Bill > HB1049

This bill modifies the Money Transmitters Modernization Act by making several key changes to improve financial regulations for money transmission businesses. First, the bill expands the definition of "permissible investments" to include receivables from payment processors for debit or credit card transactions, which provides money transmitters with more flexibility in managing their financial assets. Second, the bill changes how a licensee's tangible net worth is calculated, shifting from a simple flat requirement to a tiered system based on total assets: 3% for the first $100 million, 2% for assets between $100 million and $1 billion, and 0.5% for assets over $1 billion. Third, the bill modifies the application and licensing process by removing the initial annual license fee paid upfront and instead implementing a $5,000 initial license fee that is assessed only upon application approval. These changes aim to modernize and streamline financial regulations for money transmission businesses, potentially making it easier for companies to enter and operate in the market while maintaining appropriate financial safeguards. The bill is set to take effect on July 1, 3000, which appears to be a placeholder date typically used when the exact implementation date is not yet determined.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1049&year=2026