Bill > SB1368

This bill updates Hawaii's Money Transmitters Modernization Act by making several key changes to improve regulation of money transmission businesses. The bill expands the definition of "permissible investments" to include receivables from payment processors for debit or credit card transactions, providing more flexibility for money transmission companies in managing their financial assets. It modifies the tangible net worth requirements for licensees, replacing the previous flat $100,000 minimum with a tiered calculation method that requires 3% of the first $100,000,000 in total assets, 2% of assets between $100,000,000 and $1,000,000,000, and 0.5% of assets over $1,000,000,000. The bill also streamlines the application and licensing process by consolidating the application and initial annual license fees into a single $5,000 nonrefundable application fee, with an additional $5,000 license fee assessed upon application approval. These changes align Hawaii's money transmitter regulations more closely with the Model Money Transmitters Modernization Act, aiming to create more consistent standards across states and improve the regulatory framework for money transmission businesses. The bill is set to take effect on July 1, 2025.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1368&year=2026