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HOUSE BILL NO. 72

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Daily Data Tracking History

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H0072........................................................by MR. SPEAKER
                    Requested by Department of Finance
MONEY TRANSMITTERS - Amends existing law to provide that permissible
investments, even if commingled with other assets of a licensed money
transmitter, shall be deemed by operation of law to be held in trust for
the benefit of the purchasers and holders of the licensee's outstanding
payment instruments in the event of the bankruptcy of the licensee, and
shall be immune from attachment by creditors or judgement holders.

01/11    House intro - 1st rdg - to printing
01/11    Rpt prt - to Bus
02/04    Rpt out - rec d/p - to 2nd rdg
02/05    2nd rdg - to 3rd rdg
02/09    3rd rdg - PASSED - 64-0-6
      AYES -- Alltus, Barraclough, Barrett, Bieter, Black, Boe, Bruneel,
      Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney,
      Ellsworth, Field(13), Field(20), Gagner, Geddes, Hadley, Hammond,
      Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
      Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Limbaugh, Linford,
      Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen,
      Moyle, Pischner, Pomeroy, Ridinger, Ringo, Robison, Sali, Schaefer,
      Sellman, Smith, Stevenson, Stoicheff, Stone, Tippets, Trail, Watson,
      Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Bell, Gould, Reynolds, Taylor, Tilman, Williams
    Floor Sponsor - Kellogg
    Title apvd - to Senate
02/10    Senate intro - 1st rdg - to Com/HuRes
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    Rules susp - PASSED - 21-0-14
      AYES--Andreason, Branch, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Davis, Dunklin, Geddes, Hawkins, Ipsen, King,
      Lee, McLaughlin, Richardson, Risch, Schroeder, Sorensen, Stennett
      NAYS--None
      Absent and excused--Boatright, Deide, Frasure, Ingram, Keough, Noh,
      Parry, Riggs, Sandy, Stegner, Thorne, Twiggs, Wheeler, Whitworth
    Floor Sponsor - Davis
    Title apvd - to House
03/19    To enrol - rpt enrol - Sp signed - Pres signed
03/23    To Governor
03/24    Governor signed
         Session Law Chapter 274
         Effective: 07/01/99

Bill Text

H0072

                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 72

                                      BY MR. SPEAKER
                           Requested by: Department of Finance

 1                                        AN ACT
 2    RELATING TO PERMISSIBLE INVESTMENTS FOR LICENSED  MONEY TRANSMITTERS; AMENDING
 3        SECTION 26-2906, IDAHO CODE, TO PROVIDE THAT PERMISSIBLE INVESTMENTS, EVEN
 4        IF COMMINGLED WITH OTHER ASSETS OF THE LICENSEE, SHALL BE DEEMED BY OPERA-
 5        TION OF LAW TO BE HELD IN TRUST FOR THE  BENEFIT  OF  THE  PURCHASERS  AND
 6        HOLDERS  OF THE LICENSEE'S OUTSTANDING PAYMENT INSTRUMENTS IN THE EVENT OF
 7        THE BANKRUPTCY OF THE LICENSEE, AND SHALL BE  IMMUNE  FROM  ATTACHMENT  BY
 8        CREDITORS OR JUDGMENT HOLDERS.

 9    Be It Enacted by the Legislature of the State of Idaho:

10        SECTION  1.  That  Section 26-2906, Idaho Code, be, and the same is hereby
11    amended to read as follows:

12        26-2906.  PERMISSIBLE INVESTMENTS. Each licensee licensed under the provi-
13    sions of this chapter must at all times possess permissible investments having
14    an aggregate market value, calculated in accordance  with  generally  accepted
15    accounting  principles, of not less than the aggregate face amount of all out-
16    standing payment instruments issued or sold by  the  licensee  in  the  United
17    States. This requirement may be waived by the director if the dollar volume of
18    a licensee's outstanding payment instruments does not exceed the bond or other
19    security  devices  posted  by  the licensee pursuant to section 26-2908, Idaho
20    Code.  Permissible investments, even if commingled with other  assets  of
21    the  licensee, shall be deemed by operation of law to be held in trust for the
22    benefit of the purchasers and holders of the  licensee's  outstanding  payment
23    instruments  in  the event of the bankruptcy of the licensee, and shall be im-
24    mune from attachment by creditors or judgment holders. 

Statement of Purpose / Fiscal Impact

                      STATEMENT  OF  PURPOSE
RS08428
This legislation amends the Idaho Money Transmitters Act to provide
that "permissible investments" shall be deemed to be held in trust
for the benefit of the customer, and therefore cannot be claimed by
creditors in bankruptcy, or other creditors or judgment holders.







FISCAL  IMPACT
None.






CONTACT   
Name:          Kelly Robison
Agency:   Idaho Department of Finance
Phone:         332-8032

Statement of Purpose/Fiscal Impact                           H 7