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09.03.14.01 - Financial Regulation - Pending Regulations

 

PROPOSED ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 40, ISSUE 2,
FRIDAY, JANUARY 25, 2013

Subtitle 03 COMMISSIONER OF FINANCIAL REGULATION

09.03.14 Money Transmitters

Authority: Financial Institutions Article, §12-403, Annotated Code of Maryland

Notice of Proposed Action
[13-030-P]

The Commissioner of Financial Regulation proposes to adopt new Regulation .01 under a new chapter, COMAR 09.03.14 Money Transmitters.

Statement of Purpose

The purpose of this action is to set fees to be paid by a licensee or its authorized delegate engaged in the business of money transmission to cover costs of examinations conducted by employees of the Commissioner of Financial Regulation.

Comparison to Federal Standards

There is no corresponding federal standard to this proposed action.

Estimate of Economic Impact

I. Summary of Economic Impact. There is a small economic impact on a few Maryland licensees. Maryland statutes already allow the Commissioner to examine money transmitter licensees. This regulation allows the Commissioner to charge an examination fee of $300 a day for each examiner. We estimate that examinations of in-State companies would take, on average, 5 days to complete at a cost of $1,500. We estimate that out of state companies would average 7 days to complete at a cost of $2,100. Of the 91 current money transmitter licensees, there are 13 companies or 14 percent of licensees that are located in Maryland. Nine of the 91 licensees or 10 percent that are located in Maryland will fall within the definition of a small business. The Commissioner estimates that each company would be examined by the state once every 4 years. Since the Commissioner is currently reimbursed by the licensee for travel, meal, lodging and other related travel expenses, there is no new economic impact with regard to these expenses.

 
Revenue (R+/R-)
 
II. Types of Economic
Impact.
Expenditure
(E+/E-)
Magnitude

A. On issuing agency:
    Examination fees

(R+)

$46,500
 
B. On other State agencies: NONE  
 
C. On local governments: NONE
Benefit (+)
Cost (-)
Magnitude

D. On regulated industries or trade groups:
Examination fees


(-)


$46,500
E. On other industries or trade groups: NONE
 
F. Direct and indirect effects on public:
Indirect effects on public:


(+)


Unknown
 

III. Assumptions. (Identified by Impact Letter and Number from Section II.)
A. Assuming in state exams would take 5 days to complete @ $300 per day. Assume out of state exams would take 7 days to complete @ $300 per day. Assume 20 out of state exams per year @$2,100 each and 3 in state exams per year @ $1,500 each.

D. The examination fee must be paid by the licensed company for work performed on site.

F. The examination process of money transmitter licensees will provide safer operating companies over the long term by requiring companies to have accurate books and records and by following best practices.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Joseph Rooney, Assistant Commissioner, Office of the Commissioner of Financial Regulation, Suite 402, 500 N. Calvert Street, Baltimore MD 21202, or call 410-230-6214, or email to jrooney@dllr.state.md.us, or fax to 410-333-0475. Comments will be accepted through February 27, 2013. A public hearing has not been scheduled.

.01 Examination Fees.
  A. This chapter is intended to set fees to cover the reasonably incurred costs of examinations of a licensee or its authorized delegate pursuant to Financial Institutions Article, §12-424(c), Annotated Code of Maryland.
  B. The Commissioner of Financial Regulation sets the following daily fees for each of the Commissioner’s employees engaged in the examination of a licensee or its authorized delegate:
    (1) $300 per day for an employee serving in a position of Financial Regulation Non-Depository Examiner in the Office of the Commissioner; and
    (2) $375 per day for an employee serving in a position of Financial Regulation Non-Depository Examiner Supervisor in the Office of the Commissioner.
  C. A licensee or its authorized delegate shall reimburse each of the Commissioner’s employees engaged in on-site examination for travel, meal, lodging, and other related travel expenses using the criteria and at the rates set forth in the Standard State Travel Regulations.
  D. The revenues collected from the fees set pursuant to these regulations shall be deposited in the Money Transmission Fund pursuant to Financial Institutions Article, §12-404, Annotated Code of Maryland.

MARK KAUFMAN
Commissioner of Financial Regulation