Virtual Currency Kiosk Consumer Accesss Protection Act; create.

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To: Banking and Financial
Services
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Aguirre

HOUSE BILL NO. 1264

AN ACT TO CREATE THE VIRTUAL CURRENCY KIOSK CONSUMER ACCESS 1
AND PROTECTION ACT; TO DEFINE CERTAIN TERMS RELATING TO THIS ACT; 2
TO REQUIRE A DIGITAL ASSET KIOSK OPERATOR TO HAVE A LICENSE TO 3
OPERATE A DIGITAL ASSET KIOSK; TO REQUIRE CERTAIN REPORTING OF 4
KIOSK LOCATIONS; TO REQUIRE CERTAIN DISCLOSURES AND FRAUD WARNINGS 5
ON KIOSK INTERFACES; TO REQUIRE A RECEIPT TO BE GIVEN UPON 6
COMPLETION OF ANY TRANSACTION AT A DIGITAL ASSET KIOSK; TO PROVIDE 7
NEW CUSTOMER TRANSACTION LIMITS; TO BRING FORWARD SECTIONS 75-16-5 8
THROUGH 75-16-87, WHICH RELATE TO THE MONEY TRANSMISSION 9
MODERNIZATION ACT, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR 10
RELATED PURPOSES. 11
WHEREAS, access to lawful digital asset transactions is an 12
essential component of financial inclusion, innovation, and 13
individual economic freedom in the modern economy; and 14
WHEREAS, digital asset kiosks offer a vital point of access 15
for individuals who may lack traditional banking services or 16
prefer to engage with digital assets in a secure, in-person 17
environment; and 18
WHEREAS, individuals have a right to use their fiat currency 19
to obtain digital assets lawfully, and businesses have a right to 20
operate compliant digital asset kiosks to serve the public; and 21
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WHEREAS, clear, consistent, and narrowly tailored regulation 22
of digital asset kiosks helps protect consumers from fraud while 23
preserving lawful access to emerging financial technologies; and 24
WHEREAS, it is in the public interest to ensure that 25
consumers can engage with digital assets through kiosks in a safe, 26
transparent, and non-discriminatory manner; Now, therefore, 27
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 28
SECTION 1. This act shall be known and may be cited as the 29
"Virtual Currency Kiosk Consumer Access and Protection Act". 30
SECTION 2. For purposes of this act, the following words and 31
phrases have the meanings as provided in this section unless the 32
context clearly indicates otherwise: 33
(a) "Department" means the state agency or office 34
designated to administer and enforce this act. 35
(b) "Digital asset" means virtual currencies, 36
cryptocurrencies, including stablecoins, fungible tokens, 37
non-fungible tokens, and other digital-only assets that confer 38
economic, proprietary, or access rights or powers. 39
(c) "Fiat currency" means Government-issued currency 40
that is designated as legal tender in the United States and is not 41
backed by a physical commodity. 42
(d) "Digital asset kiosk" means an electronic terminal 43
that enables a consumer to exchange fiat currency for digital 44
assets, or digital assets for fiat currency. This includes, but 45
is not limited to, a machine that either connects to an external 46
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digital asset exchange to execute the transaction or dispenses 47
digital assets from the kiosk operator's own holdings. 48
(e) "Digital asset kiosk operator" means a person or 49
entity authorized to do business in this state that owns or 50
operates one or more digital asset kiosks within this state. 51
(f) "Individual" means a natural person. 52
(g) "Customer" means an individual who uses a digital 53
asset kiosk to conduct a transaction involving digital assets. 54
(h) "New customer" means a customer during the period 55
of three (3) calendar days following the date of that customer's 56
first transaction with a digital asset kiosk operator. 57
(i) "Money transmission license" means a license or 58
other authorization issued under the laws of this state to engage 59
in the business of money transmission. 60
SECTION 3. No digital asset kiosk operator shall operate any 61
digital asset kiosk in this state unless the operator holds a 62
valid money transmission license issued by the department under 63
applicable state law. 64
SECTION 4. (1) Each digital asset kiosk operator shall 65
submit to the department an annual report listing all digital 66
asset kiosk locations operated by the operator in this state. The 67
report shall be filed in a form and by a date prescribed by the 68
department, but not less frequently than once per calendar year. 69
(2) The report shall include, for each digital asset kiosk 70
location: 71
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(a) The name of the business or establishment where the 72
kiosk is located; 73
(b) The physical address of the location, including 74
street address, city, and zip code; 75
(c) The date on which the kiosk began operation at that 76
location; and 77
(d) The date on which the kiosk ceased operation at 78
that location, if applicable. 79
SECTION 5. (1) Each digital asset kiosk operator shall 80
ensure that each kiosk's user interface prominently displays the 81
following information to the customer before the customer commits 82
to a transaction: 83
(a) All fees or charges the customer will incur for the 84
transaction; 85
(b) The applicable exchange rate or price used to 86
convert between fiat currency and the digital asset, if 87
applicable; 88
(c) A notice that transactions in digital assets are 89
irrevocable and cannot be reversed or refunded once executed; and 90
(d) A notice that digital assets and transactions 91
conducted through the kiosk are not insured or guaranteed by the 92
Federal Deposit Insurance Corporation or the Securities Investor 93
Protection Corporation. 94
SECTION 6. Each digital asset kiosk operator shall ensure 95
that a fraud warning is displayed on the kiosk interface before a 96
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customer may complete any transaction. The fraud warning shall 97
describe, in general terms, common scam tactics involving digital 98
asset kiosks and shall advise the customer not to proceed with the 99
transaction if they are being instructed or pressured by a third 100
party or if they suspect fraud. The warning shall also state that 101
no government agency or official will ever request payment using a 102
digital asset kiosk. The warning shall direct customers who 103
suspect fraud to contact the phone number displayed on the kiosk, 104
which shall connect either to the digital asset kiosk operator or 105
to a non-emergency law enforcement line. 106
SECTION 7. Each digital asset kiosk shall display a valid 107
telephone number that customers can call for assistance or to 108
report issues. This contact number shall connect either to the 109
digital asset kiosk operator's customer service center or to a 110
designated local law enforcement non-emergency line. The number 111
must be posted prominently on the kiosk or its electronic display 112
so that customers can easily see it before and during a 113
transaction. 114
SECTION 8. Upon completion of any transaction at a digital 115
asset kiosk, the digital asset kiosk operator shall provide the 116
customer with a receipt in either printed or electronic form. 117
Each receipt shall include: 118
(a) The date and time of the transaction; 119
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(b) The type and amount of digital asset transacted, 120
and, if applicable, the corresponding amount of fiat currency 121
exchanged; 122
(c) The fees charged for the transaction; 123
(d) The exchange rate applied, if any; and 124
(e) The name of the digital asset kiosk operator and 125
the operator's customer service contact information. 126
SECTION 9. (a) Each digital asset kiosk operator shall 127
implement transaction limits for new customers. For the first 128
three (3) calendar days following a customer's initial transaction 129
with the operator, the operator shall not permit the customer to 130
conduct transactions totaling more than Three Thousand Dollars 131
($3,000.00) per calendar day through a digital asset kiosk. After 132
the three (3) day period has elapsed, the limitation shall no 133
longer apply. 134
(b) The daily limit as provided in this act is Three 135
Thousand Dollars ($3,000.00) as of January 1, 2026. 136
(c) "CPI" means the Consumer Price Index for All Urban 137
Consumers (CPI-U), U.S. City Average, all items, not seasonally 138
adjusted, as published by United States Bureau of Labor 139
Statistics. 140
Beginning January 1, 2027, the department shall annually 141
adjust the base amount for inflation. The adjusted amount equals: 142
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Adjusted Amount = Base Amount × (CPI for the most recent 12-month 143
average available as of September 1 preceding the year ÷ CPI for 144
2026). 145
(d) The department shall round the adjusted amount up 146
to the nearest Ten Dollars ($10.00) and publish it by November 15 147
each year on its website. The amount shall not be reduced due to 148
deflation. 149
SECTION 10. (1) Each digital asset kiosk operator shall 150
maintain complete and accurate records of all digital asset kiosk 151
transactions and related customer information as required under 152
applicable state and federal law. At a minimum, transaction 153
records shall be preserved for the period of time required by the 154
department's regulations or other applicable law. 155
(2) A digital asset kiosk operator shall cooperate with law 156
enforcement authorities in the investigation and prevention of 157
fraud and other unlawful activity. Such cooperation includes, but 158
is not limited to: 159
(a) Promptly complying with lawful subpoenas, court 160
orders, and other official requests for records or information 161
relating to kiosk transactions or customers; 162
(b) Respond in good faith to lawful requests from the 163
department or law enforcement relating to fraud involving a 164
digital asset kiosk; 165
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(c) Designate a point of contact within the operator’s 166
organization for communication with the department and law 167
enforcement regarding fraud-related matters. 168
No provision of this section shall be construed to require a 169
digital asset kiosk operator to monitor or block transactions in 170
real time, except as required by other applicable laws. 171
SECTION 11. Any violations of this act are subject to the 172
penalties as described in the Money Transmission Modernization 173
Act. 174
SECTION 12. A county, city, township or village, shall not 175
enact or enforce an ordinance that restricts the use of a virtual 176
currency kiosk in this state except as expressly authorized under 177
this act. 178
SECTION 13. Section 75-16-5, Mississippi Code of 1972, is 179
brought forward as follows: 180
75-16-5. Definitions. For purposes of this chapter, the 181
following definitions shall apply: 182
(a) "Acting in concert" means persons knowingly acting 183
together with a common goal of jointly acquiring control of a 184
licensee whether or not pursuant to an express agreement. 185
(b) "Authorized delegate" means a person a licensee 186
designates to engage in money transmission on behalf of the 187
licensee. 188
(c) "Average daily money transmission liability" means 189
the amount of the licensee's outstanding money transmission 190
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obligations in this state at the end of each day in a given period 191
of time, added together and divided by the total number of days in 192
the given period of time. For purposes of calculating average 193
daily money transmission liability under this chapter for any 194
licensee required to do so, the given period of time shall be the 195
quarters ending March 31, June 30, September 30 and December 31. 196
(d) "Bank Secrecy Act" means the Bank Secrecy Act, 31 197
USC Section 5311 et seq. and its implementing regulations, as 198
amended and recodified from time to time. 199
(e) "Closed loop stored value" means stored value that 200
is redeemable by the issuer only for goods or services provided by 201
the issuer or its affiliate or franchisees of the issuer or its 202
affiliate, except to the extent required by applicable law to be 203
redeemable in cash for its cash value. 204
(f) "Control" means: 205
(i) 1. The power to vote, directly or indirectly, 206
at least twenty-five percent (25%) of the outstanding voting 207
shares or voting interests of a licensee or person in control of a 208
licensee; 209
2. The power to elect or appoint a majority 210
of key individuals or executive officers, managers, directors, 211
trustees or other persons exercising managerial authority of a 212
person in control of a licensee; or 213
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3. The power to exercise, directly or 214
indirectly, a controlling influence over the management or 215
policies of a licensee or person in control of a licensee; 216
(ii) Rebuttable Presumption of Control; 217
1. A person is presumed to exercise a 218
controlling influence when the person holds the power to vote, 219
directly or indirectly, at least ten percent (10%) of the 220
outstanding voting shares or voting interests of a licensee or 221
person in control of a licensee; 222
2. A person presumed to exercise a 223
controlling influence as defined by this paragraph (f) can rebut 224
the presumption of control if the person is a passive investor; 225
(iii) For purposes of determining the percentage 226
of a person controlled by any other person, the person's interest 227
shall be aggregated with the interest of any other immediate 228
family member, including the person's spouse, parents, children, 229
siblings, mothers- and fathers-in-law, sons- and daughters-in-law, 230
brothers- and sisters-in-law, and any other person who shares such 231
person's home. 232
(g) "Eligible rating" means a credit rating of any of 233
the three (3) highest rating categories provided by an eligible 234
rating service, whereby each category may include rating category 235
modifiers such as "plus" or "minus" for S&P, or the equivalent for 236
any other eligible rating service. Long-term credit ratings are 237
deemed eligible if the rating is equal to A- or higher by S&P, or 238
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the equivalent from any other eligible rating service. Short-term 239
credit ratings are deemed eligible if the rating is equal to or 240
higher than A-2 or SP-2 by S&P, or the equivalent from any other 241
eligible rating service. In the event that ratings differ among 242
eligible rating services, the highest rating shall apply when 243
determining whether a security bears an eligible rating. 244
(h) "Eligible rating service" means any Nationally 245
Recognized Statistical Rating Organization (NRSRO) as defined by 246
the U.S. Securities and Exchange Commission, and any other 247
organization designated by the commissioner by rule, regulation or 248
order. 249
(i) "Federally insured depository financial 250
institution" means a bank, credit union, savings and loan 251
association, trust company, savings association, savings bank, 252
industrial bank or industrial loan company organized under the 253
laws of the United States or any state of the United States, when 254
such bank, credit union, savings and loan association, trust 255
company, savings association, savings bank, industrial bank or 256
industrial loan company has federally insured deposits. 257
