In this subtitle the following words have the meanings indicated. “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: Is a general partner, an officer, a director, or a member, or occupies a similar position or performs a similar function; Directly or indirectly has the right to vote 5% or more of a class of voting securities, or has the power to sell or direct the sale of 5% or more of a class of voting securities, of a licensee or license applicant; or In the case of a partnership, a limited partnership, a limited liability partnership, a limited liability company, or any other business entity: Has the right to receive on liquidation or dissolution of a licensee or license applicant 5% or more of the capital of the licensee or license applicant; or Has contributed 5% or more of the capital of a licensee or license applicant. “Exempt entity” means an entity that is exempt from all requirements of licensing as provided under § 12–103(b) and (c) of this subtitle. “License” means a license issued in any form by the Commissioner under this subtitle to provide check cashing services, including as provided for through NMLS. “Licensed location” means any location listed by the licensee in NMLS in accordance with this subtitle. “Licensed location” includes a mobile unit. “Licensed name” means: The licensee’s legal name; and Any trade name used by the licensee in accordance with § 2–121 of this article. “Licensee” means a person licensed under this subtitle to provide check cashing services. “Mobile unit” means a motor vehicle or other movable means from which check cashing services are provided. “Payment instrument” means a check or a draft ordering a person to pay money. “Payment instrument” includes a money order. “Provide check cashing services” means to accept or cash, for compensation, a payment instrument regardless of the date of the payment instrument. “Unique identifier” means a number or another identifier assigned by NMLS.

This subtitle does not apply to check cashing services: 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: The fee charged for the check cashing service does not exceed the fee permitted under this subtitle; No additional fee is charged to defer the presentment or deposit of the payment instrument; and The check cashing service is not subject to renewal or extension by any means.

This subtitle does not apply to: 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. A subsidiary or affiliate of an institution described in subsection (a) of this section is exempt from all requirements of licensing under this subtitle provided the subsidiary or affiliate: 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: The subsidiary’s or affiliate’s name and address, and the names and addresses of each: Owner who owns 5% or more of the subsidiary or affiliate; and Officer, director, or principal of the subsidiary or affiliate; Each address at which check cashing services will be provided; and If a mobile unit will be used to provide check cashing services, the vehicle identification number of the mobile unit and the geographic area in which the mobile unit will be operating; and Any other information that the Commissioner requests. 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: The provisions of §§ 12-113 through 12-121, inclusive, and §§ 12-123 through 12-127, inclusive, of this subtitle; and Any regulation, except to the extent the regulation concerns licensing, adopted under this subtitle.

All revenue received for the licensing and assessment of persons under this subtitle and any other fee or revenue received by the Commissioner under this subtitle shall be: 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. Notwithstanding subsection (a) of this section, the Commissioner shall pay all fines and penalties collected by the Commissioner under this subtitle into the General Fund of the State. Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.

Except as provided in § 12–102(a) or § 12–105.1 of this subtitle, a person may not provide check cashing services unless the person is licensed under this subtitle or is an exempt entity. A licensee may provide check cashing services only at a licensed location or as otherwise authorized by the Commissioner through regulation. During the time period established by the Commissioner under subsection (d) of this section, each licensee shall: 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: Notify all licensees of the transfer period; and Provide instructions for the transfer of licensing information to NMLS. 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. Subject to subsection (c) of this section, an applicant for an initial license or a license renewal shall apply for the initial license or license renewal through NMLS: 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.

A person may provide check cashing services without obtaining a license under this subtitle by registering each year with the Commissioner under this section if the person: 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: The fees charged for check cashing services; and How to contact the Office of Financial Regulation with comments or complaints; and Provides a receipt to each check cashing services customer that includes: The date of the transaction; The face value of the check cashed; The fee charged; and The net dollar amount paid to the customer. To register as a check cashing service, a person shall: Obtain and maintain a valid unique identifier issued by NMLS when an account is created with NMLS; and Provide information required by the Commissioner through NMLS, including: The person’s name and address and, if the person is not an individual: The names and addresses of each owner who owns more than 5% of the person; and The officers and director or principal of the person; The addresses at which check cashing services will be provided; and Any other information determined to be necessary by the Commissioner. A person submitting an initial registration or a registration renewal under this section shall apply through NMLS: For the initial registration, on or after November 1, 2020; and For registration renewal, each year thereafter. A person submitting an initial registration or a registration renewal under this section shall pay to NMLS any fees that NMLS imposes in connection with the issuance of the registration or the renewal of the registration. Sections 12–106 through 12–120 of this subtitle do not apply to a person who registers under this section.

