IN Code § 24-12-9-4 (2021)
2021 Indiana Code|Title 24. Trade Regulation|Article 12. Civil Proceeding Advance Payments|Chapter 9. Licensure|24-12-9-4. Director's Authority to Use Nmlsr in Department's Licensing System; Reporting of Information to Nmlsr; Confidentiality; Director's Authority to Enter Into Agreements; Waiver of Privilege; Processing Fee; Electronic Records

Sec. 4. (a) Subject to subsection (f), the director may designate the NMLSR to serve as the sole entity responsible for:(1) processing applications and renewals for licenses required under section 1 of this chapter;(2) issuing unique identifiers for licensees under this chapter; and(3) performing other services that the director determines are necessary for the orderly administration of the department's licensing system under this chapter.(b) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and IC 28-1-2-30, the director may regularly report to the NMLSR significant or recurring violations of this article.(c) Subject to the confidentiality provisions contained in IC 5-14-3, this section, and IC 28-1-2-30, the director may report to the NMLSR complaints received regarding licensees under this chapter.(d) The director may report to the NMLSR publicly adjudicated licensure actions against licensees under this chapter.(e) The director shall establish a process in which persons licensed in accordance with this chapter may challenge information reported to the NMLSR by the department.(f) The director's authority to designate the NMLSR under subsection (a) is subject to the following:(1) Information stored in the NMLSR is subject to the confidentiality provisions of IC 5-14-3 and IC 28-1-2-30. A person may not:(A) obtain information from the NMLSR unless the person is authorized to do so by statute;(B) initiate any civil action based on information obtained from the NMLSR if the information is not otherwise available to the person under any other state law; or(C) initiate any civil action based on information obtained from the NMLSR if the person could not have initiated the action based on information otherwise available to the person under any other state law.(2) Documents, materials, and other forms of information in the control or possession of the NMLSR that are confidential under IC 28-1-2-30 and that are:(A) furnished by the director, the director's designee, or a licensee; or(B) otherwise obtained by the NMLSR;are confidential and privileged by law and are not subject to inspection under IC 5-14-3, subject to subpoena, subject to discovery, or admissible in evidence in any civil action. However, the director may use the documents, materials, or other information available to the director in furtherance of any action brought in connection with the director's duties under this article.(3) Disclosure of documents, materials, and information:(A) to the director; or(B) by the director;under this subsection does not result in a waiver of any applicable privilege or claim of confidentiality with respect to the documents, materials, or information.(4) Information provided to the NMLSR is subject to IC 4-1-11.(5) This subsection does not limit or impair a person's right to:(A) obtain information;(B) use information as evidence in a civil action or proceeding; or(C) use information to initiate a civil action or proceeding;if the information may be obtained from the director or the director's designee under any law.(6) The requirements under any federal law or IC 5-14-3 regarding the privacy or confidentiality of any information or material provided to the NMLSR, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to the information or material, continue to apply to the information or material after the information or material has been disclosed to the NMLSR. The information and material may be shared with all state and federal regulatory officials with financial services industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or IC 5-14-3.(7) For purposes of this section, the director may enter agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, or other associations representing governmental agencies as established by rule or order of the director.(8) Information or material that is subject to a privilege or confidentiality under subdivision (6) is not subject to:(A) disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the respective state; or(B) subpoena, discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privileged information or material held by the NMLSR, the person to whom the information or material pertains waives, in whole or in part, in the discretion of the person, that privilege.(9) Any provision of IC 5-14-3 that concerns the disclosure of:(A) confidential supervisory information; or(B) any information or material described in subdivision (6);and that is inconsistent with subdivision (6) is superseded by this section.(10) This section does not apply with respect to information or material that concerns the employment history of, and publicly adjudicated disciplinary and enforcement actions against, a person licensed in accordance with this chapter and described in section 5(b) of this chapter and that is included in the NMLSR for access by the public.(11) The director may require a licensee required to submit information to the NMLSR to pay a processing fee considered reasonable by the director. In determining whether an NMLSR processing fee is reasonable, the director shall:(A) require review of; and(B) make available;the audited financial statements of the NMLSR.(g) Notwithstanding any other provision of law, any:(1) application, renewal, or other form or document that:(A) relates to licenses issued under this chapter; and(B) is made or produced in an electronic format;(2) document filed as an electronic record in a multistate automated repository established and operated for the licensing or registration of financial services entities and their employees; or(3) electronic record filed through the NMLSR;is considered a valid original document when reproduced in paper form by the department.As added by P.L.176-2019, SEC.45.