(j) "In this state" means at a physical location within 258
this state for a transaction requested in person. For a 259
transaction requested electronically or by phone, the provider of 260
money transmission may determine if the person requesting the 261
transaction is "in this state" by relying on other information 262
provided by the person regarding the location of the individual's 263
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residential address or a business entity's principal place of 264
business or other physical address location, and any records 265
associated with the person that the provider of money transmission 266
may have that indicate such location, including, but not limited 267
to, an address associated with an account. 268
(k) "Individual" means a natural person. 269
(l) "Key individual" means any individual ultimately 270
responsible for establishing or directing policies and procedures 271
of the licensee, such as an executive officer, manager, director 272
or trustee. 273
(m) "Licensee" means a person licensed under this 274
chapter. 275
(n) "Material litigation" means litigation, that 276
according to United States generally accepted accounting 277
principles, is significant to a person's financial health and 278
would be required to be disclosed in the person's annual audited 279
financial statements, report to shareholders, or similar records. 280
(o) "Money" means a medium of exchange that is 281
authorized or adopted by the United States or a foreign 282
government. The term includes a monetary unit of account 283
established by an intergovernmental organization or by agreement 284
between two (2) or more governments. 285
(p) "Monetary value" means a medium of exchange, 286
whether or not redeemable in money. 287
(q) "Money transmission" means any of the following: 288
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(i) Selling or issuing payment instruments to a 289
person located in this state; 290
(ii) Selling or issuing stored value to a person 291
located in this state; and 292
(iii) Receiving money or monetary value for 293
transmission from a person located in this state. 294
(r) "MSB accredited state" means a state agency that is 295
accredited by the Conference of State Bank Supervisors and Money 296
Transmitter Regulators Association for money transmission 297
licensing and supervision. 298
(s) "Multistate licensing process" means any agreement 299
entered into by and among state regulators relating to coordinated 300
processing of applications for money transmission licenses, 301
applications for the acquisition of control of a licensee, control 302
determinations, or notice and information requirements for a 303
change of key individuals. 304
(t) "NMLS" means the Nationwide Multistate Licensing 305
System and Registry developed by the Conference of State Bank 306
Supervisors and the American Association of Residential Mortgage 307
Regulators and owned and operated by the State Regulatory 308
Registry, LLC, or any successor or affiliated entity, for the 309
licensing and registration of persons in financial services 310
industries. 311
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(u) "Outstanding money transmission obligations" shall 312
be established and extinguished in accordance with applicable 313
state law and shall mean: 314
(i) Any payment instrument or stored value issued 315
or sold by the licensee to a person located in the United States 316
or reported as sold by an authorized delegate of the licensee to a 317
person who is located in the United States that has not yet been 318
paid or refunded by or for the licensee, or escheated in 319
accordance with applicable abandoned property laws; 320
(ii) Any money received for transmission by the 321
licensee or an authorized delegate in the United States from a 322
person located in the United States that has not been received by 323
the payee or refunded to the sender, or escheated in accordance 324
with applicable abandoned property laws; or 325
(iii) For purposes of this paragraph (u), "in the 326
United States" shall include, to the extent applicable, a person 327
in any state, territory, or possession of the United States; the 328
District of Columbia; the Commonwealth of Puerto Rico; or a U.S. 329
military installation that is located in a foreign country. 330
(v) "Passive investor" means a person that: 331
(i) Does not have the power to elect a majority of 332
key individuals or executive officers, managers, directors, 333
trustees or other persons exercising managerial authority of a 334
person in control of a licensee; 335
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(ii) Is not employed by and does not have any 336
managerial duties of the licensee or person in control of a 337
licensee; 338
(iii) Does not have the power to exercise, 339
directly or indirectly, a controlling influence over the 340
management or policies of a licensee or person in control of a 341
licensee; and 342
(iv) Either: 343
1. Attests to subparagraphs (i), (ii) and 344
(iii) in this paragraph, in a form and in a medium prescribed by 345
the commissioner; or 346
2. Commits to the passivity characteristics 347
of subparagraphs (i), (ii) and (iii) of this paragraph, in a 348
written document. 349
(w) "Payment instrument" means a written or electronic 350
check, draft, money order, traveler's check or other written or 351
electronic instrument for the transmission or payment of money or 352
monetary value, whether or not negotiable. The term does not 353
include stored value or any instrument that (i) is redeemable by 354
the issuer only for goods or services provided by the issuer or 355
its affiliate or franchisees of the issuer or its affiliate, 356
except to the extent required by applicable law to be redeemable 357
in cash for its cash value; or (ii) is not sold to the public but 358
issued and distributed as part of a loyalty, rewards, or 359
promotional program. 360
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(x) "Person" means any individual, general partnership, 361
limited partnership, limited liability company, corporation, 362
trust, association, joint-stock corporation or other corporate 363
entity identified by the commissioner. 364
(y) "Receiving money for transmission" or "money 365
received for transmission" means receiving money or monetary value 366
in the United States for transmission within or outside the United 367
States by electronic or other means. 368
(z) "Stored value" means monetary value representing a 369
claim against the issuer evidenced by an electronic or digital 370
record, and that is intended and accepted for use as a means of 371
redemption for money or monetary value, or payment for goods or 372
services. The term includes, but is not limited to, "prepaid 373
access" as defined by 31 CFR 1010.100, as amended or recodified 374
from time to time. Notwithstanding the foregoing, the term 375
"stored value" does not include a payment instrument or closed 376
loop stored value, or stored value not sold to the public but 377
issued and distributed as part of a loyalty, rewards or 378
promotional program. 379
(aa) "Tangible net worth" means the aggregate assets of 380
a licensee excluding all intangible assets, less liabilities, as 381
determined in accordance with United States generally accepted 382
accounting principles. 383
SECTION 14. Section 75-16-7, Mississippi Code of 1972, is 384
brought forward as follows: 385
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75-16-7. Exemptions. This chapter does not apply to: 386
(a) An operator of a payment system to the extent that 387
it provides processing, clearing or settlement services, between 388
or among persons exempted by this section or licensees, in 389
connection with wire transfers, credit card transactions, debit 390
card transactions, stored value transactions, automated clearing 391
house transfers or similar funds transfers; 392
(b) A person appointed as an agent of a payee to 393
collect and process a payment from a payor to the payee for goods 394
or services, other than money transmission itself, provided to the 395
payor by the payee, provided that: 396
(i) There exists a written agreement between the 397
payee and the agent directing the agent to collect and process 398
payments from payors on the payee's behalf; 399
(ii) The payee holds the agent out to the public 400
as accepting payments for goods or services on the payee's behalf; 401
and 402
(iii) Payment for the goods and services is 403
treated as received by the payee upon receipt by the agent so that 404
the payor's obligation is extinguished and there is no risk of 405
loss to the payor if the agent fails to remit the funds to the 406
payee; 407
(c) A person who acts as an intermediary by processing 408
payments between an entity that has directly incurred an 409
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outstanding money transmission obligation to a sender, and the 410
sender's designated recipient, provided that the entity: 411
(i) Is properly licensed or exempt from licensing 412
requirements under this chapter; 413
(ii) Provides a receipt, electronic record or 414
other written confirmation to the sender identifying the entity as 415
the provider of money transmission in the transaction; and 416
(iii) Bears sole responsibility to satisfy the 417
outstanding money transmission obligation to the sender, including 418
the obligation to make the sender whole in connection with any 419
failure to transmit the funds to the sender's designated 420
recipient; 421
(d) The United States or a department, agency, or 422
instrumentality thereof, or its agent; 423
(e) Money transmission by the United States Postal 424
Service or by an agent of the United States Postal Service; 425
(f) A state, county, city, or any other governmental 426
agency or governmental subdivision or instrumentality of a state, 427
or its agent; 428
(g) A federally insured depository financial 429
institution, bank holding company, office of an international 430
banking corporation, foreign bank that establishes a federal 431
branch pursuant to the International Bank Act, 12 USC 3102, as 432
amended or recodified from time to time, corporation organized 433
pursuant to the Bank Service Corporation Act, 12 USC 1861-1867, as 434
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amended or recodified from time to time, or corporation organized 435
under the Edge Act, 12 USC 611-633, as amended or recodified from 436
time to time, under the laws of a state or the United States; 437
(h) Electronic funds transfer of governmental benefits 438
for a federal, state, county or governmental agency by a 439
contractor on behalf of the United States or a department, agency 440
or instrumentality thereof, or on behalf of a state or 441
governmental subdivision, agency or instrumentality thereof; 442
(i) A board of trade designated as a contract market 443
under the federal Commodity Exchange Act, 7 USC 1-25, as amended 444
or recodified from time to time, or a person that, in the ordinary 445
course of business, provides clearance and settlement services for 446
a board of trade to the extent of its operation as or for such a 447
board; 448
(j) A registered futures commission merchant under the 449
federal commodities laws to the extent of its operation as such a 450
merchant; 451
(k) A person registered as a securities broker-dealer 452
under federal or state securities laws to the extent of its 453
operation as such a broker-dealer; 454
(l) An individual employed by a licensee, authorized 455
delegate or any person exempted from the licensing requirements of 456
this chapter when acting within the scope of employment and under 457
the supervision of the licensee, authorized delegate or exempted 458
person as an employee and not as an independent contractor; 459
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(m) A person expressly appointed as a third-party 460
service provider to or agent of an entity exempted under paragraph 461
(g) of this section, solely to the extent that: 462
(i) Such service provider or agent is engaging in 463
money transmission on behalf of and pursuant to a written 464
agreement with the exempt entity that sets forth the specific 465
functions that the service provider or agent is to perform; and 466
(ii) The exempt entity assumes all risk of loss 467
and all legal responsibility for satisfying the outstanding money 468
transmission obligations owed to purchasers and holders of the 469
outstanding money transmission obligations upon receipt of the 470
purchaser's or holder's money or monetary value by the service 471
provider or agent; 472
(n) A person exempt by regulation or order if the 473
commissioner finds such exemption to be in the public interest and 474
that the regulation of such person is not necessary for the 475
purposes of this chapter; or 476
(o) A payroll processing service provider, which means 477
a person receiving money for transmission pursuant to a contract 478
with a person to deliver wages or salaries, make payment of 479
payroll taxes to state and federal agencies, make payments 480
relating to employee benefit plans, or make distributions of other 481
authorized deductions from wages or salaries. 482
SECTION 15. Section 75-16-9, Mississippi Code of 1972, is 483
brought forward as follows: 484
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75-16-9. Authority to require demonstration of exemption. 485
The commissioner may require that any person claiming to be exempt 486
from licensing pursuant to Section 75-16-7 provide information and 487
documentation to the commissioner demonstrating that it qualifies 488
for any claimed exemption. 489
SECTION 16. Section 75-16-11, Mississippi Code of 1972, is 490
brought forward as follows: 491
75-16-11. Implementation. (1) In order to carry out the 492
purposes of this chapter, the commissioner may, subject to the 493
provisions of Section 75-16-13(1) and (2): 494
(a) Enter into agreements or relationships with other 495
government officials or federal and state regulatory agencies and 496
regulatory associations in order to improve efficiencies and 497
reduce regulatory burden by standardizing methods or procedures, 498
and sharing resources, records or related information obtained 499
under this chapter; 500
(b) Use, hire, contract or employ analytical systems, 501
methods or software to examine or investigate any person subject 502
to this chapter; 503
(c) Accept, from other state or federal government 504
agencies or officials, licensing, examination or investigation 505
reports made by such other state or federal government agencies or 506
officials; and 507
(d) Accept audit reports made by an independent 508
certified public accountant or other qualified third-party auditor 509
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for an applicant or licensee and incorporate the audit report in 510
any report of examination or investigation. 511
(2) The commissioner shall have the broad administrative 512
authority to administer, interpret and enforce this chapter, and 513
to promulgate rules or regulations implementing this chapter and 514
to recover the cost of administering and enforcing this chapter by 515
imposing and collecting proportionate and equitable fees and costs 516
associated with applications, examinations, investigations, and 517
other actions required to achieve the purpose of this chapter. 518
SECTION 17. Section 75-16-13, Mississippi Code of 1972, is 519
