Money‑transmission modernization bill gets industry backing; ADP urges oversight to prevent payroll fraud

Representative Lightner introduced HB 55‑44 as a modernization of Michigan's money‑transmission framework intended to align state law with the nationwide Money Transmission Modernization Act and to create uniform licensing and oversight across states. "This is the money transmitter or money transmission modernization act bill," the sponsor told the committee, saying it standardizes definitions and licensing requirements.

Amy Miller, senior director of government relations for ADP, testified in strong support of the substituted bill. She said payroll providers routinely receive, hold and transmit funds on behalf of employers and that appropriate state regulation prevents misconduct that can leave businesses and employees at financial risk. "Fraud or misconduct by any provider undermines the trust placed upon all payroll providers," Miller said, pointing to past cases of payroll fraud and a 2023 prosecution described in her testimony.

Miller said the substitute mirrors much of Michigan's existing statute and would mainly add background and credit checks for entities that hold and remit business funds; it would not create a wholly new licensing scheme and would rely on the Michigan Department of Insurance and Financial Services (DIFS) for administration. DIFS representatives were present to answer technical questions about rulemaking and implementation.

Committee members asked how rulemaking would be handled; witnesses said much of the drafting and forms are based on the national registry and multistate templates and that DIFS has the institutional knowledge to implement the framework without large resource additions.

No committee vote on final passage was recorded in this hearing.