STATE CORPORATION COMMISSION

Bureau of Financial Institutions

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. BFI-2010-00144

Ex Parte: In re: annual assessment
of licensed money order sellers and
money transmitters

RESPONSE TO COMMENTS

Pursuant to the Order Directing Response to Comments that was entered by the State Corporation Commission ("Commission") on June 22, 2010, the Bureau of Financial Institutions ("Bureau"), by counsel, submits this response to the written comments that were filed by Mr. Randy Mersky on behalf of Global Express Money Orders, Inc.

In his comment letter, Mr. Mersky asserted that money orders and money transmission services are very distinct financial service products, and that it would be unfair for the Commission to apply the same assessment rate to both products. In support of his position that the assessment rate for money orders should be much lower than the assessment rate for money transmission, Mr. Mersky contended that the examination process has historically been more complicated, involved, and time consuming for money transmission. Mr. Mersky also stated that examinations for larger businesses are more extensive and take longer than they do for smaller businesses, so he also recommended that the assessment schedule take into account a licensee's overall size or net worth.

As Mr. Mersky indicated in his written comments, the proposed regulation does not differentiate between money orders sold and money transmitted for purposes of calculating the annual assessment. While the Bureau concurs with Mr. Mersky's observation that money orders are distinguishable from money transmission services, the Bureau does not believe that the examination of money transmitters is more complicated, involved, and time consuming than the examination of money order sellers. Since the Bureau has only been examining licensed money order sellers and money transmitters for a short period of time, the Bureau has very limited firsthand information regarding the relative complexity and duration of its examinations of money order sellers and money transmitters. Therefore, the Bureau contacted regulators in several other states (California, Ohio, Texas, and Wyoming) that have substantial experience regulating and examining money order sellers and money transmitters. All of the state regulators uniformly indicated that (i) money order sellers must comply with the same laws as money transmitters, (ii) regulators use the same programs and procedures to examine both products, and (iii) the time allotted by regulators for examinations is identical. Moreover, in certain respects such as a licensee's permissible investments and financial condition, money orders may necessitate more examiner time and analysis than is required for money transmission because licensees tend to have much larger portions of their money orders outstanding. Accordingly, based on the information gathered by the Bureau from the aforementioned states, Mr. Mersky's comparison of money order seller and money transmitter examinations appears to be outdated or inaccurate.

It is unclear to the Bureau from Mr. Mersky's comment letter whether he is proposing to measure a licensee's "overall size" by its net worth for purposes of distinguishing between "larger businesses" and "smaller businesses." If Mr. Mersky was contemplating an alternative means of gauging a licensee's size, then the Bureau might be inclined to subscribe to his broad generalization that examinations for larger businesses are more extensive and take longer than they do for smaller businesses. However, with respect to Mr. Mersky's suggestion that the assessment schedule take into account a licensee's overall size or net worth, it is the Bureau's opinion that the complexity and length of a particular licensee's examination is properly and sufficiently factored into the proposed assessment schedule through the dollar amount of money orders sold and money transmitted by a licensee pursuant to Chapter 12 of Title 6.1 of the Code of Virginia. Moreover, a licensee's dollar volume of business usually reflects the relative size of the institution when compared to other licensees, and the Bureau is unable to discern any meaningful nexus between licensees' net worth and the Bureau's examinations. Consequently, it is the Bureau's view that the overall size or net worth of a licensed money order seller or money transmitter is redundant and/or inapt as a proxy for the amount of regulatory resources that need to be devoted to an institution. Therefore, the Commission should not incorporate a licensee's overall size or net worth as an additional factor in the assessment schedule.

In conclusion, the Bureau believes that the proposed assessment schedule accurately and fairly reflects the comparable amount of time and effort that is entailed in examining and supervising money order sellers and money transmitters. Contrary to Mr. Mersky's remark, the proposed schedule is not expected to result in smaller businesses subsidizing the costs associated with examining larger businesses. Accordingly, the Bureau recommends that the Commission adopt the regulation as proposed.

Respectfully submitted,

BUREAU OF FINANCIAL INSTITUTIONS

By: Todd E. Rose, Associate General Counsel, Office of General Counsel, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9671.

Dated: June 25, 2010

* * * * * * * *

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. BFI-2010-00144

Ex Parte: In re: annual assessment
of licensed money order sellers and
money transmitters

SUPPLEMENT TO RESPONSE

COMES NOW the Bureau of Financial Institutions ("Bureau"), by counsel, and requests leave to supplement the Response to Comments ("Response") that it filed on June 25, 2010. In support of its request, the Bureau states the following:

(1) On June 22, 2010, the State Corporation Commission ("Commission") entered an Order requiring the Bureau to file a written response to the comments that were filed by Mr. Randy Mersky on behalf of Global Express Money Orders, Inc.

