General Assembly: 76 (1995 Regular GA) - Chapter 139 - Delayed deposit services businesses


Published: 1995-05-01

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CH. 138 lAWS OF THE SEVENTY-SIXTH GA, 1995 SESSION 250

upon the death, insanity, retirement. resignation. withdrawal, expulsion, bankruptcy, or dissolution of a member or occurrence of any other event, eJ~:eept assigameat af a mem aership iRterest veltiatarily ar ay aperatiaa af law, that terminates the continued member- ship of a member in the limited liability company, unless the business of the limited liabil- ity company is continued by the consent of the members in the manner stated in the ar- ticles of organization or an operating agreement or if not so stated, by the unanimous consent of the remaining members.

Sec. 6. Section 490A1501, subsection 4, Code 1995, is amended to read as follows: 4. "Profession" means the profession of certified public accountancy, architecture,

chiropractic, dentistry, physical therapy, psychology, professional engineering, land sur- veying, landscape architecture, law, medicine and surgery, optometry, osteopathy, osteo- pathic medicine and surgery, accounting practitioner, podiatry, speech pathology, audiol- ogy, veterinary medicine, pharmacy, aRtl nursing, and marriage and family therapy. pro- vided that the marriage and family therapist is licensed under chapters 147 and 154D.

Approved May 1, 1995

CHAPTER 139 DElAYED DEPOSIT SERVICES BUSINESSES

S.F. 423

AN ACT relating to delayed deposit services businesses and providing penalties.

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

Section 1. NEW SECTION. 533D.1 TITLE. This chapter shall be known and may be cited as the "Delayed Deposit Services Licens-

ing Act".

Sec. 2. NEW SECTION. 533D.2 DEFINITIONS. For purposes of this chapter, unless the context otherwise requires: 1. "Check" means a check, draft, share draft, or other instrument for the payment of

money. 2. "Delayed deposit services business" means a person who for a fee does either of the

following: a. Accepts a check dated subsequent to the date it was written. b. Accepts a check dated on the date it was written and holds the check for a period of

time prior to deposit or presentment pursuant to an agreement with, or any representation made to, the maker of the check, whether express or implied.

3. "Licensee" means a person licensed to operate pursuant to this chapter. 4. "Person" means an individual, group of individuals, partnership, association, corpo-

ration, or any other business unit or legal entity. 5. "Superintendent" means the superintendent of banking.

Sec. 3. NEW SECTION. 533D.3 UCENSE REQUIRED- APPUCATION PROCESS- DISPlAY.

1. A person shall not operate a delayed deposit services business in this state unless the person is licensed by the superintendent as provided in this chapter.

2. An applicant for a license shall submit an application, under oath, to the superinten- dent on forms prescribed by the superintendent. The forms shall contain such information as the superintendent may prescribe.

251 lAWS OF THE SEVEN1Y-SIXTH GA., 1995 SESSION CH. 139

3. The application required by this section shall be submitted with both of the follow- ing:

a. An application fee in an amount prescribed by rule adopted by the superintendent. b. A surety bond executed by a surety company authorized to do business in this state in

the sum of twenty-five thousand dollars, which bond shall be continuous in nature until canceled by the surety. A surety shall provide at least thirty days' notice in writing to the licensee and to the superintendent indicating the surety's intent to cancel the bond and the effective date of the cancellation. The surety bond shall be for the benefit of the citizens of this state and shall be conditioned upon the licensee's willingness to comply with this chapter, the faithful performance by the licensee of the duties and obligations pertaining to the delayed deposit services business so licensed, and the prompt payment of any judg- ment recovered against the licensee. The surety's liability under this chapter is limited to the amount of the bond regardless of the number of years the bond is in effect.

4. The superintendent shall issue a license to an applicant if the superintendent finds all of the following:

a. The experience, character, and general fitness of the applicant and its officers, direc- tors, shareholders, partners, or members are such as to warrant a finding that the appli- cant will conduct the delayed deposit services business honestly, fairly, and efficiently.

b. The applicant and its officers, directors, shareholders, partners, or members have not been convicted of a felony in this state, or convicted of a crime in another jurisdiction which would be a felony in this state.

c. The applicant is financially responsible and will conduct the delayed deposit services business pursuant to this chapter and other applicable laws.

d. The applicant has unencumbered assets of at least twenty-five thousand dollars avail- able for operating the delayed deposit services business.

