§ 24-12-9-4 — Director's authority to use NMLSR in department's licensing system; reporting of information to NMLSR; confidentiality; director's authority to enter into agreements; waiver of privilege; processing fee; electronic records

Indiana § 24-12-9-4

• Jurisdiction: Indiana
• Art. 12: CIVIL PROCEEDING ADVANCE PAYMENTS
• Ch. 9: Licensure

Text

(a) Subject to subsection (f), the director may
designate the NMLSR to serve as the sole entity responsible for:
(1) processing applications and renewals for licenses required
under section 1 of this chapter;
(2) issuing unique identifiers for licensees under this chapter; and
(3) performing other services that the director determines are
necessary for the orderly administration of the department's
licensing system under this chapter.
(b) Subject to the confidentiality provisions contained in IC 5-14-3,
this section, and IC 28-1-2-30, the director may regularly report to the
NMLSR significant or recurring violations of this article.
(c) Subject to the confidentiality provisions contained in IC 5-14-3,
this section, and IC 28-1-2-30, the director may report to the NMLSR
complaints received regarding licensees under this chapter.
(d) The director may report to the NMLSR publicly adjudicated
licensure actions against licensees under this chapter.
(e) The director shall establish a process in which persons licensed
in accordance with this chapter may challenge information reported to
the NMLSR by the department.
(f) The director's authority to designate the NMLSR under
subsection (a) is subject to the following:
(1) Information stored in the NMLSR is subject to the
confidentiality provisions of IC 5-14-3 and IC 28-1-2-30. A
person may not:
(A) obtain information from the NMLSR unless the person is
authorized to do so by statute;
(B) initiate any civil action based on information obtained from
the NMLSR if the information is not otherwise available to the
person under any other state law; or
(C) initiate any civil action based on information obtained from
the NMLSR if the person could not have initiated the action
based on information otherwise available to the person under
any other state law.
(2) Documents, materials, and other forms of information in the
control or possession of the NMLSR that are confidential under
IC 28-1-2-30 and that are:
(A) furnished by the director, the director's designee, or a
licensee; or
(B) otherwise obtained by the NMLSR;
are confidential and privileged by law and are not subject to
inspection under IC 5-14-3, subject to subpoena, subject to
discovery, or admissible in evidence in any civil action. However,
the director may use the documents, materials, or other
information available to the director in furtherance of any action
brought in connection with the director's duties under this article.
(3) Disclosure of documents, materials, and information:
(A) to the director; or
(B) by the director;
under this subsection does not result in a waiver of any applicable
privilege or claim of confidentiality with respect to the
documents, materials, or information.
(4) Information provided to the NMLSR is subject to IC 4-1-11.
(5) This subsection does not limit or impair a person's right to:
(A) obtain information;
(B) use information as evidence in a civil action or proceeding;
or
(C) use information to initiate a civil action or proceeding;
if the information may be obtained from the director or the
director's designee under any law.
(6) The requirements under any federal law or IC 5-14-3
regarding the privacy or confidentiality of any information or
material provided to the NMLSR, and any privilege arising under
federal or state law, including the rules of any federal or state
court, with respect to the information or material, continue to
apply to the information or material after the information or
material has been disclosed to the NMLSR. The information and
material may be shared with all state and federal regulatory
officials with financial services industry oversight authority
without the loss of privilege or the loss of confidentiality
protections provided by federal law or IC 5-14-3.
(7) For purposes of this section, the director may enter agreements
or sharing arrangements with other governmental agencies, the
Conference of State Bank Supervisors, or other associations
representing governmental agencies as established by rule or
order of the director.
(8) Information or material that is subject to a privilege or
confidentiality under subdivision (6) is not subject to:
(A) disclosure under any federal or state law governing the
disclosure to the public of information held by an officer or an
agency of the federal government or the respective state; or
(B) subpoena, discovery, or admission into evidence, in any
private civil action or administrative process, unless with
respect to any privileged information or material held by the
NMLSR, the person to whom the information or material
pertains waives, in whole or in part, in the discretion of the
person, that privilege.
(9) Any provision of IC 5-14-3 that concerns the disclosure of:
(A) confidential supervisory information; or
(B) any information or material described in subdivision (6);
and that is inconsistent with subdivision (6) is superseded by this
section.
(10) This section does not apply with respect to information or
material that concerns the employment history of, and publicly
adjudicated disciplinary and enforcement actions against, a
person licensed in accordance with this chapter and described in
section 5(b) of this chapter and that is included in the NMLSR for
access by the public.
(11) The director may require a licensee required to submit
information to the NMLSR to pay a processing fee considered
reasonable by the director. In determining whether an NMLSR
processing fee is reasonable, the director shall:
(A) require review of; and
(B) make available;
the audited financial statements of the NMLSR.
(g) Notwithstanding any other provision of law, any:
(1) application, renewal, or other form or document that:
(A) relates to licenses issued under this chapter; and
(B) is made or produced in an electronic format;
(2) document filed as an electronic record in a multistate
automated repository established and operated for the licensing or
registration of financial services entities and their employees; or
(3) electronic record filed through the NMLSR;
is considered a valid original document when reproduced in paper form
by the department.

Legislative History

As added by P.L.176-2019, SEC.45.