brought forward as follows: 520
75-16-13. Confidentiality. (1) Except as otherwise 521
provided in subsection (2) of this section, all information or 522
reports obtained by the commissioner from an applicant, licensee 523
or authorized delegate, and all information contained in or 524
related to an examination, investigation, operating report or 525
condition report prepared by, on behalf of, or for the use of the 526
commissioner, or financial statements, balance sheets or 527
authorized delegate information, are confidential and are not 528
subject to disclosure under this state's public records law. 529
(2) The commissioner may disclose information not otherwise 530
subject to disclosure under subsection (1) of this section to 531
representatives of state or federal agencies who promise in a 532
record that they will maintain the confidentiality of the 533
information or where the commissioner finds that the release is 534
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necessary for the protection and interest of the public in 535
accordance with state public records law. 536
(3) This section does not prohibit the commissioner from 537
disclosing to the public a list of all licensees or the aggregated 538
financial or transactional data concerning those licensees. 539
(4) Information contained in the records of department that 540
is not confidential and may be made available to the public either 541
on the department's website, upon receipt by the department of a 542
written request, or in NMLS shall include: 543
(a) The name, business address, telephone number and 544
unique identifier of a licensee; 545
(b) The business address of a licensee's registered 546
agent for service; 547
(c) The name, business address and telephone number of 548
all authorized delegates; 549
(d) The terms of or a copy of any bond filed by a 550
licensee, provided that confidential information, including, but 551
not limited to, prices and fees for such bond is redacted; 552
(e) Copies of any nonconfidential final orders of the 553
department relating to any violation of this chapter or 554
regulations implementing this chapter. 555
(5) Imposition of an administrative fine or penalty under 556
this chapter. 557
SECTION 18. Section 75-16-15, Mississippi Code of 1972, is 558
brought forward as follows: 559
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75-16-15. Supervision. (1) The commissioner may conduct an 560
annual examination or investigation of a licensee or authorized 561
delegate or otherwise take independent action authorized by this 562
chapter or by a rule or regulation adopted or order issued under 563
this chapter at any time or times the commissioner deems proper to 564
administer and enforce this chapter, regulations implementing this 565
chapter, and other applicable law, including the Bank Secrecy Act 566
and the USA PATRIOT ACT. The commissioner may: 567
(a) Conduct an examination either on-site or off-site 568
as the commissioner may require; 569
(b) Conduct an examination in conjunction with an 570
examination conducted by representatives of other state agencies 571
or agencies of another state or of the federal government; 572
(c) Accept the examination report of another state 573
agency or an agency of another state or of the federal government, 574
or a report prepared by an independent accounting firm, which on 575
being accepted is considered for all purposes as an official 576
report of the commissioner; and 577
(d) Summon and examine under oath a key individual or 578
employee of a licensee or authorized delegate and require the 579
person to produce records regarding any matter related to the 580
condition and business of the licensee or authorized delegate. 581
(2) A licensee or authorized delegate shall provide, and the 582
commissioner shall have full and complete access to, all records 583
the commissioner may require to conduct a complete examination. 584
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The records must be provided at the location and in the format 585
specified by the commissioner, provided, the commissioner may 586
utilize multistate record production standards and examination 587
procedures when such standards will reasonably achieve the 588
requirements of this subsection. The refusal of access to such 589
records by a licensee shall be cause for revocation of its 590
license. 591
(3) Unless otherwise directed by the commissioner, a 592
licensee shall pay all costs actually incurred in connection with 593
an examination of the licensee or the licensee's authorized 594
delegates. 595
SECTION 19. Section 75-16-17, Mississippi Code of 1972, is 596
brought forward as follows: 597
75-16-17. Networked supervision. (1) To efficiently and 598
effectively administer and enforce this chapter and to minimize 599
regulatory burden, the commissioner is authorized and encouraged 600
to participate in multistate supervisory processes established 601
between states and coordinated through the Conference of State 602
Bank Supervisors, Money Transmitter Regulators Association and 603
affiliates and successors thereof for all licensees that hold 604
licenses in this state and other states. As a participant in 605
multistate supervision, the commissioner will: 606
(a) Cooperate, coordinate and share information with 607
other state and federal regulators in accordance with Section 608
75-16-13; 609
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(b) Enter into written cooperation, coordination or 610
information-sharing contracts or agreements with organizations the 611
membership of which is made up of state or federal governmental 612
agencies; and 613
(c) Cooperate, coordinate and share information with 614
organizations the membership of which is made up of state or 615
federal governmental agencies, provided that the organizations 616
agree in writing to maintain the confidentiality and security of 617
the shared information in accordance with Section 75-16-13. 618
(2) The commissioner may not waive, and nothing in this 619
section constitutes a waiver of, the commissioner's authority to 620
conduct an examination or investigation or otherwise take 621
independent action authorized by this chapter or a rule or 622
regulation adopted, or order issued under this chapter to enforce 623
compliance with applicable state or federal law. 624
(3) A joint examination or investigation, or acceptance of 625
an examination or investigation report, does not waive an 626
examination assessment provided for in this chapter. 627
SECTION 20. Section 75-16-19, Mississippi Code of 1972, is 628
brought forward as follows: 629
75-16-19. Relationship to federal law. (1) In the event 630
state money transmission jurisdiction is conditioned on a federal 631
law, any inconsistencies between a provision of this chapter and 632
the federal law governing money transmission shall be governed by 633
the applicable federal law to the extent of the inconsistency. 634
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(2) In the event of any inconsistencies between this chapter 635
and a federal law that governs pursuant to subsection (1) of this 636
section, the commissioner may provide interpretive guidance that: 637
(a) Identifies the inconsistency; and 638
(b) Identifies the appropriate means of compliance with 639
federal law. 640
SECTION 21. Section 75-16-21, Mississippi Code of 1972, is 641
brought forward as follows: 642
75-16-21. License required. (1) A person may not engage in 643
the business of money transmission or advertise, solicit or hold 644
itself out as providing money transmission unless the person is 645
licensed under this chapter; 646
(2) Subsection (1) of this section does not apply to: 647
(a) A person who is an authorized delegate of a person 648
licensed under this chapter acting within the scope of authority 649
conferred by a written contract with the licensee; or 650
(b) A person who is exempt pursuant to Section 75-16-7 651
and does not engage in money transmission outside the scope of 652
such exemption. 653
(3) A license issued under Section 75-16-29 is not 654
transferable or assignable. 655
SECTION 22. Section 75-16-23, Mississippi Code of 1972, is 656
brought forward as follows: 657
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75-16-23. Consistent state licensing. (1) To establish 658
consistent licensing between this state and other states, the 659
commissioner is authorized and encouraged to: 660
(a) Implement all licensing provisions of this chapter 661
in a manner that is consistent with other states that have adopted 662
this chapter or multistate licensing processes; and 663
(b) Participate in nationwide protocols for licensing 664
cooperation and coordination among state regulators provided that 665
such protocols are consistent with this chapter. 666
(2) In order to fulfill the purposes of this chapter, the 667
commissioner is authorized and encouraged to establish 668
relationships or contracts with NMLS or other entities designated 669
by NMLS to enable the commissioner to: 670
(a) Collect and maintain records; 671
(b) Coordinate multistate licensing processes and 672
supervision processes; 673
(c) Process fees; and 674
(d) Facilitate communication between state and 675
licensees or other persons subject to this chapter. 676
(3) The commissioner is authorized and encouraged to utilize 677
NMLS for all aspects of licensing in accordance with this chapter, 678
including, but not limited to, license applications, applications 679
for acquisitions of control, surety bonds, reporting, criminal 680
history background checks, credit checks, fee processing and 681
examinations. 682
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(4) The commissioner is authorized and encouraged to utilize 683
NMLS forms, processes and functionalities in accordance with this 684
chapter. In the event NMLS does not provide functionality, forms, 685
or processes for a provision of this chapter, the commissioner is 686
authorized and encouraged to strive to implement the requirements 687
in a manner that facilitates uniformity with respect to licensing, 688
supervision, reporting and regulation of licensees which are 689
licensed in multiple jurisdictions. 690
(5) For the purpose of participating in the Nationwide 691
Multistate Licensing System & Registry, the commissioner is 692
authorized to waive or modify, in whole or in part, by rule, 693
regulation or order, any or all of the requirements and to 694
establish new requirements as necessary to participate in the 695
Nationwide Multistate Licensing System & Registry. 696
SECTION 23. Section 75-16-25, Mississippi Code of 1972, is 697
brought forward as follows: 698
75-16-25. Application for license. (1) Applicants for a 699
license shall apply in a form and in a medium as prescribed by the 700
commissioner. Each such form shall contain content as set forth 701
by rule, regulation, instruction or procedure of the commissioner 702
and may be changed or updated by the commissioner in accordance 703
with applicable law in order to carry out the purposes of this 704
chapter and maintain consistency with NMLS licensing standards and 705
practices. The application must state or contain, as applicable: 706
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(a) The legal name and residential and business 707
addresses of the applicant and any fictitious or trade name used 708
by the applicant in conducting its business; 709
(b) A list of any criminal convictions of the applicant 710
and any material litigation in which the applicant has been 711
involved in the ten-year period next preceding the submission of 712
the application; 713
(c) A description of any money transmission previously 714
provided by the applicant and the money transmission that the 715
applicant seeks to provide in this state; 716
(d) A list of the applicant's proposed authorized 717
delegates and the locations in this state where the applicant and 718
its authorized delegates propose to engage in money transmission; 719
(e) A list of other states in which the applicant is 720
licensed to engage in money transmission and any license 721
revocations, suspensions or other disciplinary action taken 722
against the applicant in another state; 723
(f) Information concerning any bankruptcy or 724
receivership proceedings affecting the licensee or a person in 725
control of a licensee; 726
(g) A sample form of contract for authorized delegates, 727
if applicable; 728
(h) A sample form of payment instrument or stored 729
value, as applicable; 730
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(i) The name and address of any federally insured 731
depository financial institution through which the applicant plans 732
to conduct money transmission; and 733
(j) Any other information the commissioner or NMLS 734
requires with respect to the applicant. 735
(2) If an applicant is a corporation, limited liability 736
company, partnership or other legal entity, the applicant shall 737
also provide: 738
(a) The date of the applicant's incorporation or 739
formation and state or country of incorporation or formation; 740
(b) If applicable, a certificate of good standing from 741
the state or country in which the applicant is incorporated or 742
formed; 743
(c) A brief description of the structure or 744
organization of the applicant, including any parents or 745
subsidiaries of the applicant, and whether any parents or 746
subsidiaries are publicly traded; 747
(d) The legal name, any fictitious or trade name, all 748
business and residential addresses and the employment, as 749
applicable, in the ten-year period next preceding the submission 750
of the application of each key individual and person in control of 751
the applicant; 752
(e) A list of any criminal convictions and material 753
litigation in which a person in control of the applicant that is 754
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not an individual has been involved in the ten-year period next 755
preceding the submission of the application; 756
(f) A copy of audited financial statements of the 757
applicant for the most recent fiscal year and for the two-year 758
period next preceding the submission of the application; 759
(g) A certified copy of unaudited financial statements 760
of the applicant for the most recent fiscal quarter; 761
(h) If the applicant is a publicly traded corporation, 762
a copy of the most recent report filed with the United States 763
Securities and Exchange Commission under Section 13 of the U.S. 764
Securities Exchange Act of 1934, 15 USC 78m, as amended or 765
recodified from time to time; 766
(i) If the applicant is a wholly owned subsidiary of: 767
(i) A corporation publicly traded in the United 768
States, a copy of audited financial statements for the parent 769
corporation for the most recent fiscal year or a copy of the 770
parent corporation's most recent report filed under Section 13 of 771
the U.S. Securities Exchange Act of 1934, 15 USC 78m, as amended 772
or recodified from time to time; or 773
(ii) A corporation publicly traded outside the 774
United States, a copy of similar documentation filed with the 775
regulator of the parent corporation's domicile outside the United 776
States; 777
(j) The name and address of the applicant's registered 778
agent in this state; and 779
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(k) Any other information the commissioner requires 780
with respect to the applicant. 781
