June 23, 2019

SB 13-171: Sunset Review of Licensing of Money Transmitters

On Friday, February 8, 2013, Sen. Andy Kerr introduced SB 13-171 – Concerning the Continuation of the Licensing of Money Transmitters, and, in Connection Therewith, Continuing the Authority of the Banking Board and the State Bank Commissioner over Money Transmitters. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill implements the recommendations of the sunset review and report on the licensing of money transmitters by the banking board and the state bank commissioner by:

  • Extending the repeal date of the licensing of money transmitters until Sept. 1, 2024;
  • Specifying that the board may investigate any person believed to be engaging in money transmission without a license;
  • Extending the amount of time money transmitters have to notify the board of any increase in the number of locations at which they conduct business from 10 days to the next regularly scheduled periodic report;
  • Adopting some language from the “Uniform Money Services Act;”
  • Requiring securities that are used in lieu of a surety bond to be rated in one of the highest grades as defined by a nationally recognized organization that rates securities;
  • Requiring money transmitters to notify, and obtain written approval from, the commissioner to exchange securities used in lieu of a surety bond;
  • Requiring applicants to pay for prelicense on-site investigations;
  • Expanding the deadline to post a surety bond and pay the licensing fee from 90 days after approval of the application to 6 months after approval; and
  • Directing the board to hold a hearing after denial of a license application only if the applicant requests it.
  • On March 6, the Business, Labor, & Technology Committee approved the bill and sent if to the full Senate for consideration on 2nd Reading.

    Since this summary, the bill passed the Senate on Second and Third Readings.