Revision: March 28, 2024, 1:55 p.m.
Rep. Hunt, Ches. 14
March 20, 2024
2024-1245h
06/05
Amendment to HB 1241
Amend the title of the bill by replacing it with the following:
AN ACT relative to the regulation of money transmitters and relative to license applications and renewals for certain consumer credit entities.
Amend RSA 399-G:2, XVIII as inserted by section 1 of the bill by replacing it with the following:
XVIII. "Money transmission" means any of the following:
(a) Selling or issuing payment instruments to a person located in this state.
(b) Selling or issuing stored value to a person located in this state.
(c) Receiving money for transmission from a person located in this state.
Amend RSA 399-G:2, XXVIII as inserted by section 1 of the bill by replacing it with the following:
XXVIII. "Stored value" means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services. The term includes, but is not limited to, "prepaid access" as defined by 31 C.F.R. Section 1010.100, as amended or recodified from time to time. Notwithstanding the foregoing, the term "stored value" does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program. Pursuant to RSA 399-G:3, VII, nothing in this paragraph shall be construed so as to affect persons engaged in the business of selling or issuing payment instruments or stored value solely in the form of convertible virtual currency or who receive convertible virtual currency for transmission to another location.
Amend RSA 399-G:3 as inserted by section 1 of the bill by inserting the following after paragraph XVII:
XVIII. A person performing payroll processing services, solely to the extent of its operation as a payroll processor. Provided, however, that this exemption shall not apply to any person providing stored value cards, including digital stored value cards, directly to individual employees.
Amend section 1 of the bill by deleting RSA 399-G:26 and renumbering RSA 399-G:27-40 as RSA 399-G:26-39, respectively.
Amend RSA 399-G:26, IV as inserted by section 1 of the bill by replacing it with the following:
IV. For purposes of this section, a licensee that issues proprietary cryptocurrency, non-fungible tokens, or other digital assets shall not include the value of such assets when calculating tangible net worth. For purposes of calculating net worth under this section, cryptocurrency, non-fungible tokens, or other digital assets shall be considered “proprietary” when such assets are developed or created by the licensed entity. Nothing in this paragraph shall prevent a licensed entity from including the reasonable value of cryptocurrency, non-fungible tokens, or other digital assets developed or created by other entities and held as assets when calculating tangible net worth.
Amend RSA 399-G:39 as inserted by section 1 of the bill by replacing it with the following:
399-G:39 Transition Period.
I. A person licensed in this state to engage in the business of money transmission shall not be subject to the provisions of this chapter, to the extent that they conflict with current law or establish new requirements not imposed under current law, until January 1, 2026.
II. Notwithstanding paragraph I, a licensee shall only be required to amend its authorized delegate contracts for contracts entered into or amended after the effective date or the completion of any transition period contemplated under paragraph I. Nothing herein shall be construed as limiting an authorized delegate’s obligations to operate in full compliance with this chapter as required by RSA 399-G:21, III.
Amend the bill by replacing all after section 1 with the following:
2 New Subparagraph; Mortgage Loan Originators; License Renewal. Amend RSA 397-A:5, IV-d by inserting after subparagraph (c) the following new subparagraph:
(d) The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.
3 New Paragraph; Mortgage Bankers, Brokers, and Servicers; License Renewal. Amend RSA 397-A:8 by inserting after paragraph II the following new paragraph:
II-a. The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.
4 New Paragraph; Small Loan Lender; License Renewal. Amend RSA 399-A:5 by inserting after paragraph IV the following new paragraph:
V. The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.
5 New Paragraph; Debt Adjustment Services; License Renewal. Amend RSA 399-D:5 by inserting after paragraph VIII the following new paragraph:
VIII-a. The initial license term shall begin on the day the application is approved. The license shall expire on December 31 of the year in which the license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.
6 Effective Date. This act shall take effect 60 days after its passage.
2024-1245h
AMENDED ANALYSIS
This bill adopts the model money transmission modernization act. This bill also adjusts renewal procedures for certain consumer credit entities to align with those in the model money transmission.