Bill No.:                     HB0060                                 Drafter:  MDO

LSO No.:                   13LSO-0084                         Effective Date:  7/1/2013

Enrolled Act No.:    HEA0008

Chapter No.:            CH0026

Prime Sponsor:       Joint Minerals, Business and Economic Development Interim Committee

Catch Title:              Money Transmitters Act amendments.

Summary/Major Elements:

· “Money transmission” means to engage in business to sell or issue payment instruments, stored value or receive money or monetary value for transmission to a location within or outside the United States by any and all means, including but not limited to wire, facsimile or electronic transfer.

· Under current law, licensed money transmitters are allowed to enter into written agreements with other parties, defined as “authorized delegates,” who can then offer the products or services of the licensee to consumers on the licensee’s behalf. Authorized delegates are generally retail outlets who administer the money transmitter business on behalf of the licensee.  These businesses then either directly offer the products or services of the licensed money transmitter, or they may also contract with other entities, defined as “subdelegates,” who then offer the products or services on behalf of the licensed money transmitter.

· This act clarifies that money transmitter “subdelegates” are regulated by the banking division.

· Adds language to clarify that the Money Transmitter Act applies only to “personal, family or household use,” and does not regulate money transmitting activities to a business.

· Clarifies that “payment instruments” includes “stored value products.”