(2) On June 25, 2010, the Bureau filed its Response. In its Response, the Bureau informed the Commission that it had contacted regulators in several other states (California, Ohio, Texas, and Wyoming) that have substantial experience regulating and examining money order sellers and money transmitters, and that these other states had uniformly indicated to the Bureau that (i) money order sellers must comply with the same laws as money transmitters; (ii) regulators use the same programs and procedures to examine both products; and (iii) the time allotted by regulators for examinations is identical.

(3) The Bureau inadvertently omitted certain additional information that is germane to its Response. Specifically, the state of Ohio had also advised the Bureau that it applies the same assessment rate to money order sellers and money transmitters. Regulators in the states of Texas and Wyoming also informed the Bureau that they assess money order sellers and money transmitters using the same assessment rate. In the state of California, the assessment calculation for money order sellers appears to be handled differently than the assessment calculation for money transmitters. However, based on the information that it received, the Bureau is unable to reach any definitive conclusions regarding the relative assessment rates.

WHEREFORE, the Bureau respectfully requests that the preceding supplemental information be appended to its Response.

Respectfully submitted,

BUREAU OF FINANCIAL INSTITUTIONS

By: Todd E. Rose, Associate General Counsel, Office of General Counsel, State Corporation Commission, P.O. Box 1197, Richmond, Virginia 23218-1197, telephone (804) 371-9671, FAX (804) 371-9240.

Dated: July 8, 2010

DEPARTMENT OF ENVIRONMENTAL QUALITY

Proposed Action for BFI Waste Systems of Virginia, L.L.C.

An enforcement action has been proposed for BFI Waste Systems of Virginia, L.L.C., for alleged stormwater effluent violations at the Old Dominion landfill located at 2001 Charles City Road, Richmond, VA. The consent order requires corrective action and payment of a civil charge. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Frank Lupini will accept comments from August 16, 2010, to September 16, 2010, by email at frank.lupini@deq.virginia.gov, FAX at (804) 527-5106 or postal mail at Department of Environmental Quality, Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA 23060.

Coastal Zone Management Program - Notice of Updates to Enforceable Policies

This public notice is to inform interested parties that the Virginia Coastal Zone Management Program's enforceable policies have been updated and incorporated into the Program.

The Coastal Zone Management Act (15 CFR 923.80) requires states to formally incorporate any amendments, modifications, or other changes to approved management programs, including policies that the state uses or intends to use for federal consistency. The changes discussed were previously made to the individual policies and are now formally incorporated into the Virginia Coastal Zone Management Program. These updates are considered to be routine program changes, and therefore do not significantly affect (i) uses subject to management; (ii) special management areas; (iii) boundaries; (iv) authorities and organization; or (v) coordination, public involvement, and national interest components of the Virginia Coastal Resources Management Program.

A summary of the updates and sections that were withdrawn can be found in the notice on the Department of Environmental Quality's website at: http://www.deq.virginia.gov/coastal/2010programchanges.
html.

In addition the text of these changes and an analysis of their implication to the Virginia Coastal Zone Management Program is available at http://www.deq.virginia.gov/coastal/ 2010programchanges.html. The National Oceanic and Atmospheric Administration's approval letter of June 23, 2010, includes the specific code sections and denotes sections that were incorporated but do not contain enforceable policies. This letter can be accessed at http://www.deq.virginia.gov/coastal/documents/ 2010progchangeacceptltr.pdf.

If you require paper copies of any of these documents, please contact the Virginia Coastal Zone Management Program listed below.

Contact Information: April Bahen, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4005, or email april.bahen@deq.virginia.gov.

STATE LOTTERY DEPARTMENT

Director's Orders

The following Director's Orders of the State Lottery Department were filed with the Virginia Registrar of Regulations on July 16, 2010. The orders may be viewed at the State Lottery Department, 900 East Main Street, Richmond, VA, or at the office of the Registrar of Regulations, 910 Capitol Street, 2nd Floor, Richmond, VA.