(3) A nonrefundable license fee of One Thousand Five Hundred 782
Dollars ($1,500.00) must accompany an application for a license 783
under this section. However, beginning with calendar year 2025 784
and for each subsequent calendar year, on or before July 1 of the 785
following year, the Mississippi Department of Banking and Consumer 786
Finance will issue a memo authorizing a new license fee under this 787
section. The new amount will be calculated by applying any 788
increase or decrease in the United States Bureau of Labor 789
Statistics Consumer Price Index for All Urban Consumers (CPI-U) 790
for the previous calendar year to the previous fee amount and 791
rounding that amount upward to the nearest One-Hundred-Dollar 792
increment. 793
(4) The commissioner may waive one or more requirements of 794
subsections (1) and (2) of this section or permit an applicant to 795
submit other information in lieu of the required information. 796
SECTION 24. Section 75-16-27, Mississippi Code of 1972, is 797
brought forward as follows: 798
75-16-27. Information requirements for certain individuals. 799
(1) Any individual in control of a licensee or applicant, any 800
individual who seeks to acquire control of a licensee and each key 801
individual shall furnish to the commissioner through NMLS the 802
following items: 803
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(a) The individual's fingerprints for submission to the 804
Federal Bureau of Investigation and the commissioner for purposes 805
of a national criminal history background check unless the person 806
currently resides outside of the United States and has resided 807
outside of the United States for the last ten (10) years; 808
(b) Personal history and experience in a form and in a 809
medium prescribed by the commissioner, to obtain the following: 810
(i) An independent credit report from a consumer 811
reporting agency unless the individual does not have a social 812
security number, in which case, this requirement shall be waived; 813
(ii) Information related to any criminal 814
convictions or pending charges; provided an applicant shall not 815
have been convicted of a felony in any jurisdiction or a 816
misdemeanor of fraud, theft, forgery, bribery, embezzlement, or 817
making a fraudulent or false statement in any jurisdiction; and 818
(iii) Information related to any regulatory or 819
administrative action and any civil litigation involving claims of 820
fraud, misrepresentation, conversion, mismanagement of funds, 821
breach of fiduciary duty or breach of contract. 822
(2) If the individual has resided outside of the United 823
States at any time in the last ten (10) years, the individual 824
shall also provide an investigative background report prepared by 825
an independent search firm that meets the following requirements: 826
(a) At a minimum, the search firm shall: 827
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(i) Demonstrate that it has sufficient knowledge, 828
resources, and employs accepted and reasonable methodologies to 829
conduct the research of the background report; and 830
(ii) Not be affiliated with or have an interest 831
with the individual it is researching. 832
(b) At a minimum, the investigative background report 833
shall be written in the English language and shall contain the 834
following: 835
(i) If available in the individual's current 836
jurisdiction of residency, a comprehensive credit report, or any 837
equivalent information obtained or generated by the independent 838
search firm to accomplish such report, including a search of the 839
court data in the countries, provinces, states, cities, towns, and 840
contiguous areas where the individual resided and worked; 841
(ii) Criminal records information for the past ten 842
(10) years, including, but not limited to, felonies, misdemeanors, 843
or similar convictions for violations of law in the countries, 844
provinces, states, cities, towns, and contiguous areas where the 845
individual resided and worked; 846
(iii) Employment history; 847
(iv) Media history, including an electronic search 848
of national and local publications, wire services, and business 849
applications; and 850
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(v) Financial services-related regulatory history, 851
including, but not limited to, money transmission, securities, 852
banking, insurance, and mortgage-related industries. 853
SECTION 25. Section 75-16-29, Mississippi Code of 1972, is 854
brought forward as follows: 855
75-16-29. Issuance of license. (1) When an application for 856
an original license under this chapter appears to include all the 857
items and addresses all of the matters that are required, the 858
application is complete and the commissioner shall promptly notify 859
the applicant in a record of the date on which the application is 860
determined to be complete, and: 861
(a) The commissioner shall approve or deny the 862
application within one hundred twenty (120) days after the 863
completion date; or 864
(b) If the application is not approved or denied within 865
one hundred twenty (120) days after the completion date: 866
(i) The application is approved; 867
(ii) The license takes effect as of the first 868
business day after expiration of the one-hundred-twenty-day 869
period; and 870
(iii) The commissioner may for good cause extend 871
the application period. 872
(2) A determination by the commissioner that an application 873
is complete and is accepted for processing means only that the 874
application, on its face, appears to include all of the items, 875
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including the Criminal Background Check response from the FBI, and 876
address all of the matters that are required, and is not an 877
assessment of the substance of the application or of the 878
sufficiency of the information provided. 879
(3) When an application is filed and considered complete 880
under this section, the commissioner shall investigate the 881
applicant's financial condition and responsibility, financial and 882
business experience, character and general fitness. The 883
commissioner may conduct an on-site investigation of the 884
applicant, the cost of which the applicant must pay. The 885
commissioner shall issue a license to an applicant under this 886
section if the commissioner finds that all of the following 887
conditions have been fulfilled: 888
(a) The applicant has complied with Sections 75-16-25 889
and 75-16-27; and 890
(b) The financial condition and responsibility, 891
financial and business experience, competence, character and 892
general fitness of the applicant; and the competence, experience, 893
character and general fitness of the key individuals and persons 894
in control of the applicant indicate that it is in the interest of 895
the public to permit the applicant to engage in money 896
transmission. 897
(4) If an applicant avails itself or is otherwise subject to 898
a multistate licensing process: 899
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(a) The commissioner is authorized and encouraged to 900
accept the investigation results of a lead investigative state for 901
the purpose of subsection (3) of this section if the lead 902
investigative state has sufficient staffing, expertise, and 903
minimum standards; or 904
(b) If Mississippi is a lead investigative state, the 905
commissioner is authorized and encouraged to investigate the 906
applicant pursuant to subsection (3) of this section and the 907
timeframes established by agreement through the multistate 908
licensing process, provided, however, that in no case shall such 909
timeframe be noncompliant with the application period in 910
subsection (1)(a) of this section. 911
(5) The commissioner shall issue a formal written notice of 912
the denial of a license application. The commissioner shall set 913
forth in the notice of denial the specific reasons for the denial 914
of the application. An applicant whose application is denied by 915
the commissioner under this subsection (5) may appeal within 916
thirty (30) days after receipt of the written notice of the 917
denial. Such appeal shall be to the Chancery Court of the First 918
Judicial District of Hinds County, Mississippi. 919
(6) The initial license term shall begin on the day the 920
application is approved. The license shall expire on December 31 921
of the year in which the license term began, unless the initial 922
license date is between November 1 and December 31, in which 923
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instance the initial license term shall run through December 31 of 924
the following year. 925
SECTION 26. Section 75-16-31, Mississippi Code of 1972, is 926
brought forward as follows: 927
75-16-31. Renewal of license. (1) A license under this 928
chapter shall be renewed annually. 929
(a) An annual renewal fee of Eight Hundred Dollars 930
($800.00) plus One Hundred Dollars ($100.00) for each location in 931
excess of one in Mississippi through which the licensee plans to 932
conduct money transmission during the license year for which the 933
fee is paid, shall be paid, provided that in no event shall the 934
annual renewal fee exceed Five Thousand Eight Hundred Dollars 935
($5,800.00). Such renewal fee shall be paid no more than sixty 936
(60) days before the license expiration. 937
(b) The renewal term shall be for a period of one (1) 938
year and shall begin on January 1 of each year after the initial 939
license term and shall expire on December 31 of the year the 940
renewal term begins. 941
(2) A licensee shall submit a renewal report with the 942
renewal fee, in a form and in a medium prescribed by the 943
commissioner. The renewal report must state or contain a 944
description of each material change in information submitted by 945
the licensee in its original license application which has not 946
been reported to the commissioner. 947
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(3) The commissioner, for good cause, may grant an extension 948
of the renewal date. 949
(4) The commissioner is authorized and encouraged to utilize 950
NMLS to process license renewals provided that such functionality 951
is consistent with this section. 952
SECTION 27. Section 75-16-33, Mississippi Code of 1972, is 953
brought forward as follows: 954
75-16-33. Maintenance of license. (1) If a licensee does 955
not continue to meet the qualifications or satisfy the 956
requirements that apply to an applicant for a new money 957
transmission license, the commissioner may suspend or revoke the 958
licensee's license in accordance with the procedures established 959
by this chapter or other applicable state law for such suspension 960
or revocation. 961
(2) An applicant for a money transmission license must 962
demonstrate that it meets or will meet, and a money transmission 963
licensee must at all times meet, the requirements in Sections 964
75-16-61, 75-16-63 and 75-16-65. 965
SECTION 28. Section 75-16-35, Mississippi Code of 1972, is 966
brought forward as follows: 967
75-16-35. Acquisition of control. (1) Any person, or group 968
of persons acting in concert, seeking to acquire control of a 969
licensee shall obtain the written approval of the commissioner 970
prior to acquiring control. 971
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(2) A person, or group of persons acting in concert, seeking 972
to acquire control of a licensee shall, in cooperation with the 973
licensee: 974
(a) Submit an application in a form and in a medium 975
prescribed by the commissioner; and 976
(b) Submit a nonrefundable fee as required under 977
Section 75-16-25 with the request for approval. 978
(3) Upon request, the commissioner may permit a licensee or 979
the person, or group of persons acting in concert, to submit some 980
or all information required by the commissioner pursuant to 981
subsection (2)(a) of this section without using NMLS. 982
(4) The application required by subsection (2)(a) of this 983
section shall include information required by Section 75-16-27 for 984
any new key individuals who have not previously completed the 985
requirements of Section 75-16-27 for a licensee. 986
(5) When an application for acquisition of control under 987
this section appears to include all the items and address all of 988
the matters that are required, the application shall be considered 989
complete, and the commissioner shall promptly notify the applicant 990
in a record of the date on which the application was determined to 991
be complete and: 992
(a) The commissioner shall approve or deny the 993
application within sixty (60) days after the completion date; or 994
(b) If the application is not approved or denied within 995
sixty (60) days after the completion date: 996
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(i) The application is approved; and 997
(ii) The person, or group of persons acting in 998
concert, are not prohibited from acquiring control. 999
(c) The commissioner may for good cause extend the 1000
application period. 1001
(6) A determination by the commissioner that an application 1002
is complete and is accepted for processing means only that the 1003
application, on its face, appears to include all of the items and 1004
address all of the matters that are required, and is not an 1005
assessment of the substance of the application or of the 1006
sufficiency of the information provided. 1007
(7) When an application is filed and considered complete 1008
under subsection (5) of this section, the commissioner shall 1009
investigate the financial condition and responsibility, financial 1010
and business experience, character and general fitness of the 1011
person, or group of persons acting in concert, seeking to acquire 1012
control. The commissioner shall approve an acquisition of control 1013
pursuant to this section if the commissioner finds that all of the 1014
following conditions have been fulfilled: 1015
(a) The requirements of subsections (2) and (4) of this 1016
section have been met, as applicable; and 1017
(b) The financial condition and responsibility, 1018
financial and business experience, competence, character and 1019
general fitness of the person, or group of persons acting in 1020
concert, seeking to acquire control; and the competence, 1021
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experience, character and general fitness of the key individuals 1022
and persons that would be in control of the licensee after the 1023
acquisition of control indicate that it is in the interest of the 1024
public to permit the person, or group of persons acting in 1025
concert, to control the licensee. 1026
(8) If an applicant avails itself or is otherwise subject to 1027
a multistate licensing process: 1028
(a) The commissioner is authorized and encouraged to 1029
accept the investigation results of a lead investigative state for 1030
the purpose of subsection (7) of this section if the lead 1031
investigative state has sufficient staffing, expertise and minimum 1032
standards; or 1033
(b) If Mississippi is a lead investigative state, the 1034
commissioner is authorized and encouraged to investigate the 1035
applicant pursuant to subsection (7) of this section and the 1036
timeframes established by agreement through the multistate 1037
licensing process. 1038
(9) The commissioner shall issue a formal written notice of 1039
the denial of an application to acquire control. The commissioner 1040
