Sunset Continue Money Transmitter Regulation

The act implements recommendations of the department of regulatory agencies, as specified in the department's sunset review of the regulation of money transmitters, as follows:

• Sections 1 and 2 of the act continue the regulation of money transmitters until 2030;
• Section 3 authorizes the banking board to suspend a money transmitter's license;
• Section 4 expands the requirement to furnish surety bond coverage to include all money transmission, rather than merely exchange;
• Section 5 increases the maximum penalty for failure to report from $250 to $750 per day and for failure to allow the state bank commissioner to make an examination from $100 to $1,000 per day;
• Section 6 authorizes the state bank commissioner to submit fingerprints directly to the federal bureau of investigation for a criminal history record check;
• Section 7 repeals the requirement that license holders annually report the name, address, and telephone number of each owner of at least 10% of the agent of the money transmitter;
• Section 8 authorizes the state bank commissioner to issue cease-and-desist orders and sets procedural requirements;
• Section 9 expands the licensing exemption for in-state banks to also cover out-of-state banks and repeals the licensing exemption for telegraph or cable companies; and
• Sections 10 through 12 replace gendered pronouns with gender-neutral terms.

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)