Bill > HB5798

This bill creates the "Money Transmission Modernization Act" to regulate the business of money transmission in Michigan. The key provisions of the bill include: - Requiring licensing for persons engaged in money transmission, with some exemptions for certain entities like the federal government, banks, and payroll processing services. - Establishing regulatory oversight and examination authority for the Department of Insurance and Financial Services. - Allowing the state to participate in multistate licensing and supervision processes to improve efficiency and reduce regulatory burden. - Prescribing requirements for licensees including maintaining minimum tangible net worth, providing security through a surety bond or deposit, and maintaining permissible investments. - Imposing reporting and recordkeeping requirements on licensees. - Regulating the use of authorized delegates by licensees. - Establishing timelines for transmitting funds, providing refunds, and making disclosures to customers. - Granting the director authority to suspend or revoke licenses and impose civil fines for violations. The bill is designed to replace the existing Money Transmission Services Act and takes effect on January 1, 2025, with a transition period for existing licensees.