shall set forth in the notice of denial the specific reasons for 1041
the denial of the application. An applicant whose application is 1042
denied by the commissioner under this section may appeal within 1043
thirty (30) days after receipt of the written notice of the 1044
denial. Such appeal shall be to the Chancery Court of the First 1045
Judicial District of Hinds County, Mississippi. 1046
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(10) The requirements of subsections (1) and (2) of this 1047
section do not apply to any of the following: 1048
(a) A person who acts as a proxy for the sole purpose 1049
of voting at a designated meeting of the shareholders or holders 1050
of voting shares or voting interests of a licensee or a person in 1051
control of a licensee; 1052
(b) A person who acquires control of a licensee by 1053
devise or descent; 1054
(c) A person who acquires control of a licensee as a 1055
personal representative, custodian, guardian, conservator or 1056
trustee, or as an officer appointed by a court of competent 1057
jurisdiction or by operation of law; 1058
(d) A person who is exempt under Section 75-16-7(7); 1059
(e) A person who the commissioner determines is not 1060
subject to subsection (1) of this section based on the public 1061
interest; 1062
(f) A public offering of securities of a licensee or a 1063
person in control of a licensee; or 1064
(g) An internal reorganization of a person in control 1065
of the licensee where the ultimate person in control of the 1066
licensee remains the same. 1067
(11) Persons in subsection (10)(b), (c), (d), (f) and (g) of 1068
this section in cooperation with the licensee shall notify the 1069
commissioner within fifteen (15) days after the acquisition of 1070
control. 1071
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(12) Streamlined Acquisition of Control. 1072
(a) The requirements of subsections (1) and (2) of this 1073
section do not apply to a person who has complied with and 1074
received approval to engage in money transmission under this 1075
chapter or was identified as a person in control in a prior 1076
application filed with and approved by the commissioner or by an 1077
MSB accredited state pursuant to a multistate licensing process, 1078
provided that: 1079
(i) The person has not had a license revoked or 1080
suspended or controlled a licensee that has had a license revoked 1081
or suspended while the person was in control of the licensee in 1082
the previous five (5) years; 1083
(ii) If the person is a licensee, the person is 1084
well managed and has received at least a satisfactory rating for 1085
compliance at its most recent examination by an MSB accredited 1086
state if such rating was given; 1087
(iii) The licensee to be acquired is projected to 1088
meet the requirements of Sections 75-16-61, 75-16-63 and 75-16-65 1089
after the acquisition of control is completed, and if the person 1090
acquiring control is a licensee, that licensee is also projected 1091
to meet the requirements of Sections 75-16-61, 75-16-63 and 1092
75-16-65 after the acquisition of control is completed; 1093
(iv) The licensee to be acquired will not 1094
implement any material changes to its business plan as a result of 1095
the acquisition of control, and if the person acquiring control is 1096
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a licensee, that licensee also will not implement any material 1097
changes to its business plan as a result of the acquisition of 1098
control; and 1099
(v) The person provides notice of the acquisition 1100
in cooperation with the licensee and attests to this paragraph 1101
(a)(i), (ii), (iii) and (iv) in a form and in a medium prescribed 1102
by the commissioner. 1103
(b) If the notice is not disapproved within thirty (30) 1104
days after the date on which the notice was determined to be 1105
complete, the notice is deemed approved. 1106
(13) Before filing an application for approval to acquire 1107
control of a licensee a person may request in writing a 1108
determination from the commissioner as to whether the person would 1109
be considered a person in control of a licensee upon consummation 1110
of a proposed transaction. If the commissioner determines that 1111
the person would not be a person in control of a licensee, the 1112
proposed person and transaction is not subject to the requirements 1113
of subsections (1) and (2) of this section. 1114
(14) If a multistate licensing process includes a 1115
determination pursuant to subsection (13) of this section and an 1116
applicant avails itself or is otherwise subject to the multistate 1117
licensing process: 1118
(a) The commissioner is authorized and encouraged to 1119
accept the control determination of a lead investigative state 1120
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with sufficient staffing, expertise, and minimum standards for the 1121
purpose of subsection (13) of this section; or 1122
(b) If a state is a lead investigative state, the 1123
commissioner is authorized and encouraged to investigate the 1124
applicant pursuant to subsection (13) of this section and the 1125
timeframes established by agreement through the multistate 1126
licensing process. 1127
SECTION 29. Section 75-16-37, Mississippi Code of 1972, is 1128
brought forward as follows: 1129
75-16-37. Notice and information requirements for a change 1130
of key individuals. (1) A licensee adding or replacing any key 1131
individual shall: 1132
(a) Provide notice in a manner prescribed by the 1133
commissioner within fifteen (15) days after the effective date of 1134
the key individual's appointment; and 1135
(b) Provide information as required by Section 75-16-27 1136
within forty-five (45) days of the effective date. 1137
(2) Within ninety (90) days of the date on which the notice 1138
provided pursuant to subsection (1) of this section was determined 1139
to be complete, the commissioner may issue a notice of disapproval 1140
of a key individual if the competence, experience, character or 1141
integrity of the individual would not be in the best interests of 1142
the public or the customers of the licensee to permit the 1143
individual to be a key individual of such licensee. 1144
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(3) A notice of disapproval shall contain a statement of the 1145
basis for disapproval and shall be sent to the licensee and the 1146
disapproved individual. A licensee may appeal a notice of 1147
disapproval within thirty (30) days after receipt of such notice 1148
of disapproval. Such appeal shall be to the Chancery Court of the 1149
First Judicial District of Hinds County, Mississippi. 1150
(4) If the notice provided pursuant to subsection (1) of 1151
this section is not disapproved within ninety (90) days after the 1152
date on which the notice was determined to be complete, the key 1153
individual is deemed approved. 1154
(5) If a multistate licensing process includes a key 1155
individual notice review and disapproval process pursuant to this 1156
section and the licensee avails itself or is otherwise subject to 1157
the multistate licensing process: 1158
(a) The commissioner is authorized and encouraged to 1159
accept the determination of another state if the investigating 1160
state has sufficient staffing, expertise, and minimum standards 1161
for the purpose of this section; or 1162
(b) If Mississippi is a lead investigative state, the 1163
commissioner is authorized and encouraged to investigate the 1164
applicant pursuant to subsection (2) of this section and the 1165
timeframes established by agreement through the multistate 1166
licensing process. 1167
SECTION 30. Section 75-16-39, Mississippi Code of 1972, is 1168
brought forward as follows: 1169
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75-16-39. Report of condition. (1) Each licensee shall 1170
submit a report of condition (i.e. call report) within forty-five 1171
(45) days of the end of the calendar quarter, or within any 1172
extended time as the commissioner may prescribe. 1173
(2) The report of condition shall include: 1174
(a) Financial information at the licensee level; 1175
(b) Nationwide and state-specific money transmission 1176
transaction information in every jurisdiction in the United States 1177
where the licensee is licensed to engage in money transmission; 1178
(c) Permissible investments report; 1179
(d) Transaction destination country reporting for money 1180
received for transmission, if applicable; and 1181
(e) Any other information the commissioner requires 1182
with respect to the licensee. The commissioner is authorized and 1183
encouraged to utilize NMLS for the submission of the report 1184
required by this subsection (1) of this section and is authorized 1185
to change or update as necessary the requirements of this section 1186
to carry out the purposes of this chapter and maintain consistency 1187
with NMLS reporting. 1188
(3) The information required by subsection (2)(d) of this 1189
section shall only be included in a report of condition submitted 1190
within forty-five (45) days of the end of the fourth calendar 1191
quarter. 1192
SECTION 31. Section 75-16-41, Mississippi Code of 1972, is 1193
brought forward as follows: 1194
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75-16-41. Audited financials. (1) Each licensee shall, 1195
within ninety (90) days after the end of each fiscal year, or 1196
within any extended time as the commissioner may prescribe, file 1197
with the commissioner: 1198
(a) An audited financial statement of the licensee for 1199
the fiscal year prepared in accordance with United States 1200
Generally Accepted Accounting Principles; and 1201
(b) Any other information as the commissioner may 1202
require. 1203
(2) The audited financial statements shall be prepared by an 1204
independent certified public accountant or independent public 1205
accountant who is satisfactory to the commissioner. 1206
(3) The audited financial statements shall include or be 1207
accompanied by a certificate of opinion of the independent 1208
certified public accountant or independent public accountant that 1209
is satisfactory in form and content to the commissioner. If the 1210
certificate or opinion is qualified, the commissioner may order 1211
the licensee to take any action as the commissioner may find 1212
necessary to enable the independent or certified public accountant 1213
or independent public accountant to remove the qualification. 1214
SECTION 32. Section 75-16-43, Mississippi Code of 1972, is 1215
brought forward as follows: 1216
75-16-43. Authorized delegate reporting. (1) Each licensee 1217
shall submit a report of authorized delegates within forty-five 1218
(45) days of the end of the calendar quarter. The commissioner is 1219
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authorized and encouraged to utilize NMLS for the submission of 1220
the report required by this subsection provided that such 1221
functionality is consistent with the requirements of this section. 1222
Such utilization shall include the NMLS Uniform Authorized Agent 1223
Reporting (UAAR) process, or such other similar process as 1224
designated by NMLS. 1225
(2) The authorized delegate report shall include, at a 1226
minimum, each authorized delegate's: 1227
(a) Company legal name; 1228
(b) Taxpayer employer identification number; 1229
(c) Principal provider identifier; 1230
(d) Physical address; 1231
(e) Mailing address; 1232
(f) Any business conducted in other states; 1233
(g) Any fictitious or trade name; 1234
(h) Contact person name, phone number, and email; 1235
(i) Start date as licensee's authorized delegate; 1236
(j) End date acting as licensee's authorized delegate, 1237
if applicable; and 1238
(k) Any other information the commissioner requires 1239
with respect to the authorized delegate. 1240
SECTION 33. Section 75-16-45, Mississippi Code of 1972, is 1241
brought forward as follows: 1242
75-16-45. Reports of certain events. (1) A licensee shall 1243
file a report with the commissioner within one (1) business day 1244
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after the licensee has reason to know of the occurrence of any of 1245
the following events: 1246
(a) The filing of a petition by or against the licensee 1247
under the United States Bankruptcy Code, 11 USC 101-110, as 1248
amended or recodified from time to time, for bankruptcy or 1249
reorganization; 1250
(b) The filing of a petition by or against the licensee 1251
for receivership, the commencement of any other judicial or 1252
administrative proceeding for its dissolution or reorganization, 1253
or the making of a general assignment for the benefit of its 1254
creditors; or 1255
(c) The commencement of a proceeding to revoke or 1256
suspend its license in a state or country in which the licensee 1257
engages in business or is licensed. 1258
(2) A licensee shall file a report with the commissioner 1259
within three (3) business day after the licensee has reason to 1260
know of the occurrence of any of the following events: 1261
(a) A charge or conviction of the licensee or of a key 1262
individual or person in control of the licensee for a felony; or 1263
(b) A charge or conviction of an authorized delegate 1264
for a felony. 1265
SECTION 34. Section 75-16-47, Mississippi Code of 1972, is 1266
brought forward as follows: 1267
75-16-47. Bank Secrecy Act reports. A licensee and an 1268
authorized delegate shall file all reports required by federal 1269
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currency reporting, record keeping, and suspicious activity 1270
reporting requirements as set forth in the Bank Secrecy Act and 1271
other federal and state laws pertaining to money laundering. The 1272
timely filing of a complete and accurate report required under 1273
this section with the appropriate federal agency is deemed 1274
compliant with the requirements of this section. 1275
SECTION 35. Section 75-16-49, Mississippi Code of 1972, is 1276
brought forward as follows: 1277
75-16-49. Records. (1) A licensee shall maintain the 1278
following records, for determining its compliance with this 1279
chapter for at least five (5) years: 1280
(a) A record of each money transmission obligation 1281
sold; 1282
(b) A general ledger posted at least monthly containing 1283
all asset, liability, capital, income and expense accounts; 1284
(c) Bank statements and bank reconciliation records; 1285
(d) Records of outstanding money transmission; 1286
(e) Records of each outstanding money transmission 1287
obligation paid within the five-year period; 1288
(f) A list of the last-known names and addresses of all 1289
of the licensee's authorized delegates; and 1290
(g) Any other records the commissioner requires by 1291
rule, regulation or order. 1292
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(2) The items specified in subsection (1) of this section 1293
may be maintained in photographic, electronic or other similar 1294
form. 1295
(3) Records specified in subsection (1) of this section may 1296
be maintained outside this state if they are made accessible to 1297
the commissioner on seven (7) business days' notice that is sent 1298
in a record. 1299
(4) All records maintained by the licensee as required in 1300
subsections (1) through (3) of this section are open to inspection 1301
by the commissioner pursuant to Section 75-16-15(1). 1302
SECTION 36. Section 75-16-51, Mississippi Code of 1972, is 1303
