Financial institutions: money transmitters; money transmission modernization act; create. Creates new act & repeals 2006 PA 250 (MCL 487.1001 - 487.1047).

This bill, known as the Money Transmission Modernization Act, updates Michigan's laws governing money transmitters by replacing the 2006 Money Transmission Services Act. It establishes a new regulatory framework that requires businesses sending money or payment instruments on behalf of others to obtain state licenses, while defining specific exemptions for certain activities. The legislation creates clearer standards for what constitutes money transmission, including payroll processing, and sets requirements for customer fund protection, financial reporting, and regulatory coordination with other states. By modernizing these rules, the bill aims to reduce unnecessary regulatory burdens on businesses while maintaining safeguards against financial crime and ensuring consumer funds remain secure.