HB 1230 — COMMERCIAL REGULATIONS: Provides relative to the Louisiana Money Transmission Act

1230 determinations,ENROLLED orAssociation noticeof Residential Mortgage Regulators and informationowned requirementsand operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for athe changelicensing and registration of keypersons individuals.in financial services industries.

(21) "NMLS" means 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.

Page(b) 6Is not employed by and does not have any managerial duties of 73the CODING:licensee or person in control of a licensee.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (b) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee.

(d)Page Either6 attests to Subparagraphs (a), (b), and (c) of this63 Paragraph,CODING: in a form and in a medium prescribed by the commissioner, or commits to the passivity characteristics of Subparagraphs (a), (b), and (c) of this Paragraph in a written document.

(25)Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored "Paymentinstrument"meansawrittenorelectroniccheck,draft,moneyare order,traveler'sadditions. check,or other written or electronic instrument for thetransmission or payment of money or monetary value, whether or not negotiable.

HB NO.

1230 ENROLLED (d) Either attests to Subparagraphs (a), (b), and (c) of this Paragraph, in a form and in a medium prescribed by the commissioner, or commits to the passivity characteristics of Subparagraphs (a), (b), and (c) of this Paragraph in a written document.

(25) "Paymentinstrument"meansawrittenorelectroniccheck,draft,money order,traveler's check,or other written orelectronicinstrument for the transmission or payment of money or monetary value, whether or not negotiable.

(26) "Payroll processingserviceprovider"processing service provider" means a person receivingmoney fortransmission,onitsownbehalf,onbehalfofitsaffiliate,orpursuanttoacontract withapersontodeliverwagesorsalaries,makepaymentofpayrolltaxestostateand federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries.

(27)(a) "Person" means an individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation,orotherlegalentity,corporation,orotherlegalentity,or or anyindividual orgroupofindividuals,however organized.

Page(b) 7"Person" ofdoes 73not CODING:include a public corporation, government, or governmental subdivision, agency, or instrumentality.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (b) "Person" does not include a public corporation, government, or governmental subdivision, agency, or instrumentality.

(30)(a)Page "Resident"7 means any of the63 following:CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (30)(a) "Resident" means any of the following:

(31)(a) "Stored value" means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and acceptedforuseasacceptedforuseasameansofredemptionformoneyormonetaryvalue,orpayment ameansofredemptionformoneyormonetaryvalue,orpayment for goods or services.

Page§1034. 8 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 §1034.

(2)Page A8 person appointed as an agent of a63 payeeCODING: 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 all of the following apply:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (2) 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 all of the following apply:

Page(c) 9Bears ofsole 73responsibility CODING:to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connectionwithanyfailuretotransmitthefundstothesender'sdesignatedrecipient.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connectionwithanyfailuretotransmitthefundstothesender'sdesignatedrecipient.

(7)Page A9 federally insured depository financial institution, a wholly owned subsidiaryofafederallyinsureddepositoryinstitution,bankholdingcompany,office of an63 internationalCODING: banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C.

3102,Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored asare amendedadditions. or recodified from time to time, corporation organized pursuant to the Bank Service CorporationAct,12 U.S.C.

1861through1867,HB asamendedorrecodifiedfromtimeNO. to time, or corporation organized in accordance with the Edge Act, 12 U.S.C.

1230 ENROLLED (7) A federally insured depository financial institution, a wholly owned subsidiaryofafederallyinsureddepositoryinstitution,bankholdingcompany,office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C.

3102, as amended or recodified from time to time, corporation organized pursuant to the Bank Service CompanyAct,12 U.S.C.

1861through1867,asamendedorrecodifiedfromtime to time, or corporation organized in accordance with the Edge Act, 12 U.S.C.

(10) A registered futures commission merchant underpursuant to the federal commodities laws to the extent of its operation as such a merchant.

Page(11) 10A person registered as a securities broker-dealer pursuant to federal or state securities laws to the extent of 73its CODING:operation as such a broker-dealer.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored(12) areAn additions.individual employed bya licensee, authorized agent, or anyperson exempted from the licensing requirements of this Chapter when acting within the scopeofemploymentandunderthesupervisionofthelicensee,authorized agent, or exempted person as an employee and not as an independent contractor.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (11) A person registered as a securities broker-dealer pursuant to federal or state securities laws to the extent of its operation as such a broker-dealer.

(12) An individual employed bya licensee, authorized agent, or anyperson exempted from the licensing requirements of this Chapter when acting within the scopeofemploymentandunderthesupervisionofthe licensee,authorized agent,or exempted person as an employee and not as an independent contractor.

(a)Page The10 service provider or agent is engaging in money transmission on behalf of and63 pursuantCODING: to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform.

(b)Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored Theexemptare entityassumesadditions. all risk of loss and all legal responsibilityfor 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.

HB NO.

1230 ENROLLED (a) The 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.

(b) The exempt entityassumes all risk of loss andalllegal responsibilityfor 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.

In addition to any other powers the commissioner may be authorized to exercise pursuant to this Title, the commissioner may adopt and implement Pageemergencyrulesasthecommissionerconsidersnecessaryandappropriatetoprevent 11or terminate any condition the commissioner reasonably considers to create an emergencyrelativetoaparticularlicenseeortolicensesingeneral,includingbutnot limited to suspendingthe issuance or renewal of 73a CODING:license or suspendingsome or all money transmission activities in this state.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 emergencyrulesasthecommissionerconsidersnecessaryandappropriatetoprevent or terminate any condition the commissioner reasonably considers to create an emergencyrelativetoaparticularlicenseeortolicensesingeneral,includingbutnot limited to suspending the issuance or renewal of a license or suspendingsome or all money transmission activities in this state.

In orderto carryout thethepurposes purposes of this Chapter, the commissioner may, subject to the provisions of R.S.

(1) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improvePage efficiencies11 andof reduce63 regulatoryCODING: burden by standardizing methods or procedures, and sharing resources, records, or related information.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED improve efficiencies and reduce regulatory burden by standardizing methods or procedures, and sharing resources, records, or related information.