brought forward as follows: 1304
75-16-51. Relationship between licensee and authorized 1305
delegate. (1) In this section, "remit" means to make direct 1306
payments of money to a licensee or its representative authorized 1307
to receive money or to deposit money in a bank in an account 1308
specified by the licensee. 1309
(2) Before a licensee is authorized to conduct business 1310
through an authorized delegate or allows a person to act as the 1311
licensee's authorized delegate, the licensee must: 1312
(a) Adopt, and update as necessary, written policies 1313
and procedures designed to ensure that the licensee's authorized 1314
delegates comply with applicable state and federal law; 1315
(b) Enter into a written contract that complies with 1316
subsection (4) of this section; and 1317
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(c) Conduct a risk-based background investigation 1318
sufficient for the licensee to determine whether the authorized 1319
delegate has complied and will likely comply with applicable state 1320
and federal law. 1321
(3) An authorized delegate must operate in full compliance 1322
with this chapter. 1323
(4) The written contract required by subsection (2) of this 1324
section must be signed by the licensee and the authorized delegate 1325
and, at a minimum, must: 1326
(a) Appoint the person signing the contract as the 1327
licensee's authorized delegate with the authority to conduct money 1328
transmission on behalf of the licensee; 1329
(b) Set forth the nature and scope of the relationship 1330
between the licensee and the authorized delegate and the 1331
respective rights and responsibilities of the parties; 1332
(c) Require the authorized delegate to agree to fully 1333
comply with all applicable state and federal laws, rules, and 1334
regulations pertaining to money transmission, including this 1335
chapter and regulations implementing this chapter, relevant 1336
provisions of the Bank Secrecy Act and the USA PATRIOT ACT; 1337
(d) Require the authorized delegate to remit and handle 1338
money and monetary value in accordance with the terms of the 1339
contract between the licensee and the authorized delegate; 1340
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(e) Impose a trust on money and monetary value net of 1341
fees received for money transmission for the benefit of the 1342
licensee; 1343
(f) Require the authorized delegate to prepare and 1344
maintain records as required by this chapter or regulations 1345
implementing this chapter, or as requested by the commissioner; 1346
(g) Acknowledge that the authorized delegate consents 1347
to examination or investigation by the commissioner; 1348
(h) State that the licensee is subject to regulation by 1349
the commissioner and that, as part of that regulation, the 1350
commissioner may suspend or revoke an authorized delegate 1351
designation or require the licensee to terminate an authorized 1352
delegate designation; and 1353
(i) Acknowledge receipt of the written policies and 1354
procedures required under subsection (2)(a) of this section. 1355
(5) If the licensee's license is suspended, revoked, 1356
surrendered or expired, the licensee must, within five (5) 1357
business days, provide documentation to the commissioner that the 1358
licensee has notified all applicable authorized delegates of the 1359
licensee whose names are in a record filed with the commissioner 1360
of the suspension, revocation, surrender or expiration of a 1361
license. Upon suspension, revocation, surrender or expiration of 1362
a license, applicable authorized delegates shall immediately cease 1363
to provide money transmission as an authorized delegate of the 1364
licensee. 1365
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(6) An authorized delegate of a licensee holds in trust for 1366
the benefit of the licensee all money net of fees received from 1367
money transmission. If any authorized delegate commingles any 1368
funds received from money transmission with any other funds or 1369
property owned or controlled by the authorized delegate, all 1370
commingled funds and other property shall be considered held in 1371
trust in favor of the licensee in an amount equal to the amount of 1372
money net of fees received from money transmission. 1373
(7) An authorized delegate may not use a subdelegate to 1374
conduct money transmission on behalf of a licensee. 1375
SECTION 37. Section 75-16-53, Mississippi Code of 1972, is 1376
brought forward as follows: 1377
75-16-53. Unauthorized activities. A person shall not 1378
engage in the business of money transmission on behalf of a person 1379
not licensed under this chapter or not exempt pursuant to Sections 1380
75-16-7 and 75-16-9. A person who engages in such activity 1381
provides money transmission to the same extent as if the person 1382
were a licensee, and shall be jointly and severally liable with 1383
the unlicensed or nonexempt person. 1384
SECTION 38. Section 75-16-55, Mississippi Code of 1972, is 1385
brought forward as follows: 1386
75-16-55. Timely transmission. (1) Every licensee shall 1387
forward all money received for transmission in accordance with the 1388
terms of the agreement between the licensee and the sender unless 1389
the licensee has a reasonable belief or a reasonable basis to 1390
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believe that the sender may be a victim of fraud or that a crime 1391
or violation of law, rule or regulation has occurred, is 1392
occurring, or may occur. 1393
(2) If a licensee fails to forward money received for 1394
transmission in accordance with this section, the licensee must 1395
respond to inquiries by the sender with the reason for the failure 1396
unless providing a response would violate a state or federal law, 1397
rule, or regulation. 1398
SECTION 39. Section 75-16-57, Mississippi Code of 1972, is 1399
brought forward as follows: 1400
75-16-57. Refunds. (1) This section does not apply to: 1401
(a) Money received for transmission subject to the 1402
federal Remittance Rule (12 CFR Part 1005, Subpart B), as amended 1403
or recodified from time to time; or 1404
(b) Money received for transmission pursuant to a 1405
written agreement between the licensee and payee to process 1406
payments for goods or services provided by the payee. 1407
(2) Every licensee shall refund to the sender within ten 1408
(10) days of receipt of the sender's written request for a refund 1409
of any and all money received for transmission unless any of the 1410
following occurs: 1411
(a) The money has been forwarded within ten (10) days 1412
of the date on which the money was received for transmission; 1413
(b) Instructions have been given committing an 1414
equivalent amount of money to the person designated by the sender 1415
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within ten (10) days of the date on which the money was received 1416
for transmission; 1417
(c) The agreement between the licensee and the sender 1418
instructs the licensee to forward the money at a time that is 1419
beyond ten (10) days of the date on which the money was received 1420
for transmission. If funds have not yet been forwarded in 1421
accordance with the terms of the agreement between the licensee 1422
and the sender, the licensee shall issue a refund in accordance 1423
with the other provisions of this section; 1424
(d) The refund is requested for a transaction that the 1425
licensee has not completed based on a reasonable belief or a 1426
reasonable basis to believe that a crime or violation of law, rule 1427
or regulation has occurred, is occurring, or may occur; or 1428
(e) The refund request does not enable the licensee to: 1429
(i) Identify the sender's name and address or 1430
telephone number; or 1431
(ii) Identify the particular transaction to be 1432
refunded in the event the sender has multiple transactions 1433
outstanding. 1434
SECTION 40. Section 75-16-59, Mississippi Code of 1972, is 1435
brought forward as follows: 1436
75-16-59. Receipts. (1) This section does not apply to: 1437
(a) Money received for transmission subject to the 1438
federal Remittance Rule (12 CFR Part 1005, Subpart B), as amended 1439
or recodified from time to time; 1440
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(b) Money received for transmission that is not 1441
primarily for personal, family or household purposes; or 1442
(c) Money received for transmission pursuant to a 1443
written agreement between the licensee and payee to process 1444
payments for goods or services provided by the payee. 1445
(2) For purposes of this section, "receipt" means a paper 1446
receipt, electronic record or other written confirmation. For a 1447
transaction conducted in person, the receipt may be provided 1448
electronically if the sender requests or agrees to receive an 1449
electronic receipt. For a transaction conducted electronically or 1450
by phone, a receipt may be provided electronically. All 1451
electronic receipts shall be provided in a retainable form. 1452
(3) Every licensee or its authorized delegate shall provide 1453
the sender a receipt for money received for transmission. 1454
(a) The receipt shall contain the following 1455
information, as applicable: 1456
(i) The name of the sender; 1457
(ii) The name of the designated recipient; 1458
(iii) The date of the transaction; 1459
(iv) The unique transaction or identification 1460
number; 1461
(v) The name of the licensee, NMLS Unique ID, the 1462
licensee's business address and the licensee's customer service 1463
telephone number; 1464
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(vi) The amount of the transaction in United 1465
States dollars; 1466
(vii) Any fee charged by the licensee to the 1467
sender for the transaction; and 1468
(viii) Any taxes collected by the licensee from 1469
the sender for the transaction. 1470
(b) The receipt required by this section shall be in 1471
English and in the language principally used by the licensee or 1472
authorized delegate to advertise, solicit or negotiate, either 1473
orally or in writing, for a transaction conducted in person, 1474
electronically or by phone, if other than English. 1475
SECTION 41. Section 75-16-61, Mississippi Code of 1972, is 1476
brought forward as follows: 1477
75-16-61. Net worth. (1) A licensee under this chapter 1478
shall maintain at all times a tangible net worth of the greater of 1479
One Hundred Thousand Dollars ($100,000.00) or three percent (3%) 1480
of total assets for the first One Hundred Million Dollars 1481
($100,000,000.00), two percent (2%) of additional assets for One 1482
Hundred Million Dollars ($100,000,000.00) to One Billion Dollars 1483
($1,000,000,000.00), and one-half percent (0.5%) of additional 1484
assets for over One Billion Dollars ($1,000,000,000.00). 1485
(2) Tangible net worth must be demonstrated at initial 1486
application by the applicant's most recent audited statements 1487
pursuant to Section 75-16-25(2)(f). 1488
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(3) Notwithstanding the foregoing provisions of this 1489
section, the commissioner shall have the authority, for good cause 1490
shown, to exempt, in part or in whole, from the requirements of 1491
this section for any applicant or licensee. 1492
SECTION 42. Section 75-16-63, Mississippi Code of 1972, is 1493
brought forward as follows: 1494
75-16-63. Surety bond. (1) An applicant for a money 1495
transmission license must provide, and a licensee at all times 1496
must maintain, security consisting of a surety bond issued by a 1497
bonding company or insurance company authorized to do business in 1498
the State of Mississippi and in a form satisfactory to the 1499
commissioner or, with the commissioner's approval, a deposit 1500
instead of a bond in accordance with this section. 1501
(2) The amount of the required security shall be 1502
the greater of One Hundred Thousand Dollars ($100,000.00) or an 1503
amount equal to one hundred percent (100%) of the licensee's 1504
average daily money transmission liability in this state 1505
calculated for the most recently completed three-month period, up 1506
to a maximum of Five Hundred Thousand Dollars ($500,000.00). A 1507
licensee that maintains a bond in the maximum amount provided for 1508
in subsection (1) of this section or in this subsection, as 1509
applicable, shall not be required to calculate its average daily 1510
money transmission liability in this state for purposes of this 1511
section. 1512
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(3) A licensee may exceed the maximum required bond amount 1513
pursuant to Section 75-16-67(1)(e). 1514
(4) The bond shall be in a form satisfactory to the 1515
commissioner and shall run to the state for the use and benefit of 1516
the Department of Banking and Consumer Finance and any claimants 1517
against the licensee or his agents to secure the faithful 1518
performance of the obligations of the licensee and his agents with 1519
respect to the receipt, handling, transmission and payment of 1520
money in connection with money transmissions in Mississippi. 1521
(5) Any claimants against the licensee or his agents may 1522
themselves bring suit directly on the bond, or the Attorney 1523
General may bring suit thereon in behalf of those claimants, 1524
either in one (1) action or successive actions. 1525
(6) The commissioner may increase the required amount of the 1526
bond or deposit upon the basis of the impaired financial condition 1527
of a licensee as evidenced by a reduction in net worth, financial 1528
losses or other relevant criteria. 1529
(7) Any provision in this chapter to the contrary 1530
notwithstanding, the commissioner may at any time, if in the 1531
commissioner's sole opinion the protection of the public so 1532
requires, increase the principal sum of the bond or deposit 1533
required of any applicant or licensee by this chapter but in no 1534
case shall the principal sum of the bond or deposit required 1535
exceed One Million Dollars ($1,000,000.00). 1536
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SECTION 43. Section 75-16-65, Mississippi Code of 1972, is 1537
brought forward as follows: 1538
75-16-65. Maintenance of permissible. (1) A licensee shall 1539
maintain at all times permissible investments that have a market 1540
value computed in accordance with United States Generally Accepted 1541
Accounting Principles of not less than the aggregate amount of all 1542
of its outstanding money transmission obligations. 1543
(2) Except for permissible investments enumerated in Section 1544
75-16-67(1), the commissioner, with respect to any licensee, may 1545
by rule, regulation or order limit the extent to which a specific 1546
investment maintained by a licensee within a class of permissible 1547
investments may be considered a permissible investment, if the 1548
specific investment represents undue risk to customers, not 1549
reflected in the market value of investments. 1550
(3) Permissible investments, even if commingled with other 1551
assets of the licensee, are held in trust for the benefit of the 1552
purchasers and holders of the licensee's outstanding money 1553
transmission obligations in the event of insolvency, the filing of 1554
a petition by or against the licensee under the United States 1555
Bankruptcy Code, 11 USC Sections 101-110, as amended or recodified 1556
from time to time, for bankruptcy or reorganization, the filing of 1557
