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Panel OKs bill easing surety and net-worth requirements for small money-service and fintech startups
Summary
The committee advanced SB187, which scales surety bond and net-worth requirements and updates filing rules to allow smaller money-service and fintech startup businesses to operate in Arkansas; sponsors said changes mirror approaches used by other states and are intended to support incubators and small firms while preserving consumer protections.
The Senate Insurance & Commerce Committee passed SB187, a bill amending the Money Services Act to add international financial reporting standards, scale surety-bond and net-worth requirements by business size, and modernize licensing and electronic-filing rules.
Sponsor testimony said the department was approached by a local fintech incubator that found current surety and net-worth thresholds ($50,000 bond, $250,000 net worth) were a barrier for startups. David Smith explained the bill would allow smaller businesses to meet graduated requirements tied to volume of business rather than maintain a one-size-fits-all standard.
Members asked whether the bill would expand check-cashing or payday-lending activity; staff said the amendments are intended to increase access for small, legitimate fintech companies and apply equally to in-state and out-of-state applicants licensed under comparable regimes. The committee approved the bill by voice vote.
Ending: SB187 passed committee and will proceed for further legislative consideration.
