reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 6 - PAWNBROKERS (§§ 45-6-101 — 45-6-224) › Part 2 - PAWNBROKERS ACT OF 1988 (§§ 45-6-201 — 45-6-224) › Section 45-6-218 - Penalties

(a)
Every person, firm or corporation, or agents or employees thereof, who knowingly violates any of this part, on conviction, commits a Class A misdemeanor. If the violation is by an owner or major stockholder and/or managing partner of the pawnshop, and the violation is knowingly committed by the owner, major stockholder or managing partner of the pawnshop, then the license of the pawnbroker or pawnbrokers may be suspended or revoked at the discretion of the city or county clerk.
(b)
Subsection (a) does not apply to violations of §
45-6-212(7)
relating to the taking of any article in pawn, pledge or as security under any buy-sell agreement from any person that is known to the pawnbroker to be stolen. Any violation under §
45-6-212(7)
shall be prosecuted pursuant to §
39-14-103
.
Acts 1988, ch. 724, § 18; 1989, ch. 591, §§ 1, 6; 1996, ch. 675, § 47.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 6 - PAWNBROKERS (§§ 45-6-101 — 45-6-224) › Part 2 - PAWNBROKERS ACT OF 1988 (§§ 45-6-201 — 45-6-224) › Section 45-6-219 - Authority of counties, incorporated municipalities, cities and taxing districts to regulate

(a)
(1)
Counties, incorporated municipalities, cities and taxing districts in this state have the authority by ordinance to adopt provisions of this part and have the authority to adopt further rules and regulations that the legislative bodies of the counties, incorporated municipalities, cities and taxing districts may deem right and proper. No county, incorporated municipality, city or taxing district has the authority to:
(A)
Regulate interest, fees and insurance charges;
(B)
Regulate hours;
(C)
Regulate the nature of the business or types of pawn transactions;
(D)
Regulate license requirements;
(E)
Require reports or pawn tickets providing identification, information or descriptions different from that required in §
45-6-209
; or
(F)
Require a pawnbroker to hold over-the-counter purchase of goods that the seller does not intend to buy back for a period of more than twenty (20) business days before offering the merchandise for resale.
(2)
Counties shall have no more authority than incorporated municipalities, cities and taxing districts have under this subsection (a) in regulating pawnbrokers.
(b)
A law enforcement official from any county, municipality, city or taxing district may not charge a pawnbroker, firm or corporation a fee for receiving, reviewing or processing daily reports or pawn tickets as defined in §
45-6-209
, or any other information required by the law enforcement official.
Acts 1988, ch. 724, § 19; 1995, ch. 186, §§ 11, 12; 1996, ch. 885, §§ 1, 2; 1997, ch. 409, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 6 - PAWNBROKERS (§§ 45-6-101 — 45-6-224) › Part 2 - PAWNBROKERS ACT OF 1988 (§§ 45-6-201 — 45-6-224) › Section 45-6-220 - Existing licensees - Renewals

(a)
Notwithstanding any provision of this part to the contrary, the license of any person, firm, or corporation licensed as a pawnbroker on July 1, 1988, shall continue in force until the natural expiration thereof, and all other provisions of this part shall apply to the licensee.
(b)
The pawnbroker shall be eligible for renewal of the license upon its expiration or the expiration of subsequent renewals; provided, that the licensee complies with the requirements for renewal that were in effect immediately prior to July 1, 1988.
Acts 1988, ch. 724, § 20.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 6 - PAWNBROKERS (§§ 45-6-101 — 45-6-224) › Part 2 - PAWNBROKERS ACT OF 1988 (§§ 45-6-201 — 45-6-224) › Section 45-6-221 - Electronic information transfer

(a)
Each licensed pawnbroker shall have a computer system in operation, if so requested by the appropriate law enforcement agency, that is capable of electronically transferring information, and shall electronically transfer the information in text file format on pledged goods to the appropriate law enforcement agency where the pawnshop is located. A pawnbroker who is electronically transferring information on pledged goods to the appropriate law enforcement agency, as of July 1, 2012, shall be deemed in compliance with the requirements set forth in this section.
(b)
In the event the pawnbroker transfers pawn transactions electronically, the pawnbroker is not required to also deliver to the appropriate law enforcement official the original or copies of the pawnbroker transaction forms. The appropriate law enforcement official may, for the purposes of a criminal investigation, request that the pawnbroker produce an original of a transaction form that has been electronically transferred. The pawnbroker shall deliver this form to the appropriate law enforcement official within twenty-four (24) hours or the next business day following the request.
Acts 1994, ch. 935, § 2; 1997, ch. 409, § 5; 2012, ch. 778, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 6 - PAWNBROKERS (§§ 45-6-101 — 45-6-224) › Part 2 - PAWNBROKERS ACT OF 1988 (§§ 45-6-201 — 45-6-224) › Section 45-6-223 - Racial profiling prohibited - Violations - Penalty

(a)
No law enforcement officer or agency shall use any thumb or other print obtained pursuant to §
45-6-222
for the purpose of racial profiling.
(b)
(1)
Any person residing within the jurisdiction of the law enforcement officer or agency alleged to have violated this section may petition the chancery or circuit court of the county for injunctive relief under this section. The court in which the petition is filed shall conduct a show cause hearing to determine if thumb or other prints obtained pursuant to §
45-6-222
have been used by a law enforcement officer or agency for the purpose of racial profiling.
(2)
If the court finds by a preponderance of evidence that a violation of this section has occurred, it shall grant an injunction prohibiting the officer or agency from obtaining thumb or other prints pursuant to §
45-6-222
for the period specified in subsection (c).
(3)
If the court finds by a preponderance of evidence that a violation of this section has not occurred, it shall deny the petition for an injunction.
(c)
(1)
A law enforcement officer or agency who violates this section for the first time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to §
45-6-222
for a period of six (6) months.
(2)
A law enforcement officer or agency who violates this section for the second time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to §
45-6-222
for a period of one (1) year.
(3)
A law enforcement officer or agency who violates this section for a third or subsequent time shall be permanently enjoined from requesting subpoenas for the production of thumb or other prints pursuant to §
45-6-222
.
Acts 2001, ch. 429, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 6 - PAWNBROKERS (§§ 45-6-101 — 45-6-224) › Part 2 - PAWNBROKERS ACT OF 1988 (§§ 45-6-201 — 45-6-224) › Section 45-6-224 - Notice of requirement for fingerprinting - Failure of pawnbroker to comply

(a)
All pawnshops that are required to take and maintain thumb or other prints pursuant to §
45-6-209(b)(7)
shall be required to place a sign at least ten inches by fourteen inches (10" X 14") in a prominent location reasonably close in proximity to the place where the pawn transaction will occur. The sign shall contain language in bold type substantially similar to the following:
WARNING! IF YOU CONDUCT A PAWN TRANSACTION AT THIS ESTABLISHMENT YOU WILL BE REQUIRED TO GIVE A THUMBPRINT BEFORE SUCH TRANSACTION MAY BE COMPLETED AND YOUR THUMBPRINT MAY BE OBTAINED AND USED BY THE POLICE.
(b)
Any pawnbroker who fails to comply with this section shall be subject to a civil penalty of one hundred dollars ($100) and noncompliance shall be grounds for the suspension of the pawnbroker's license.
Acts 2001, ch. 429, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-101 - Short title

This chapter is known and may be cited as the "Money Transmission Modernization Act."
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-201
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-102 - Purpose

It is the purpose of this chapter to:
(1)
Promote coordination among the states in all areas of regulation, licensing, and supervision to reduce regulatory burden and more effectively utilize regulator resources;
(2)
Protect the public from financial crime;
(3)
Standardize the types of activities that are subject to licensing or otherwise exempt from licensing; and
(4)
Modernize safety and soundness requirements to ensure customer funds are protected in an environment that supports innovative and competitive business practices.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-202
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-105 - Authority to require demonstration of exemption

The commissioner may require that any person claiming to be exempt from licensing pursuant to §
45-7-104
provide information and documentation to the commissioner demonstrating that such person qualifies for any claimed exemption.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-205
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-106 - Implementation

(a)
In order to carry out the purposes of this chapter, the commissioner may, subject to §
45-7-108
:
(1)
Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improve efficiencies and reduce regulatory burdens by standardizing methods or procedures, and sharing resources, records, or related information obtained under this chapter;
(2)
Use, hire, contract, or employ analytical systems, methods, or software to examine or investigate any person subject to this chapter;
(3)
Accept, from other state or federal government agencies or officials, licensing, examination, or investigation reports made by such other state or federal government agencies or officials;
(4)
Accept audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee, and incorporate the audit report in any report of examination or investigation; and
(5)
Rely on and utilize the reports referenced in subdivisions (a)(3) and (4) for any purposes deemed appropriate by the commissioner under this chapter, including for purposes of making determinations regarding applications received under this chapter.
(b)
The commissioner is authorized to administer, interpret, and enforce this chapter, promulgate rules effectuating the purposes of this chapter, and to recover the cost of administering and enforcing this chapter by imposing and collecting proportionate and equitable fees and costs associated with applications, examinations, investigations, and other actions required to achieve the purpose of this chapter.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-206
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-108 - Confidentiality

(a)
Notwithstanding any law to the contrary and except as otherwise provided in subsection (b), all information or reports obtained by the commissioner from an applicant, licensee, or authorized delegate, whether obtained through reports, applications, examination, audits, investigation, or otherwise, including, but not limited to, all information contained in or related to an examination, investigation, operating report, and condition report prepared by, on behalf of, or for the use of the commissioner, or financial statements, balance sheets, and authorized delegate information, are confidential and must not be disclosed or distributed outside the department by the commissioner or any officer or employee of the department, and are not open for inspection by members of the public.
(b)
(1)
The commissioner may disclose confidential information in a manner the commissioner deems proper to:
(A)
Local, state, or federal agencies; and
(B)
The Conference of State Bank Supervisors and the Money Transmission Regulator Association; provided, that these associations have entered into confidentiality agreements with the commissioner.
(2)
A licensed money transmitter is entitled to access to a copy of the report of examination on the money transmitter prepared by the commissioner or the commissioner's designee. The report of examination in the possession of a licensee remains confidential and is not subject to subpoena.
(3)
This section does not prohibit the commissioner from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-208
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-109 - Networked supervision

(a)
To efficiently and effectively administer and enforce this chapter, the commissioner is authorized to participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, Money Transmitter Regulators Association, and affiliates and successors thereof for all licensees that hold licenses in this state and other states. The commissioner is authorized to:
(1) Cooperate, coordinate, and share information with other state and federal regulators in accordance with § 45-7-108;
(2) Enter into written cooperation, coordination, or information-sharing contracts or agreements with other government officials or federal and state regulatory agencies and organizations, the membership of which is made up of state or federal governmental agencies; and
(3) Cooperate, coordinate, and share information with organizations the membership of which is made up of state or federal governmental agencies; provided, that the organizations agree in writing to maintain the confidentiality and security of the shared information in accordance with § 45-7-108.
(b) The commissioner shall not waive, and nothing in this section constitutes a waiver of, the commissioner's authority to conduct an examination or investigation, or otherwise take independent action authorized by this chapter or a rule adopted or order issued under this chapter to enforce compliance with applicable state or federal law.
(c) A joint examination or investigation, or acceptance of an examination or investigation report, does not waive any assessment or fee provided for in this chapter.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-209
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-110 - License required

(a)
A person shall not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission, unless the person is licensed under this chapter.
(b)
Subsection (a) does not apply to:
(1)
A person that is an authorized delegate of a person licensed under this chapter acting within the scope of authority conferred by a written contract with the licensee; or
(2)
A person that is exempt pursuant to §
45-7-104
and does not engage in money transmission outside the scope of such exemption.
(c)
A license issued under §
45-7-115
is not transferable or assignable.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-210
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-111 - Consistent state licensing

(a)
To establish consistent licensing between this state and other states, the commissioner is authorized to:
(1)
Implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted this chapter or multistate licensing processes; and
(2)
Participate in nationwide protocols for licensing cooperation and coordination among state regulators; provided, that such protocols are consistent with this chapter.
(b)
In order to fulfill the purposes of this chapter, the commissioner is authorized to establish relationships or contracts with NMLS or other entities to enable the commissioner to:
(1)
Collect and maintain records;
(2)
Coordinate multistate licensing processes and supervision processes;
(3)
Process fees; and
(4)
Facilitate communication between this state and licensees or other persons subject to this chapter.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; 1996, ch. 737, § 2; 2013, ch. 103, § 1; T.C.A., §
45-7-211
; Acts 2020, ch. 730, § 3.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-114 - Information requirements for certain individuals

(a)
Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the commissioner the following items:
(1)
The individual's fingerprints for submission to the federal bureau of investigation and the commissioner for purposes of a national criminal history background check, unless the individual currently resides outside of the United States and has resided outside of the United States for the last ten (10) years;
(2)
Information pertaining to the individual's personal history and experience in a form and in a medium prescribed by the commissioner; and
(3)
The individual's authorization for the commissioner or NMLS, or both, to obtain:
(A)
An independent credit report from a consumer reporting agency;
(B)
Information related to any criminal convictions or pending charges; and
(C)
Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.
(b)
If the individual has resided outside of the United States at any time in the last ten (10) years, the individual shall also provide an investigative background report prepared by an independent search firm acceptable to the commissioner that meets the following requirements:
(1)
At a minimum, the search firm shall:
(A)
Demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and
(B)
Not be affiliated with or have an interest with the individual it is researching; and
(2)
The investigative background report must be written in the English language and must, at a minimum, contain the following:
(A)
If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;
(B)
Criminal records information for the past ten (10) years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of the law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;
(C)
Employment history;
(D)
Media history, including an electronic search of national and local publications, wire services, and business applications; and
(E)
Financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-214
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-116 - Renewal of license

(a)
(1)
A license under this chapter must be renewed annually.
(2)
A nonrefundable supervision fee, as provided in §
45-1-118(i)
, must be paid between November 1 and December 31 of each year.
(3)
The renewal term is for a period of one (1) year and begins on January 1 of each year after the initial license term and expires on December 31 of the year the renewal term begins.
(b)
A licensee shall submit a renewal report with the supervision fee, in a form and in a medium prescribed by the commissioner, between November 1 and December 31 of each year. The renewal report must state or contain a description of each material change in information submitted by the licensee in its original license application that has not been reported to the commissioner.
(c)
Failure to timely pay the supervision fee or to timely submit a completed renewal report causes the license to expire at the close of business on December 31. An abatement of the supervision fee must not be made if the license is surrendered, cancelled, revoked, or suspended prior to the expiration of the period for which it was issued.
(d)
Licenses issued or renewed under the former provisions of this chapter expire on December 31, 2024.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; 2011, ch. 100, § 1; T.C.A., §
45-7-216
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-117 - Maintenance of license

(a)
If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the commissioner may suspend or revoke the licensee's license in accordance with the procedures established by this chapter or other applicable state law for such suspension or revocation.
(b)
An applicant for a money transmission license must demonstrate that it meets or will meet the requirements in §§
45-7-135
,
45-7-136
, and
45-7-137
. A money transmission licensee must at all times meet the requirements in §§
45-7-135
,
45-7-136
, and
45-7-137
.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-217
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-119 - Notice and information requirements for a change of key individuals

(a)
A licensee adding or replacing any key individual shall:
(1)
Provide notice in a manner prescribed by the commissioner within fifteen (15) days after the effective date of the key individual's appointment; and
(2)
Provide information as required by §
45-7-114
within forty-five (45) days after the effective date.
(b)
Within ninety (90) days after the date on which the commissioner determines that the notice and information provided pursuant to subsection (a) is complete, the commissioner may issue a notice of disapproval of a key individual if, based on the competence, experience, character, or integrity of the individual, it would not be in the best interests of the public or the customers of the licensee to permit the individual to be a key individual of such licensee.
(c)
A notice of disapproval must contain a statement of the basis for disapproval and must be sent to the licensee and the disapproved individual. If the commissioner issues a notice of disapproval, the licensee may make a written request to the commissioner for a hearing on the question of whether the notice should be approved. Any hearing requested under this subsection (c) must be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the licensee has requested the hearing in writing within thirty (30) days of the date of the commissioner's disapproval. At the hearing, the licensee must prove by a preponderance of the evidence that the notice should be approved.
(d)
If the notice provided pursuant to subsection (a) is not disapproved within ninety (90) days after the date on which the commissioner determined the notice and information provided pursuant to subsection (a) to be complete, the key individual is deemed approved.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-219
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-120 - Report of condition

(a)
Each licensee shall submit a report of condition within forty-five (45) days after the end of the calendar quarter, or within any extended time as the commissioner may prescribe.
(b)
The report of condition must include:
(1)
Financial information at the licensee level;
(2)
Nationwide and state-specific money transmission transaction information in every jurisdiction in the United States where the licensee is licensed to engage in money transmission;
(3)
Permissible investments reports;
(4)
Transaction destination country reporting for money received for transmission; and
(5)
Any other information the commissioner requires with respect to the licensee. The commissioner is authorized to change or update, as necessary, the requirements of this section to carry out the purposes of this chapter and maintain consistency with NMLS reporting.
(c)
The information required by subdivision (b)(4) must only be included in a report of condition submitted within forty-five (45) days after the end of the fourth calendar quarter.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-220
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-121 - Audited financials

(a)
Each licensee shall, within ninety (90) days after the end of each fiscal year, or within any extended time as the commissioner may prescribe, file with the commissioner:
(1)
An audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles; and
(2)
Any other information as the commissioner may reasonably require.
(b)
The audited financial statements must be prepared by an independent certified public accountant or independent public accountant who is satisfactory to the commissioner.
(c)
The audited financial statements must include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the commissioner. If the certificate or opinion is qualified, the commissioner may order the licensee to take any action as the commissioner may find necessary to enable the independent or certified public accountant or independent public accountant to remove the qualification.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-221
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-122 - Authorized delegate reporting

(a)
Each licensee shall submit a report of authorized delegates within forty-five (45) days after the end of the calendar quarter.
(b)
The authorized delegate report must include, at a minimum, each authorized delegate's:
(1)
Company legal name;
(2)
Taxpayer employer identification number;
(3)
Principal provider identifier;
(4)
Physical address;
(5)
Mailing address;
(6)
Business conducted in other states;
(7)
Any fictitious or trade name;
(8)
Contact person name, phone number, and email;
(9)
Start date as licensee's authorized delegate;
(10)
End date acting as licensee's authorized delegate, if applicable; and
(11)
Any other information the commissioner reasonably requires with respect to the authorized delegate.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-222
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-123 - Reports of certain events

(a)
A licensee shall file a report with the commissioner, describing the event and its expected impact on the licensee's activities in the state, within three (3) days after the occurrence of any of the following events:
(1)
The filing of a petition by or against the licensee under the United States Bankruptcy Code (
11 U.S.C. §§ 101-110
), as amended or recodified from time to time, for bankruptcy or reorganization;
(2)
The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;
(3)
The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed;
(4)
A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony;
(5)
A charge or conviction of an authorized delegate for a felony;
(6)
The occurrence of any computer security incident; or
(7)
Other events the commissioner may determine.
(b)
Each authorized delegate shall report to the licensee the theft or loss of payment instruments valued at five thousand dollars ($5,000) or more within twenty-four (24) hours from the time the authorized delegate knew or should have known of the theft or loss. Upon the receipt of the report, the licensee shall immediately provide the information to the commissioner.
(c)
As used in this section, "computer security incident" means any event that results in actual harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits and that has disrupted or degraded, or is reasonably likely to disrupt or degrade, a licensee's:
(1)
Ability to carry out operations, activities, or processes, or to deliver products and services to a material portion of its customer base, in the ordinary course of business;
(2)
Business lines, including associated operations, services, functions, and support, that upon failure would result in a material loss of revenue, profit, or franchise value; or
(3)
Operations, including associated services, functions, and support, as applicable, the failure or discontinuance of which would pose a threat to the financial stability of the United States.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-223
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-124 - Bank Secrecy Act reports

A licensee and an authorized delegate shall file all reports required by federal currency reporting, record keeping, and suspicious activity reporting requirements as set forth in the Bank Secrecy Act (
31 U.S.C. § 5311
et seq.) and other federal and state laws pertaining to money laundering.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-224
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-125 - Records

(a)
A licensee shall maintain the following records for at least three (3) years:
(1)
A record of each outstanding money transmission obligation sold;
(2)
A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;
(3)
Bank statements and bank reconciliation records;
(4)
Records of outstanding money transmission obligations;
(5)
Records of each outstanding money transmission obligation paid within the three-year period;
(6)
A list of the last known names and addresses of all of the licensee's authorized delegates; and
(7)
Any other records the commissioner reasonably requires.
(b)
The items specified in subsection (a) may be maintained in any form of record.
(c)
Records specified in subsection (a) may be maintained outside this state if they are made accessible to the commissioner upon the commissioner's request.
(d)
All records maintained by the licensee as required by subsection (a) are open to inspection by the commissioner pursuant to §
45-7-107
.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., §
45-7-225
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-127 - Unauthorized activities

A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter or not exempt pursuant to §
45-7-104
. A person that engages in such activity provides money transmission to the same extent as if the person were a licensee, and is jointly and severally liable with the unlicensed or nonexempt person.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 2013, ch. 103, § 2; T.C.A., §
45-7-227
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-128 - Authorized delegate conduct

(a)
An authorized delegate shall not make any fraudulent or false statement or misrepresentation to a licensee or to the commissioner.
(b)
All money transmission or sale or issuance of payment instrument activities conducted by authorized delegates must be performed strictly in accordance with the licensee's written procedures provided to the authorized delegate.
(c)
An authorized delegate shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate. The failure of an authorized delegate to remit all money owing to a licensee within the contractual time period results in liability of the authorized delegate to the licensee for three (3) times the licensee's actual damages. The commissioner is authorized to set, by rule, the maximum remittance time.
(d)
An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property are considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 2013, ch. 103, § 3; T.C.A., §
45-7-228
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-129 - Timely transmission

(a)
A licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur.
(b)
If a licensee fails to forward money received for transmission in accordance with this section, the licensee must respond to inquiries by the sender with the reason for the failure unless providing a response would violate a state or federal law, rule, or regulation.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 2013, ch. 103, § 4; T.C.A., §
45-7-229
.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-130 - Refunds

(a)
This section does not apply to:
(1)
Money received for transmission subject to the Remittance Transfer Rule ( 12 CFR Part 1005 , Subpart B); or
(2)
Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.
(b)
A licensee shall refund to the sender within ten (10) calendar days of receipt of the sender's written request for a refund of any money received for transmission, unless any of the following occurs:
(1)
The money has been forwarded within ten (10) days of the date on which the money was received for transmission;
(2)
Instructions have been given committing an equivalent amount of money to the person designated by the sender within ten (10) days of the date on which the money was received for transmission;
(3)
The agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond ten (10) days of the date on which the money was received for transmission. If funds have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender, then the licensee shall issue a refund in accordance with the other provisions of this section;
(4)
The refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur; or
(5)
The refund request does not enable the licensee to:
(A)
Identify the sender's name and address or telephone number; or
(B)
Identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 2020, ch. 730, § 4.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-131 - Receipts

(a)
This section does not apply to:
(1)
Money received for transmission subject to the Remittance Transfer Rule ( 12 CFR Part 1005 , Subpart B);
(2)
Money received for transmission that is not primarily for personal, family, or household purposes;
(3)
Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee; or
(4)
Payroll processing services.
(b)
For purposes of this section, "receipt" means a paper receipt, electronic record, or other written confirmation. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by phone, a receipt may be provided electronically. All electronic receipts must be provided in a retainable form.
(c)
(1)
A licensee or its authorized delegate shall provide the sender a receipt for money received for transmission.
(2)
The receipt must contain the following information, as applicable:
(A)
The name of the sender;
(B)
The name of the designated recipient;
(C)
The date of the transaction;
(D)
The unique transaction or identification number;
(E)
The name of the licensee, NMLS Unique ID, the licensee's business address, and the licensee's customer service telephone number;
(F)
The amount of the transaction in United States dollars;
(G)
Any fee charged by the licensee to the sender for the transaction; and
(H)
Any taxes collected by the licensee from the sender for the transaction.
(3)
The receipt required by this section must be in English and in the language principally used by the licensee or authorized delegate to advertise, solicit, or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-132 - Notice

(a)
A licensee or authorized delegate shall conspicuously disclose on the licensee's website or mobile application, and conspicuously post on the premises of each physical location in this state where the licensee or authorized delegate conducts money transmission, the name and phone number of the department and a statement that the licensee's customers can contact the department with questions or complaints about the licensee's money transmission services.
(b)
A licensee or authorized delegate may include on a receipt the name and phone number of the department and a statement that the licensee's customers can contact the department with complaints about the licensee's money transmission services.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-133 - Disclosures for payroll processing services

(a)
A licensee that provides payroll processing services shall:
(1)
Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and
(2)
Make available worker paystubs or an equivalent statement to workers.
(b)
Subsection (a) does not apply to a licensee providing payroll processing services where the licensee's client designates the intended recipients to the licensee and is responsible for providing the disclosures required by subdivision (a)(2).
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-134 - Licensee liability

A licensee's responsibility to any person who purchases a payment instrument or money transmission transaction from a licensee or a licensee's authorized agent is limited to the face amount of the payment instrument or money transmission transaction purchased.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-135 - Net worth

(a)
A licensee under this chapter shall at all times maintain a tangible net worth of:
(1)
The greater of one hundred thousand dollars ($100,000) or three percent (3%) of total assets for the first one hundred million dollars ($100,000,000);
(2)
Two percent (2%) of additional assets for one hundred million dollars ($100,000,000) to one billion dollars ($1,000,000,000); and
(3)
One-half of one percent (0.5%) of additional assets for over one billion dollars ($1,000,000,000).
(b)
Tangible net worth must be demonstrated at initial application by the applicant's most recent audited or unaudited financial statements pursuant to §
45-7-113(b)(6)
.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.