Month: July 2017 - Page 2

With the passage of HB 215 in May, the Alabama Monetary Transmission Act became law. The bill brings about some changes for Alabama money transmitters and takes effect on August 1, 2017.

Alabama money transmitters sell or issue payment instruments, stored value, or receive money or monetary value for transmission. The Alabama Monetary Transmission Act does not apply to any U.S. departments or agencies, the U.S. Postal Service, or any state, county, or city governmental agencies, among others.

Under current law, Alabama money transmitters must post a $10,000 surety bond when applying for a license, plus $5,000 for each additional business location, not to exceed $50,000. HB 215 will increase that bond amount, requiring money transmitters to post a bond that is a minimum of $100,000 or an average of the daily outstanding obligations for money received for transmission in Alabama, plus 50 percent of the average daily outstanding payment instrument and stored value obligations in the state—whichever is greater. The maximum surety bond Alabama money transmitters can be required to obtain is $5,000,000.

Alabama money transmitters apply for a license through the Alabama Securities Commission. Per HB 215, their licenses expire annually on March 31. New applicants must pay a filing and license fee of no less than $500, and the renewal fee must also be no less than $500 and must be paid by March 15 each year. License renewals must be accompanied by a renewal report containing the following information:

• Copy of licensee’s most recent financial statement
• Number and monetary value of payment and stored-value instruments the licensee has sold in Alabama that have not been previously reported
• Monetary amount of payment and stored-value instruments currently outstanding
• Description of any material change in information from licensee’s original application not already reported to the Commission
• Proof that an adequate surety bond or other financial security has been maintained
• List of business locations in Alabama

Licensees have an additional 20 days after March 31 to renew their license, but a late fee of $100 is incurred for each day between expiration and license renewal.�HB 215 also increases the minimum net worth required of Alabama money transmitters, from $5,000 to $25,000, evidenced by current financial statements.

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HB 49 was signed into law in May, bringing about some changes for Georgia livestock dealers and market operators. The bill takes effect on July 1, 2017.

HB 49 clarifies the definition of a livestock dealer and adds more parameters for those not considered livestock dealers. Georgia livestock dealers are anyone engages in or facilitates the purchase, sale, exchange, or other ownership transfer of livestock in Georgia, including by electronic means. The definition of a livestock dealer does not include the following, per the new law:

• Farmers acquiring livestock solely for the purpose of grazing and feeding
• Packers whose annual livestock purchases total less than $50,000 and who buy only from licensed dealers and sale establishments
• Persons selling livestock of their own production or buying for their own production
• Persons auctioning livestock on behalf of a third party

HB 49 removes all instances of the word “bond” and replaces them with the word “surety,” which includes a surety bond, letter of credit, certificate of deposit, or other bank-issued financial assurance. This means that Georgia livestock dealers and market operators have the option of posting one of those proofs of financial security rather than a surety bond.

Under current law, Georgia livestock dealers’ surety bond amount is calculated based on the number of days in the previous year during which the dealer did business. Then, the total�dollar value of livestock purchased during the previous year is divided by half of the number of business days or 130, whichever number is less. Surety bond amounts are then determined as follows:

• The number found is $10,000 or less: $10,000 surety bond
• The number found is more than $10,000 but less than $75,000: surety bond is equal to number found
• The number found is more than $75,000: surety bond is $75,000 plus 10 percent of the amount by which the amount found exceeds $75,000

Livestock market operators’ surety bond is currently calculated according to the annual sales of the livestock sales establishment:

• Annual sales of $2,600,000 or less: surety bond is one fifty-second of annual sales but no less than $10,000
• Annual sales of more than $2,600,000: surety bond is $50,000 plus one fifty-second�of the amount of annual sales in excess of $2,600,000.00 times a factor of 0.2
• If the surety bond amount calculated is not a multiple of $5,000, the bond amount is rounded up to the nearest higher multiple of $5,000

Under HB 49, Georgia livestock dealers and market operators will have a much less complicated way of determining their surety bond amount, as a sufficient bond amount will be agreed upon with the Georgia Department of Agriculture. HB 49 mandates that the Department publishes a list of licensed dealers and market operators.

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Indiana notaries public will need to increase the amount of their surety bond following the passage of SB 539. Signed into law in April, the bill takes effect on July 1, 2018, and holds a few additional changes for notaries in the state.

Under current law, Indiana notaries are required to obtain a $5,000 surety bond when applying for a license. SB 539 will increase the surety bond amount to $25,000. Indiana notaries apply online through the Secretary of State’s office and must meet certain eligibility criteria, including the following:

• At least 18 years old
• U.S. citizen or legal permanent resident
• Resident of or primarily employed in Indiana
• Satisfy educational requirements
• Pass a notary examination

Educational requirements for Indiana notaries include a course of education and exam administered by the Secretary of State, as well as complete a maximum of two hours of continuing education every two years. Indiana notary commissions are valid for eight years, and notaries can apply to renew their commission as early as 60 days before its expiration.

SB 539 clarifies that notarial acts performed by notaries licensed in other states, in the jurisdiction of Native American tribes, and acts performed under federal law are valid in Indiana as long as the individuals are authorized to perform notarial acts. Notarial acts performed under the authority of foreign governments�not under the jurisdiction of state, federal, or Native American laws�are also valid in Indiana per SB 539.

Indiana notaries must provide a certificate to authenticate notarial acts, and the certificate must be issued under the following conditions:

• Issued at the same time the notarial act is performed
• Signed and dated by the notarial officer
• Must identify where the act was performed
• Must display notarial officer’s title
• If the notarial officer is a notary public, certificate must display the notary’s commission expiration date and the county in which they are commissioned

SB 539 details requirements for the seals of any Indiana notaries commissioned or recommissioned after December 31, 2017. The seal must include the following information:

• The phrase “notary public”
• The phrase “state of Indiana”
• The word “seal”
• Notary’s name as it appears on their commission
• The phrase “commission number” followed by the notary’s commission number
• The phrase “my commission expires” followed by the notary’s commission expiration date

Indiana notaries’ seals must be destroyed if their commission expires without renewal, if they resign, or if their commission is revoked. Notaries are subject to the provisions of SB 539 if they renew or apply for commission after January 1, 2018; notaries whose commissions are in effect on that date will need to comply with SB 539 upon their next renewal.

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