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PRIOR PRINTER'S NO. 1029
PRINTER'S NO. 3461
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
850
Session of
2015
INTRODUCED BY MACKENZIE, GROVE, A. HARRIS, MILLARD, GABLER,
COHEN AND MURT, MARCH 26, 2015
AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 7, 2016
AN ACT
Amending the act of September 2, 1965 (P.L.490, No.249),
entitled "An act providing for the licensing and regulation
of the business of transmitting money or credit for a fee or
other consideration by the issuance of money orders, by the
sale of checks or by other methods; conferring powers and
duties upon the Department of Banking; and imposing
penalties," further providing for title of act, for
definitions, for license required and for exemptions;
repealing provisions relating to partial exemption; further
providing for qualifications for a license, for application
for license, for fee, financial statement and security, for
investigation issuance of license, for term of license, for
renewal of licenses and for authority of the Department of
Banking; providing for suspension, revocation or refusal and
for licensee requirements; further providing for agents and
subagents; repealing provisions relating to hearing and
appeal, injunctions, rules and regulations and examinations
by the Secretary of Banking; and further providing for
penalties.
This act may be referred to as the Money Transmitter Act.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of September 2, 1965
(P.L.490, No.249), referred to as the Money Transmission
Business Licensing Law, is amended to read:
AN ACT
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Providing for the licensing and regulation of the business of
transmitting money or credit for a fee or other consideration
by the issuance of money orders, by the sale of checks or by
other methods; conferring powers and duties upon the
Department of Banking and Securities; and imposing penalties.
Section 2. Section 1 of the act, amended July 2, 1996
(P.L.486, No.79), is amended to read:
Section 1. Definitions.--Unless the context clearly
indicates otherwise, the following words when used in this act
shall have the following meanings:
[(1) "Person" includes an individual or an organization but
does not include the governments of the United States or of the
Commonwealth of Pennsylvania.
(2) "Transmittal instrument" means any check, draft, money
order, personal money order or method for the payment of money
or transmittal of credit, other than a merchandise gift
certificate sold in the regular course of business by a vendor
of personal property or services.
(3) "Personal money order" means any transmittal instrument
in relation to which the purchaser or remitter appoints the
seller thereof as his agent for the handling of the transmittal
instrument or its proceeds no matter by whom such transmittal
instrument is signed.
(4) "Deliver" means surrendering a transmittal instrument to
the first person, who in payment for the same makes a remittance
of the whole or a part of the face amount thereof, whether or
not the person delivering the instrument charges a fee in
addition to the face amount and whether or not he signs the
same.
(5) "Accelerated mortgage payment providers" includes
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persons who receive funds from mortgagors to make mortgage
payments to a lender or lenders, on behalf of those mortgagors,
in order to exceed regularly scheduled minimum payment
obligations under the terms of the indebtedness. This term does
not include persons or entities described in section 3.]
"Agent" means any person that provides money transmission
services on behalf of another person.
"Closed loop system" means a system in which an entity issues
a transmittal instrument which can be used at various physical
or virtual locations of that entity.
"Commission" means the Banking and Securities Commission of
the Commonwealth, as established under Subarticle C of Article
XI-A of the act of May 15, 1933 (P.L.565, No.111), known as the
Department of Banking and Securities Code.
"Department" means the Department of Banking and Securities
of the Commonwealth.
"Goods" means personal property bought primarily for
personal, family or household use.
"Government benefit" means money or monetary value given to
an individual by a Federal, State or local government agency for
purposes of financial assistance, including unemployment
compensation, supplemental nutritional assistance program
benefits and Social Security benefits.
"Hybrid closed loop system" means a system in which an entity
issues a transmittal instrument which may be used at a limited
number of establishments or entities which have a common bond to
the issuing entity and in which the establishments or entities
have a written agreement to honor the transmittal instrument.
"License" means a license under this act.
"Money" means currency or legal tender or any other product
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that is generally recognized as a medium of exchange and shall
include any form of virtual currency .
"Person" includes an individual or an organization but does
not include the Federal Government or the government of the
Commonwealth or any other state, or any political subdivisions
or instrumentalities of such governments.