(4) Acceptauditreportsmadebyanindependentcertifiedpublicaccountant or otherqualifiedthird-partyauditorother forqualified anthird-partyauditor applicantfor oranapplicantor licenseeand incorporatethe audit report in any report of examination or investigation.

6:103, all recordsofrecords of the officeofficearestrictlyconfidential are strictlyconfidential and not subject to disclosure.

Page§1037. 12 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 §1037.

(3) The books, records, and accounts shall be maintained separately and apartfromanyotherbusinessinwhichthepersonisinvolvedandshallbekeptatthe locationPage in12 theof state63 atCODING: which the money transmission activities occurred or at the person's principalofficeunlessotherwisepermittedin writingbythecommissioner.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED location in the state at which the money transmission activities occurred or at the person's principalofficeunlessotherwisepermittedin writingbythecommissioner.

PageD. 13 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 D.

(2)Page Participating13 inof a63 concurrentCODING: examination or investigation.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (2) Participating in a concurrent examination or investigation.

(a) Cooperate, coordinate,andcoordinate, and share information with other state regulators of money transmission activities.

Page(c) 14Cooperate, coordinate, and share information with organizations made up of 73other CODING:state governmental regulators of money transmission activities, if the organizations agree in writing to maintain confidentiality and security of shared information.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (c) Cooperate, coordinate, and share information with organizations made up of other state governmental regulators of money transmission activities, if the organizations agree in writing to maintain confidentiality and security of shared information.

(a)Page The14 commissioner'sof participation63 inCODING: any joint examination or investigation.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (a) The commissioner's participation in any joint examination or investigation.

To efficientlyand effectivelyadminister and enforce this Chapter and to minimize regulatory burden, the commissioner is authorized to participate in multistatesupervisoryprocessesestablishedbetweenstatesandcoordinatedthrough the Conference of State Bank Supervisors, the Money Transmitter Regulators Association,andaffiliatesandsuccessorsthereof,foralllicenseesthatholdAssociation,andaffiliatesandsuccessorsthereof,forall licenseesthathold licenses in this state and other states.

Page(2) 15Enter into written cooperation, coordination, or information-sharing contracts,or agreements with organizations the membership of 73which CODING:is made up of state or federal governmental agencies.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored(3) areCooperate, additions.coordinate, and share information with organizations in accordancewith theprovisions ofthis Title, themembershipof which is made up of state or federal governmental agencies, provided that the organizations agree in writing to maintain the confidentiality and security of the shared information.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (2) 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.

(3) Cooperate, coordinate, and share information with organizations in accordancewith theprovisions ofthis Title, themembershipofwhich is made up of state or federal governmental agencies, provided that the organizations agree in writing to maintain the confidentiality and security of the shared information.

Thecommissionermaynotwaive,andnothinginthisSectionconstitutesThecommissionermaynot waive,andnothingin thisSectionconstitutes awaiverof,thecommissioner'sauthoritytoconductanexaminationorinvestigation or otherwise take independent action authorized by this Chapter or a rule or regulation adopted, or order issued relative thereto to enforce compliance with applicable state or federal law.

§1039.Page 15 of 63 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED §1039.

Page(1) 16Implement all licensing provisions of 73this CODING:Chapter in a manner that is consistent with other states that have adopted similar laws or multistate licensing processes.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (1) Implement all licensing provisions of this Chapter in a manner that is consistent with other states that have adopted similar laws or multistate licensing processes.

The commissioner may utilize NMLS for all aspects of licensing, including but not limited to license applications, applications for acquisitions of control,Page suretybonds,16 reporting,of criminal63 historybackgroundCODING: checks, credit checks, fee processing, and examinations.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED control, suretybonds, reporting, criminal historybackground checks, credit checks, fee processing, and examinations.

Each such form shall contain content as set forth Pageby 17rule, regulation, instruction, or procedure of 73the CODING:commissioner and may be changedor updated bythe commissioner in accordancewith applicablelawin order to carry out the purposes of this Chapter and maintain consistency with NMLS licensing standards and practicesThe application shall state or contain, as applicable:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 by rule, regulation, instruction, or procedure of the commissioner and may be changed or updated bythe commissionerin accordancewith applicablelawinorder to carry out the purposes of this Chapter and maintain consistency with NMLS licensing standards and practices.The application shall state or contain, as applicable:

(3) A description of anymoneytransmissionany activitiesmoney previouslytransmission providedactivities previouslyprovided by the applicant and the money transmission that the applicant seeks to provide in this state.

(5)Page A17 list of other63 statesCODING: in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (5) A list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state.

Page(10) 18A sample form of 73payment CODING:instrument or stored value, as applicable.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (10) A sample form of payment instrument or stored value, as applicable.

(12) An investigative background report preparedbyanprepared byan independent search firm as required by R.S.

If an applicant is a corporation,limitedcorporation, limited liabilitycompany, partnership, or other legal entity, the applicant shall also provide all of the following:

(4)Page The18 legal name, anyfictitious or trade name, all business and residential addresses, and the employment, as applicable, in the ten-year period next preceding the submission of the63 applicationCODING: of each keyindividual andpersonin control of the applicant.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (4) The legal name, anyfictitious or trade name, all business and residential addresses, and the employment, as applicable, in the ten-year period next preceding the submission of the application of each keyindividual and personin controlofthe applicant.

(6) A copyofcopy of the audited financial statements of the applicant for the most recent fiscal year and for the two-year period next preceding the submission of the application.

Page(8) 19Iftheapplicantisapubliclytradedcorporation,acopyofthemostrecent ofreport 73filed CODING:with the United States Securities and Exchange Commission in accordancewith Section13oftheSecuritiesExchangeActof1934,15U.S.C.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (8) Iftheapplicantisapubliclytradedcorporation,acopyofthemostrecent report filed with the United States Securities and Exchange Commission in accordancewith Section13oftheSecuritiesExchangeActof1934,15U.S.C.

However, beginningPage with19 calendar year 2026 and for each subsequent calendar year, on or before July first of the63 followingCODING: year, the commissioner shall issue a memo authorizing a new application fee in accordancewith this Section.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED beginning with calendar year 2026 and for each subsequent calendar year, on or before July first of the following year, the commissioner shall issue a memo authorizing a new application fee in accordancewith this Section.

