Title 12. Miscellaneous Institutions and Activities — Subtitle 1. Check Cashing Services

“Control person” means a person who has the power, directly or indirectly, to direct the management or policies of a licensee or license applicant, whether through ownership of securities, by contract, or otherwise.

“Control person” includes a person who:

“Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle.

“Licensed location” includes a mobile unit.

The licensee’s legal name; and

Any trade name used by the licensee in accordance with § 2–121 of this article.

“Payment instrument” means a check or a draft ordering a person to pay money.

“Payment instrument” includes a money order.

In which a customer presents a payment instrument for the exact amount of a purchase; or

Involving foreign currency exchange services or the cashing of a payment instrument drawn on a financial institution other than a federal, State, or other state financial institution.

This subtitle does not apply to a transaction that is subject to the Maryland Consumer Loan Law (Title 12, Subtitle 3 of the Commercial Law Article and Title 11, Subtitle 2 of this article), including a transaction in which an additional fee is charged to defer the presentment or deposit of a payment instrument until a subsequent date.

A check cashing service is not subject to the Maryland Consumer Loan Law if:

Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States that maintains its principal office in this State;

Any out-of-state bank, as defined in § 5-1001 of this article, having a branch that accepts deposits in this State; and

Any institution incorporated under federal law as a savings association or savings bank that does not maintain its principal office in this State but has a branch that accepts deposits in this State.

Is subject to audit or examination by a regulatory body or agency of this State, the United States, or the state where the subsidiary or affiliate maintains its principal office; and

Submits to the Commissioner in writing and prior to providing check cashing services the following information:

An exempt entity is not subject to the provisions of §§ 12-106 through 12-112, inclusive, and § 12-122 of this subtitle.

An exempt entity is subject to:

Credited to the Non–Depository Special Fund established under § 2–120 of this article; and

Used in accordance with § 2–120(d) of this article.

Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS;

Transfer licensing information to NMLS; and

Pay to the Commissioner a license extension fee calculated in accordance with subsection (d)(5) of this section.

The Commissioner shall establish a time period that is no less than 2 months within which a licensee must transfer licensing information to NMLS.

The time period that the Commissioner establishes under this subsection shall begin on or after July 1, 2017.

At least 30 days before the transfer period begins, the Commissioner shall:

For each licensee that complies with subsection (c) of this section, the term of the licensee’s license shall extend to December 31 of the year in which the license otherwise would have expired.

The license extension fee required under subsection (c)(3) of this section is nonrefundable and, based on the annual license fee, shall be prorated to the number of days between the date the license otherwise would have expired and December 31 of the same year.

On or after July 1, 2017; or

If the Commissioner has not joined NMLS with respect to persons required to be licensed under this subtitle as of July 1, 2017, on or after the date that the Commissioner joins, as specified by the Commissioner by public notice.

Charges a fee of up to 1.5% or $1, whichever is greater, of the face amount of the payment instrument per payment instrument;

Provides check cashing services that are incidental to the retail sale of goods or services by the person that is providing the check cashing services;

Is registered as a check casher money service business with the U.S. Department of Treasury;

Conducts check cashing service transactions within the interior of the business location and not through the use of a mobile unit or an exterior drive–up or walk–up window;

Has conspicuously posted a notice with the following information, in 48 point type or larger, at each business location at which the person provides check cashing services:

Provides a receipt to each check cashing services customer that includes:

Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and

The person’s name and address and, if the person is not an individual:

The addresses at which check cashing services will be provided; and

Any other information determined to be necessary by the Commissioner.

For the initial registration, on or after November 1, 2020; and

For registration renewal, each year thereafter.

Has sufficient experience, character, financial responsibility, and general fitness to:

Has not committed any act that would be a ground for suspension or revocation of a license under this subtitle.

The requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to NMLS, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to NMLS.

The information and material may be shared with all state and federal regulatory officials having oversight authority over persons required to be licensed under this subtitle, including the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, and any successor to these agencies, without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article.

Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or

Subpoena, discovery, or admission into evidence, in any private civil litigation or administrative process, unless, with respect to any privilege held by NMLS, the person to whom the information or material pertains waives, in whole or in part, that privilege.

To apply for a license, an applicant shall:

The application shall include:

An investigation fee of $100; and

A license fee of $500.

If an applicant does not meet the requirements of this subtitle, the Commissioner shall:

The licensee’s legal name and any trade name used by the licensee in accordance with § 2–121 of this article;

The address of the licensee’s principal executive office;

The address of each additional location, if any, where the licensee does business and that:

The information required by § 12–108(a)(2)(v) of this subtitle for each mobile unit, if any, of the licensee.

Begin on the date the license is issued; and

Expire on December 31 of the year:

Otherwise is entitled to be licensed;

Pays to the Commissioner a renewal fee of $500; and

Submits to the Commissioner a renewal application in the form, and in accordance with the process, that the Commissioner requires.

Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information:

Each licensee shall conspicuously display the following information on the licensee’s website, any software application accessible to the public and used to provide check cashing services, and profile page within each social media platform the licensee uses:

The licensee provides to the Commissioner, through NMLS and in accordance with any regulations the Commissioner adopts, notice of the addition, deletion, or modification;

The addition, deletion, or modification of the location is recorded with the information associated with the licensee’s license in NMLS; and

The addition, deletion, or modification of the location otherwise complies with this subtitle.

Notifies the Commissioner in writing of the location of the records; and

Makes the records available at the licensed location, as agreed by the Commissioner and the licensee, within 7 days after a written request for examination by the Commissioner.

A chronological register of all payment instruments cashed by the licensee showing:

The licensee’s bank statements and canceled checks.

Original form;

An electronic equivalent approved by the Commissioner; or

A microphotographic copy approved by the Commissioner.

Shall be given access to any books, papers, records, safes, or vaults of the person under investigation; and

May examine under oath a person whose testimony the Commissioner requires.

A licensee may not provide check cashing services to a customer unless the customer presents a form of customarily acceptable identification.

Acceptable forms of identification include:

2% of the face amount of the payment instrument or $3, if the payment instrument is issued by the federal government or a state or local government;

10% of the face amount of a payment instrument or $5, if the payment instrument is a personal check; or

4% of the face amount of the payment instrument or $5, for any other payment instrument.

Makes any material misstatement in an application for a license or registration;

Is convicted under the laws of the United States or of any other state of:

In connection with any check cashing service:

Violates any provision of this subtitle or any rule or regulation adopted under this subtitle, or any other law regulating check cashing services in the State; or

Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee or registrant has not been or will not be conducted honestly, fairly, equitably, and efficiently.

The nature of the crime;

The relationship of the crime to the activities authorized by the license or registration;

With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee or registrant to provide check cashing services;

The length of time since the conviction; and

The behavior and activities of the licensee or registrant since the conviction.

$10,000 for a first offense; and

$25,000 for each subsequent offense.

The seriousness of the violation;

The good faith of the violator;

The violator’s history of previous violations;

The deleterious effect of the violation on the public;

The assets of the violator; and

Any other factor relevant to the determination of the civil penalty.

Up to 3 times the amount of actual damages; and

An amount at least equal to the amount paid by the plaintiff to the defendant, reasonable attorney’s fees, and costs.