county attorney or peace officer during normal business hours for inspection and examination in connection with an investigation pursuant to this section.

217 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 96

ARTICLE 8 ADMINISTRATIVE PROCEDURES

Sec. 33. NEW SECTION. 533C.801 ADMINISTRATIVE PROCEEDINGS. All administrative proceedings under this chapter must be conducted in accordance with

chapter 17A.

Sec. 34. NEW SECTION. 533C.802 HEARINGS. Except as otherwise provided in sections 533C.703 and 533C.707, the superintendent shall

not suspend or revoke a license, place a licensee in receivership, issue an order to cease and desist, suspend or revoke the designation of an authorized delegate, or assess a civil penalty without notice and an opportunity to be heard. The superintendent shall also hold a hearing when requested to do so by an applicant whose application for a license is denied.

Sec. 35. NEW SECTION. 533C.803 RULES. The superintendentmay adopt pursuant to chapter 17A such reasonable and relevant rules,

not inconsistent with this chapter, as may be necessary for the enforcement of the provisions of this chapter.

ARTICLE 9 MISCELLANEOUS PROVISIONS

Sec. 36. NEWSECTION. 533C.901 UNIFORMITYOFAPPLICATIONANDCONSTRUC- TION. 1. The provisions of this chapter shall be liberally construed to effectuate its remedial pur-

poses. Civil remedies under this chapter shall be supplemental and not mutually exclusive. The civil remedies do not preclude and are not precluded by other provisions of law. 2. Theprovisions of this chapter shall be applied and construed to effectuate its general pur-

pose tomake uniform the lawwith respect to the subject of this chapter among states enacting the law and to make the reporting requirements regarding financial transactions under Iowa law uniform with the reporting requirements regarding financial transactions under federal law. 3. The attorney general may enter into reciprocal agreements with the attorney general or

chief prosecuting attorney of any state to effectuate the purposes of this chapter.

Sec. 37. NEW SECTION. 533C.902 MONEY SERVICES LICENSING FUND. 1. A financial services licensing fund is createdas a separate fund in the state treasuryunder

the authority of the banking division of the department of commerce. Moneys deposited in the fund shall be used to pay for staffing necessary to perform examinations, audits, and other du- ties required of the superintendent and the banking division under this chapter. 2. The fund shall receive moneys including, but not limited to, any fees, costs, expenses, or

penalties collected pursuant to this chapter. 3. Notwithstanding section 8.33, moneys appropriated to the fund and other moneys cred-

ited to the fund shall not revert at the close of the fiscal year but shall remain in the financial services licensing fund and shall remain available for expenditure for the purposes desig- nated.

Sec. 38. NEW SECTION. 533C.903 SEVERABILITY CLAUSE. The provisions of this chapter are severable pursuant to section 4.12.

Sec. 39. NEW SECTION. 533C.904 SAVINGS AND TRANSITIONAL PROVISIONS. 1. A license issuedunder chapter 533B,Code2003, that is in effect immediately beforeOcto-

ber 1, 2003, remains in force as a license under chapter 533B, Code 2003, until the license’s expiration date. Thereafter, the licensee is deemed to have applied for and received a license

218LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 96

under this chapter and must comply with the renewal requirements set forth in this chapter. Licenses issued under chapter 533B, Code 2003, will be initially renewed for a period to the next September 30with the license renewal fee prorated based on a two thousand dollar annu- al fee. 2. This chapter applies to the provision of money services on or after the effective date of

this Act. This chapter does not apply to money transmission provided by a licensee who was licensed to provide money transmission under chapter 533B, Code 2003, and whose license remains in force under this section. 3. A person is not deemed to be in violation of this chapter for operating without a license

if the person files an application within three calendar months after the effective date of this Act until the application is denied.

Sec. 40. Section 524.212, Code 2003, is amended to read as follows: 524.212 PROHIBITION AGAINST DISCLOSURE OF REGULATORY INFORMATION. The superintendent, deputy superintendent, assistant to the superintendent, examiner, or

other employee of the banking division shall not disclose, in any manner, to any person other than the person examined and those regulatory agencies referred to in section 524.217, sub- section 2, any information relating specifically to the supervision and regulation of any state bank, persons subject to the provisions of chapter 533A, 533B 533C, 536, or 536A, any affiliate of any state bank, or an affiliate of a person subject to the provisions of chapter 533A, 533B 533C, 536, or 536A, exceptwhen ordered to do so by a court of competent jurisdiction and then only in those instances referred to in section 524.215, subsections 1, 2, 3, and 5.

Sec. 41. Chapter 533B, Code 2003, is repealed.

Sec. 42. EFFECTIVE DATE. This Act takes effect October 1, 2003.

Approved May 1, 2003

_________________________

CH. 97CH. 97

CHAPTER 97

TOBACCO PRODUCTS REGULATION — MISCELLANEOUS PROVISIONS — APPROPRIATIONS

S.F. 375

AN ACT relating to enforcement enhancements relative to certain tobacco product manufac- turers, providing appropriations and penalties, and providing effective dates.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. NEW SECTION. 453D.1 FINDINGS AND PURPOSE. The general assembly finds that violations of chapter 453C threaten the integrity of the to-

bacco master settlement agreement, the fiscal soundness of the state, and the public health and that establishing procedural enforcement enhancements will aid in the enforcement of chapter 453C and thereby safeguard the master settlement agreement, the fiscal soundness of the state, and the public health.

Sec. 2. NEW SECTION. 453D.2 DEFINITIONS. As used in this chapter, unless the context otherwise requires: 1. “Brand family”means all styles of cigarettes sold under the same trademark anddifferen-