To qualify for a license, an applicant shall satisfy the Commissioner that: The applicant’s business will promote the convenience and advantage of the communities where the applicant will operate a licensed location offering check cashing services; and The applicant or, if the applicant is not an individual, each of the owners, officers, directors, or principals of the entity: Has sufficient experience, character, financial responsibility, and general fitness to: Command the confidence of the public; and Warrant the belief that the business will be operated lawfully, honestly, fairly, and efficiently; and Has not committed any act that would be a ground for suspension or revocation of a license under this subtitle.

In connection with an initial application for a license under this subtitle, and at any other time the Commissioner requires, an applicant or licensee shall provide fingerprints, as directed by the Commissioner, to NMLS for use by the Federal Bureau of Investigation to conduct a criminal history records check. An applicant or licensee required under this section to provide fingerprints shall pay any processing or other required fee. If the applicant or licensee is a corporation, the fingerprinting and criminal history records check requirements shall apply to the president, and any other officer, director, principal, or owner of the corporation as required by the Commissioner.

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. Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to: 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. Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section. This section does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against a person required to be licensed under this subtitle that is included in NMLS and designated for access by the public.

To apply for a license, an applicant shall: Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and Provide all the information that the Commissioner requests. The application shall include: The applicant’s legal name and any trade name used by the applicant in accordance with § 2–121 of this article; The applicant’s principal executive office address; If the applicant is not an individual, the name and residence address of each control person; The address of each additional location, if any, that: The general public may reasonably view as a location that provides check cashing services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing; Houses any core operational infrastructure or technology systems; Conducts any core management, information security and technology, risk and compliance, or finance functions; or Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; If the licensee operates a mobile unit, the vehicle identification number of each mobile unit and the geographic area where each mobile unit will be operating; and Any other information that the Commissioner requires for an investigation and findings under § 12–109 of this subtitle. With the application, the applicant shall pay to the Commissioner: An investigation fee of $100; and A license fee of $500.

When an applicant for a license files the application and pays the fees required by § 12–108 of this subtitle, the Commissioner shall investigate the facts relevant to the application to determine if the applicant meets the requirements of this subtitle. Unless the Commissioner and an applicant agree in writing to extend the time, the Commissioner shall approve or deny each application for a license within 60 days after the date on which the complete application is filed and the fees are paid. The Commissioner shall issue a license to any applicant who meets the requirements of this subtitle. If an applicant does not meet the requirements of this subtitle, the Commissioner shall: Deny the application; Notify the applicant immediately of the denial; Refund the license fee; and Retain the investigation fee. Within 10 days after the Commissioner denies an application, the Commissioner shall send a written notice to the applicant stating the reasons for the denial. The notice shall be sent by United States mail, e–mail, or any means provided through NMLS to the address listed in the application.

Information in NMLS associated with a license approved by the Commissioner under this subtitle shall include the following: 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 general public may reasonably view as a location that offers check cashing services, including any location that investigates customer complaints or directly communicates with customers verbally, electronically, or in writing; Houses any core operational infrastructure or technology systems; Conducts any core management, information security and technology, risk and compliance, or finance functions; or Is otherwise required to be listed in NMLS by regulation the Commissioner adopts under this subtitle; and The information required by § 12–108(a)(2)(v) of this subtitle for each mobile unit, if any, of the licensee. A licensee shall maintain and update the information in NMLS associated with the licensee’s license to reflect accurately at all times the information required by subsection (a) of this section. The unique identifier assigned by NMLS to a licensee shall constitute the licensee’s license number. A license authorizes the licensee to do business under the license at any licensed location, under any licensed name and, for each mobile unit, in the geographic area listed for the mobile unit in NMLS, or as otherwise authorized by the Commissioner through regulation.