Page§1042. 20 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 §1042.

Any person in control of a licensee or applicant, any person who seeks to acquire control of a licensee, and each key personindividual shall furnish to the commissioner through NMLS all of the following items:

(1)Page At20 a minimum, the search firm shall do all of the63 following:CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (1) At a minimum, the search firm shall do all of the following:

Page(a) 21If available in the person's current jurisdiction of 73residency, CODING:a comprehensivecreditreport,oranyequivalentinformationobtainedorgeneratedby 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.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored(b) areCriminal additions.records information for the past ten years, including but not limited to felonies,misdemeanors,orsimilarconvictionsforviolationsoflawin the countries,provinces,states,cities,towns,andcontiguous areaswheretheindividual resided and worked.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (a) If available in the person's current jurisdiction of residency, a comprehensivecreditreport,oranyequivalentinformationobtainedorgeneratedby 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.

(b) Criminal records information for the past ten years, including but not limited to felonies,misdemeanors,orsimilarconvictionsforviolations oflawin the countries,provinces,states,cities,towns,andcontiguousareaswheretheindividual resided and worked.

(e) Financialservices-relatedregulatoryhistory,includingbutnotlimitedtoFinancialservices-relatedregulatoryhistory,includingbut notlimitedto moneytransmission,securities,banking,insurance,andmortgage-relatedindustries.

(a)Page The21 applicationof is63 deemedCODING: approved.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (a) The application is deemed approved.

AdeterminationbythecommissionerthatanapplicationisAdeterminationbythecommissioner completeandthatanapplicationiscompleteand is accepted for processing means only that the application, on its face, appears to includealloftheitems,includingtheCriminalBackgroundCheckresponsefromtheinclude Pageall 22of the items, including the criminal background check response from the FederalBureauof Investigation, and address all of 73the CODING:matters that arerequired,and is not an assessment of the substance of the application or of the sufficiency of the information provided.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 FederalBureauof Investigation, and address all of the matters that are required,and is not an assessment of the substance of the application or of the sufficiency of the information provided.

(2) Theapplicant'sfinancialconditionandresponsibilityarecompliantTheapplicant's withfinancialcondition andresponsibilityarecompliantwith R.S.6:1059,1060,and1061,andthefinancialandbusinessexperience,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.

(2)Page If22 Louisiana is a lead investigative state, the commissioner may investigatetheapplicantpursuanttoSubsectionCofthisSectionandthetimeframes established by agreement through the multistate licensing process, provided, however, that in no case shall such timeframe be noncompliant with the application period in Paragraph (A)(1) of this63 Section.CODING:

Page 23 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 E.(1)ENROLLED The(2) commissionerIf shallLouisiana issueis a formallead writteninvestigative noticestate, ofthe commissioner may investigatetheapplicantpursuanttoSubsectionCofthisSectionandthetimeframes established by agreement through the denialmultistate oflicensing aprocess, licenseprovided, application.however, that in no case shall such timeframe be noncompliant with the application period in Paragraph (A)(1) of this Section.

E.(1) The commissioner shall issue a formal written notice of the denial of a license application.

Renewal of license A.(1) Each person licensed as a money transmitter in accordance with this Chapter shall submit an annual license renewal application and a nonrefundablefeenonrefundable fee in theamountofeightthe hundredamount dollars,of pluseight one hundred dollarsdollars,plus foreachlocationinonehundreddollarsforeachlocationin excess of one in Louisiana through which the licensee plans to conduct money transmissionduringthelicenseyearforwhichthefeeispaid,shallbepaid,provided thatinnoeventshalltheannualrenewalfeeexceedsixthousanddollars.Page 23 of 63 CODING:

Theannual renewalapplicationfeeshallbesubmittedonorbeforeDecemberthirty-firstofeach year in a manner and form prescribed by the commissioner and submit to the commissioner a renewal report pursuant to Paragraph (B)(3) of this Section if the Page 24 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 personENROLLED isthatinnoeventshalltheannualrenewalfeeexceedsixthousanddollars. not issued a new license from November first to December thirty-first of that year.

Theannual renewalapplicationfeeshallbesubmittedonorbeforeDecemberthirty-firstofeach year in a manner and form prescribed by the commissioner and submit to the commissioner a renewal report pursuant to Paragraph (B)(3) of this Section if the person is not issued a new license from November first to December thirty-first of that year.

However, thepersonwhoselicensehasthe expiredperson mayapplyforanewlicense,subjecttowhose allnewlicensehasexpiredmayapplyforanewlicense,subjectto all new license application requirements of this Chapter.

(3) A licensee shall submit a renewal report with the renewal fee, in a form and in a manner prescribed bytheby the commissioner.

The renewal report shall state or containPage a24 description of each63 materialCODING: change in information submitted by the licenseeinitsoriginallicenseapplicationandwhichhasnotbeenpreviouslyreported to the commissioner.

Page 25 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 (4)ENROLLED ThecommissionermayutilizeNMLStoprocesslicenserenewalsifsuchcontain functionalitya isdescription consistentof witheach thismaterial Section.change in information submitted by the licenseeinitsoriginallicenseapplicationandwhichhasnotbeenpreviouslyreported to the commissioner.

(4) ThecommissionermayutilizeNMLStoprocesslicenserenewalsifsuch functionality is consistent with this Section.

E.(1) When the commissioner determines an application for acquisition of controlinaccordancewiththisSectionappearstoincludealltheitemsandaddresses Page 2625 of 7363 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 ENROLLED E.(1) When the commissioner determines an application for acquisition of controlinaccordancewiththisSectionappearstoincludealltheitemsandaddresses allofthemattersthatarerequired,theapplicationshall beconsideredcomplete,and the commissioner shall do all of the following:

(b) The person, or group of persons actingin concert,concert,is is not prohibited from acquiring control.

A determinationbythecommissionerthatdetermination anbythe applicationcommissioner isthatanapplicationis complete and is accepted for processing means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.

WhenanapplicationisfiledandconsideredcompleteinWhenanapplicationisfiledandconsideredcompleteinaccordancewith accordancewith Subsection E of this Section, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the person, or group of persons acting in concert, seeking to acquirecontrol.

