Bill > HB1230

This bill updates Louisiana's laws governing money transmission, which involves businesses that send or receive money on behalf of others, by enacting a new "Louisiana Money Transmission Act." The new act aims to modernize regulations, improve coordination among states, protect the public from financial crime, and standardize licensing requirements while supporting innovation. It introduces updated definitions for terms like "money transmission," "authorized agent," and "control," and clarifies exemptions for certain financial institutions and activities. The bill also establishes new procedures for licensing, including requirements for applicants to demonstrate financial responsibility, character, and business experience, and mandates the use of the Nationwide Multistate Licensing System and Registry (NMLS) for applications, renewals, and reporting. Furthermore, it outlines requirements for maintaining net worth, obtaining surety bonds, and holding permissible investments to safeguard customer funds, and details grounds for suspending or revoking licenses, imposing penalties for violations, and requires timely transmission of funds and provision of receipts to consumers. The updated law will take effect on July 1, 2026, with provisions for existing licensees to transition to the new requirements.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=26rs&b=HB1230&sbi=y