Division of Banking
Steven A. Strunk
State Bank Commissioner	
Bill Ritter, Jr.
Governor

July 1, 2010

Barbara J. Kelley
Executive
Director		
STATE BANKING BOARD
RULE MO3
PERTAINING TO TITLE 12, ARTICLE 52, SECTION 201 AND 202
COLORADO REVISED STATUTES

STATEMENT OF BASIS, PURPOSE AND SPECIFIC AUTHORITY

Statutory Basis

The amendment of Banking Board Rule MO3 is necessary to ensure conformance of the Rule to Sections 12-52-201 and 202, C.R.S. The passage of House Bill 10-1114 added a new Part 2 to Title 12, Article 52, C.R.S., which necessitates the amendment of existing Banking Board Rule MO3, to require the Banking Board to incorporate procedures into Banking Board Rule MO3, which (1) requires annual submission of agent information on a form prescribed by the Banking Board and, (2) exempts agents of money transmitters who are involved in selling or adding money to “Stored Value” as defined in Section 12-52-202, C.R.S., from the annual submission requirement.

Specific Purpose of this Rulemaking

1.	To set forth procedures for licensed money transmitters providing money transmission services for Colorado consumers to submit to the Division each year certain information about their agents as specifically described under Section 12-52-201, C.R.S. and other information required by the Banking Board.

2.	Establishes the timeframes for submission of the information and the format to be used.

Rulemaking Authority

The amendment to MO3 is adopted pursuant to the following statutory provisions:

Section 11-102-104, C.R.S., which states

 (1) The banking board is the policy-making and rule-making authority for the division of banking and has the power to: 
 (b) Make, promulgate, alter, amend, or revise reasonable rules as may be necessary for the enforcement and execution of the provisions of the "Money Order Act", article 52 of title 12, C.R.S. 

Section 12-52-103.5, C.R.S., which states

The powers, duties, and functions of the banking board and the commissioner contained in article 102 of title 11, C.R.S., and the declaration of policy contained in section 11-101-102, C.R.S., shall apply to the provisions of this article. For the purposes of this section and section 11-102-104, C.R.S., the banking board shall have the same powers, duties, and functions concerning a violation of this article or a rule issued pursuant to this article as the board has concerning a violation of the "Colorado Banking Code", a statute, or a rule issued pursuant to that code.

Section 12-52-105, C.R.S., which states

Nothing in this article shall apply to: Departments or agencies of the United States of America, or to any state or municipal government, or to corporations organized under the general banking, savings and loan, or credit union laws of this state or of the United States, or to the receipt of money by an incorporated telegraph or cable company at any office or agency thereof for immediate transmission by telegraph or cable.

Section 12-52-201, C.R.S., which states

(1) A money transmitter licensed pursuant to Part 1 of this article shall annually send the following information to the Banking Board on such form as it may prescribe:
(a) The name of each agent and the address and telephone number of each of the agent’s offices that engage in the business of money transmission;
(b) The name, address, and telephone number of each of the owners of the agent holding more than a ten percent interest in the business if the agent is a partnership or an entity created pursuant to Title 7, C.R.S.;
(c) The services concerning money transmission that are offered by the agent and the locations where such services are offered;
(d) Such other pertinent information that the Banking Board may require concerning the agent or its directors, trustees, officers, members, branches, subsidiaries, affiliates, or agents as promulgated by Rule.
(2) The Banking Board may promulgate rules necessary to implement this Section.

Section 12-52-202, C.R.S., which states 

(1) This Part 2 does not apply to an agent of a business licensed pursuant to Part 1 of this Article to the extent that the agent is selling or adding additional money to stored value issued by the business.
(2) For purposes of this section, “Stored Value” means a card, code, or other device that is issued to a consumer in a specified dollar amount, which may or may not be increased in value, and is redeemable at a single merchant, an affiliated group of merchants, or multiple unaffiliated groups of merchants or usable at automated teller machines.

Section 12-52-204, C.R.S., which states

The information sent to the Banking Board under Section 12-52-201 and the records required by Section 12-52-203 shall be open to any law enforcement officer acting within the scope and course of the officer’s official duties.

Section 12-52-206, C.R.S., which states

(1) A person who violates this Part 2 commits a Class 2 misdemeanor and, for the second or any subsequent offense, the person commits a Class 1 misdemeanor and shall be punished as provided in Section 18-1.3-501, C.R.S.
(2) A person who acts as an agent of an unlicensed person required to be licensed by Part 1 of this article knowing the unlicensed person does not hold such license commits a Class 2 misdemeanor and shall be punished as provided in Section 18-1.3-501, C.R.S.