Senate committee advances House Bill 12‑01 to modernize money‑transmitter rules; payroll exemption splits witnesses

Senator Liston, the bill sponsor, asked the Senate Finance Committee to advance House Bill 12‑01, the Model Money Transmission Modernization Act, to the committee of the whole with a favorable recommendation after a hearing that included testimony from the State Bank Commissioner and industry witnesses.

The bill would replace Colorado's existing money‑transmission framework with standards substantially aligned to a model act developed by the Conference of State Bank Supervisors (CSBS). "Adopting this model act would provide numerous benefits to money transmitters while maintaining the same level of consumer protection that Coloradoans enjoy today," Senator Liston said. Ken Bolt, Colorado State Bank Commissioner, told the committee the state first regulated money transmission under the Colorado Money Order Act in 1959 and that the bill "provides consistent safety and soundness standards including net worth bonding and permissible investments that protect Colorado consumers."

Why it matters: sponsors and several witnesses said the bill reduces…