Director's Order Number Sixty-Two (10)

Virginia's Instant Game Lottery 1194; "Redskins Legacy" Final Rules for Game Operation (effective July 15, 2010)

Director's Order Number Sixty-Three (10)

Virginia's Instant Game Lottery 1196; "Monopoly" Final Rules for Game Operation (effective July 15, 2010)

Director's Order Number Sixty-Four (10)

Virginia's Instant Game Lottery 1199; "Jewel 7's" Final Rules for Game Operation (effective July 15, 2010)

STATE BOARD OF SOCIAL SERVICES

Notice of Periodic Review

Pursuant to Executive Order Number 14 (2010), the Department of Social Services is currently reviewing 22VAC40-745, Assessment in Assisted Living Facilities, to determine if it should be terminated, amended, or retained in its current form. The review will be guided by the principles listed in Executive Order Number 14 (2010) and in the department's Plan for Review of Existing Agency Regulations.

The department seeks public comment regarding the regulation's interference in private enterprise and life, essential need of the regulation, less burdensome and intrusive alternatives to the regulation, specific and measurable goals that the regulation is intended to achieve, and whether the regulation is clearly written and easily understandable.

Written comments may be submitted until September 6, 2010, in care of Paige McCleary, Adult Services Program Consultant, Virginia Department of Social Services, 801 East Main Street, Richmond, VA 23219, by FAX to (804) 726-7895, or by email to paige.mccleary@dss.virginia.gov.

Notice of Periodic Review

Pursuant to Executive Order Number 14 (2010), the Department of Social Services is currently reviewing 22VAC40-901, Community Services Block Grant Program, to determine if it should be terminated, amended, or retained in its current form. The review will be guided by the principles listed in Executive Order Number 14 (2010) and in the department's Plan for Review of Existing Agency Regulations.

The department seeks public comment regarding the regulation's interference in private enterprise and life, essential need of the regulation, less burdensome and intrusive alternatives to the regulation, specific and measurable goals that the regulation is intended to achieve, and whether the regulation is clearly written and easily understandable.

Written comments may be submitted until September 6, 2010, in care of J. Mark Grigsby, Director, Office of Community Services, Virginia Department of Social Services, 801 East Main Street, Richmond, VA 23219, by FAX to (804) 726-7946, or by email to james.grigsby@dss.virginia.gov.

STATE WATER CONTROL BOARD

Proposed Action for Samuel Aman

An enforcement action has been proposed for Samuel Aman to resolve wetland and state waters violations pertaining to the Virginia Water Protection program. The proposed enforcement action contains a schedule of compliance with detail corrective measure requirements and incorporates a supplemental environmental project to be completed by Samuel Aman. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. David Miles will accept comments from August 17, 2010, to September 15, 2010, by email at david.miles@deq.virginia.gov, FAX at (434) 582-5125, or postal mail at Department of Environmental Quality, Blue Ridge Regional Office, 7705 Timberlake Road, Lynchburg, VA 24502.

Proposed Action for the Arlington County Board

An enforcement action has been proposed for the Arlington County Board for violations in Arlington County. These violations include unauthorized discharges of partially treated sewage from the Arlington County Water Pollution Control Plant into Four Mile Run. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Sarah Baker will accept comments from August 17, 2010, through September 16, 2010, by email at sarah.baker@deq.virginia.gov, FAX at (703) 583-3821, or postal mail at Department of Environmental Quality, Northern Regional Office, 13901 Crown Court, Woodbridge, VA 22193.

Proposed Action for the Town of Cape Charles

An enforcement action has been proposed for the Town of Cape Charles, Northampton County, for alleged violations of the Virginia Pollutant Discharge Elimination System Permit at the Town's wastewater treatment plant. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments from August 14, 2010, to September 15, 2010, by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462.

Proposed Action for Courtney Development, Inc.

An enforcement action has been proposed for Courtney Development, Inc. for alleged violations at the Crossridge subdivision in Henrico County, VA. The State Water Control Board proposes to issue a consent special order to Courtney Development, Inc. to address noncompliance with Virginia Water Protection Permit regulations. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Cynthia Akers will accept comments from August 16, 2010, to September 15, 2010, by email at e.cynthia.akers@deq.virginia.gov, FAX at (804) 527-5106, or postal mail at Department of Environmental Quality, Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA 23060.

Proposed Action for Halifax County Service Authority

An enforcement action has been proposed for the Halifax County Service Authority for violations at the Maple Avenue Wastewater Treatment Plant located in the Town of South Boston. The proposed enforcement action contains a schedule of compliance which details the corrective action required. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. G. Marvin Booth, III will accept comments from August 16, 2010, to September 16, 2010, by email at marvin.booth@deq.virginia.gov, FAX at (434) 582-5125, or postal mail at Department of Environmental Quality, Blue Ridge Regional Office, 7705 Timberlake Road, Lynchburg, VA 24502.