"Personal money order" means any transmittal instrument in
relation to which the purchaser or remitter appoints the seller
thereof as the agent for the handling of the transmittal
instrument or its proceeds no matter by whom the transmittal
instrument is signed.
"Public utility" means the term as defined in 66 Pa.C.S. ยง
102 (relating to definitions).
"Services" means work, labor and services for other than a
commercial or business use.
"Stored value" means money or monetary value in a digital
electronic format, stored or capable of storage on an electronic
medium in such a manner as to be retrievable and transferable
electronically.
"Tangible net worth" means an entity's net worth less
intangible assets as determined by generally accepted accounting
principles.
"Transmittal instrument" means any check, draft, money order,
personal money order, debit card, stored value card, electronic
transfer or other method for the payment of money or transmittal
of credit, other than a merchandise gift certificate or
instrument with a similar purpose sold in the regular course of
business by a vendor of personal property or services in a
closed loop system or hybrid closed loop system.
Section 3. Section 2 of the act is amended to read:
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Section 2. License Required.--(a) No person shall engage in
the business of transmitting money by means of a transmittal
instrument for a fee or other consideration with or on behalf of
an individual without first having obtained a license from the
[Department of Banking nor shall any person engage in such
business as an agent except as an agent of a person licensed or
exempted under this act.] department.
(b) This act does not apply to money transmission between
business entities in connection with commercial contracts,
unless the contracts involve money transmission for personal or
household purposes involving individuals.
Section 4. Section 3 of the act, amended July 2, 1996
(P.L.486, No.79), is amended to read:
Section 3. Exemptions.--No license shall be required
[hereunder of] for any of the following:
(1) [banks] Banks, bank and trust companies, credit unions,
savings banks and private banks organized under the laws of this
Commonwealth; similar banking institutions organized under the
laws of the United States or of any other state which are
insured by the Federal Deposit Insurance Corporation; similar
credit unions organized under the laws of the United States or
another state, and insured by the National Credit Union Share
Insurance Fund; and savings and loan associations and building
and loan associations organized under the laws of [this
Commonwealth] another state or of the United States; or their
agents.
(2) [agents] Agents of a person licensed under this act.
(3) Agents of a Federal, State or local government agency,
to the extent that such agents are disbursing government
benefits.
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(4) Agents that receive payments from individuals on behalf
of persons that are creditors, public utilities or providers of
goods or services.
Section 5. Section 3.1 of the act is repealed:
[Section 3.1. Partial Exemption.--Accelerated mortgage
payment providers shall be exempt from clause (1) of section 4
and clause (2) of subsection (a) of section 6 relating to a net
worth requirement and proof thereof but otherwise shall be
subject to the terms and licensing requirements of this act.]
Section 6. Section 4 of the act, amended July 9, 1977,
(P.L.70, No.25), is amended to read:
Section 4. Qualifications for a License.--(a) To qualify
for a license [hereunder] an applicant shall:
(1) have a tangible net worth of at least five hundred
thousand dollars ($500,000); and
[(2) in the case of an individual, have at least five years'
experience in business and be of good character and reputation,
or, in the case of an organization, have officers and directors
who meet the requirements specified in this clause for an
individual applicant; and]
(3) undertake to operate the business honestly, fairly and
in accordance with this act.
[No applicant shall be qualified to receive a license if he
or, in the event that the applicant is an organization, if any
of its officers or directors has been convicted within five
years of violating this act.]
(b) The department may deny a license if it finds that the
applicant, or a director, officer, partner, employee, agent or
ultimate equitable owner of ten percent or more of the
applicant, has been convicted of a crime of moral turpitude or
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felony in any jurisdiction, or has been convicted of a crime
which, if committed in this Commonwealth, would constitute a
crime of moral turpitude or felony, at any time during the seven
years prior to the license application. For purposes of this
subsection, a person shall be deemed to have been convicted of a
crime if the person:
(1) has pleaded guilty or nolo contendere to a criminal
charge before a domestic, foreign or military court or Federal
magistrate; or
(2) has been found guilty by a decision or judgment of a
domestic, foreign or military court or Federal magistrate or by
a verdict of a jury, irrespective of the pronouncement of
sentence or the suspension thereof, unless the plea of guilty or
nolo contendere or the decision, judgment or verdict is set
aside, vacated, reversed or otherwise abrogated by lawful
judicial process.
