Bill > HB5544

This bill, titled the "Money Transmission Modernization Act," aims to update and consolidate Michigan's regulations for businesses that transmit money, replacing the existing Money Transmission Services Act. It requires individuals and companies engaged in money transmission, which includes selling or issuing payment instruments or stored value, or receiving money for transmission, to obtain a license from the Department of Insurance and Financial Services (DIFS). The act establishes a framework for licensing, supervision, and enforcement, emphasizing coordination with other states through a nationwide licensing system to reduce regulatory burdens and protect the public from financial crime. It defines various terms, such as "money transmission," "authorized delegate" (a person authorized by a licensee to conduct money transmission), and "tangible net worth" (a company's assets minus intangible assets and liabilities), and outlines specific exemptions for entities like banks and government agencies. The bill also details requirements for applicants, including background checks and financial disclosures, and sets standards for licensees regarding financial stability, record-keeping, and reporting, with provisions for penalties and civil sanctions for violations. Importantly, it includes a transition period, with the new act taking effect on January 1, 2027, and the repeal of the old act on July 1, 2027, allowing businesses time to comply with the modernized regulations.