5. The superintendent shall approve or deny an application for a license by written order not more than ninety days after the filing of an application. An order of the superin- tendent issued pursuant to this section may be appealed pursuant to chapter 17 A

6. A license issued pursuant to this chapter shall be conspicuously posted at the licensee's place of business. A license shall remain in effect until the next succeeding May 1, unless earlier suspended or revoked by the superintendent. A license shall be renewed annually by filing with the superintendent an application for renewal containing such information as the superintendent may require to indicate any material change in the information contained in the original application or succeeding renewal applications and a renewal fee of one hundred dollars.

Sec. 4. NEW SECTION. 533D.4 SURRENDER OF LICENSE. A licensee may surrender a delayed deposit services license by delivering to the superin-

tendent written notice that the license is surrendered. The surrender does not affect the licensee's civil or criminal liability for acts committed prior to such surrender, the liability of the surety on the bond, or entitle such licensee to a return of any part of the annual license fee. The superintendent may establish procedures for the disposition of the books, accounts, and records of the licensee and may require such action as deemed necessary for the protection of the makers of checks which are outstanding at the time of surrender of the license.

Sec. 5. NEW SECfiON. 533D.5 CHANGE IN CIRCUMSTANCES -NOTIFICATION OF SUPERINTENDENT.

A licensee is to notify the superintendent in writing within thirty days of the occurrence of a material development affecting the licensee, including, but not limited to, any of the following:

1. Filing for bankruptcy or reorganization. 2. Reorganization of the business. 3. Commencement of license revocation or any other civil or criminal proceedings by

any other state or jurisdiction.

CH. 139 lAWS OF THE SEVENTY-SIXTH GA, 1995 SESSION 252

4. The filing of a criminal indictment or complaint against the licensee or any of the licensee's officers, directors, shareholders, partners, members, employees, or agents.

5. A felony conviction against the licensee or any of the licensee's officers, directors, shareholders, partners, members, employees, or agents.

Sec. 6. NEW SECTION. 533D.6 CONTINUED OPERATION AFTER CHANGE IN OWNERSHIP- APPROVAL OF SUPERINTENDENT REQUIRED.

1. The prior written approval of the superintendent is required for the continued opera- tion of a delayed deposit services business whenever a change in control of a licensee is proposed. Control in the case of a corporation means direct or indirect ownership, or the right to control, ten percent or more of the voting shares of the corporation, or the ability of a person to elect a majority of the directors or otherwise effect a change in policy. Control in the case of any other entity means any change in the principals of the organiza- tion, whether active or passive. The superintendent may require information deemed nec- essary to determine whether a new application is required. Costs incurred by the superin- tendent in investigating a change of control request shall be paid by the person requesting such approval.

2. A license issued pursuant to this chapter is not transferable or assignable.

Sec. 7. NEW SECTION. 533D.7 PRINCIPAL PlACE OF BUSINESS - BRANCH OFFICES AUTHORIZED.

1. Except as provided in subsection 2, a licensee may operate a delayed deposit services business only at an office designated as its principal place of business in the application. The licensee shall maintain its books, accounts, and records at its designated principal place of business. A licensee may change the location of its designated principal place of business with the prior written approval of the superintendent. The superintendent shall establish forms and procedures for determining whether the change of location should be approved.

2. A licensee may operate branch offices only in the same county in which the licensee's designated principal place of business is located. The licensee may establish a branch office or change the location of a branch office with the prior written approval of the superintendent. The superintendent shall establish forms and procedures for determining whether the location of a branch office should be approved.

3. A fee of one hundred fifty dollars shall be paid to the superintendent for each request made pursuant to subsection 1 or 2.

Sec. 8. NEW SECTION. 533D.8 OTHER BUSINESS OPERATIONS AT SAME SITE - RESTRICTIONS.

1. A licensee may operate a delayed deposit services business at a location where any other business is operated or in association or conjunction with any other business with the written approval of the superintendent and consistent with both of the following re- quirements:

a. The books, accounts, and records of the delayed deposit services business are kept and maintained separate and apart from the books, accounts, and records of the other business.

b. The other business is not of a type which would tend to enable the concealment of acts engaged in to evade the requirements of this chapter. If the superintendent deter- mines upon investigation that the other business is of a type which would conceal such acts the superintendent shall order the licensee to cease the operation of the delayed de- posit services business at the location.

2. The department may order the licensee to cease operations of the business if it fails to obtain written approval of the superintendent before operating a business in association or conjunction with services provided under this chapter.

253 lAWS OF THE SEVEN1Y-SIXTH GA, 1995 SESSION CH. 139

Sec. 9. NEW SECTION. 533D.9 FEE RESTRICTION - REQUIRED DISCLOSURE. 1. A licensee shall not charge a fee in excess of fifteen dollars on the first one hundred

dollars on the face amount of a check or more than ten dollars on subsequent one hundred dollar increments on the face amount of the check for services provided by the licensee, or pro rata for any portion of one hundred dollars face value.

