Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Money Transmission Payroll Exemption topic
No spam. Unsubscribe anytime.
Committee hears AB430 to exempt payroll processors from money-transmission licensing
Summary
Sponsors said AB430 would remove payroll-processing services from Nevada's money-transmission law to reduce regulatory burdens on small payroll firms; payroll processors and CPA groups told the committee existing auditing and bank oversight reduce consumer risk.
CARSON CITY — The Commerce and Labor Committee heard Assembly Bill 430, which would exempt entities that provide payroll-processing services from the state's money-transmission provisions. Sponsor Assembly Member Tanya Flanagan said the change is intended to protect small Nevada payroll firms from regulatory costs tied to the 2023 money-transmission modernization act.
Michael Hillerby and representatives from payroll-industry groups described extensive compliance and oversight that already apply to payroll providers through banking relationships, NACHA audits and SOC reviews. On the record, an industry witness said: "A SOC audit for a company our size can go anywhere from 25 to $50,000 a year," and described quarterly KYC reporting, OFAC checks, annual credit reviews and other banking controls that the firms undergo.
Payroll-industry witnesses — including representatives from the Independent Payroll Providers Association and the payroll-practitioner community — said most payroll firms in Nevada are small businesses (many with fewer than 20 employees) and that inclusion under the money-transmitter definition would impose costs that could push clients to large national firms or reduce local service options.
Supporters testified that payroll processors perform advisory work on wage-and-hour laws, tax withholding, PPP and other employer-facing functions; the Nevada Society of CPAs and regional chambers submitted letters and offered support. Several witnesses urged the committee to adopt AB430 to align Nevada with other states that have since excluded payroll services from money-transmission requirements.
No vote was taken. Sponsor Flanagan and industry representatives said they will continue to coordinate with regulators and stakeholders on technical language and to confirm exemptions apply only to payroll processing operations (not to entities that offer stored-value or consumer-facing payment services).
Ending — The bill was left in committee for further work on language defining the scope of the exemption and ensuring consumer protections remain in place.
