Bill Text: IA HF2262 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to money transmission services, providing penalties, and including effective date and retroactive applicability provisions. (Formerly HSB 601.) Effective date: 04/10/2024. Applicability date: 07/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2024-04-29 - Fiscal note. [HF2262 Detail]
Download: Iowa-2023-HF2262-Enrolled.html
House
File
2262
-
Enrolled
House
File
2262
AN
ACT
RELATING
TO
MONEY
TRANSMISSION
SERVICES,
PROVIDING
PENALTIES,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
533C.102,
subsection
2,
Code
2024,
is
amended
to
read
as
follows:
2.
“Authorized
delegate”
means
a
person
a
licensee
designates
to
provide
money
services
transmission
on
behalf
of
the
licensee.
Sec.
2.
Section
533C.103,
Code
2024,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
21.
A
person
appointed
as
an
agent
of
a
payor
for
purposes
of
providing
payroll
processing
services
for
which
the
agent
would
otherwise
need
to
be
licensed,
provided
all
of
the
following
apply:
a.
There
is
a
written
agreement
between
the
payor
and
the
agent
that
directs
the
agent
to
provide
payroll
processing
services
on
the
payor’s
behalf.
b.
The
payor
holds
the
agent
out
to
employees
and
other
payees
as
providing
payroll
processing
services
on
the
payor’s
behalf.
c.
The
payor’s
obligation
to
a
payee,
including
an
employee
or
any
other
party
entitled
to
receive
funds
via
the
payroll
processing
services
provided
by
the
agent,
shall
not
be
extinguished
if
the
agent
fails
to
remit
the
funds
to
the
House
File
2262,
p.
2
payee.
Sec.
3.
NEW
SECTION
.
533C.901
Suspension
and
revocation
——
receivership.
The
superintendent
may
suspend
or
revoke
a
licensee’s
license,
place
a
licensee
in
receivership,
or
order
a
licensee
to
revoke
the
designation
of
an
authorized
delegate
if
any
of
the
following
apply:
1.
The
licensee
violates
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter.
2.
The
licensee
does
not
cooperate
with
an
examination
or
investigation
conducted
by
the
superintendent.
3.
The
licensee
engages
in
fraud,
intentional
misrepresentation,
or
gross
negligence.
4.
As
a
result
of
the
licensee’s
willful
misconduct
or
willful
blindness,
an
authorized
delegate
is
convicted
of
a
violation
of
a
state
or
federal
anti-money
laundering
statute,
or
violates
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter.
5.
The
competence,
experience,
character,
or
general
fitness
of
the
licensee,
authorized
delegate,
person
in
control
of
a
licensee,
or
key
individual
of
the
licensee
or
authorized
delegate
indicates
that
it
is
not
in
the
public
interest
to
permit
the
person
to
provide
money
transmission.
6.
The
licensee
engages
in
an
unsafe
or
unsound
practice.
In
determining
whether
a
licensee
is
engaging
in
an
unsafe
or
unsound
practice,
the
superintendent
may
consider
the
size
and
condition
of
the
licensee’s
money
transmission,
the
magnitude
of
any
losses,
the
gravity
of
any
violations
of
this
chapter,
and
the
previous
conduct
of
any
persons
involved.
7.
The
licensee
is
insolvent,
suspends
payment
of
the
licensee’s
obligations,
or
makes
a
general
assignment
for
the
benefit
of
the
licensee’s
creditors.
8.
The
licensee
does
not
remove
an
authorized
delegate
after
the
superintendent
issues
and
serves
upon
the
licensee
a
final
order
finding
that
the
authorized
delegate
has
violated
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter.
Sec.
4.
NEW
SECTION
.
533C.902
Suspension
and
revocation
of
authorized
delegates.
House
File
2262,
p.
3
1.
The
superintendent
may
issue
an
order
suspending
or
revoking
the
designation
of
an
authorized
delegate
if
the
superintendent
finds
any
of
the
following
apply:
a.
The
authorized
delegate
violated
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter.
b.