(c) The department may deny a license or otherwise restrict
a license if it finds that the applicant, or a director,
officer, partner, employee, agent or ultimate equitable owner of
ten percent or more of the applicant :
(1) has had a license or license application denied, not
renewed, suspended or revoked by the department, another
Commonwealth licensing agency or any other Federal or State
regulatory agency;
(2) is the subject of an order of the department or any
other regulatory agency;
(3) has violated or failed to comply with any provision of
this act or any regulation, statement of policy or order of the
department;
(4) has any outstanding debt to the Commonwealth or any
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Commonwealth agency; or
(5) does not possess the financial responsibility,
character, reputation, integrity and general fitness to command
confidence of the public to warrant the belief that the money
transmission business will be operated lawfully, honestly,
fairly and within the legislative intent of this act and in
accordance with the general laws of this Commonwealth. For
purposes of this clause, an applicant is not financially
responsible if the applicant has shown a disregard in the
management of the applicant's own financial condition. The
factors that the department may consider in making a
determination regarding an applicant's financial responsibility
shall include:
(i) current outstanding judgments, other than judgments
solely as a result of medical expenses;
(ii) current outstanding tax liens or other government liens
and filings;
(iii) foreclosures or bankruptcies within the past three
years; or
(iv) a pattern of seriously delinquent accounts within the
past three years.
(d) The department may impose conditions on the issuance of
a license. If the department determines that conditions imposed
upon a licensee have not been fulfilled, the department may take
any action authorized under this act against the licensee that
the department deems necessary.
Section 7. Section 5 of the act, amended July 2, 1996
(P.L.486, No.79), is amended to read:
Section 5. Application for License.--(a) Applications for
license shall be in [writing under oath and in] the form
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prescribed by the [Department of Banking] department. Among
other things, the application shall state the full name of
(1) the applicant, if an individual;
(2) each partner, if the applicant is a partnership;
(3) each trustee and officer thereof, if the applicant is a
trust;
(4) each officer and director thereof, if the applicant is a
corporation, joint stock association or other unincorporated
association;
(5) each other business in which applicant and any
affiliated companies are engaged; and
(6) the name and address of each agent or subagent
conducting business in this Commonwealth.
(b) A person applying for a new or renewal license and who
is not located in this Commonwealth shall file with the
application for license an irrevocable consent, duly
acknowledged, that suits and actions may be commenced against
that person in the courts of this Commonwealth by the service of
process of any pleading upon the department in the usual manner
provided for service of process and pleadings by the statutes
and court rules of this Commonwealth. The consent shall provide
that this service shall be as valid and binding as if service
had been made personally upon the applicant in this
Commonwealth. In all cases where process or pleadings are served
upon the department pursuant to the provisions of this section,
such process or pleadings shall be served in triplicate; one
copy shall be filed [in the office of the Secretary of Banking]
with the department and the other shall be forwarded by the
department, by certified or registered mail, return receipt
requested, to the last known principal place of business in this
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Commonwealth and to the person's principal place of business.
Section 8. Section 6 of the act, amended July 9, 1977
(P.L.70, No.25), is amended to read:
Section 6. Fee, Financial Statement and Security.--(a) Each
application for a license shall be accompanied by:
(1) an [investigation fee of one thousand dollars ($1,000)
which shall not be subject to refund but which, if the license
is granted, shall constitute the license fee for the first
license period. The renewal fee shall be three hundred dollars
($300)] application fee of five thousand dollars ($5,000);
(2) a financial statement showing a tangible net worth of at
least five hundred thousand dollars ($500,000);
(3) a bond in the penal sum of one million dollars
($1,000,000) executed by a surety company authorized to transact
business within the Commonwealth of Pennsylvania or securities
as provided in the following subsection. The bond shall run to
the Commonwealth of Pennsylvania and shall be for the use of the
Commonwealth and of any person or persons who may have a cause
of action against the licensee for failure to carry out the
terms of any transmittal instrument which the licensee shall
have issued and who were residents of the Commonwealth of
Pennsylvania at the time the cause of action arose. The
condition of the bond shall be that the licensee will comply
with and abide by the provisions of this act and the rules and
regulations of the [Department of Banking] department lawfully
promulgated under this act and that the licensee will pay to the
Commonwealth, to the [Department of Banking] department or to
any other person any moneys that may become due from the
licensee to the Commonwealth or to the [Department of Banking]
department or to any other person under the provisions of this
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act or of any transmittal instrument issued by the licensee
within this Commonwealth and who were residents of the
Commonwealth of Pennsylvania at the time the cause of action
arose. If any person shall be aggrieved by the misconduct of any
licensee, he may upon recovering judgment against such licensee,
issue execution under such judgment and maintain an action upon
the bond of the licensee in any court having jurisdiction of the
amount claimed, provided the [Department of Banking] department
assents thereto.
