2024 House Bill 5798

AI Analysis – Experimental

This bill aims to modernize the regulation of money transmission businesses in Michigan. It proposes a comprehensive framework for licensing, supervision, and operational standards for individuals and entities involved in money transmission. Key aspects of the bill include:

Licensing Requirement: Mandates licensing for those engaged in money transmission, enhancing regulatory oversight and consumer protection. Regulatory Coordination: Seeks to improve coordination among state and local officials, and with federal and state regulatory agencies, to streamline regulatory processes and reduce burdens. Modernization of Safety Requirements: Updates safety and operational standards to protect customer funds, including requirements for maintaining a tangible net worth and security measures. Public and Confidential Information: Establishes guidelines on what information is confidential and what can be made publicly accessible, aiming to balance transparency with privacy and security concerns. Examinations and Investigations: Grants the director authority to conduct examinations and investigations, cooperate with other regulators, and participate in multistate supervisory processes. Reporting Requirements: Licensees must submit regular reports, including financial statements and transaction data, to ensure compliance and monitor business operations. Compliance with Federal Law: Clarifies that in case of inconsistencies between state and federal laws, the applicable federal law will govern, ensuring uniformity and compliance across jurisdictions.