The
authorized
delegate
failed
to
cooperate
with
an
examination
or
investigation
by
the
superintendent.
c.
The
authorized
delegate
engaged
in
fraud,
intentional
misrepresentation,
or
gross
negligence.
d.
The
authorized
delegate
was
convicted
of
a
violation
of
a
state
or
federal
anti-money
laundering
statute.
e.
The
competence,
experience,
character,
or
general
fitness
of
the
authorized
delegate
or
a
person
in
control
of
the
authorized
delegate
indicates
that
it
is
not
in
the
public
interest
to
permit
the
authorized
delegate
to
provide
money
transmission.
f.
The
authorized
delegate
is
engaging
in
an
unsafe
or
unsound
practice.
In
determining
whether
an
authorized
delegate
is
engaging
in
an
unsafe
or
unsound
practice,
the
superintendent
may
consider
the
size
and
condition
of
the
authorized
delegate’s
provision
of
money
transmission;
the
magnitude
of
any
losses;
the
gravity
of
any
violations
of
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter;
and
the
previous
conduct
of
the
authorized
delegate.
2.
An
authorized
delegate
may
apply
for
relief
from
a
suspension
or
revocation
of
designation
as
an
authorized
delegate
according
to
procedures
prescribed
by
the
superintendent.
Sec.
5.
NEW
SECTION
.
533C.903
Orders
to
cease
and
desist.
1.
a.
If
the
superintendent
determines
that
a
violation
of
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter
by
a
licensee
or
authorized
delegate
is
likely
to
cause
immediate
and
irreparable
harm
to
the
licensee,
the
licensee’s
customers,
or
the
public,
or
cause
insolvency
or
significant
dissipation
of
assets
of
the
licensee,
the
superintendent
may
issue
an
order
requiring
the
licensee
or
authorized
delegate
to
cease
and
desist
from
the
House
File
2262,
p.
4
violation.
b.
The
superintendent
may
issue
an
order
for
a
licensee
to
cease
and
desist
from
providing
money
transmission
through
an
authorized
delegate
that
is
the
subject
of
a
separate
order
by
the
superintendent.
2.
a.
If
the
superintendent
has
reason
to
believe
that
a
person
has
violated
or
is
violating
section
533C.301,
533C.501,
or
533C.502,
the
superintendent
may
issue
an
order
requiring
the
person
to
show
cause
why
an
order
to
cease
and
desist
the
violation
should
not
be
issued.
b.
In
an
emergency
under
this
subsection,
the
superintendent
may
petition
the
district
court
for
the
issuance
of
a
temporary
restraining
order
ex
parte
pursuant
to
the
rules
of
civil
procedure.
3.
An
order
to
cease
and
desist
becomes
effective
upon
service
of
the
order
upon
the
person,
licensee,
or
authorized
delegate.
4.
An
order
to
cease
and
desist
remains
effective
and
enforceable
pending
the
completion
of
an
administrative
proceeding
pursuant
to
section
533C.908.
5.
A
person,
licensee,
or
an
authorized
delegate
who
is
served
with
an
order
to
cease
and
desist
under
this
section
may
petition
the
appropriate
court
for
a
judicial
order
setting
aside,
limiting,
or
suspending
the
enforcement,
operation,
or
effectiveness
of
the
order
pending
the
completion
of
an
administrative
proceeding
pursuant
to
section
533C.908.
6.
An
order
to
cease
and
desist
shall
expire
ten
days
after
the
order
is
issued
unless
the
superintendent
commences
an
administrative
proceeding
pursuant
to
section
533C.908.
Sec.
6.
NEW
SECTION
.
533C.904
Consent
orders.
The
superintendent
may
enter
into
a
consent
order
at
any
time
with
a
person
to
resolve
a
matter
arising
under
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter.
A
consent
order
must
be
signed
by
the
person
to
whom
the
consent
order
is
issued,
or
by
the
person’s
authorized
representative,
and
must
indicate
agreement
with
the
terms
contained
in
the
order.
