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Bill > HB1596

MS HB1596

MS HB1596
Money transmitters; require to implement certain data security measures and customer protections.

summary

Introduced
01/19/2026
In Committee
02/19/2026
Crossed Over
02/10/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Session

Bill Summary

An Act To Require A Money Transmitter Licensed Under The Money Transmission Modernization Act To Implement Safeguards To Protect Customer Information And Increase Data Security; To Require A Licensee To Designate A Qualified Individual To Be Responsible For Overseeing, Implementing And Enforcing An Information Security Program; To Provide The Minimum Standards And Requirements For The Information Security Program And To Require Risk Assessments; To Require Notification To The Commissioner Of Banking And Consumer Finance When Unencrypted Customer Information Is Acquired Without The Authorization Of The Affected Individual; To Provide Certain Exceptions; To Amend Section 75-16-11, Mississippi Code Of 1972, To Provide That Funds Coming Into The Possession Of The Commissioner As A Result Of The Money Transmission Modernization Act Shall Be Deposited Into The Consumer Finance Fund; To Amend Sections 75-16-25, 75-16-31 And 75-16-43, Mississippi Code Of 1972, To Regulate Virtual Currency Kiosks Under The Provisions Of The Money Transmission Modernization Act; To Amend Section 75-16-51, Mississippi Code Of 1972, To Require A Licensee To Provide Training Materials To Help Authorized Delegates Recognize Financial Abuse And Financial Exploitation Of An Elder Adult Respond Appropriately In Such Situations; To Amend Section 75-16-65, Mississippi Code Of 1972, To Include The Word "investments"; To Create New Section 75-16-89, Mississippi Code Of 1972, To Require A Licensee To Provide Certain Information To The Purchaser In Connection With Each Money Transmission Or Kiosk Transaction Conducted By The Licensee Directly Or Through An Authorized Delegate; To Amend Section 81-3-15, Mississippi Code Of 1972, To Provide That Renewals Or Amendments To A Charter Or Articles Of Incorporation Of Banking Corporations Shall Be Sent Directly To The Secretary Of State Upon Being Approved By The Commissioner And Do Not Require Approval From The Attorney General; To Amend Section 81-5-75, Mississippi Code Of 1972, To Authorize A Bank To Declare And Pay Dividends Not Inconsistent With The Bank's Articles Of Incorporation Or Bylaws; To Require Prior Written Approval Of The Commissioner Only When Certain Conditions Exist; To Amend Section 81-5-100, Mississippi Code Of 1972, To Provide That Prior Approval Of The Commissioner Is Not Required For A State Bank Or Thrift To Establish Or Decommission Electronic Terminals; To Create New Section 81-5-26, Mississippi Code Of 1972, To Authorize Investments By State Chartered Financial Institutions In Community And Economic Development Entities, Community Development Projects And Other Public Welfare Investments; To Bring Forward Sections 75-16-5, 75-16-13 And 81-5-85, Mississippi Code Of 1972, For The Purpose Of Possible Amendment; And For Related Purposes.

AI Summary

This bill, titled the "Data Security for Money Transmitters Act," mandates that money transmitters and virtual currency kiosks licensed under Mississippi's Money Transmission Modernization Act implement robust data security measures and customer protections. Key provisions include requiring licensees to establish a comprehensive information security program overseen by a designated qualified individual, conduct regular risk assessments to identify and mitigate potential threats to customer information, and implement specific safeguards such as encryption for data both in transit and at rest, secure development practices, and multi-factor authentication for system access. The bill also mandates regular testing of these safeguards, including penetration testing and vulnerability assessments, and requires personnel to receive security awareness training. Furthermore, licensees must develop an incident response plan and a business continuity/disaster recovery plan. In the event of a "notification event," defined as the unauthorized acquisition of unencrypted customer information, licensees must notify the Commissioner of Banking and Consumer Finance within 72 hours, providing specific details about the breach. The bill also introduces provisions for regulating virtual currency kiosks, requiring licensees to provide training materials to authorized delegates on recognizing and responding to elder financial abuse, and clarifies that funds collected by the Commissioner related to this act will be deposited into the Consumer Finance Fund. Additionally, it makes several amendments to banking laws, including streamlining charter amendments, authorizing certain investments by state-chartered financial institutions, and clarifying rules around dividend payments and electronic terminal operations for banks.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Returned For Concurrence (on 03/11/2026)

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