(2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control, and the competence, Page 2726 of 7363 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 ENROLLED 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 to permit the person, or group of persons acting in concert, to control the licensee.

Page 2827 of 7363 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 ENROLLED (3) ApersonwhoacquirescontrolofalicenseeasApersonwhoacquirescontrol ofalicenseeas apersonalrepresentative, custodian, guardian, conservator, or trustee, or as an officer appointed byaby a court of competent jurisdiction or by operation of law.

(a) The person has not had a license revoked or suspended or controlled a licenseethathashadalicenserevokedorsuspendedlicenseethat whilehas thehad persona waslicense inrevokedorsuspendedwhilethepersonwasin control of the licensee in the previous five years.

(c) TheThelicenseetobeacquiredis licenseetoprojectedto bemeet acquiredisthe projectedtorequirements meettherequirementsofof R.S.

6:1059, 1060, and 1061 after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the Pagerequirements 29 of 73R.S. CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 requirements of R.S.

(d)Page The28 licensee to be acquired will not implement any material changes to its business plan as a result of the63 acquisitionCODING: of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan as a result of the acquisition of control.

(e)Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored Theare personadditions. provides notice of the acquisition in cooperation with the licenseeand attests to Subparagraphs (a)through(d)ofthis Paragraphin a form and in a medium prescribed by the commissioner.

(2)HB IfNO. the notice is not disapproved within thirty calendar days after the date on which the notice was determined to be complete, the notice is deemed approved.

1230 ENROLLED (d) The licensee to be acquired will not implement any material changes to its business plan as a result of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan as a result of the acquisition of control.

(e) The person provides notice of the acquisition in cooperation with the licenseeandatteststo Subparagraphs(a)through (d) of this Paragraph in a form and in a medium prescribed by the commissioner.

(2) If the notice is not disapproved within thirtycalendar days after the date on which the notice was determined to be complete, the notice is deemed approved.

If a multistate licensing process includes a determination pursuant to Paragraph (L)(3)ofthis(L)(3) Sectionof andthis anSection applicantandanapplicantavails avails itself or is otherwise subject to the multistate licensing process:

Page§1047. 30 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscoredNotice areand additions.information requirements for a change of key individuals A.(1) A licensee adding or replacing anykeyindividual shall do both of the following:

HLS 26RS-1282 REENGROSSED HB NO.

1230 §1047.

Notice and information requirements for a change of key individuals A.(1) A licensee adding or replacinganykeyindividual shall do both of the following:

(b)Page ProvideinformationasrequiredbyR.S.6:1042withinforty-fivecalendar29 days of the63 effectiveCODING: date of the keyindividual's appointment.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (b) ProvideinformationasrequiredbyR.S.6:1042withinforty-fivecalendar days of the effective date of the keyindividual's appointment.

IftheofficehasnotIftheofficehasnotreceivedthelicensee'srequest receivedthelicensee's request for appeal within that period, then the licensee is deemed to have waived all rights ofappeal.

Page(2) 31If ofLouisiana 73is CODING:a lead investigative state, the commissioner may investigate the applicant pursuant to this Subsection and the timeframes established by agreement through the multistate licensing process.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (2) If Louisiana is a lead investigative state, the commissioner may investigate the applicant pursuant to this Subsection and the timeframes established by agreement through the multistate licensing process.

B.(1)Page The30 report of condition63 shallCODING: include all of the following:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED B.(1) The report of condition shall include all of the following:

(b) Nationwide and state-specific money transmission transaction information in everyeveryjurisdiction jurisdiction in the United States where the licensee is licensed to engage in money transmission.

(2) The commissioner may utilize NMLS for the submission of the report required by Subsection A of this Section and is authorized to change or update as necessarynecessarythe the requirements of this Section to carryoutcarry out the purposes of this Chapter and maintain consistency with NMLS reporting.

Page(1) 32Anauditedfinancialstatementofthelicenseeforthefiscalyearprepared ofin 73accordance CODING:with United States GenerallyAccepted Accounting Principles.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (1) Anauditedfinancialstatementofthelicenseeforthefiscalyearprepared in accordance with United States GenerallyAccepted Accounting Principles.

Ifthe certificatePage or31 opinionof is63 qualified,CODING: 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.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED 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.

The commissioner may utilize NMLSforthesubmissionofthereportrequiredbythisNMLSforthesubmission SubsectionofthereportrequiredbythisSubsectionprovidedthatthe providedthatthe functionalityisconsistentwiththerequirementsofthisSection.

Theauthorizedagentreportshall include,ataminimum,eachauthorizedinclude,ataminimum, eachauthorized agent's:

Page(8) 33Contact ofperson 73name, CODING:phone number, and email address.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (8) Contact person name, phone number, and email address.

(1)Page The32 filing of a63 petitionCODING: by or against the licensee pursuant to the United States BankruptcyCode, 11 U.S.C.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (1) The filing of a petition by or against the licensee pursuant to the United States BankruptcyCode, 11 U.S.C.

(b) Anindictment,An charge,orconvictionofanauthorizedagentindictment,charge,orconvictionofanauthorizedagentfora for a felony.

(2)(a) Except as provided in Subparagraphs (b) and (c) of this Paragraph, a licenseelicenseeshall shall notifythe commissioner in writing or through the NMLS within three business days after the time that the licensee becomes aware of any breach of securityofthesystemofcomputerizeddataownedorlicensedbythelicensee,which containspersonalinformationaboutaLouisianaresident,ortheunauthorizedaccess tooruseofsuchinformationaboutaLouisianaresidentasaresultofthebreach.

For Pagepurposes 34of this Subparagraph, the terms breach of 73the CODING:security of the system and personal information have the same meaning as in R.S.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 purposes of this Subparagraph, the terms breach of the security of the system and personal information have the same meaning as in section R.S.

Notice shall be made in good faith and without unreasonable delayasdelay as soon as possible after the lawPage enforcement33 agencyof determines63 thatCODING: notification will no longer impede the investigation.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED law enforcement agency determines that notification will no longer impede the investigation.

(5) Records of eachoutstandingeach outstanding moneytransmission obligation paid within the five-year period.

