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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0261*
SENATE BILL 261
I1 6lr2096
By: Senator Beidle
Introduced and read first time: January 19, 2026
Assigned to: Finance
Committee Report: Favorable
Senate action: Adopted
Read second time: February 12, 2026
CHAPTER ______
AN ACT concerning 1
Maryland Money Transmission Act – Definition of Money Transmitter – 2
Alteration 3
FOR the purpose of altering, for a certain licensing requirement, the definition of “money 4
transmitter” under the Maryland Money Transmission Act to exclude a certain 5
person designated as an agent of a payor for the purpose of the agent’s provision of 6
payroll processing services under certain circumstances; and generally rel ating to 7
the Maryland Money Transmission Act. 8
BY repealing and reenacting, without amendments, 9
Article – Financial Institutions 10
Section 12–401(a) 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Financial Institutions 15
Section 12–401(q) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2025 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Financial Institutions 21
2 SENATE BILL 261
12–401. 1
(a) In this subtitle the following words have the meanings indicated. 2
(q) (1) “Money transmitter” means a person that engages in money 3
transmission that is required to be licensed under this subtitle, whether o r not the person 4
maintains a license. 5
(2) “Money transmitter” includes: 6
(i) A bill payer service; and 7
(ii) An accelerated mortgage payment service. 8
(3) “MONEY TRANSMITTER ” DOES NOT INCLUDE A P ERSON 9
DESIGNATED AS AN AGENT OF A PAYOR FOR THE PURPOSE OF PROVIDING PAYROLL 10
PROCESSING SERVICES FOR WHICH THE AGENT WOULD OTHERWISE NEED TO BE 11
LICENSED UNDER THIS SUBTITLE, IF: 12
(I) THERE IS WRITTEN AGREEMENT BETWEEN THE PAYOR AND 13
THE AGENT THAT DIREC TS THE AGENT TO PROV IDE PAYROLL PROCESSI NG 14
SERVICES ON THE PAYOR’S BEHALF; 15
(II) THE PAYOR HOLDS THE A GENT OUT TO EMPLOYEE S AND 16
OTHER PAYEES AS PROV IDING PAYROLL PROCES SING SERVICES ON THE PAYOR’S 17
BEHALF; AND 18
(III) THE PAYOR ’S OBLIGATION TO A PA YEE, INCLUDING AN 19
EMPLOYEE OR ANOTHER PARTY ENTITLED TO RECEIVE FUNDS VIA THE PAYROLL 20
PROCESSING SERVICES PROVIDED BY THE AGEN T, IS NOT EXTINGUISHED IF THE 21
AGENT FAILS TO REMIT THE FUNDS TO THE PAYEE. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
October 1, 2026. 24