1.
Licensing
periods.
Previously, licenses were granted for a period which expired
on April 30th. Effective with this rule, licenses
are granted for a 1-year period commencing on January 1st and expiring on
December 31st.
2.
Exchange facilitators that hold a
valid Maine license expiring on April 30, 2023.
a. Renewal licenses issued for licenses
expiring on April 30, 2023 will be granted for the period May 1, 2023 through
December 31, 2023. The renewal fee for the 2023 term shall be prorated to
$135.00 for the main license location and $100.00 for each branch
location.
b.
One-month
late transitional period. All renewal applications from
existing licensees received between January 1, 2024 and January 31, 2024 will
be processed, but applicants will be assessed a late fee of $100.00.
c.
Deadline. Renewal
applications will not be accepted after January 31, 2024. All applications
received after that date will be considered new applications, subject to the
provisions and fees set forth in subsection 3 below.
3.
Applicants that do
not hold a valid Maine exchange facilitator license as of May
1, 2023 ("new applicants").
a.
Terms of licenses. All new licenses issued after the effective
date of this rule and before November 1, 2023 shall pay a license fee of
$135.00 for a license period ending December 31, 203. New licenses issued after
November 1 of each year shall be valid through December 31 of the following
year.
b.
State of Maine new
license application fees. Yearly license fees assessed to new applicants
(as well as existing licensees that re-apply after January 31, 2024) are as
follows:
1. $350.00 for the first licensed
location; and
2. $200.00 for each
branch location.
4.
Renewal fees.
a.
Renewal fees. Renewal fees
are set at:
1. $200.00 yearly for the first
licensed location; and
2. $150.00
yearly for each branch location.
b.
Late renewal. Renewal
applications received after December 31 of any year will be considered late.
The status of such licenses will be changed to "terminated - failed to renew"
or an equivalent status. Such licenses may be reinstated if a renewal
application is received between January 1 and the last day of February,
together with a late fee of $100.00.
5.
Application Contents.
Applicants for new or renewal registrations shall provide the following
information and documentation. A separate registration is required for each
location from which business is conducted.
a.
Full legal name and address of the individual or entity to be
registered.
b. Telephone number and
website address.
c. Type of entity:
sole proprietorship, partnership, corporation, LLC, LLP, other
(explain).
d. Social Security
number or Federal Tax Identification number as applicable.
e. Any assumed or fictitious names to be
used.
f. For foreign entities,
proof of filing with and authority to do business as a foreign entity from the
Maine Secretary of State.
g. For
foreign entities, the name address and telephone number of an authorized agent
within the State of Maine for service of process.
h. resumes of:
1. A sole proprietor;
2. The executive officers of a corporate
applicant;
3. The manager of an LLC
or LLP;
4. All partners of a
partnership; and
5. The person who
will oversee the daily operations of the registered office and its personnel.
i. A consumer report and
criminal background report for each of the individuals listed in h.
j. Proof that the applicant has met the
financial responsibility portions of the law, by complying with at least one of
the following three requirements:
1. The
exchange facilitator must arrange to deposit all exchange funds in a qualified
escrow account or qualified trust, as those terms are defined under United
States Treasury Regulation Section 1.103(k)(1)(g)(3), with a financial
institution and provide that any withdrawal from that escrow account or trust
requires the exchange facilitator's and the client's written
authorization;
2. The exchange
facilitator must maintain a fidelity bond or bonds in an amount not less than
$250,000 executed by an insurer authorized to business in the State of Maine;
or
3. The exchange facilitator must
deposit cash or securities or irrevocable letters of credit in an amount not
less than $250,000 in an interest-bearing deposit account or a money market
account with a financial institution (interest on that amount accrues to the
exchange facilitator), which may not be withdrawn without consent of the
Administrator
k. Proof
that the applicant has complied with the insurance or alternate coverage
provision of the law, that requires that exchange facilitators either:
1. Maintain an errors and omissions insurance
policy in an amount not less than $100,000.00, executed by an insurer
authorized to do business in the State of Maine; or
2. Deposit an amount of cash or securities or
irrevocable letters of credit in an amount not less than $100,000.00 in an
interest-bearing deposit account or a money market account with a financial
institution, interest on that amount accruing to the exchange facilitator.
which may not be withdrawn without consent of the
Administrator
l. The
names, titles, addresses, telephone numbers and e-mail addresses of the persons
to contact for scheduling of our compliance examinations and consumer complaint
resolution.
m. A sample contract or
written agreement and disclosure forms of the type that will be utilized with
Maine consumers.
n. Whether the
applicant has been the subject of a civil, administrative or criminal action
involving theft, forgery, false representation, misapplication of funds or
other financial issue within the past 10 years. If so, for each such instance,
provide the title of the action, jurisdiction, date of disposition, and a
detailed explanation of the applicant's involvement.
6.
Changes to existing licensing
information. If any information reported by a licensee changes during a
period of licensure, the licensee must amend its information on file with the
Bureau within 30 days of the occurrence of the change. Notice of a change of
control of the licensee must be provided to the Bureau and the Bureau must
approve any change of control before the same becomes effective.
7.
Routine technical rule. This
is a routine technical rule as authorized by
10 M.R.S.
§
1396(2).