[(b) In lieu of the bond required by clause (3) of
subsection (a) hereof, the applicant may deposit with the
Department of Banking or with the State Treasurer of the
Commonwealth of Pennsylvania bonds, notes, debentures or other
obligations of the United States or any agency or
instrumentality thereof if guaranteed by the United States, or
such bonds, notes, debentures or other obligations of this
Commonwealth or of a political subdivision thereof having a
market value of at least one million dollars ($1,000,000); and
it shall be the obligation of the licensee to see to it that the
securities on deposit shall have a market value of at least one
million dollars ($1,000,000) at all times. The depositor shall
be entitled to receive all interest and dividends thereon, and
shall have the right, with the approval of the Department of
Banking, to substitute other securities for those deposited.
Should the securities on deposit at any time have a market value
of less than one million dollars ($1,000,000) the Department of
Banking may revoke the license as hereinafter provided. All
securities deposited shall be held under the same conditions and
subject to the same right of execution as the bond provided for
in clause (3) of subsection (a) hereof.]
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(b.1) If the [Department of Banking] department, in its
discretion, shall determine the bond or deposit of securities
provided for in clause (3) of subsection (a) [and subsection (b)
hereof] is not adequate, the [Department of Banking] department
may require an additional bond [or the deposit of additional
securities] in an amount up to [one million dollars
($1,000,000);] twice the average daily outstanding balance of
money received for transmission in this Commonwealth during the
thirty days preceding the department's requirement subject to
the same conditions and the same right of execution provided for
in clause (3) of subsection (a) [and subsection (b) hereof].
(c) Should any licensee become insolvent, the principal sum
of the bond [or the securities deposited in lieu of a bond]
shall be applied to the payment in full of claims arising out of
the issuance of transmittal instruments in this Commonwealth and
any administrative costs incurred by or fines imposed by the
department.
Section 9. Sections 7 and 8 of the act are amended to read:
Section 7. Investigation Issuance of License.--(a) Upon the
filing of [an application and the payment of the fee for
investigating the same, the Department of Banking] a new license
application, the department shall make such investigation as is
necessary to determine whether the applicant is qualified to
receive a license [under this act]. If [so], after reasonable
investigation of the new license application it is determined
that the applicant qualifies for a license, a license shall be
issued. If [not] it is determined that the applicant does not
qualify for a license, the application shall be denied.
(b) Whenever the [Secretary of Banking] department rejects
an application for a license [he] it shall furnish the applicant
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with a written specification of the reason or reasons therefor.
Any applicant whose application for a license is rejected by the
[Secretary of Banking] department may within thirty days' notice
of the rejection request that the [Department of Banking]
department hold a hearing.
Section 8. Term of License.--Licenses issued under this act
shall be for a term [expiring January first of the year
following issuance] of not more than fourteen months as
determined by the department.
Section 10. Section 9 of the act, amended July 9, 1977
(P.L.70, No.25), is amended to read:
Section 9. Renewal of Licenses.--(a) All applications for
renewals of licenses shall be filed with the [Department of
Banking at least sixty days] department before the expiration
date of the license. Unless the department shall have given to
the applicant twenty days' previous notice of objections to the
renewal of his license based upon the violation of this act or
upon the licensee's failure any longer to have the
qualifications required for the issuance of a license, the
license shall be renewed upon the payment of the renewal fee of
five thousand dollars ($5,000).
(b) The renewal application shall be accompanied by a bond
[or evidence of the maintenance with the State Treasurer of a
deposit of securities] in conformity with the requirements
applicable to an original application for license. The bond [or
securities] shall be in the same amounts and subject to the same
terms and conditions as in the case of an original application,
unless an additional bond [or deposit of securities] is required
under the provisions of subsection [(c)] (b.1) of section 6.