Page(6) 35A list of 73the CODING:last-known names and addresses of all of the licensee's authorized agents.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (6) A list of the last-known names and addresses of all of the licensee's authorized agents.

D.Page 34 of 63 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED D.

Page(3) 36Conductareasonablerisk-based ofbackground 73investigation CODING:sufficient for the licensee to determine whether the authorized agent has complied and will likely comply with applicable state and federal law.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (3) Conduct areasonablerisk-basedbackground investigation sufficient for the licensee to determine whether the authorized agent has complied and will likely comply with applicable state and federal law.

TheThewritten written contractrequiredbyParagraph(B)(2)ofthis Sectionshall be signedbythelicenseeandtheauthorizedagentand,ataminimum,shalldoallofthe following:

(1)Page Appointthepersonsigningthecontractasthelicensee'sauthorizedagent35 with the authority to conduct money transmission on behalf of the63 licensee.CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (1) Appointthepersonsigningthecontractasthelicensee'sauthorizedagent with the authority to conduct money transmission on behalf of the licensee.

(3) RequiretheauthorizedagenttoagreetoRequirethe authorizedagentto agreeto fullycomplywith all applicable state and federal laws, rules, and regulations pertaining to money transmission, including this Chapter and regulations related thereto, relevant provisions of the Bank Secrecy Act and the USA PatriotPATRIOT Act.

Page(8) 37State that the licensee is subject to regulation by the commissioner and that, as part of 73that CODING:regulation, the commissioner may suspend or revoke an authorizedagentdesignationorrequirethelicenseetoterminateanauthorizedagent designation.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (8) State that the licensee is subject to regulation by the commissioner and that, as part of that regulation, the commissioner may suspend or revoke an authorizedagentdesignationorrequirethelicenseetoterminateanauthorizedagent designation.

G.Page 36 of 63 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED G.

PageB. 38 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscoredApersonshallnotengageinmoneytransmissionpursuanttothisChapter areif additions.the transmission of money, or its equivalent, is undertakenfor the purpose of debt adjusting, as defined in R.S.

HLS 26RS-1282 REENGROSSED HB NO.

1230 B.

ApersonshallnotengageinmoneytransmissionpursuanttothisChapter if the transmission of money, or its equivalent, is undertaken for the purpose of debt adjusting, as defined in R.S.

(1)Page Structuring37 transactions so that the receipt of money,63 orCODING: its equivalent, from a debtor and the distribution or disbursement of such money to creditors are performed by different persons, whether affiliated or unaffiliated, including where a third partyreceives debtor funds and a person distributes or disburses such funds, when such activities are undertaken pursuant to a common plan, arrangement, or understanding to accomplish debt adjusting.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (1) Structuring transactions so that the receipt of money, or its equivalent, from a debtor and the distribution or disbursement of such money to creditors are performed by different persons, whether affiliated or unaffiliated, including where a third party receives debtor funds and a person distributes or disburses such funds, when such activities are undertaken pursuant to a common plan, arrangement, or understanding to accomplish debt adjusting.

14:331(C), including the Pagereceipt 39and disbursement of 73debtor CODING:funds to the extent authorized therein.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 receipt and disbursement of debtor funds to the extent authorized therein.

Every money transmitter licensee and its agents shall transmit the monetaryequivalent of all moneyor equivalent value received from a consumer for transmission, net of any fees, or issue instructions committing the money or its monetary equivalent, to the person designated by the consumer, or return such amount to the consumer, within ten business days after receiving the money or equivalentequivalentvalue,unlessotherwiseorderedbytheconsumer,acceptedpursuanttothe value, unless otherwise ordered by the consumer, accepted under the terms of a contract for stored value or when the transmission is for the payment of goods or services, or unless the licensee or its agent has reasonable cause to believe that the sender may be a victim of fraud or that a crime or a violation of law has occurred, is occurring, or will occur in connection with transmitting the money.

B.Page 38 of 63 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED B.

51:1901 for executing a Pagelawful 40and ofvalid 73transaction CODING:pursuant to federal and state law is contrary to public policy and shall be null and void.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored(2) areA additions.moneytransmitter licensee shall provide notice to a consumer of any transactionthatthemoneytransmitterfindstobeorissuspectedofbeinginviolation oftheuserpolicyoruseragreementandforwhichthelicenseeseizesthetransaction funds, unless such notice is prohibited by law.

HLSAny 26RS-1282funds REENGROSSEDseized HBby NO.the money transmitter prior to providing such notice, unless such notice is prohibited by law, and found to be from a lawful and valid transaction in accordance with federal and state law shall be processed bythe licensee in accordancewith Subsection A of this Section.

1230 lawful and valid transaction pursuant to federal and state law is contrary to public policy and shall be null and void.

(2) A moneytransmitter licensee shall provide notice to a consumer of any transactionthatthemoneytransmitterfindstobeorissuspectedofbeinginviolation oftheuserpolicyoruseragreementandforwhichthelicenseeseizes thetransaction funds, unless such notice is prohibited by law.

Any funds seized by the money transmitter prior to providing such notice, unless such notice is prohibited by law, and found to be from a lawful and valid transaction in accordance with federal and state law shall be processed bythe licensee in accordance with Subsection A of this Section.

The enforcement of anychoice-of-lawany choice-of-law provision in a money transmitter licensee user policy or user agreement that would result in a contravention of the public policyof this state as expressed bySubsection D of this Section shall be null and void to the extent of such contravention.

AmoneytransmitterlicenseethatseizesorholdsAmoneytransmitterlicenseethat fundsseizes pursuantorholds tofundspursuantto auser policyor user agreement provision thatis subjecttonullification asprovidedbythis Section shall return to the consumer any funds held or seized as a result of the violation,Page including39 anyof financial63 penaltyCODING: or stipulated damages assessed, and the money transmitter licensee may cancel the service contract.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED violation, including any financial penalty or stipulated damages assessed, and the money transmitter licensee maycancel the service contract.

