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Subcommittee favors bill exempting payroll-only processors from money‑transmitter licensing
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Summary
The subcommittee voted to move HB 118 favorably after Office of Financial Regulation staff said the bill would remove payroll processors that only process payroll from the Maryland Money Transmission Act's definition of "money transmitters," relieving small payroll firms of a licensing requirement if they do not engage in other money‑transmission activities.
The subcommittee considered HB 118, which would exclude companies that only perform payroll processing from the statutory definition of "money transmitters" under the Maryland Money Transmission Act.
An OFR representative explained that "if a company engages in payroll and nothing else, they need a money transmitter's license" under current law; HB 118 would remove payroll‑only processors from that requirement and thus benefit small Maryland payroll firms that do not conduct other money‑transmission activities. The representative added that if a payroll provider also engages in other business that constitutes money transmission, that activity would still trigger licensing requirements.
Committee members agreed there were no amendments and moved the bill favorably by voice vote; the transcript shows the motion was seconded and the chair recorded the ayes with no recorded opposition in the meeting excerpt. The bill will proceed out of subcommittee for further consideration in the legislative process.
