Section 36a-596 - (Formerly Sec. 36-531). DefinitionsAs used in sections 36a-595 to 36a-614, inclusive, unless the context otherwise requires:
(1) "Advertise" or "advertising" has the same meaning as provided in section 36a-485.(2) "Authorized delegate" means a person designated by a person licensed pursuant to sections 36a-595 to 36a-612, inclusive, to provide money transmission services on behalf of such licensed person.(3) "Control" means(A) the power to vote, directly or indirectly, at least twenty-five per cent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee, (B) the power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee, or (C) the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee. For purposes of this subdivision, (i) a person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten per cent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee, (ii) a person presumed to exercise a controlling influence can rebut such presumption if the person is a passive investor, and (iii) to determine the percentage of control, a person's interest shall be aggregated with the interest of any other immediate family member, including the person's spouse, parent, child, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law and any other person who shares the person's home.(4) "Control person" means any individual in control of a licensee or applicant, any individual who seeks to acquire control of a licensee or a key individual.(5) "Electronic payment instrument" (A) means a card or other tangible object (i) for the transmission of money or monetary value or payment of money, (ii) which contains a microprocessor chip, magnetic stripe or other means for the storage of information, (iii) that is prefunded, and (iv) for which the value is decremented upon each use, and (B) does not include a card or other tangible object that is redeemable by the issuer in the issuer's goods or services.(6) "Existing customer" means a consumer who (A) is engaging in a transaction at a virtual currency kiosk in the state, (B) has performed not fewer than three virtual currency transactions with the owner or operator of such virtual currency kiosk, and (C) has been registered as a customer of such owner or operator for more than seventy-two hours.(7) "Holder" means a person, other than a purchaser, who is either in possession of a payment instrument and is the named payee thereon or in possession of a payment instrument issued or endorsed to such person or bearer or in blank. "Holder" does not include any person who is in possession of a lost, stolen or forged payment instrument.(8) "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, including, but not limited to, an executive officer, manager, director or trustee.(9) "Licensee" means any person licensed or required to be licensed pursuant to sections 36a-595 to 36a-612, inclusive.(10) "Main office" has the same meaning as provided in section 36a-485.(11) "Monetary value" means a medium of exchange, whether or not redeemable in money.(12) "Money transmission" means engaging in the business of issuing or selling payment instruments or stored value, receiving money or monetary value for current or future transmission or the business of transmitting money or monetary value within the United States or to locations outside the United States by any and all means including, but not limited to, payment instrument, wire, facsimile, electronic transfer or virtual currency kiosk.(13) "New customer" means a consumer who (A) is engaging in a transaction at a virtual currency kiosk in the state, (B) has performed fewer than three virtual currency transactions with the owner or operator of such virtual currency kiosk, and (C) has been registered as a customer of such owner or operator for less than seventy-two hours.(14) "Outstanding" means (A) in the case of a payment instrument or stored value, that (i) such instrument or value is sold or issued in the United States, (ii) a report of such instrument or value has been received by a licensee from its authorized delegates, and (iii) such instrument or value has not yet been paid by the issuer, and (B) for all other money transmissions, the value reported to the licensee for which the licensee or any authorized delegate has received money or its equivalent value from the customer for transmission, but has not yet completed the money transmission by delivering the money or monetary value to the person designated by the customer.(15) "Passive investor" means a person that (A) does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee, (B) is not employed by and does not have any managerial duties of the licensee or person in control of a licensee, (C) does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee, and (D) attests to subparagraphs (A), (B) and (C) of this subdivision in the form and manner prescribed by the commissioner.(16) "Payment instrument" means a check, draft, money order, travelers check or electronic payment instrument that evidences either an obligation for the transmission of money or monetary value or payment of money, or the purchase or the deposit of funds for the purchase of such check, draft, money order, travelers check or electronic payment instrument.