2. A licensee shall give to the maker of the check, at the time any delayed deposit service transaction is made, or if there are two or more makers, to one of them, notice written in clear, understandable language disclosing all of the following:

a. The fee to be charged for the transaction. b. The annual percentage rate on the first hundred dollars on the face amount of the

check which the fee represents, and the annual percentage rate on subsequent one hun- dred dollar increments which the fee represents, if different.

c. The date on which the check will be deposited or presented for negotiation. d. Any penalty, not to exceed fifteen dollars, which the licensee will charge if the check

is not negotiable on the date agreed upon. A penalty to be charged pursuant to this section shall only be collected by the licensee once on a check no matter how long the check remains unpaid. A penalty to be charged pursuant to this section is a licensee's exclusive remedy and if a licensee charges a penalty pursuant to this section no other penalties under this chapter or any other provision apply.

3. In addition to the notice required by subsection 2, every licensee shall conspicuously display a schedule of all fees, charges, and penalties for all services provided by the li- censee authorized by this section. The notice shall be posted at the office and every branch office of the licensee.

Sec. 10. NEW SECTION. 533D.10 PROHIBITED ACTS BY UCENSEE. 1. A licensee shall not do any of the following: a. Hold from any one maker more than two checks at any one time. b. Hold from any one maker a check or checks in an aggregate face amount of more

than five hundred dollars at any one time. c. Hold or agree to hold a check for more than thirty-one days. d. Require the maker to receive payment by a method which causes the maker to pay

additional or further fees and charges to the licensee or another person. e. Repay, refinance, or othetwise consolidate a postdated check transaction with the

proceeds of another postdated check transaction made by the same licensee. f. Receive any other charges or fees in addition to the fees listed in section 533D.9,

subsections 1 and 2. 2. For purposes of this section, "licensee" includes a person related to the licensee by

common ownership or control, a person in whom the licensee has any financial interest, or any employee or agent of the licensee.

Sec. 11. NEW SECTION. 533D.ll EXAMINATION OF RECORDS BY SUPERIN- TENDENT.

The superintendent shall examine the books, accounts, and records of each licensee annually. The costs of the superintendent incurred in an examination shall be paid by the licensee.

The superintendent may examine or investigate complaints or reports concerning al- leged violations of this chapter or any rule adopted or order issued by the superintendent. The superintendent may order the actual cost of the examination or investigation to be paid by the person who is the subject of the examination or investigation, whether or not the alleged violator is licensed.

Sec. 12. NEW SECTION. 533D.12 SUSPENSION OR REVOCATION OF UCENSE. 1. The superintendent may, after notice and hearing pursuant to chapter 17 A, suspend

or revoke any license issued pursuant to this chapter upon the finding of any of the follow- ing:

a. A licensee or any of its officers, directors, shareholders, partners, or members has violated this chapter or any rule adopted or order issued by the superintendent.

CH. 139 lAWS OF THE SEVEN1Y-SIXTH GA, 1995 SESSION 254

b. A licensee has failed to pay a license fee required under this chapter. c. A fact or condition existing which, if it had existed at the time of the original applica-

tion for the license, would have resulted in the denial of the superintendent to issue the license.

d. A licensee has abandoned its place of business for a period of sixty days or more. e. A licensee fails to pay an administrative penalty and the cost of investigation as

ordered by the superintendent. 2. Notice of the time and place of the hearing provided for in this section shall be given

no less than ten days prior to the date of the hearing.

Sec. 13. NEW SECfiON. 533D.13 CEASE AND DESIST ORDER- INJUNCTION. If the superintendent believes that any person has engaged in or is about to engage in an

act or practice constituting a violation of this chapter or any rule adopted or order issued by the superintendent, the superintendent may issue and serve on the person a cease and desist order. Upon entry of a cease and desist order the superintendent shall promptly notify in writing all persons to whom the order is directed that it has been entered and the reasons for the order. Any person to whom the order is directed may request in writing a hearing within fifteen business days after the date of the issuance of the order. Upon receipt of the written request, the matter shall be set for hearing within fifteen business days of the receipt by the superintendent, unless the person requesting the hearing con- sents to a later date. If a hearing is not requested within fifteen business days and none is ordered by the superintendent, the order of the superintendent shall automatically be- come final and remain in effect until modified or vacated by the superintendent. If a hear- ing is requested or ordered, the superintendent, after notice and hearing, shall issue writ- ten findings of fact and conclusions of law and shall affirm, vacate, or modify the order.