[(c) No investigation fee shall be payable to the Department
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of Banking upon the filing of an application for license
renewal.]
Section 11. Section 10 of the act, amended July 2, 1996
(P.L.486, No.79), is amended to read:
Section 10. Authority of the Department [of Banking].--[(a)
The Department of Banking shall have the right to suspend or
revoke the original or any renewed license granted under this
act if
(1) the licensee's bond or securities become inadequate and
the licensee after notice fails forthwith to furnish an adequate
bond or securities in the amount required by this act; or
(2) the licensee shall violate any provision of the act or
any rule or regulation issued by the Department of Banking under
authority of this act; or
(3) the licensee shall fail to comply with any demand, rule
or regulation lawfully made by the Department of Banking under
authority of this act; or
(4) the licensee shall refuse to permit the Department of
Banking or its designated representative to make any examination
authorized by this act; or
(5) if any fact or condition is discovered which, if it had
been known at the time of the filing of the application for the
license, would have warranted the Department of Banking in
denying the application.
(b) The Department of Banking may release reports and other
pertinent information if it determines that release of such
information is reasonably necessary for the protection of the
public and in the interest of justice, in which case the
information may be released only to a representative of an
agency, department or instrumentality of this Commonwealth,
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another state or Federal Government.] (a) The department shall
have the authority to:
(1) Examine any instrument, document, account, book, record
or file of a licensee or any person having a connection to the
licensee or make other investigation as may be necessary to
administer the provisions of this act . Pursuant to this
authority, the department may remove any instrument, document,
account, book, record or file of a licensee to a location
outside of the licensee's office location. A person who is not
licensed under this act shall be presumed to be engaged in
business contemplated by this act if the person advertises or
solicits business for which a license is required by the
provisions of this act. In those cases, the department is
authorized to examine the books, accounts, papers, records,
documents, files, safes and vaults of the persons for the
purpose of discovering violations of this act. The costs of the
examination shall be borne by the licensee or the entity subject
to the examination.
(2) Conduct administrative hearings on any matter pertaining
to this act , issue subpoenas to compel the attendance of
witnesses and the production of instruments, documents,
accounts, books and records at any hearing. The instruments,
documents, accounts, books and records may be retained by the
department until the completion of all proceedings in connection
with which the materials were produced. A department official
may administer oaths and affirmations to a person whose
testimony is required. In the event a person fails to comply
with a subpoena issued by the department or to testify on a
matter concerning that which the person may be lawfully
interrogated, on application by the department, the Commonwealth
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Court may issue an order requiring the attendance of the person,
the production of instruments, documents, accounts, books and
records and the giving of testimony.
(3) Request and receive information or records of any kind,
including reports of criminal history record information from
any Federal, State, local or foreign government entity regarding
an applicant for a license, licensee or person related in any
way to the business of the applicant or licensee, at a cost to
be paid by the applicant or licensee.
(4) Issue regulations, statements of policy or orders as may
be necessary for the proper conduct, including safety and
soundness, of the money transmission business by licensees, the
issuance and renewal of licenses and the enforcement of this
act.
(5) Prohibit or permanently remove a person or licensee
responsible for a violation of this act from working in the
present capacity or in any other capacity of the person or
licensee related to activities regulated by the department.
(6) Order a person or licensee to make restitution for
actual damages to individuals caused by any violation of this
act.
(7) Issue cease and desist orders that are effective
immediately, subject to a hearing as specified in subsection (b)
within fourteen days of the issuance of the order.
(8) Impose such other conditions as the department deems
appropriate.
(b) A person aggrieved by a decision of the department may
appeal the decision of the department to the commission. The
appeal shall be conducted under 2 Pa.C.S. Ch. 5 Subch. A
(relating to practice and procedure of Commonwealth agencies).
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(c) The department may maintain an action for an injunction
or other process against a person to restrain and prevent the
person from engaging in an activity violating this act.
(d) A decision of the commission, or an unappealed order of
the department, shall be a final order of the department and
shall be enforceable in a court of competent jurisdiction. The
department may publish final adjudications issued under this
section, subject to redaction or modification to preserve
confidentiality.
