Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 150
4
5 By: Senator J. Dismang
6
7 For An Act To Be Entitled
8 AN ACT TO AMEND THE UNIFORM MONEY SERVICES ACT; AND
9 FOR OTHER PURPOSES.
10
11
12 Subtitle
13 TO AMEND THE UNIFORM MONEY SERVICES ACT.
14
15
16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
17
18 SECTION 1. Arkansas Code 23-55-102(12), concerning the definition of
19 "money transmission" under the Uniform Money Services Act, is amended to read
20 as follows:
21 (12)(A) Money transmission means selling or issuing payment
22 instruments, stored value, or prepaid access, or receiving money, virtual
23 currency, or monetary value for transmission.
24 (B) Money transmission does not include providing
25 delivery services such as courier or package delivery services or acting as a
26 mere conduit for the transmission of data.
27
28 SECTION 2. Arkansas Code 23-55-102(19), concerning the definition of
29 "stored value" under the Uniform Money Services Act, is amended to read as
30 follows:
31 (19)(A) Stored value means monetary value that is evidenced by
32 an electronic record representing a claim against the issuer stored on an
33 electronic or digital medium or device, including without limitation a card,
34 and evidenced by an electronic or digital record, intended and accepted for
35 use as a means of redemption for money or monetary value or payment for goods
36 or services.
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1 (B) "Stored value" does not include any prepaid access or
2 stored value that is only redeemable by the issuer for goods or services
3 provided by the issuer or an affiliate of the issuer except to the extent
4 required by applicable law to be redeemable in cash for the cash value of the
5 goods or services.
6
7 SECTION 3. Arkansas Code 23-55-102, concerning definitions of the
8 Uniform Money Services Act, is amended to add an additional subdivision to
9 read as follows:
10 (22)(A) "Virtual currency" means a digital representation of
11 value that:
12 (i) is used as a medium of exchange, a unit of
13 account, or a store of value; and
14 (ii) does not have legal tender status as recognized
15 by the United States Department of the Treasury.
16 (B) "Virtual currency" does not include the software or
17 protocols governing the transfer of a digital representation of value or
18 other uses of a virtual distributed ledger system to verify ownership or
19 authenticity in a digital capacity when the virtual currency is not used as a
20 medium of exchange.
21
22 SECTION 4. Arkansas Code 23-55-103(4), concerning exclusions of the
23 Uniform Money Services Act, is amended to read as follows:
24 (4) a bank, bank holding company, office of an international
25 banking corporation, branch of a foreign bank, corporation organized pursuant
26 to the Bank Service Company Act, 12 U.S.C. 1861-1867 (Supp. V 1999), or
27 corporation organized under the Edge Act, 12 U.S.C. 611-633 (1994 & Supp.
28 V 1999) under the laws of a State or the United States if it does not issue,
29 sell, or provide payment instruments, stored value, or prepaid access, or
30 virtual currency through an authorized delegate that is not such a person;
31
32 SECTION 5. Arkansas Code 23-55-103(9), concerning exclusions of the
33 Uniform Money Services Act, is amended to read as follows:
34 (9) an operator of a payment system to the extent that it
35 provides processing, clearing, or settlement services, between or among
36 persons excluded by this section, in connection with wire transfers, credit
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1 card transactions, debit card transactions, stored-value transactions,
2 automated clearing house transfers, similar funds transfers, or prepaid
3 access, or virtual currency;
4
5 SECTION 6. Arkansas Code 23-55-103, concerning exclusions of the
6 Uniform Money Services Act, is amended to add additional subdivisions to read
7 as follows:
8 (12) an agent appointed by a payee to collect and process
9 payment as the agent of the payee, if the agent can demonstrate that:
10 (A) there exists a written agreement between the payee and
11 the agent directing the agent to collect and process payments on behalf of
12 the payee;
13 (B) the payee holds the agent out to the public as
14 accepting payments on behalf of the payee; and
15 (C) payment is treated as received by the payee upon
16 receipt by the agent so that there is no risk of loss to the individual
17 initiating the transaction if the agent fails to remit the funds to the
18 payee;
19 (13) virtual currency or other digital representation of value
20 redeemable exclusively for goods or services and limited to transactions
21 involving a defined merchant, including without limitation a rewards program;
22 (14) a digital representation of value issued by or on behalf of
23 a publisher and used solely within an online game, game platform, or family
24 of games sold by the same publisher or offered on the same game platform; or
25 (15) uses of a virtual distributed ledger system to verify
26 ownership or authenticity in a digital capacity when the virtual currency is
27 not used as a medium of exchange.
