Bill > HB5544

This bill, titled the "Money Transmission Modernization Act," aims to update and consolidate Michigan's laws governing money transmitters, which are businesses that transmit money on behalf of others. It requires these businesses to be licensed and establishes clear rules for their operation, including definitions for terms like "money transmission" (selling or issuing payment instruments, selling stored value, or receiving money for transmission) and "authorized delegate" (a person authorized by a licensee to conduct money transmission on their behalf). The act emphasizes coordination between states to reduce regulatory burdens, protect the public from financial crime, standardize licensing, and modernize financial safety requirements. It also outlines exemptions for certain entities like banks and governmental agencies, details licensing procedures, reporting requirements, and prudential standards such as maintaining a certain tangible net worth and providing security through a surety bond or deposit. The bill also addresses the acquisition of control of licensees, reporting of key individuals, and enforcement actions, including penalties and civil sanctions for violations, and repeals existing money transmission laws effective July 1, 2026, with the new act taking effect on January 1, 2026.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5544