(2) TheprovisionsofthisSectionshallnotapplytoanoperatorofapayment system orits subsidiariesandaffiliatessubsidiariesandaffiliateswhich which areexempt from licensingpursuanttolicensingpursuant Pageto 41thisChaptertotheextentthattheoperatorofapaymentsystem ofprovidesprocessing, 73clearing, CODING:or settlement services,betweenor amongpersons, in connectionwith wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearing house transfers, or similar funds transfers.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 thisChaptertotheextentthattheoperatorofapaymentsystem providesprocessing, clearing, or settlement services,betweenor amongpersons, in connectionwith wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearing house transfers, or similar funds transfers.

(2)Page Instructionshavebeengivencommittinganequivalentamountofmoney40 to the person designated bythe sender within ten calendar days of the63 dateCODING: on which the money was received for transmission.

(3)Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored Theagreementbetweenthelicenseeandthesenderinstructsthelicenseeare toadditions. forwardthe moneyat a time that is beyond ten calendar days of the date on which the money was received for transmission.

IfHB fundsNO. have not yet been forwarded in accordancewith thetermsoftheagreementbetweenthelicenseeandthe sender, the licensee shall issue a refund in accordancewith the other provisions of this Section.

1230 ENROLLED (2) Instructionshavebeengivencommittinganequivalentamountofmoney to the person designated bythe sender within ten calendar days of the date on which the money was received for transmission.

(3) Theagreementbetweenthelicenseeandthesenderinstructsthelicensee to forwardthe moneyat a time that is beyond ten calendardays of the date on which the money was received for transmission.

If funds have not yet been forwarded in accordancewith thetermsoftheagreementbetweenthe licenseeandthesender,the licensee shall issue a refund in accordancewith the other provisions of this Section.

Page(b) 42Identify ofthe 73particular CODING:transaction to be refunded in the event the sender has multiple transactions outstanding.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (b) Identifythe particular transaction to be refunded in the event the sender has multiple transactions outstanding.

(1)Page The41 receipt shall contain all of the63 followingCODING: information, as applicable:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (1) The receipt shall contain all of the following information, as applicable:

(2) The receipt required by this Section shall be in English and in the language principallyused bythe licenseeor authorized agent to advertise, solicit, or Pagenegotiate, 43either oforally 73or CODING:in writing, for a transaction conducted in person, electronically, or by phone, if other than English.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English.

A licensee pursuant to this Chapter shall maintain at all times a tangible net worth of the greater of one hundred thousand dollars or three percent of total assets for the first one hundred million dollars, two percent of additional assets for onehundredmilliononehundredmilliondollarstoonebilliondollars,andone-halfpercentofadditional dollarstoonebilliondollars,andone-halfpercentofadditional assets for over one billion dollars.

An applicant for a money transmission license shall provide, and a licensee at all times shall maintain, a surety bond issued by a bonding company or insurancePage companyauthorized42 toof do63 businessCODING: in this state and in a form satisfactory to the commissioner.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED insurance companyauthorized to do business in this state and in a form satisfactory to the commissioner.

(b) An amount equal to one hundred percent of the licensee's average daily moneytransmission liabilityin this state calculatedcalculatedfor for the most recentlycompleted three-month period, up to a maximum of five hundred thousand dollars.

(2) A licensee that maintains a bond in the maximum amount provided for inSubparagraphs(1)(a)or(b)ofthisSubsection,inSubparagraphs(1)(a)or(b)ofthis Subsection, asapplicable,shall notnotberequired berequired to calculate its average daily money transmission liability in this state for purposes of this Section.

PageC. 44 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscoredA arelicensee additions.may exceed the maximum required bond amount pursuant to R.S.

HLS 26RS-1282 REENGROSSED HB NO.

1230 C.

A licensee mayexceed the maximum required bond amount pursuant to R.S.

ThebondThe bond shall bein aformsatisfactoryto thethecommissionerandshall commissioner andshall be for the use and benefit of the office and any claimants against the licensee or his agents to secure the faithful performance of the obligations of the licensee and his agents with respect to the receipt, handling, transmission, and payment of moneyin connection with money transmissions in this state.

The surety bond shall be issued by a bonding or insurance company authorizedto do business in this stateandinstateandinaformsatisfactoryto aformsatisfactorytothecommissionerthecommissioner andpayabletotheofficeforthebenefitofanyclaimantagainstthelicenseetosecure the faithful performanceof the obligations and duties of the licensee with respect to money transmission activities with, or on behalf of, residents of this state and the payment of required but unpaid fee amounts due to the office and assessed but unpaid civil money penalties.

G.Page 43 of 63 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED G.

Notwithstanding any other provision of law to the contrary, the commissioner mayat anyanytime, time, if in the commissioner's sole opinion the protection of the public so requires, increase the principal sum of the bond required of any applicant or licensee by this Chapter but in no case shall the principal sum of the bond required exceed one million dollars.

A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States Generally Accepted PageAccountingPrinciples 45of not lessthantheaggregate amount of 73all CODING:of its outstanding money transmission obligations in all states.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 AccountingPrinciplesofnot less than the aggregate amount of all of its outstanding money transmission obligations in all states.

6:1062(A), the commissioner, with respect to any licensee, may by rule, regulation, or order limit the extent to which a specific investment maintained by a licensee within a class of permissiblepermissibleinvestments investmentsmaybeconsidereda maybeconsideredapermissibleinvestment,permissible iftheinvestment, specificifthespecific investment represents undue risk to customers, not reflected in the market value of investments.

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'soutstandingmoneytransmissionobligationsintheeventofinsolvency,the filing of a petition by or against the licensee underin accordance with the United States Bankruptcy Code, 11 U.S.C.

101 through 110, both inclusive, as amended or recodifiedrecodifiedfromtimetotime,forbankruptcyorreorganization,thefilingofapetition 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 beneficiarybeneficiaryof of this statutory trust.

NopermissibleinvestmentsimpressedwithatrustpursuanttothisSubsection shallPage be44 subject to attachment, levy of execution,63 orCODING: sequestration by order of any court, except for a beneficiaryof this statutory trust.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiaryof this statutory trust.