(e) A person aggrieved by a decision of the commission may
appeal the decision under 2 Pa.C.S. Ch. 7 Subch. A. (relating to
judicial review of Commonwealth agency action).
Section 12. The act is amended by adding sections to read:
Section 10.1. Suspension , Revocation or Refusal .--(a) The
department may suspend, revoke or refuse to renew a license
issued under this act if any fact or condition exists or is
discovered which, if it had existed or had been discovered at
the time of filing of the application for the license, would
have warranted the department's refusal to issue the license or
if a licensee or director, officer, partner, employee or owner
of a licensee has:
(1) Made a material misstatement in an application or any
report or submission required by this act or any department
regulation, statement of policy or order.
(2) Failed to comply with or violated any provision of this
act or any regulation or order promulgated or issued by the
department under this act.
(3) Engaged in dishonest, fraudulent or illegal practices or
conduct in a business or unfair or unethical practices or
conduct in connection with the money transmission business.
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(4) Been convicted of or pleaded guilty or nolo contendere
to a crime of moral turpitude or felony.
(5) Permanently or temporarily been enjoined by a court of
competent jurisdiction from engaging in or continuing conduct or
a practice involving an aspect of the money transmission
business.
(6) Become the subject of an order of the department or any
other state regulatory agency denying, suspending or revoking a
license.
(7) Become the subject of a United States Postal Service
fraud order.
(8) Failed to comply with the requirements of this act to
make and keep records prescribed by regulation, statement of
policy or order of the department, to produce records required
by the department or to file financial reports or other
information that the department by regulation, statement of
policy or order may require.
(9) Demonstrated negligence or incompetence in performing an
act for which the licensee is required to hold a license.
(10) Become insolvent, meaning that the liabilities of the
applicant or licensee exceed the assets of the applicant or
licensee or that the applicant or licensee cannot meet the
obligations of the applicant or licensee as they mature or the
applicant or licensee is in such financial condition that the
applicant or licensee cannot continue in business with safety to
the customers of the applicant or licensee.
(b) The department may reinstate a license which was
previously suspended, revoked or denied renewal if all of the
following conditions are met:
(1) the condition which warranted the original action has
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been corrected to the department's satisfaction;
(2) the department has reason to believe that the condition
is not likely to occur again; and
(3) the licensee satisfies all other requirements of this
act.
Section 11.1. Licensee Requirements.--A licensee shall:
(1) Operate in a safe and sound manner, ensuring that its
practices and the practices of its agents, if applicable, do not
create the likelihood of material loss, insolvency or
dissipation of assets, or otherwise materially prejudice the
interest of individuals who use the licensee's services to
transmit money.
(2) Comply with all applicable Federal or State laws and
rules pertaining to the business of money transmission.
(3) Register all of its agents who engage in the business of
money transmission involving individuals who are located in this
Commonwealth.
(4) On a date determined by the department, file a report
setting forth such information as the department shall require
concerning the money transmission business conducted by the
licensee. Licensees who fail to file the required report by the
date required by the department may be subject to a penalty of
one hundred dollars ($100) for each day after the due date until
the report is filed.
(5) Provide the department with written notice within ten
days of any change in status, including address, ownership,
directors, officers, contact information and the reason for the
change.
(6) Maintain at all times the bond and tangible net worth
required by this act.
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Section 13. Section 12 of the act is amended to read:
Section 12. Agents [and Subagents].--(a) A licensee or
exempted person may conduct [his] business at one or more
locations [within the Commonwealth] through such agents [and
subagents] as [he] the licensee or exempted person may from time
to time appoint. No license [under this act] or any license fee
shall be required of any such agent [or subagent].
(b) An agent engaged in the business of money transmission
under subsection (a) or subject to an exemption under section 3
shall be appointed pursuant to a written agreement between the
agent and the person on whose behalf the agent is acting.
(c) The written agreement shall contain at least the
following provisions:
(1) There is consent by the agent and the person on whose
behalf the agent is acting.
(2) The agent is acting on behalf of the person employing
the agent's service for the transmission of money.