An initial license term shall: Begin on the date the license is issued; and Expire on December 31 of the year: In which the license is issued, if the license is issued before November 1; or Immediately following the year in which the license is issued, if the license is issued on or after November 1. On or after November 1 of the year a license expires, the license may be renewed for an additional 1–year term, if the licensee: 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. The Commissioner shall determine if the requirements of § 12–106 of this subtitle to qualify for a license continue to apply. To the extent required or permitted by NMLS, the Commissioner may determine that licenses issued under this subtitle shall expire on a staggered basis. A licensee may not renew a license unless, before the submission of the license renewal application, the licensee has transferred the licensee’s licensing information to NMLS in accordance with § 12–105(c) of this subtitle.

A license is not transferable. Each licensee shall conspicuously post, in 48 point or larger type, at each licensed location the following information: The licensee’s unique identifier; and A statement advising consumers of the availability of the NMLS Consumer Access website to verify the licensing status of the licensee. 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’s unique identifier; and A link to the NMLS Consumer Access website. A licensee is not required to post the information required in subsection (b)(1) of this section at a licensed location if the licensed location is not a mobile unit and the licensee does not regularly grant access to that licensed location to members of the general public.

A licensee may not add, delete, or modify a location required to be listed in NMLS under § 12–110(a)(2), (3), or (4) of this subtitle unless: 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. The licensee may not do business at a location or in a geographic area required to be listed in NMLS by § 12–110(a)(2), (3), or (4) of this subtitle until the location or geographic area is recorded with the information associated with the licensee’s license in NMLS.

A licensee shall keep the books and records that the Commissioner requires to determine compliance with this subtitle. Unless a longer period is expressly required by State or federal law, a licensee shall retain the records required under this subtitle for a period of at least 2 years. A licensee may retain the records required under this subtitle at any location, if the licensee: 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. In addition to any other books and records that the Commissioner may require, a licensee shall retain: A chronological register of all payment instruments cashed by the licensee showing: The name of the customer; The transaction date; The type and amount of payment instrument; The amount of fee charged; and A complete description of the identification presented by the customer; and The licensee’s bank statements and canceled checks. A licensee shall retain the records required under this section in one of the following ways: Original form; An electronic equivalent approved by the Commissioner; or A microphotographic copy approved by the Commissioner.

A licensee shall pay a customer, in United States currency, the face amount of the payment instrument received less the fee charged. 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: A valid driver’s license with photograph issued by a state government; A valid identity card with photograph issued by a state government; A valid United States passport or alien registration card; and A valid uniformed services identification card.

Except as provided in § 15-802(b) of the Commercial Law Article and subsection (b) of this section, a licensee may not charge any other fee, including late fees or other service fees, for accepting or cashing a payment instrument in excess of the greater of: 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. A licensee may charge a customer a one-time membership fee not to exceed $5.

Subject to the hearing provisions of § 12–123 of this subtitle, the Commissioner may suspend or revoke the license of any licensee or registration of any registrant if the licensee or registrant, or any owner, director, officer, member, partner, stockholder, employee, or agent of the licensee or registrant: 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: A felony; or A misdemeanor that is directly related to the fitness and qualification of the person to provide check cashing services; In connection with any check cashing service: Commits any fraud; Engages in any illegal or dishonest activities; or Misrepresents or fails to disclose any material facts to anyone entitled to that information; 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. In determining whether the license of the licensee or registration of the registrant should be suspended or revoked for a reason listed in subsection (a)(2) of this section, the Commissioner shall consider: 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.

The Commissioner may impose a civil penalty against a person who violates this subtitle in an amount not exceeding: $10,000 for a first offense; and $25,000 for each subsequent offense. In determining the amount of civil penalty to be imposed under subsection (a) of this section, the Commissioner shall consider the following: 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.