a petition by or against the licensee for receivership, the 1558
commencement of any other judicial or administrative proceeding 1559
for its dissolution or reorganization, or in the event of an 1560
action by a creditor against the licensee who is not a beneficiary 1561
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of this statutory trust. No permissible investments impressed 1562
with a trust pursuant to this subsection (3) shall be subject to 1563
attachment, levy of execution or sequestration by order of any 1564
court, except for a beneficiary of this statutory trust. 1565
(4) Upon the establishment of a statutory trust in 1566
accordance with subsection (3) of this section or when any funds 1567
are drawn on a letter of credit pursuant to Section 75-16-67(1), 1568
the commissioner shall notify the applicable regulator of each 1569
state in which the licensee is licensed to engage in money 1570
transmission, if any, of the establishment of the trust or the 1571
funds drawn on the letter of credit, as applicable. Notice shall 1572
be deemed satisfied if performed pursuant to a multistate 1573
agreement or through NMLS. Funds drawn on a letter of credit, and 1574
any other permissible investments held in trust for the benefit of 1575
the purchasers and holders of the licensee's outstanding money 1576
transmission obligations, are deemed held in trust for the benefit 1577
of such purchasers and holders on a pro rata and equitable basis 1578
in accordance with statutes pursuant to which permissible 1579
investments are required to be held in this state, and other 1580
states, as applicable. Any statutory trust established hereunder 1581
shall be terminated upon extinguishment of all of the licensee's 1582
outstanding money transmission obligations. 1583
(5) The commissioner, by rule, regulation or by order may 1584
allow other types of investments that the commissioner determines 1585
are of sufficient liquidity and quality to be a permissible 1586
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investment. The commissioner is authorized to participate in 1587
efforts with other state regulators to determine that other types 1588
of investments are of sufficient liquidity and quality to be a 1589
permissible investment. 1590
SECTION 44. Section 75-16-67, Mississippi Code of 1972, is 1591
brought forward as follows: 1592
75-16-67. Types of permissible investments. (1) The 1593
following investments are permissible under Section 75-16-65: 1594
(a) Cash (including demand deposits, savings deposits, 1595
and funds in such accounts held for the benefit of the licensee's 1596
customers in a federally insured depository financial institution) 1597
and cash equivalents including ACH items in transit to the 1598
licensee and ACH items or international wires in transit to a 1599
payee, cash in transit via armored car, cash in smart safes, cash 1600
in licensee-owned locations, debit card or credit card-funded 1601
transmission receivables owed by any bank, or money market mutual 1602
funds rated "AAA" by S&P, or the equivalent from any eligible 1603
rating service; 1604
(b) Certificates of deposit or senior debt obligations 1605
of an insured depository institution, as defined in Section 3 of 1606
the Federal Deposit Insurance Act, 12 USC 1813, as amended or 1607
recodified from time to time, or as defined under the federal 1608
Credit Union Act, 12 USC 1781, as amended or recodified from time 1609
to time; 1610
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(c) An obligation of the United States or a commission, 1611
agency, or instrumentality thereof; an obligation that is 1612
guaranteed fully as to principal and interest by the United 1613
States; or an obligation of a state or a governmental subdivision, 1614
agency, or instrumentality thereof; 1615
(d) The full drawable amount of an irrevocable standby 1616
letter of credit for which the stated beneficiary is the 1617
commissioner that stipulates that the beneficiary need only draw a 1618
sight draft under the letter of credit and present it to obtain 1619
funds up to the letter of credit amount within seven (7) days of 1620
presentation of the items required by subparagraph (iii) of this 1621
paragraph (d). 1622
(i) The letter of credit must: 1623
1. Be issued by a federally insured 1624
depository financial institution, a foreign bank that is 1625
authorized under federal law to maintain a federal agency or 1626
federal branch office in a state or states, or a foreign bank that 1627
is authorized under state law to maintain a branch in a state that 1628
a. bears an eligible rating or whose parent company bears an 1629
eligible rating; and b. is regulated, supervised, and examined by 1630
United States federal or state authorities having regulatory 1631
authority over banks, credit unions, and trust companies; 1632
2. Be irrevocable, unconditional and indicate 1633
that it is not subject to any condition or qualifications outside 1634
of the letter of credit; 1635
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3. Not contain reference to any other 1636
agreements, documents or entities, or otherwise provide for any 1637
security interest in the licensee; and 1638
4. Contain an issue date and expiration date, 1639
and expressly provide for automatic extension, without a written 1640
amendment, for an additional period of one (1) year from the 1641
present or each future expiration date, unless the issuer of the 1642
letter of credit notifies the commissioner in writing by certified 1643
or registered mail or courier mail or other receipted means, at 1644
least sixty (60) days prior to any expiration date, that the 1645
irrevocable letter of credit will not be extended. 1646
(ii) In the event of any notice of expiration or 1647
nonextension of a letter of credit issued under subparagraph (i)4 1648
of this paragraph (d), the licensee shall be required to 1649
demonstrate to the satisfaction of the commissioner, fifteen (15) 1650
days prior to expiration, that the licensee maintains and will 1651
maintain permissible investments in accordance with Section 1652
75-16-65(1) upon the expiration of the letter of credit. If the 1653
licensee is not able to do so, the commissioner may draw on the 1654
letter of credit in an amount up to the amount necessary to meet 1655
the licensee's requirements to maintain permissible investments in 1656
accordance with Section 75-16-65(1). Any such draw shall be 1657
offset against the licensee's outstanding money transmission 1658
obligations. The drawn funds shall be held in trust by the 1659
commissioner or the commissioner's designated agent, to the extent 1660
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authorized by law, as agent for the benefit of the purchasers and 1661
holders of the licensee's outstanding money transmission 1662
obligations. 1663
(iii) The letter of credit shall provide that the 1664
issuer of the letter of credit will honor, at sight, a 1665
presentation made by the beneficiary to the issuer of the 1666
following documents on or prior to the expiration date of the 1667
letter of credit: 1668
1. The original letter of credit (including 1669
any amendments); and 1670
2. A written statement from the beneficiary 1671
stating that any of the following events have occurred: 1672
a. The filing of a petition by or 1673
against the licensee under the United States Bankruptcy Code, 11 1674
USC 101-110, as amended or recodified from time to time, for 1675
bankruptcy or reorganization; 1676
b. The filing of a petition by or 1677
against the licensee for receivership, or the commencement of any 1678
other judicial or administrative proceeding for its dissolution or 1679
reorganization; 1680
c. The seizure of assets of a licensee 1681
by a commissioner pursuant to an emergency order issued in 1682
accordance with applicable law, on the basis of an action, 1683
violation, or condition that has caused or is likely to cause the 1684
insolvency of the licensee; or 1685
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d. The beneficiary has received notice 1686
of expiration or nonextension of a letter of credit and the 1687
licensee failed to demonstrate to the satisfaction of the 1688
beneficiary that the licensee will maintain permissible 1689
investments in accordance with Section 75-16-65(1) upon the 1690
expiration or nonextension of the letter of credit. 1691
(iv) The commissioner may designate an agent to 1692
serve on the commissioner's behalf as beneficiary to a letter of 1693
credit so long as the agent and letter of credit meet requirements 1694
established by the commissioner. The commissioner's agent may 1695
serve as agent for multiple licensing authorities for a single 1696
irrevocable letter of credit if the proceeds of the drawable 1697
amount for the purposes of this paragraph (d) are assigned to the 1698
commissioner. 1699
(v) The commissioner is authorized and encouraged 1700
to participate in multistate processes designed to facilitate the 1701
issuance and administration of letters of credit, including, but 1702
not limited to, services provided by the NMLS and State Regulatory 1703
Registry, LLC; 1704
(e) One hundred percent (100%) of the surety bond or 1705
deposit provided for under Section 75-16-63 that exceeds the 1706
average daily money transmission liability in this state; 1707
(f) Any other investment approved by the commissioner. 1708
(2) Unless permitted by the commissioner by rule, regulation 1709
or by order to exceed the limit as set forth herein, the following 1710
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investments are permissible under Section 75-16-65 to the extent 1711
specified: 1712
(a) Receivables that are payable to a licensee from its 1713
authorized delegates in the ordinary course of business that are 1714
less than seven (7) days old, up to fifty percent (50%) of the 1715
aggregate value of the licensee's total permissible investments; 1716
(b) Of the receivables permissible under paragraph (a) 1717
of this subsection, receivables that are payable to a licensee 1718
from a single authorized delegate in the ordinary course of 1719
business may not exceed ten percent (10%) of the aggregate value 1720
of the licensee's total permissible investments; 1721
(c) The following investments are permissible up to 1722
twenty percent (20%) per category and combined up to fifty percent 1723
(50%) of the aggregate value of the licensee's total permissible 1724
investments: 1725
(i) A short-term (up to six (6) months) investment 1726
bearing an eligible rating; 1727
(ii) Commercial paper bearing an eligible rating; 1728
(iii) A bill, note, bond, or debenture bearing an 1729
eligible rating; 1730
(iv) United States tri-party repurchase agreements 1731
collateralized at one hundred percent (100%) or more with U.S. 1732
government or agency securities, municipal bonds, or other 1733
securities bearing an eligible rating; 1734
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(v) Money market mutual funds rated less than 1735
"AAA" and equal to or higher than "A-" by S&P, or the equivalent 1736
from any other eligible rating service; and 1737
(vi) A mutual fund or other investment fund 1738
composed solely and exclusively of one or more permissible 1739
investments listed in subsection (1)(a) through (c) of this 1740
section; 1741
(d) Cash (including demand deposits, savings deposits, 1742
and funds in such accounts held for the benefit of the licensee's 1743
customers) at foreign depository institutions are permissible up 1744
to ten percent (10%) of the aggregate value of the licensee's 1745
total permissible investments if the licensee has received a 1746
satisfactory rating in its most recent examination and the foreign 1747
depository institution: 1748
(i) Has an eligible rating; 1749
(ii) Is registered under the Foreign Account Tax 1750
Compliance Act; 1751
(iii) Is not located in any country subject to 1752
sanctions from the Office of Foreign Asset Control; and 1753
(iv) Is not located in a high-risk or 1754
noncooperative jurisdiction as designated by the Financial Action 1755
Task Force. 1756
SECTION 45. Section 75-16-69, Mississippi Code of 1972, is 1757
brought forward as follows: 1758
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75-16-69. Suspension and revocation. (1) The commissioner 1759
may suspend or revoke a license or order a licensee to revoke the 1760
designation of an authorized delegate if: 1761
(a) The licensee or any authorized delegate, agent, or 1762
representative violates this chapter or a rule or regulation 1763
adopted or an order issued under this chapter; 1764
(b) The licensee or any authorized delegate, agent, or 1765
representative does not cooperate with an examination or 1766
investigation by the commissioner; 1767
(c) The licensee or any authorized delegate, agent, or 1768
representative engages in fraud, intentional misrepresentation, or 1769
gross negligence; 1770
(d) An authorized delegate is convicted of a violation 1771
of a state or federal anti-money laundering statute, or violates a 1772
rule or regulation adopted or an order issued under this chapter, 1773
as a result of the licensee's willful misconduct or willful 1774
blindness; 1775
(e) The competence, experience, character, or general 1776
fitness of the licensee, authorized delegate, person in control of 1777
a licensee, key individual, or responsible person of the 1778
authorized delegate indicates that it is not in the public 1779
interest to permit the person to provide money transmission; 1780
(f) The licensee or any authorized delegate, agent, or 1781
representative engages in an unsafe or unsound practice; 1782
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(g) The licensee is insolvent, suspends payment of its 1783
obligations, or makes a general assignment for the benefit of its 1784
creditors; or 1785
(h) The licensee does not remove an authorized delegate 1786
after the commissioner issues and serves upon the licensee a final 1787
order including a finding that the authorized delegate has 1788
violated this chapter. 1789
(2) In determining whether a licensee is engaging in an 1790
unsafe or unsound practice, the commissioner may consider the size 1791
and condition of the licensee's money transmission, the magnitude 1792
of the loss, the gravity of the violation of this chapter, and the 1793
previous conduct of the person involved. 1794
SECTION 46. Section 75-16-71, Mississippi Code of 1972, is 1795
brought forward as follows: 1796
75-16-71. Notice and hearing. (1) Except where a license 1797
is automatically revoked without any act of the commissioner as 1798
specially provided in this section, no license shall be revoked 1799
except on ten (10) days' notice (the first day of the ten-day 1800
period to be the date stated on the notice, which shall be the day 1801
it is mailed) to the licensee by the commissioner, sent by letter 1802
by United States registered mail, return receipt requested, to the 1803
licensee's business address set forth in the application. 1804
(2) Upon receipt of the notice, as stated in the registered 1805
mail receipt, the licensee may, within five (5) days thereafter 1806
(which five-day period may be wholly or partially outside of the 1807
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ten-day period) make written demand for a hearing by the 1808
commissioner, which demand must be accompanied by an additional 1809
surety bond or securities deposit, as hereafter provided, the 1810