Page(3) 46Funds drawn on a letter of 73credit, CODING:and anyother permissible investments heldintrustforthebenefitofthepurchasersandholdersofthelicensee'soutstanding money transmission obligations, are 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 this state, and other states, as applicable.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (3) Funds drawn on a letter of credit, and anyother permissible investments heldintrustforthebenefitofthepurchasersandholdersofthelicensee'soutstanding money transmission obligations, are 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 this state, and other states, as applicable.

The commissioner, byrule, regulation, or byorder mayallow other types of investments that the commissioner determines are of sufficient liquidity and qualityqualityto tobeapermissibleinvestment. be a permissible investment.

TheThecommissioner commissionermayparticipatein is authorized to 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.

The following investments are permissible underin accordance with R.S.

(1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depositoryfinancialinstitution, andcashequivalentsincludingAutomatedClearing House,orACH,itemsintransittothelicenseeandACHitemsorinternationalwiresPage in45 transitof to63 aCODING: payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-fundedtransmission receivables owed by any bank, or money market mutual funds rated "AAA" by Standard & Poors, or the equivalent from any eligible rating service.

(2) Certificatesofdepositorseniordebtobligationsofaninsureddepository institution, as defined in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C.

1813, as amended or recodified from time to time, or as defined under the Federal Credit Union Act, 12 U.S.C.

1781, as amended or recodified from time to time.

Page 47 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 (3)ENROLLED AnHouse,orACH,itemsintransittothelicenseeandACHitemsorinternationalwires obligationin oftransit theto Uniteda Statespayee, orcash ain commission,transit agency,via orarmored instrumentalitycar, thereof,cash anin obligationsmart thatsafes, iscash guaranteedin fullylicensee-owned aslocations, todebit principalcard andor interestcredit bycard-fundedtransmission thereceivables Unitedowed States,by any bank, or anmoney obligationmarket ofmutual afunds staterated or"AAA" aby governmentalStandard subdivision,& agency,Poors, or instrumentalitythe thereof.equivalent from any eligible rating service.

(2) Certificatesofdepositorseniordebtobligationsofaninsureddepository institution, as defined in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C.

1813, as amended or recodified from time to time, or as defined in accordance with the Federal Credit Union Act, 12 U.S.C.

1751, as amended or recodified from time to time.

(3) 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.

The permissible investments listed in Subsection A of this Section shall also include the full drawable amount of an irrevocable standby letter of credit for which the stated beneficiaryis the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven calendar days of presentation of the items required bybySubsection Subsection D of this Section.

(b) Is regulated, supervised, and examined bybyUnited United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies.

(2)Page Be46 irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the63 letterCODING: of credit.

(3) Not contain reference to any other agreements, documents, or entities, or otherwise provide for anysecurity interest in the licensee.

(4) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty calendar days prior to any expiration date, that the irrevocable letter of credit will not be extended.

Page 48 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 C.ENROLLED (2) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit.

In(3) theNot eventcontain ofreference to any noticeother ofagreements, expirationdocuments, or nonextensionentities, ofor aotherwise letterprovide offor creditanysecurity issuedinterest underin Paragraph (B)(4) of this Section, the licenseelicensee. shall be required to demonstrateto thesatisfactionofthecommissioner,fifteencalendardays priorto expiration, that the licensee maintains and will maintain permissible investments in accordance with R.S.

(4) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing bycertified or registered mail or courier mail or other receipted means, at least sixty calendar days prior to any expiration date, that the irrevocable letter of credit will not be extended.

C.

In the event of any notice of expiration or nonextension of a letter of credit issued pursuant to Paragraph (B)(4) of this Section, the licensee shall be requiredtodemonstratetothesatisfactionofthecommissioner,fifteencalendardays prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with R.S.

If the licenseeislicensee is not able to do so, the commissioner maydrawmay draw on the letter ofofcreditinanamountuptotheamountnecessarytomeetthelicensee'srequirements credit in an amount up to the amount necessaryto meet the licensee's requirements to maintain permissible investments in accordance with R.S.

The drawn funds shall be held in trust by the commissioner or the commissioner's designated agent, to the extent authorized by law, as agent for the benefit of the purchasersandholdersofthelicensee'soutstandingmoneytransmissionobligations.purchasers and holders of the licensee's outstanding money transmission obligations.

(a)Page The47 filing of a63 petitionCODING: by or against the licensee in accordance with the United States Bankruptcy Code, 11 U.S.C.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (a) The filing of a petition by or against the licensee in accordance with the United States Bankruptcy Code, 11 U.S.C.

(c) The seizure of assets of a licensee by a commissioner pursuant to an emergencyorderissuedinaccordancewithapplicablelaw,onthebasisofanaction,emergencyorderissuedin accordancewith applicablelaw,onthebasisofanaction, violation, or condition that has caused or is likely to cause the insolvency of the licensee.

Page(d) 49The beneficiary has received notice of 73expiration CODING:or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with R.S.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (d) The beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with R.S.

Thecommissionermaydesignateanagenttoserveonthecommissioner's behalfasbeneficiarytobehalf aletterofas creditbeneficiaryto soaletterofcreditso longaslongastheagent theand agentletter andletterofcreditmeetof credit meet requirementsestablishedbythecommissioner.

6:1060 thatexceedstheaveragedailymoneytransmissionthatexceedstheaverage dailymoneytransmission liabilityin thisstate.this state.

H.Page 48 of 63 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED H.

(2) Of the receivables permissible pursuant to Paragraph (1) of this Subsection, receivablesthat arepayable to a licenseefrom a single authorized agent in theordinarycourseofthe ordinarycourseof business maynot exceedten percentofpercentoftheaggregatevalue the aggregatevalue of the licensee's total permissible investments.

Page(3) 50The following investments are permissible up to twenty percent per category and combined up to fifty percent of 73the CODING:aggregate value of the licensee's total permissible investments:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (3) The following investments are permissible up to twenty percent per category and combined up to fifty percent of the aggregate value of the licensee's total permissible investments:

Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to ten percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactoryrating in its mostPage recent49 examination and the foreign depository institution meets all of the63 followingCODING: requirements:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED most recent examination and the foreign depository institution meets all of the following requirements:

(2) Is registered underpursuant to the United States Foreign Account Tax Compliance Act.

Page§1063. 51 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 §1063.