A
consent
order
may
provide
that
the
order
does
not
constitute
an
admission
by
the
person
that
the
person
violated
this
chapter,
a
rule
adopted
under
this
House
File
2262,
p.
5
chapter,
or
an
order
issued
under
this
chapter.
Sec.
7.
NEW
SECTION
.
533C.905
Investigations.
1.
The
attorney
general
or
a
county
attorney
may
conduct
an
investigation
within
or
outside
of
this
state
to
determine
if
a
licensee,
an
authorized
delegate,
or
a
person
engaged
in
a
trade
or
business
has
failed
to
file
a
report
required
by
this
chapter,
or
has
engaged
or
is
engaging
in
any
act,
practice,
or
transaction
that
constitutes
a
violation
of
this
chapter.
2.
Upon
presentation
of
a
subpoena
from
a
prosecuting
attorney,
a
licensee,
an
authorized
delegate,
or
a
financial
institution
shall
make
its
books
and
records
available
to
the
attorney
general
or
county
attorney
during
normal
business
hours
for
inspection
and
examination
in
connection
with
an
investigation
pursuant
to
this
section.
Sec.
8.
NEW
SECTION
.
533C.906
Civil
penalties.
The
superintendent
may
assess
a
civil
penalty
against
a
person
who
violates
this
chapter,
a
rule
adopted
under
this
chapter,
or
an
order
issued
under
this
chapter
in
an
amount
not
to
exceed
one
thousand
dollars
per
day
for
each
day
the
violation
is
outstanding,
plus
the
state’s
costs
and
expenses
for
the
investigation
and
prosecution
of
the
matter,
including
reasonable
attorney
fees.
Sec.
9.
NEW
SECTION
.
533C.907
Criminal
penalties.
1.
A
person
who
is
not
licensed
under
this
chapter
and
who
knowingly
engages
in
an
activity
for
which
a
license
is
required
under
this
chapter
commits
an
aggravated
misdemeanor.
2.
A
person
commits
a
class
“C”
felony,
and
is
subject
to
a
civil
penalty
of
three
times
the
value
of
the
property
involved
in
the
transaction,
or,
if
no
transaction
is
involved,
a
civil
penalty
of
five
thousand
dollars,
if
the
person
does
any
of
the
following:
a.
With
the
intent
to
disguise
the
fact
that
money
or
a
payment
instrument
is
the
proceeds
of
criminal
conduct,
or
with
the
intent
to
promote,
manage,
establish,
carry
on,
or
facilitate
the
promotion,
management,
establishment,
or
carrying
on
of
any
criminal
conduct,
the
person
knowingly
furnishes
or
provides
any
false,
inaccurate,
or
incomplete
information
to
a
licensee,
authorized
delegate,
financial
institution,
person
engaged
in
a
trade
or
business,
or
any
House
File
2262,
p.
6
officer,
employee,
or
their
agent,
or
to
the
attorney
general
or
department
of
public
safety,
or
knowingly
conceals
a
material
fact
in
connection
with
a
transaction
for
which
a
report
is
required
to
be
filed
pursuant
to
this
chapter.
b.
With
the
intent
to
disguise
the
fact
that
money
or
a
payment
instrument
is
the
proceeds
of
criminal
conduct,
or
with
the
intent
to
promote,
manage,
establish,
carry
on,
or
facilitate
the
promotion,
management,
establishment,
or
carrying
on
of
any
criminal
conduct,
or
with
the
intent
to
evade
the
making
or
filing
of
a
report
required
under
this
chapter,
or
with
the
intent
to
cause
the
making
or
filing
of
a
report
that
contains
a
material
omission
or
misstatement
of
fact,
the
person
conducts
or
structures
a
transaction
or
series
of
transactions
by
or
through
one
or
more
licensees,
authorized
delegates,
financial
institutions,
or
persons
engaged
in
a
trade
or
business.
3.
A
person
who
intentionally
makes
a
false
statement,
misrepresentation,
or
false
certification
in
a
record
filed
or
required
to
be
maintained
under
this
chapter,
or
who
intentionally
makes
a
false
entry
or
omits
a
material
entry
in
such
a
record
commits
a
class
“D”
felony.
