HB 25-1201: Model Money Transmission Modernization Act - Colorado

Rerevised (03/24/2025) → Revised (03/21/2025) · 3 edits

MINOR

The bill was revised to update its reading status from 'Rerevised' to 'Revised' and changed the reading date from March 24, 2025 to March 21, 2025. Substantively, new language was added to define who is considered to exercise controlling influence over a licensee, expanding the criteria to include indirect control over management or policies. A rebuttable presumption of control was also introduced, establishing that holding the power to vote at least ten percent is presumed to constitute controlling influence.

Scope change

The bill's applicability was expanded to include individuals who indirectly exercise controlling influence over a licensee's management or policies, not just those with direct authority.

DEFINITION

Added new subsection defining individuals who exercise controlling influence over a licensee, including those with indirect control over management or policies.

REQUIREMENT

Introduced a rebuttable presumption that a person exercising controlling influence is presumed to hold the power to vote at least ten percent directly or indirectly.

TECHNICAL

Updated the bill's revision status and reading date from March 24, 2025 to March 21, 2025.

PA1 (03/04/2025) → Rerevised (03/24/2025) · 4 edits

MODERATE

The bill was re-revised to include all amendments adopted in the Second House, updating the legislative status from 'Preamended' to 'Rerevised' and adding Senate sponsorship. The document also shows formatting updates and a removal of certain control presumption provisions related to family members and voting interests.

Scope change

The bill's scope remains focused on modernizing money transmission laws, but the text shows removal of specific provisions regarding rebuttable presumptions of controlling influence based on family relationships and voting share percentages.

TECHNICAL

Updated legislative status from 'Preamended' to 'Rerevised' and added 'This Version Includes All Amendments Adopted in the Second House' to reflect the bill's current stage in the legislative process.

Added reading status markers indicating the bill passed 3rd Reading Unamended in the Senate on March 24, 2025, and 2nd Reading Unamended in the House on March 21, 2025.

Added co-sponsor 'Liston' to Senate sponsorship and updated House sponsorship to include 'Jackson' alongside Marshall.

ELIGIBILITY

Removed provisions establishing a rebuttable presumption that a person exercises controlling influence if they hold 10% or more of voting shares, and deleted related family aggregation rules for determining controlled interests.

Final Act (04/08/2025) → PA1 (03/04/2025) · 4 edits

MODERATE

This bill modernizes Colorado's money transmission laws by updating definitions and regulatory requirements to reduce burdens on businesses while maintaining consumer protections. The changes include clarifying control definitions, enabling participation in multistate licensing programs, and updating financial standards for licensees.

Scope change

The bill expands eligibility for multistate licensing initiatives and modifies control thresholds for determining ownership influence over money transmission businesses.

DEFINITION

Changed the control threshold from 25% to 10% voting shares to trigger a rebuttable presumption of control, making it easier to identify when someone effectively controls a money transmission business.

Clarified the definition of 'control' and added a rebuttable presumption for passive investors to better identify actual business control.

ELIGIBILITY

Added provisions enabling Colorado's participation in multistate licensing initiatives to reduce redundant licensing requirements for businesses operating across state lines.

REQUIREMENT

Updated financial requirements including tangible net worth and permissible investment calculations, and established irrevocable standby letters of credit as a permissible investment option.

Signed Act (04/18/2025) → Final Act (04/08/2025) · 4 edits

MODERATE

The bill underwent formatting and structural reorganization during its final passage, with several definitions removed and minor spacing adjustments made throughout the text. These changes appear to be technical and formatting-related rather than substantive policy modifications, as the core legislative intent and regulatory framework remain intact.

DEFINITION

Removed definitions for 'MATERIAL LITIGATION', 'MONETARY VALUE', and 'MONEY' from the statutory definitions section

TECHNICAL

Added note about bill signature status and reorganized bill header structure

Adjusted spacing and indentation in various sections of the bill text

Changed capitalization of certain terms from all caps to mixed case in some instances

Reengrossed (03/07/2025) → Signed Act (04/18/2025) · 5 edits · Apr 18, 2025

MODERATE

The bill modernizes Colorado's money transmission laws by updating definitions, clarifying control standards, and adjusting regulatory requirements. Key changes include lowering the threshold for presumed control from 25% to 10% voting power, adding a rebuttable presumption for passive investors, and expanding the calculation period for average daily money transmission liability to include quarterly periods. The bill also adds new definitions for stored value, banking board, and credit ratings, and clarifies how to determine if a transaction occurs within the state.

Scope change

The bill's scope remains focused on money transmission regulation but expands applicability through updated definitions and clarified jurisdictional rules for electronic and phone transactions.

DEFINITION

Added new definitions for 'closed loop stored value', 'banking board', 'commissioner', 'division', 'eligible rating', 'eligible rating service', 'federally insured depository financial institution', 'individual', 'in this state', 'key individual', 'licensee', 'material litigation', 'monetary value', and 'money'.

Added definitions for family members and shared home situations when determining control percentages.

ELIGIBILITY

Lowered the threshold for presumed control from 25% to 10% voting power and added a rebuttable presumption for passive investors.

REQUIREMENT

Updated the calculation period for average daily money transmission liability to include quarterly periods ending March 31, June 30, September 30, and December 31.

Added specific rules for determining if a transaction occurs 'in this state' for electronic and phone transactions.

Engrossed (03/05/2025) → Reengrossed (03/07/2025) · 3 edits · Mar 24, 2025

MINOR

This bill was reengrossed to include amendments adopted during the House of Introduction's third reading. The changes include minor formatting updates to the bill title and sponsor lists, plus a note indicating that a new bill summary will be available for the reengrossed version. The substantive policy content regarding money transmission laws remains unchanged in this diff.

TECHNICAL

Updated bill status from 'Engrossed' to 'Reengrossed' to reflect that amendments have been adopted during the House of Introduction's third reading.

Added a notice stating that a new bill summary will be available for the reengrossed version dated March 7, 2025.

Updated Senate sponsorship to include an additional sponsor (Liston) alongside Hinrichsen.

Introduced (02/10/2025) → Engrossed (03/05/2025) · 3 edits · Mar 24, 2025

MINOR

The bill was amended during second reading in the House to update formatting and remove several outdated definitions related to family control and banking division references. These changes streamline the bill's text without altering its core regulatory framework for money transmitters.

DEFINITION

Deleted the definition of 'immediate family' which previously included siblings, in-laws, and others sharing a home, likely to clarify or simplify control aggregation rules.

Removed definitions for 'Division' (Division of Banking), 'Eligible Rating', and related credit rating categories, suggesting these terms are either no longer needed or will be defined elsewhere.

TECHNICAL

Updated page headers from 'HB25-1201' to '1201' and changed the document status from 'Introduced' to 'Engrossed' to reflect legislative progress.

Model Money Transmission Modernization Act

What changed between versions

How they voted

Actions timeline

Sponsors