HB 24-1328

HB 24-1328, a Colorado bill that has been approved and will take effect on August 7, 2024, extends the regulation of money transmitters until 2030. It also increases penalties for non-compliance, allows the banking board to suspend licenses, and updates reporting requirements. This affects companies involved in transferring money within Colorado, making it harder for them to operate without proper licensing or compliance with new regulations. The bill's signed status means that it has been officially approved by the governor and will become law as scheduled.

Official Summary

The act implements recommendations of the department of regulatory agencies, as specified in the department's sunset review of the regulation of money transmitters, as follows: Sections 1 and 2 of the act continue the regulation of money transmitters until 2030; Section 3 authorizes the banking board to suspend a money transmitter's license; Section 4 expands the requirement to furnish surety bond coverage to include all money transmission, rather than merely exchange; Section 5 increases the maximum penalty for failure to report from $250 to $750 per day and for failure to allow the state bank commissioner to make an examination from $100 to $1,000 per day; Section 6 authorizes the state bank commissioner to submit fingerprints directly to the federal bureau of investigation for a criminal history record check; Section 7 repeals the requirement that license holders annually report the name, address, and telephone number of each owner of at least 10% of the agent of the money transmitter; Section 8 authorizes the state bank commissioner to issue cease-and-desist orders and sets procedural requirements; Section 9 expands the licensing exemption for in-state banks to also cover out-of-state banks and repeals the licensing exemption for telegraph or cable companies; and Sections 10 through 12 replace gendered pronouns with gender-neutral terms. APPROVED by Governor June 3, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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