The superintendent may vacate or modify an order if the superintendent finds that the conditions which caused its entry have changed or that it is otherwise in the public interest to do so. Any person aggrieved by a final order of the superintendent may appeal the order as provided in chapter 17 A

If it appears that a person has engaged in or is engaging in an act or practice in violation of this chapter, the attorney general may initiate an action in the district court to enjoin such acts or practices and to enforce compliance with this chapter. Upon a showing of a violation of this chapter, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted or a receiver or conservator may be appointed to oversee the person's assets. The attorney general shall not be required to post a bond.

Sec. 14. NEW SECfiON. 533D.14 ADMINISTRATIVE PENALlY. 1. If the superintendent finds, after notice and hearing as provided in this chapter, that

a person has violated this chapter, a rule adopted pursuant to this chapter, or an order of the superintendent, the superintendent may order the person to pay an administrative fine of not more than five thousand dollars for each violation, in addition to the costs of inves- tigation.

2. If a person fails to pay an administrative fine and the costs of investigation ordered pursuant to subsection 1, a lien in the amount of the fine and costs may be imposed upon all assets and property of the person in this state and may be recovered in a civil action by the superintendent. Failure of the person to pay the fine and costs constitutes a separate violation of this chapter.

Sec. 15. NEW SECfiON. 533D.l5 CRIMINAL VIOlATION- OPERATION OF BUSI- NESS WITHOUT UCENSE- INJUNCTION.

A person required to be licensed under this chapter who operates a delayed deposit services business in this state without first obtaining a license under this chapter or while such license is suspended or revoked by the superintendent is guilty of a serious misde- meanor. In addition to the criminal penalty provided for in this section, the superintendent may also commence an action to enjoin the operation of the business.

255 lAWS OF THE SEVEN1Y-SIXTH GA., 1995 SESSION CH. 140

Sec. 16. NEW SECTION. 533D.16 APPUCABIUTY. This chapter does not apply to a bank incorporated under the provisions of any state or

federal law, a savings and loan association incorporated under the provisions of any state or federal law, a credit union organized under the provisions of any state or federal law, a corporation licensed as an industrial loan company under chapter 536A, or an affiliate of a bank, savings and loan association, credit union, or industrial loan company.

Sec. 17. Section 537.7102, subsection 3, Code 1995, is amended to read as follows: 3. "Debt" means an actual or alleged obligation arising out of a consumer credit trans-

action, consumer rental purchase agreement, or a transaction which would have been a consumer credit transaction either if a finance charge was made, if the obligation was not payable in installments, if a lease was for a term of four months or less, or if a lease was of an interest in land. A debt includes a check as defined in section 554.3104 given in a transaction in connection with a consumer rental purchase agreement, in a transaction which was a consumer credit sale or in a transaction which would have been a consumer credit sale if credit was granted and if a finance charge was made, or in a transaction regulated under chapter 533D.

Approved May 1, 1995

CHAPTER140 WORKERS' COMPENSATION- COMPUTATION OF WEEKLY EARNINGS -

JUDICIAL REVIEW PROCEDURES S.F. 286

AN ACf concerning workers' compensation by providing for the computing of gross weekly earnings for volunteer ambulance drivers, emergency medical technician trainees, and seasonal workers, and relating to judicial review of workers' compensation contested cases.

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

Section 1. Section 85.36, subsection 9, Code 1995, is amended by striking the subsec- tion.

Sec. 2. Section 85.36, subsection 10, paragraph a, Code 1995, is amended to read as follows:

a. In computing the compensation to be allowed a volunteer fire fighter, basic or ad- vanced emergency medical care provider, eF reserve peace officer, volunteer ambulance driver. or emergency medical technician trainee. the earnings as a fire fighter, basic or advanced emergency medical care provider, eF reserve peace officer. volunteer ambu- lance driver. or emergency medical technician trainee shall be disregarded and the volun- teer fire fighter, basic or advanced emergency medical care provider, eF reserve peace officer, volunteer ambulance driver. or emergency medical technician trainee shall be paid an amount equal to the compensation the volunteer fire fighter, basic or advanced emergency medical care provider, eF reserve peace officer, volunteer ambulance driver. or emergency medical technician trainee would be paid if injured in the normal course of the volunteer fire fighter's, basic or advanced emergency medical care provider's, eF re- serve peace officer's, volunteer ambulance driver's, or emergency medical technician trainee's regular employment or an amount equal to one hundred and forty percent of the statewide average weekly wage, whichever is greater.