4.
Notwithstanding
any
provision
of
law
to
the
contrary,
each
violation
of
this
section
constitutes
a
separate,
punishable
offense.
Sec.
10.
NEW
SECTION
.
533C.908
Administrative
proceedings.
1.
Except
as
otherwise
provided
in
section
533C.903,
the
superintendent
shall
not
suspend
or
revoke
a
license,
place
a
licensee
in
receivership,
issue
an
order
to
cease
and
desist,
suspend
or
revoke
the
designation
of
an
authorized
delegate,
or
assess
a
civil
penalty
without
notice
and
an
opportunity
to
be
heard.
2.
The
superintendent
shall
hold
a
hearing
when
requested
by
an
applicant
whose
application
for
a
license
is
denied.
3.
All
administrative
proceedings
under
this
chapter
shall
be
conducted
in
accordance
with
chapter
17A.
Sec.
11.
NEW
SECTION
.
533C.1001
Uniformity
of
application
and
construction.
1.
This
chapter
shall
be
liberally
construed
to
effectuate
its
remedial
purposes.
Civil
remedies
under
this
chapter
shall
House
File
2262,
p.
7
be
supplemental
and
not
mutually
exclusive.
The
civil
remedies
under
this
chapter
do
not
preclude
and
are
not
precluded
by
any
other
provision
of
law.
2.
This
chapter
shall
be
applied
and
construed
to
effectuate
its
general
purpose
to
make
uniform
the
law
with
respect
to
the
subject
of
this
chapter
among
states
enacting
the
same
law,
and
to
make
the
reporting
requirements
regarding
financial
transactions
under
Iowa
law
uniform
with
the
reporting
requirements
regarding
financial
transactions
under
federal
law.
3.
The
attorney
general
may
enter
into
reciprocal
agreements
with
the
attorney
general
or
chief
prosecuting
attorney
of
any
state
to
effectuate
the
purposes
of
this
chapter.
Sec.
12.
NEW
SECTION
.
533C.1002
Financial
services
licensing
fund.
1.
A
financial
services
licensing
fund
is
created
as
a
separate
fund
in
the
state
treasury
under
the
authority
of
the
banking
division
of
the
department
of
insurance
and
financial
services.
Moneys
deposited
in
the
fund
shall
be
used
to
pay
for
staffing
necessary
to
perform
examinations,
audits,
and
other
duties
required
of
the
superintendent
and
the
banking
division
under
this
chapter.
2.
The
fund
shall
receive
moneys
including
but
not
limited
to
any
fees,
costs,
expenses,
or
penalties
collected
pursuant
to
this
chapter.
3.
Notwithstanding
section
8.33,
moneys
appropriated
to
the
fund
in
this
section
that
remain
unencumbered
or
unobligated,
and
other
moneys
credited
to
the
fund,
shall
not
revert
at
the
close
of
the
fiscal
year
but
shall
remain
in
the
financial
services
licensing
fund
and
shall
remain
available
for
expenditure
for
the
purposes
designated.
Sec.
13.
NEW
SECTION
.
533C.1003
Applicability.
This
chapter
applies
to
the
provision
of
money
transmission
on
or
after
October
1,
2003.
Sec.
14.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
15.
RETROACTIVE
APPLICABILITY.
The
following
apply
retroactively
to
July
1,
2023:
House
File
2262,
p.
8
The
sections
of
this
Act
enacting
sections
533C.901,
533C.902,
533C.903,
533C.904,
533C.905,
533C.906,
533C.907,
533C.908,
533C.1001,
533C.1002,
and
533C.1003,
and
the
section
of
this
Act
amending
section
533C.102.
Sec.
16.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
designate
sections
533C.901
through
533C.908,
as
enacted
in
this
Act,
as
article
9
entitled
“Enforcement”,
and
sections
533C.1001
through
533C.1003,
as
enacted
in
this
Act,
as
article
10
entitled
“Miscellaneous
Provisions”.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2262,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor
