Chapter 065
2012 -- S 2596 SUBSTITUTE A
Enacted 05/14/12
A N A C T
RELATING TO
FINANCIAL INSTITUTIONS -- PROCEDURES AND OPERATIONS
Introduced By: Senators Picard, and Miller
Date Introduced: March 01, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. Section 19-3-13 of the General Laws in Chapter
19-3 entitled "Powers and
Operations" is hereby
amended to read as follows:
19-3-13.
Use of electronic devices and machines. -- (a) Any financial institution, or
credit union, may make available for use by its customers
one or more electronic devices or
machines (customer-bank communications terminals/automated
teller machines). These devices
or machines shall not be deemed to be the establishment
of a branch of the particular financial
institution or credit union. All surcharges chargeable for use of
these devices shall be disclosed
prior to completion of any transaction. Disclosure of the
surcharge shall be displayed
electronically by the electronic device or machine and shall not be
disclosed by means of any
stickers or placards placed on the exterior of the electronic
device or machine.
(b)
The establishment and use of these devices are subject to approval by the
director or
the director's designee which approval shall not be
unreasonably withheld. Any request to
establish a customer-bank communications terminal/automated
teller machine must be sent to the
director or the director's designee by certified mail,
return receipt requested any means acceptable
to the director or the director’s designee. Any request which is received by the director or the
director's designee shall be deemed approved, if within five (5)
business days of receipt by the
director or the director's designee of the request, the
director or the director's designee has not
issued a notice of intent to deny the request. The director
or the director's designee may
promulgate rules and regulations not inconsistent with this
section.
(c) To the extent
consistent with the antitrust laws, each financial institution or credit
union, chartered by this or any other state, is permitted
but not required to share these devices
with one or more other financial institutions or credit unions,
chartered by the state or federal
government.
(d) Each financial
institution or credit union shall adopt and maintain safeguards on each
electronic device or machine consistent with the minimum
requirements specified under the
federal Bank Protection Act, 12 U.S.C. section 1881 et seq.
SECTION 2. Sections 19-14-7, 19-14-8 and 19-14-14 of the
General Laws in Chapter 19-
14 entitled "Licensed
Activities" are hereby amended to read as follows:
19-14-7.
Issuance or denial of license. -- (a) Upon the filing of a completed application,
the payment of fees and the approval of the bond, the
director or the director's designee shall
commence an investigation of the applicant.
(b) After the
investigation determines that a completed application has been filed, the The
director or the director's designee shall approve the license
applied for in accordance with the
provisions of this chapter if he or she shall find:
(1) That the financial
responsibility, experience, character, and general fitness of the
applicant, and of the applicant's members and of the
applicant's officers, including the designated
manager of record of a licensed location, if the applicant is
a partnership, limited liability
company or association, or of the officers including the
designated manager of record of a
licensed location, and directors and the principal owner or
owners of the issued and outstanding
capital stock, if the applicant is a corporation, are such as
to command the confidence of the
community and to warrant belief that the business will be
operated honestly, fairly, and efficiently
within the purposes of this title; and
(2) That allowing the
applicant to engage in business will promote the convenience and
advantage of the community in which the business of the
applicant is to be conducted.
(b) (c) A
license provided pursuant to this title shall remain in full force and effect
until it is
surrendered by the licensee or revoked or suspended as provided
by law.
(c) (d) If the director or the director's designee rejects an
application for a license, he or she
shall notify the applicant, by certified mail, of the
denial, the reason(s) supporting the denial and
shall afford the applicant the opportunity for a hearing
within a reasonable time period to show
cause why the license should not be denied. , in writing, and advise the applicant of the
reason for
the denial of the application for license. When an application for a license is denied by the
director or the director's designee or withdrawn by the
applicant, the director or the director's
designee shall return to the applicant the bond, but shall
retain the investigation fee to cover the
costs of investigating the application. The director or
the director's designee shall approve or deny
every application for license under this section within
sixty (60) days from the date the
application is deemed by the director or the director's designee
to be completed. Upon written
request of the applicant, the director or the director's
designee shall advise the applicant whether
the applicant's application for any such license is
complete and if not, the reason why such
application is not complete. The applicant may make written demand for hearing upon the
director or director’s designee within thirty (30) days of the
notice to determine the
reasonableness of the action to deny the license.
(d) (e) Any applicant or licensee aggrieved by the action of
the director or the director's
designee in denying a completed application for a license
shall have the right to appeal the action,
order, or decision pursuant to chapter 35 of title 42.
19-14-8.
Denial of license by default Denial of license due to incomplete
application.
-- If, within sixty (60) days of the initial filing of the application, the applicant has failed to
provide the necessary factual
data information requested by the department in order to
complete
the application, the director or
the director's designee shall notify the applicant, by certified mail
in writing, that the
application shall be considered in default and rejected denied if
all necessary
data for a completed
application information requested is not received within fourteen
(14) thirty
(30) days of the notice unless the application is withdrawn. The notice shall specify what
information is necessary for completion. The applicant may make a written demand within thirty
(30) days for a hearing to determine the reasonableness of the director’s or the director’s
designee’s action. The hearing shall be conducted pursuant to the Administrative Procedures Act,
chapter 35 of title 42. If the applicant fails to provide the information or request a hearing within
thirty (30) days from the
notice, the application shall be denied on the basis that it is incomplete.
19-14-14.
Revocation by default. -- (a) The
director or the director's designee may
revoke any license without a hearing by default if the
licensee fails to respond to notifications
informing the licensee of a failure to pay the annual license
fee, maintain in effect the required
bond or bonds or maintain net worth requirements as
required by this title.
(b)
For the purposes of revocation by default, the director or the
director's designee
shall send, in writing, to the licensee and to the
licensee's registered attorney for service of
process at the their current respective address
addresses stated in the application for the license
according to the records of the department, by certified mail, notice of the deficiency
and
potential revocation of the license. Should the licensee
or the licensee's registered attorney fail to
respond to the certified mail or is not answering to
service within fifteen (15) days of the
notification, the director or the director's designee may revoke
the license by default and without
hearing after fifteen (15) days from the date of the
certified mail. The director or the director’s
designees shall notify the licensee of such revocation in
writing.
(c) Any action taken
under this section may be appealed pursuant to the Administrative
Procedures Act, chapter 35, of title 42.
SECTION 3. This act shall take effect upon passage.
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LC01525/SUB A
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