Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Committee approves modernization of state's money‑transmission law with technical amendments
Loading...
Summary
The committee reported HB1230 favorably with amendments to replace Louisiana's 1966 money‑transmission law with a modern licensing and supervision regime aligned with a multi‑state model; OFI officials said changes add net‑worth, bonding and auditing requirements and expand complaint authority.
Representative Desotel presented House Bill 12‑30 to replace the 1966 Sale of Checks and Money Transmission Act with a modern Louisiana Money Transmission Act that aligns state rules with a Conference of State Banking Supervisors model and multi‑state supervision.
Scott Jolley, Commissioner of Financial Institutions (OFI), said the bill standardizes licensing, increases tangible net worth and bond requirements, requires audited financial statements, and adopts a multi‑state supervisory platform. "This is about where the transaction fell apart ... If it's with the payment processor, I think we can look into that," Jolley said when members asked whether the law would make it easier for consumers to file complaints and seek remedies.
Michelle Johnson of OFI described specific changes: higher minimum surety bonds (raising the floor and creating a higher maximum), a tangible net‑worth standard, audited financial reports, and aligned timelines and application procedures. Jolley said the office currently regulates roughly 160 licensees and that 31 other states have adopted similar frameworks.
Members asked about consumer protection, federal overlap and enforcement resources. Jolley said OFI would enforce the state law and that a fiscal note had not identified a need for additional state staff; he also agreed to provide follow‑up, offline assistance to members who want to discuss specific complaint scenarios.
The committee adopted technical amendments clarifying timelines, exemptions and examination authorities, and reported HB12‑30 favorably with the amendments.
What happens next: HB12‑30 will be scheduled for floor consideration with the adopted technical amendments. OFI said it will provide additional information to members about complaint handling and fee structures.