(3) The agent is subject to the control of the person on
whose behalf the agent is acting, meaning that the licensee or
exempted person takes complete financial responsibility for the
money being transmitted from the moment an individual initiates
the transmission of money until the intended recipient receives
the transmitted money.
(4) There is no risk of loss to the individual initiating
the transaction if the agent fails to remit the funds to the
person on whose behalf the agent is acting.
(5) Receipt of funds by the agent is deemed receipt of funds
by the person on whose behalf the agent is acting.
(6) The agent may not provide money transmission outside the
scope of activity permissible under the written agreement
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between the agent and the person on whose behalf the agent is
acting except to the extent that the agent is licensed itself or
operating as an agent for another person.
(7) Individuals doing business with the agent are aware that
the agent is working on behalf of the person on whose behalf the
agent is acting.
Section 14. Sections 13, 13.1, 14 and 15 of the act are
repealed:
[Section 13. Hearing and Appeal.--(a) No license shall be
revoked except after a hearing. The Department of Banking shall
hold a hearing when properly requested to do so by an applicant
whose application for a license has been denied. A licensee
whose license is suspended by the Department of Banking shall be
entitled to a hearing. The Department of Banking shall give the
applicant or licensee twenty days' written notice of the time
and place of hearing by registered or certified mail addressed
to the principal place of business of the applicant or licensee.
(b) A full and complete record of all hearings shall be
made, and the cost of such record shall be borne by the
applicant or licensee.
(c) All adjudications shall be in writing, shall contain
findings and the reason for the adjudication, and shall be
served upon all parties or their counsel personally or by
registered or certified mail.
Section 13.1. Injunctions.--If it appears to the Department
of Banking based upon consumer complaints, audits or evaluations
that any person has committed or continues to commit a violation
of any provision of this act or of any rule or order issued by
the department, then the department may apply to the
Commonwealth Court for an order enjoining that person from
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violating or continuing to violate this act or any rule or order
and for injunctive or other relief as the nature of the case may
require.
Section 14. Rules and Regulations.--The Department of
Banking is hereby authorized to make such rules and regulations
as may be necessary or appropriate for the enforcement of this
act.
Section 15. Examinations by the Secretary of Banking.--The
Secretary of Banking, and any person designated by him for that
purpose, shall at least once every two calendar years
investigate the business and affairs and examine the books,
accounts, papers, records, documents, and files of every
licensee and of every person who shall be engaged in business
contemplated by this act. For this purpose the Secretary of
Banking shall have free access to the offices and places of
business, books, accounts, papers, records, documents, files,
safes and vaults of all such persons. A person, who is not
licensed under this act, shall be presumed to be engaged in
business contemplated by this act if he advertises or solicits
business for which a license is required by the provisions of
this act, and the Secretary of Banking, and any person
designated by him for that purpose, is in such cases authorized
to examine the books, accounts, papers, records, documents,
files, safes and vaults of such persons for the purpose of
discovering violations of this act. The cost for examinations
shall be paid by the licensee, or a person who is not licensed
under this act but presumed to be engaged in business
contemplated by this act.]
Section 15. Section 16 of the act, amended July 2, 1996
(P.L.486, No.79), is amended to read:
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Section 16. Penalties.--Any person who directly or through
another violates or attempts to violate any provision of this
act shall be guilty of a [misdemeanor] felony, and shall be
fined not less than [two thousand five hundred dollars ($2,500)]
five thousand dollars ($5,000), nor more than [five thousand
dollars ($5,000) or] fifty thousand dollars ($50,000) and shall
be imprisoned [not less than six months nor more than two] for
not more than seven years in the discretion of the court. Any
person, whether licensed or not licensed under the provisions of
this act, or any director, officer, employee or agent of any
such person, who shall violate the provisions of this act or
shall direct or consent to such violations shall be subject to a
fine levied by the [Department of Banking] department of up to
[two thousand dollars ($2,000)] ten thousand dollars ($10,000)
for each offense.
Section 16. The amendment, addition or repeal of the title
and sections 1, 2, 3, 3.1, 4, 5, 6, 7, 8, 9, 10, 10.1, 11.1, 12,
13, 13.1, 14, 15 and 16 of the act shall not apply to a
transaction which was conducted prior to the effective date of
this section.
Section 17. This act shall take effect in 60 days.
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