(17) "Permissible investment" means (A) (i) cash in United States currency, including, but not limited to, demand deposits, savings deposits and funds in demand deposit and savings deposit accounts held for the benefit of a licensee's customers in an insured depository institution, and (ii) cash equivalents, including, but not limited to, (I) automated clearing house items in transit to a licensee or payee, (II) international wires in transit to a payee, (III) cash in transit via armored car, (IV) cash in smart safes, (V) cash in locations owned by licensees, (VI) transmission receivables that are funded by debit cards or credit cards and owed by any bank, and (VII) money market mutual funds rated "AAA" or the equivalent by S and P Global, Incorporated, in the "S and P Global Ratings" or by any other rating service recognized by the commissioner, (B) time deposits, as defined in section 36a-2, or other debt instruments of a bank, (C) bills of exchange or bankers acceptances which are eligible for purchase by member banks of the Federal Reserve System, (D) commercial paper of prime quality, (E) interest-bearing bills, notes, bonds, debentures or other obligations issued or guaranteed by (i) the United States or any of its agencies or instrumentalities, or (ii) any state, or any agency, instrumentality, political subdivision, school district or legally constituted authority of any state if such investment is of prime quality, (F) interest-bearing bills or notes, or bonds, debentures or preferred stocks, traded on any national securities exchange or on a national over-the-counter market, if such debt or equity investments are of prime quality, (G) receivables due from authorized delegates consisting of the proceeds of the sale of payment instruments which are not past due or doubtful of collection, (H) gold, and (I) any other investments approved by the commissioner. Notwithstanding the provisions of this subdivision, if the commissioner at any time finds that an investment of a licensee is unsatisfactory for investment purposes, the investment shall not qualify as a permissible investment.(18) "Prime quality" of an investment means that it is within the top four rating categories in any rating service recognized by the commissioner unless the commissioner determines for any licensee that only those investments in the top three rating categories qualify as prime quality.(19) "Purchaser" means a person who buys or has bought a payment instrument or who has given money or monetary value for current or future transmission.(20) "Receipt" means a paper record, electronic record or other written confirmation of a money transmission transaction.(21) "Stored value" means monetary value that is evidenced by an electronic record. For the purposes of this subdivision, "electronic record" means information that is stored in an electronic medium and is retrievable in perceivable form.(22) "Travelers check" means a payment instrument for the payment of money that contains a provision for a specimen signature of the purchaser to be completed at the time of a purchase of the instrument and a provision for a countersignature of the purchaser to be completed at the time of negotiation.(23) "Unique identifier" has the same meaning as provided in section 36a-485.(24) "Virtual currency" means any type of digital unit that is used as a medium of exchange or a form of digitally stored value or that is incorporated into payment system technology. Virtual currency shall be construed to include digital units of exchange that (A) have a centralized repository or administrator, (B) are decentralized and have no centralized repository or administrator, or (C) may be created or obtained by computing or manufacturing effort. Virtual currency shall not be construed to include digital units that are used (i) solely within online gaming platforms with no market or application outside such gaming platforms, or (ii) exclusively as part of a consumer affinity or rewards program, and can be applied solely as payment for purchases with the issuer or other designated merchants, but cannot be converted into or redeemed for fiat currency.(25) "Virtual currency address" means an alphanumeric identifier representing a destination for a virtual currency transfer that is associated with a virtual currency wallet.(26) "Virtual currency kiosk" means an electronic terminal acting as a mechanical agent of the owner or operator to enable the owner or operator to facilitate the exchange of virtual currency for fiat currency or other virtual currency, including, but not limited to, by (A) connecting directly to a separate virtual currency exchanger that performs the actual virtual currency transmission, or (B) drawing upon the virtual currency in the possession of the owner or operator of the electronic terminal.(27) "Virtual currency wallet" means a software application or other mechanism providing a means for holding, storing and transferring virtual currency.Conn. Gen. Stat. § 36a-596
(P.A. 81-264, S. 2; P.A. 87-9, S. 2, 3; P.A. 92-12 , S. 96 ; P.A. 94-122 , S. 276 , 340 ; P.A. 98-192 , S. 3 ; 98-258 , S. 4 ; P.A. 01-56 , S. 3 ; P.A. 02-73 , S. 84 ; P.A. 04-14 , S. 3 ; 04-136 , S. 43 ; P.A. 07-91 , S. 8 ; P.A. 09-208 , S. 13 ; P.A. 13-253 , S. 2 ; P.A. 15-53 , S. 5 ; P.A. 17-233 , S. 18 ; P.A. 18-173 , S. 49 .)
Amended by P.A. 24-0146,S. 1 of the Connecticut Acts of the 2024 Regular Session, eff. 10/1/2024.Amended by P.A. 23-0082,S. 2 of the Connecticut Acts of the 2023 Regular Session, eff. 10/1/2023.Amended by P.A. 22-0096, S. 2 of the Connecticut Acts of the 2022 Regular Session, eff. 10/1/2022.Amended by P.A. 22-0094, S. 2 of the Connecticut Acts of the 2022 Regular Session, eff. 10/1/2022.Amended by P.A. 18-0173, S. 49 of the Connecticut Acts of the 2018 Regular Session, eff. 10/1/2018.Amended by P.A. 17-0233, S. 18 of the Connecticut Acts of the 2017 Regular Session, eff. 10/1/2017.Amended by P.A. 15-0053, S. 5 of the Connecticut Acts of the 2015 Regular Session, eff. 10/1/2015.