28
29 SECTION 7. Arkansas Code 23-55-202(b), concerning application for a
30 license under the Uniform Money Services Act, is amended to add additional
31 subdivisions to read as follows:
32 (11) the name of a person submitted by the applicant as the
33 responsible individual and information on that person to include:
34 (A) legal name;
35 (B) residential and business addresses;
36 (C) date of birth;
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1 (D) Social Security number;
2 (E) employment history for the five-year period preceding
3 the submission of the application; and
4 (F) documentation that the proposed responsible individual
5 is a citizen of the United States or has obtained legal immigration status to
6 work in the United States;
7 (12) for the ten-year period preceding submission of the
8 application, a list of:
9 (A) any criminal convictions of the proposed responsible
10 individual of the applicant;
11 (B) any litigation involving the proposed responsible
12 individual relating to the provision of money services; and
13 (C) any material litigation in which the applicant has
14 been involved;
15 (13) a list of any license revocations, suspensions,
16 restrictions, or other disciplinary action taken against any money services
17 business involving the proposed responsible individual of the applicant; and
18 (14) information concerning any bankruptcy or receivership
19 proceedings involving or affecting the applicant or the proposed responsible
20 individual of the applicant.
21
22 SECTION 8. Arkansas Code 23-55-202, concerning application for a
23 license under the Uniform Money Services Act, is amended to add an additional
24 subsection to read as follows:
25 (g)(1) Each officer, director, responsible individual, and owner
26 applicant shall furnish information concerning his or her identity.
27 (2) The information described in subdivision (g)(1) shall
28 include:
29 (A) a state and national criminal background check to be
30 conducted by the Identification Bureau of the Division of Arkansas State
31 Police or the Federal Bureau of Investigation; and
32 (B) other pertinent facts, as the commissioner may
33 reasonably require.
34 (3)(A) As part of an application for a license under this
35 chapter, or periodically upon license renewal, the commissioner may receive
36 criminal history record information that includes nonconviction information
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1 as defined in 12-12-1001.
2 (B) The State Securities Department may only disseminate
3 nonconviction information obtained under this section to a criminal justice
4 agency.
5 (4) This subsection does not apply if an applicant or an
6 applicant's corporate parent is a publicly traded entity.
7
8 SECTION 9. Arkansas Code 23-55-205(a), concerning the issuance of
9 licenses under the Uniform Money Services Act, is amended to add an
10 additional subdivision to read as follows:
11 (3) an applicant, an officer, a person who exercises control
12 over the applicant, or a responsible individual shall not be listed on a
13 specially designated nationals and blocked persons list prepared by the
14 United States Department of the Treasury or as an individual or entity
15 designated by the United States Department of State under Exec. Order No.
16 13224, issued on September 23, 2001, 66 Fed. Reg. 49079.
17
18 SECTION 10. Arkansas Code 23-55-205, concerning the issuance of
19 licenses under the Uniform Money Services Act, is amended to add an
20 additional subsection to read as follows:
21 (f)(1) A money transmitter licensee may surrender a license by
22 providing the commissioner with a written notice of surrender through the
23 automated licensing system approved by the commissioner.
24 (2) The written notice of surrender shall include notice of
25 where the records of the money transmitter licensee will be stored and the
26 name, address, telephone number, and other contact information of a
27 responsible party who is authorized to provide access to the records.
28 (3) The surrender of a license does not reduce or eliminate the
29 civil or criminal liability of a money transmitter licensee arising from acts
30 or omissions occurring before the surrender of the license, including any
31 administrative actions undertaken by the commissioner to revoke or suspend a
32 license, to assess fines, to order payment of restitution, or to exercise any
33 other authority authorized under this chapter.