principal sum or the market value thereof to be specified by the 1811
commissioner in the revocation notice. 1812
(3) The revocation notice shall not become final during the 1813
period of time in which the licensee may demand such hearing nor 1814
if licensee demands a hearing, until the matter has been finally 1815
determined by the commissioner or by the courts, provided that the 1816
licensee posts together with his written demand for hearing an 1817
additional corporate surety bond, written by the same surety that 1818
wrote the bond required under Section 75-16-63 or an additional 1819
deposit in addition to the deposit theretofore made by the 1820
licensee under Section 75-16-63 which additional surety bond or 1821
deposit shall be in a principal amount or of a market value deemed 1822
adequate by the commissioner as specified in the revocation order 1823
but not exceeding One Million Dollars ($1,000,000.00), provided 1824
that if the licensee originally deposited with his application 1825
under Section 75-16-63 a corporate surety bond, the additional 1826
deposit provided in this section must be another corporate surety 1827
bond or an increase of the first one and may not be a deposit, or 1828
if the licensee originally made a deposit, the additional deposit 1829
shall also be of the same manner and not a corporate surety bond. 1830
The bond or deposit shall secure the same obligations as does the 1831
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corporate surety bond or deposit required by Section 75-16-63, but 1832
shall be in addition to the bond or deposit required thereby. 1833
(4) Upon receipt of the written demand, the commissioner 1834
shall thereafter, with reasonable promptness, hear and determine 1835
the matter as provided by law or regulation. 1836
(5) If the licensee deems himself aggrieved by the 1837
determination or order of the commissioner, he may within thirty 1838
(30) days after the determination or order, have the determination 1839
or order reviewed by an appeal to the Chancery Court of the First 1840
Judicial District of Hinds County, Mississippi, by filing a 1841
petition setting out the specific order or action or part thereof 1842
by which the person deems himself aggrieved. All those petitions 1843
shall be given preferred settings and shall be heard by the court 1844
as speedily as possible. Such an appeal shall be perfected upon 1845
the posting of a bond for the costs of the appeal accompanied by 1846
the petition. Any party to the appeal may appeal to the Supreme 1847
Court of Mississippi from the decree or order of the chancery 1848
court, within thirty (30) days from the rendition of the decree or 1849
order, in the manner provided by law for appeals to the Supreme 1850
Court of Mississippi from chancery courts. 1851
(6) Final revocation of the license, whether automatic or by 1852
final determination of the commissioner or the courts, shall 1853
cancel as of the date of final revocation all bonds or deposits 1854
theretofore deposited by the licensee under any provision of this 1855
section, provided that the licensee (and his corporate surety, if 1856
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any) shall not be relieved of any accrued liabilities, and 1857
provided further, where the licensee made a deposit, that there 1858
shall not be returned to the licensee any of the deposit until the 1859
commissioner determines that all accrued liabilities (including, 1860
but not limited to, the principal sums thereof, accrued interest 1861
thereon, and court costs, if any, assessed to the licensee) of the 1862
licensee under this section have been satisfied in full. 1863
(7) The commissioner may at any time revoke a license, on 1864
any ground on which he might refuse to grant a license, for 1865
failure to pay an annual fee or for violation of any provision of 1866
this section, subject to the provisions of this section. 1867
(8) A license shall be automatically and finally revoked 1868
without any act or further act of the commissioner and without any 1869
right of the licensee to any hearing or further hearing by the 1870
commissioner or the courts and without any right of the licensee 1871
or the commissioner to reinstate or have reinstated the license, 1872
in the following instances: (a) at expiration of the sixty-day 1873
notice period, if the corporate surety gives notice of 1874
cancellation of its bond or any of them; (b) upon failure by 1875
licensee to pay when due the annual license fee required by 1876
Section 75-16-31; (c) upon failure by licensee to file when due 1877
any information required by this chapter; (d) in case of a 1878
revocation notice under subsection (1) of this section, failure by 1879
the licensee to demand hearing as provided therein or failure to 1880
deposit any additional corporate surety bond or deposit as 1881
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required by the commissioner; (e) upon a license revocation order 1882
becoming final at any stage; (f) failure by licensee to deposit 1883
when due any additional corporate surety bond or deposit required 1884
by the commissioner under Section 75-16-63(8); or (g) upon final 1885
conviction of licensee as to any offense covered by this chapter. 1886
(9) If a revocation order becomes final for any reason or in 1887
any manner, the license may not be reinstated, except upon new 1888
application as if the licensee had never been licensed before. 1889
The commissioner may deny the new application on grounds that a 1890
previous application was denied or a previous license to applicant 1891
was revoked or any ground or grounds on which he may deny an 1892
original application. 1893
SECTION 47. Section 75-16-73, Mississippi Code of 1972, is 1894
brought forward as follows: 1895
75-16-73. Orders to cease and desist. (1) If the 1896
commissioner determines that a violation of this chapter or of a 1897
rule or regulation adopted or an order issued under this chapter 1898
by a licensee or authorized delegate is likely to cause immediate 1899
and irreparable harm to the licensee, its customers, or the public 1900
as a result of the violation, or cause insolvency or significant 1901
dissipation of assets of the licensee, the commissioner may issue 1902
an order requiring the licensee or authorized delegate to cease 1903
and desist from the violation. The order becomes effective upon 1904
service of it upon the licensee or authorized delegate. 1905
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(2) When the commissioner has reasonable cause to believe 1906
that a person is violating any provision of this chapter, the 1907
commissioner, in addition to and without prejudice to the 1908
authority provided elsewhere in this chapter, may sue in the 1909
Chancery Court of the First Judicial District of Hinds County, 1910
Mississippi, to enjoin the person from engaging in or continuing 1911
the violation or from doing any act in furtherance of the 1912
violation. In such an action, the court may enter any order or 1913
judgment awarding a preliminary or permanent injunction. 1914
(3) An order to cease and desist remains effective until 1915
rescinded or released by the commissioner or appealed as provided 1916
in this section. 1917
(4) A licensee that is served with an order to cease and 1918
desist may petition the Chancery Court of the First Judicial 1919
District of Hinds County, Mississippi, for a judicial order 1920
setting aside, limiting, or suspending the enforcement, operation, 1921
or effectiveness of the order. 1922
SECTION 48. Section 75-16-75, Mississippi Code of 1972, is 1923
brought forward as follows: 1924
75-16-75. Consent orders. The commissioner may enter into a 1925
consent order at any time with a person to resolve a matter 1926
arising under this chapter or a rule or regulation adopted or 1927
order issued under this chapter. A consent order must be signed 1928
by the person to whom it is issued or by the person's authorized 1929
representative, and must indicate agreement with the terms 1930
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contained in the order. A consent order may provide that it does 1931
not constitute an admission by a person that this chapter or a 1932
rule or regulation adopted or an order issued under this chapter 1933
has been violated. 1934
SECTION 49. Section 75-16-77, Mississippi Code of 1972, is 1935
brought forward as follows: 1936
75-16-77. Criminal penalties. (1) A person who 1937
intentionally makes a false statement, misrepresentation, or false 1938
certification in a record filed or required to be maintained under 1939
this chapter or that intentionally makes a false entry or omits a 1940
material entry in such a record is guilty of a felony and, upon 1941
conviction thereof, shall be fined no less than Five Hundred 1942
Dollars ($500.00) nor more than Three Thousand Dollars 1943
($3,000.00), and may also be punished by imprisonment in the 1944
custody of the Department of Corrections for a term not less than 1945
one (1) year and not more than five (5) years. 1946
(2) A person that knowingly engages in an activity for which 1947
a license is required under this chapter without being licensed 1948
under this chapter and who receives more than Five Hundred Dollars 1949
($500.00) in compensation within a thirty-day period from this 1950
activity is guilty of a felony and, upon conviction thereof, shall 1951
be fined no less than Five Hundred Dollars ($500.00) nor more than 1952
Three Thousand Dollars ($3,000.00), and may also be punished by 1953
imprisonment in the custody of the Department of Corrections for a 1954
term not less than one (1) year and not more than five (5) years. 1955
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(3) A person that knowingly engages in an activity for which 1956
a license is required under this chapter without being licensed 1957
under this chapter and who receives no more than Five Hundred 1958
Dollars ($500.00) in compensation within a thirty-day period from 1959
this activity is guilty of a misdemeanor and, upon conviction, 1960
shall be fined not less than One Hundred Dollars ($100.00) nor 1961
more than Five Hundred Dollars ($500.00), and may also be confined 1962
to the county jail for not more than twelve (12) months. 1963
SECTION 50. Section 75-16-79, Mississippi Code of 1972, is 1964
brought forward as follows: 1965
75-16-79. Civil penalties. (1) The commissioner may assess 1966
a civil penalty against a person that violates this chapter or a 1967
rule or regulation adopted or an order issued under this chapter 1968
in an amount not to exceed One Thousand Dollars ($1,000.00) per 1969
day for each day the violation is outstanding, plus this state's 1970
costs and expenses for the investigation and prosecution of the 1971
matter, including reasonable attorney's fees. 1972
(2) If any person engages in business as provided for in 1973
this chapter without paying the license fee provided for in this 1974
chapter before beginning business or before the expiration of the 1975
person's current license, as the case may be, then the person 1976
shall be liable for the full amount of the license fee plus a 1977
penalty in an amount not to exceed One Thousand Dollars 1978
($1,000.00) for each day that the person has engaged in the 1979
business without a license or after the expiration of a license. 1980
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SECTION 51. Section 75-16-81, Mississippi Code of 1972, is 1981
brought forward as follows: 1982
75-16-81. Unlicensed persons. (1) If the commissioner has 1983
reason to believe that a person has violated or is violating 1984
Section 75-16-21, the commissioner may issue an order to show 1985
cause why an order to cease and desist should not issue requiring 1986
that the person cease and desist from the violation of Section 1987
75-16-21. 1988
(2) In an emergency, the commissioner may petition the 1989
Chancery Court of the First Judicial District of Hinds County, 1990
Mississippi, for the issuance of a temporary restraining order ex 1991
parte pursuant to the Mississippi Rules of Civil Procedure. 1992
(3) An order to cease and desist becomes effective upon 1993
service of it upon the person. 1994
(4) An order to cease and desist remains effective and 1995
enforceable until rescinded or released by the commissioner or 1996
appealed as provided in this section. 1997
(5) A person that is served with an order to cease and 1998
desist for violating Section 75-16-21 may petition the Chancery 1999
Court of the First Judicial District of Hinds County, Mississippi, 2000
for a judicial order setting aside, limiting, or suspending the 2001
enforcement, operation, or effectiveness of the order. 2002
SECTION 52. Section 75-16-83, Mississippi Code of 1972, is 2003
brought forward as follows: 2004
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75-16-83. Investigation of possible violations. In addition 2005
to and without prejudice to the authority provided elsewhere in 2006
this chapter, the commissioner, or his duly authorized 2007
representative, for the purpose of discovering violations of this 2008
chapter and for the purpose of determining whether persons are 2009
subject to the provisions of this chapter, may examine persons 2010
licensed under this chapter and persons reasonably suspected by 2011
the commissioner of conducting business that requires a license 2012
under this chapter, including all relevant books, records and 2013
papers employed by those persons in the transaction of their 2014
business, and may summon witnesses and examine them under oath 2015
concerning matters relating to the business of those persons, or 2016
such other matters as may be relevant to the discovery of 2017
violations of this chapter, including, without limitation, the 2018
conduct of business without a license as required under this 2019
chapter. 2020
SECTION 53. Section 75-16-85, Mississippi Code of 1972, is 2021
brought forward as follows: 2022
75-16-85. Uniformity of application and construction. In 2023
applying and construing this chapter, consideration must be given 2024
to the need to promote uniformity of the law with respect to its 2025
subject matter among states that enact it. 2026
SECTION 54. Section 75-16-87, Mississippi Code of 1972, is 2027
brought forward as follows: 2028
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ST: Virtual Currency Kiosk Consumer Accesss
Protection Act; create.
75-16-87. Transition period. (1) A person licensed in this 2029
state to engage in the business of money transmission shall not be 2030
subject to the provisions of this chapter, to the extent that they 2031
conflict with current law or establish new requirements not 2032
imposed under current law, until such time as the licensee renews 2033
its current license or for twelve (12) months after July 1, 2025, 2034
whichever is later. 2035
(2) Notwithstanding subsection (1) of this section, a 2036
licensee shall only be required to amend its authorized delegate 2037
contracts for contracts entered into or amended after the 2038
effective date or the completion of any transition period 2039
contemplated under subsection (1) of this section. Nothing herein 2040
shall be construed as limiting an authorized delegate's 2041
obligations to operate in full compliance with this chapter as 2042
required by Section 75-16-51(3). 2043
SECTION 55. This act shall take effect and be in force from 2044
and after July 1, 2026. 2045