(1) The licensee violates anyanyprovision provision of this Chapter or a rule adopted or regulation promulgated or order issued pursuant thereto.

(2) ThelicenseedoesnotThe cooperatewithlicenseedoes annot examinationcooperatewith oranexamination investigationorinvestigation by the commissioner.

(7) The licenseeislicensee is insolvent, suspends payment of its obligations, or makes a general assignment for the benefit of its creditors.

(8)Page Thelicenseedoesnotremoveanauthorizedagentafterthecommissioner50 issues and serves upon the licensee a final order including a finding that the authorized agent has violated one or more provisions of this63 Chapter.CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED (8) Thelicenseedoesnotremoveanauthorizedagentafterthecommissioner issues and serves upon the licensee a final order including a finding that the authorized agent has violated one or more provisions of this Chapter.

Page§1064. 52 of 73 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 §1064.

(1) The licensee or person violates anyofany of the provisions of this Chapter or anyrule or regulation promulgated or anyanyorder, order including but not limited to a cease and desist order or subpoena, issued pursuant to this Chapter.

(b)Page The51 licensee or person makes a general assignment for the benefit of its63 creditors.CODING:

(c) The licensee or person becomes the debtor, alleged debtor, respondent, or person in a similar capacity in a case or other proceeding under any bankruptcy, reorganization, arrangement, readjustment, insolvency, receivership, dissolution, liquidation, or similar law and does not obtain from the court, within a reasonable time, confirmation of a plan or dismissal of the case or proceeding.

Page 53 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 (d)ENROLLED (b) The licensee or person appliesmakes for, or permits the appointment of, a receiver,general trustee,assignment or other agent of a court for itselfthe orbenefit for a substantial part of its assets.creditors.

(6)(c) ThelicenseeorpersonhasThe knowinglyprovidedlicensee or causedtoperson beprovidedbecomes athe materialdebtor, misrepresentationalleged todebtor, therespondent, commissioner,or anyperson falsein ora fraudulentsimilar materialcapacity fact,in a case or anyother falseproceeding orunder fraudulentany financialbankruptcy, statementreorganization, orarrangement, hasreadjustment, suppressedinsolvency, orreceivership, withhelddissolution, fromliquidation, theor commissionersimilar anylaw informationand whichdoes ifnot submittedobtain byfrom the licenseecourt, wouldwithin havea resultedreasonable intime, confirmation of a denialplan or dismissal of the licensecase application.or proceeding.

(d) The licensee or person applies for, or permits the appointment of, a receiver, trustee, or other agent of a court for itself or for a substantial part of its assets.

(6) The licenseeor person hasknowinglyprovidedorcausedto beprovided a material misrepresentation to the commissioner, any false or fraudulent material fact, or any false or fraudulent financial statement or has suppressed or withheld from the commissioner any information which if submitted by the licensee would have resulted in a denial of the license application.

(8) The licensee or person fails to maintain records as required by the commissionerafterbeinggivenwrittennoticetocommissionerafterbeinggivenwrittennoticetothelastaddressofrecordandthirty thelastaddressofrecordandthirty calendar days within which to correct the failure.

(10)Page The52 licensee or person violates any provision of a63 regulatoryCODING: or prohibitory statute of this state or any other state as determined by the government agency responsible for citing such violations.

(11) The licensee or person misrepresents material facts or makes a false promise likely to influence, persuade, or induce a resident to engage in money transmission activities.

Page 54 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.

1230 (12)ENROLLED (10) The licensee or person misrepresentsviolates orany concealsprovision of a materialregulatory fact, term, or conditionprohibitory statute of athis transactionstate toor whichany heother isstate aas partydetermined pertinentby tothe agovernment residentagency toresponsible engagefor inciting moneysuch transmissionviolations. activities.

(11) The licensee or person misrepresents material facts or makes a false promise likely to influence, persuade, or induce a resident to engage in money transmission activities.

(12) The licensee or person misrepresents or conceals a material fact, term, or condition of a transaction to which he is a party pertinent to a resident to engage in money transmission activities.

(16) The licensee or person fails to pay any fee, civil money penalty, cost, or assessment imposed pursuant to this Chapter or byanyrulebyanyruleadopted adoptedor orregulationregulation promulgated in accordance with this Chapter.

(18) The licensee or person fails, after notice and without lawful excuse, to obey any order or subpoena issued bytheby the commissioner.

(19) The commissioner discovers anyfact or condition that currentlyexists that,ifitthat, hadif existedit athadexisted theatthetime time of the original application for licensure,wouldlicensure, would have warranted the denial of the application.

B.(1) Notwithstanding any other law to the contrary, and in addition to any other authorityconferredauthority conferred upon the commissioner byanyother provision of law, the commissionerPage may,53 upon discovery, order an immediate suspension of the63 licenseCODING: of any person licensed pursuant to this Chapter who does anyof the following:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

1230 ENROLLED commissioner may, upon discovery, order an immediate suspension of the license of any person licensed pursuant to this Chapter who does anyof the following:

Page(b) 55Commits a violation of 73any CODING:provision of this Chapter such that, in the opinion of the commissioner, public safety and welfare demand that emergency action be taken.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1282 REENGROSSED HB NO.

1230 (b) Commits a violation of any provision of this Chapter such that, in the opinion of the commissioner, public safety and welfare demand that emergency action be taken.

In addition to any other authority conferred upon the commissioner by thisChapterorthisTitle,thecommissionermayissueaceaseanddesistorder,orderthisChapterorthisTitle,thecommissionermayissueaceaseanddesist order,order refunds of any unauthorized portion of any fee, or charge any person who collects in violation of this Chapter and mayimpose a civil moneypenaltyas determined by the commissioner bybyrule rule upon anyperson who is found to have violated anyanyof of the provisions of this Chapter or anyrule or regulation promulgated in accordancewithaccordance with this Chapter.

The violations listed in this Subsection are nonexclusive and are in addition to and exist independent of any violations set forth in other provisions of thisPage Chapter.54 of 63 CODING:

Failure to comply with any provisions set forth in this Chapter may serve as a basis for anyenforcement or other action authorized to the commissioner Page 56 of 73 CODING:

HLS 26RS-1282 REENGROSSED HB NO.