Proposed Action for IMTT-Virginia

An enforcement action has been proposed for IMTT-Virginia, Chesapeake, for alleged violations of Virginia State Water Control Law. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. John Brandt will accept comments from August 16, 2010, to September 15, 2010, by email at john.brandt@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462.

Proposed Action for KmX Chemical Corp.

An enforcement action has been proposed for KmX Chemical Corp. for alleged violations of the Virginia State Water Control Law at the KmX Facility at 30474 Energy Drive, New Church, Accomack County, concerning the unauthorized discharge of pollutants to state waters. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments from August 14, 2010, to September 15, 2010, by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462.

Proposed Action for Metro Used Auto Parts, Inc.

An enforcement action has been proposed for Metro Used Auto Parts, Inc., for alleged violations of Virginia Pollutant Discharge Elimination General Permit VAR05 at the Metro automobile salvage yard at 5209 Sondej Avenue in the City of Chesapeake. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments from August 16, 2010, to September 15, 2010, by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462.

Proposed Action for North Carolina & Virginia Railroad Company, L.L.C.

An enforcement action has been proposed for the North Carolina & Virginia Railroad Company, L.L.C., for alleged violations of the Virginia State Water Control Law concerning the unauthorized discharge of oil to state waters, the Albemarle Canal in the City of Chesapeake. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Paul R. Smith will accept comments from August 16, 2010, to September 15, 2010, by email at paul.smith@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Blvd., Virginia Beach, VA 23462.

Draft 2010 Water Quality Assessment Integrated Report

The Virginia Department of Environmental Quality (DEQ) will release the Draft 2010 Water Quality Assessment Integrated Report (Integrated Report) on August 23, 2010, for public comment. The final report will be released this fall after review and approval by the United States Environmental Protection Agency.

The Integrated Report combines both the § 305(b) Water Quality Assessment Report and the § 303(d) List of Impaired Waters. Both are required by the Federal Clean Water Act and the Virginia Water Quality Monitoring Information and Restoration Act. The 2010 report is based on Water Quality Standards in effect as of February 1, 2010. This report will be available for download at http://www.deq.virginia.gov/wqa/ throughout the public comment period, which ends on Friday, September 24, 2010, at 5 p.m.

A CD with a copy of the final report and associated maps can be pre-ordered at no charge via the website above (limit one per person). Anyone who received the report on CD in 2008 will automatically receive a 2010 final report CD. Hard copies of the report will only be printed upon request, via the website. The online maps will also be included on the final report CD.

A webinar summarizing the findings in the report will be held on the Internet on August 26, 2010, from 11 a.m. to noon. Interested persons must register in advance at https://www1.gotomeeting.com/register/267343337. Questions about the report may be submitted online during the webinar.

Written comments on the draft 2010 Integrated Report may be sent to the contact person below. Please include your name, U.S. mail address, telephone number, and email address so DEQ can add you to its notification list for future assessments.

Contact Information: Darryl Glover, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4321, FAX (804) 698-4416, or email darryl.glover@deq.virginia.gov.

VIRGINIA CODE COMMISSION

Notice to State Agencies

Mailing Address: Virginia Code Commission, 910 Capitol Street, General Assembly Building, 2nd Floor, Richmond, VA 23219.

Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed

Beginning with Volume 26, Issue 1 of the Virginia Register of Regulations dated September 14, 2009, the Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed will no longer be published in the Virginia Register of Regulations. The cumulative table may be accessed on the Virginia Register Online webpage at http://register.dls.virginia.gov/cumultab.htm.

Filing Material for Publication in the Virginia Register of Regulations

Agencies are required to use the Regulation Information System (RIS) when filing regulations for publication in the Virginia Register of Regulations. The Office of the Virginia Register of Regulations implemented a web-based application called RIS for filing regulations and related items for publication in the Virginia Register. The Registrar's office has worked closely with the Department of Planning and Budget (DPB) to coordinate the system with the Virginia Regulatory Town Hall. RIS and Town Hall complement and enhance one another by sharing pertinent regulatory information.

The Office of the Virginia Register is working toward the eventual elimination of the requirement that agencies file print copies of regulatory packages. Until that time, agencies may file petitions for rulemaking, notices of intended regulatory actions and general notices in electronic form only; however, until further notice, agencies must continue to file print copies of proposed, final, fast-track and emergency regulatory packages.