Bill > SB0835

This bill, titled the "Money Transmission Modernization Act," establishes a new framework for regulating money transmission businesses, replacing the previous Money Transmission Services Act. It aims to modernize regulations, promote interstate cooperation among regulators, protect the public from financial crime, standardize licensing requirements, and ensure customer funds are safeguarded while allowing for innovation. The act defines key terms like "money transmission" (selling or issuing payment instruments or stored value, or receiving money for transmission), "authorized delegate" (a person authorized by a licensee to conduct money transmission), and "tangible net worth" (a company's assets minus liabilities, excluding intangible assets). It outlines exemptions from licensing, such as for federally insured depository institutions and certain payment system operators, and details requirements for obtaining and renewing licenses, including background checks and financial disclosures. The bill also addresses acquisition of control of licensees, reporting obligations, record-keeping, and establishes prudential standards like minimum tangible net worth and security requirements (surety bonds or deposits). Enforcement provisions include the director's authority to suspend or revoke licenses, issue cease and desist orders, and assess civil fines, with penalties for violations including potential imprisonment and fines. The act also includes provisions for cooperation with other state and federal regulators and participation in nationwide licensing systems, with a delayed effective date of January 1, 2026, and a repeal of the old act on July 1, 2026.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-SB-0835