34
35 SECTION 11. Arkansas Code 23-55-206(b), concerning a renewal report
36 under the Uniform Money Services Act, is amended to read as follows:
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1 (b) A licensee under this article shall submit a renewal report with
2 the renewal fee, in a form prescribed by the commissioner. The renewal report
3 must state or contain:
4 (1) a description of each material change in information
5 submitted by the licensee in its original license application which has not
6 been reported to the commissioner on any required report;
7 (2) a list of the licensee's permissible investments and a
8 certification that the licensee continues to maintain permissible investments
9 according to the requirements set forth in 23-55-701 and 23-55-702; and
10 (3)(2) proof that the licensee continues to maintain an adequate
11 surety bond as required by 23-55-204.
12
13 SECTION 12. Arkansas Code 23-55-206(c), concerning renewal of a
14 license under the Uniform Money Services Act, is amended to read as follows:
15 (c) A licensee that does not shall comply with subsections (a) and (b)
16 by December 1 shall pay a late fee of $250 if the complete renewal
17 application is received before the expiration of the license within thirty
18 (30) days of the renewal date.
19
20 SECTION 13. Arkansas Code 23-55-402(a), concerning the application
21 for a currency exchange license under the Uniform Money Services Act, is
22 amended to add additional subdivisions to read as follows:
23 (6) the name of a person submitted by the applicant as the
24 responsible individual and information on that person to include:
25 (A) legal name;
26 (B) residential and business addresses;
27 (C) date of birth;
28 (D) Social Security number;
29 (E) employment history for the five-year period preceding
30 the submission of the application; and
31 (F) documentation that the proposed responsible individual
32 is a citizen of the United States or has obtained legal immigration status to
33 work in the United States;
34 (7) for the ten-year period preceding the submission of the
35 application, a list of any criminal convictions of the proposed responsible
36 individual of the applicant, any litigation involving the proposed
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1 responsible individual relating to the provision of money services, and any
2 material litigation in which the applicant has been involved;
3 (8) a list of other states in which the applicant engages in
4 currency exchange or provides other money services and any license
5 revocations, suspensions, restrictions, or other disciplinary action taken
6 against the applicant in another state;
7 (9) a list of any license revocations, suspensions,
8 restrictions, or other disciplinary action taken against any money services
9 business involving the responsible individual of the applicant; and
10 (10) information concerning any bankruptcy or receivership
11 proceedings involving or affecting the applicant or the responsible
12 individual of the applicant.
13
14 SECTION 14. Arkansas Code 23-55-404(b), concerning a renewal report
15 under the Uniform Money Services Act, is amended to read as follows:
16 (b) A licensee under this article shall submit a renewal report with
17 the renewal fee, in a form and in a medium prescribed by the commissioner.
18 The renewal report must contain:
19 (1) a description of each material change in information
20 submitted by the licensee in its original license application that has not
21 been reported to the commissioner on any required report; and
22 (2) a list of the locations in this State where the licensee or
23 an authorized delegate of the licensee engages in currency exchange,
24 including limited stations and mobile locations.
25
26 SECTION 15. Arkansas Code 23-55-501(d), concerning the notice
27 required to be given to authorized delegates if a licensee is suspended,
28 revoked, or fails to renew a license under the Uniform Money Services Act, is
29 amended to read as follows:
30 (d) If a license is suspended or revoked or a licensee does not renew
31 its license, the commissioner shall notify all authorized delegates of the
32 licensee whose names are in a record filed with the commissioner of the
33 suspension, revocation, or non-renewal. After notice is sent or publication
34 is made, an authorized delegate shall immediately cease to provide money
35 services as a delegate of the licensee.
36
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1 SECTION 16. Arkansas Code 23-55-601(c)(1), concerning the authority
2 of the Securities Commissioner to conduct examinations and investigations
3 under the Uniform Money Services Act, is amended to read as follows:
4 (c)(1) The licensee, applicant, or person subject to licensing under
5 this chapter shall pay a fee for each examination, not to exceed one hundred
6 fifty dollars ($150) per examiner for each day or for part of a day during
7 which the examiner is absent from the office of the commissioner for the
8 purpose of conducting the examination.
9
10 SECTION 17. Arkansas Code 23-55-603(e), concerning the reports
11 required under the Uniform Money Services Act, is amended to read as follows:
12 (e) A licensee shall file with the commissioner within 45 days after
13 the end of each calendar quarter, in a form acceptable to the commissioner, a
14 report of the number and monetary amount of payment instruments, stored-
1