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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Hill
SENATE BILL NO. 2828
(As Passed the Senate)
AN ACT TO REQUIRE LICENSEES UNDER THE MONEY TRANSMISSION 1
MODERNIZATION ACT TO COLLECT A FEE OF $7.50 FOR EACH TRANSACTION 2
NOT IN EXCESS OF $500.00 AND 1.5% OF ANY AMOUNT IN EXCESS OF 3
$500.00; TO REQUIRE THE FEE TO BE REMITTED QUARTERLY TO THE 4
DEPARTMENT OF REVENUE; TO REQUIRE THE DEPARTMENT OF REVENUE TO 5
REMIT HALF OF SUCH FEES TO THE LAW ENFORCEMENT 287(G) PROGRAM FUND 6
AND THE OTHER HALF TO THE STATE GENERAL FUND; TO REQUIRE LICENSEES 7
TO POST NOTICE THAT FEES PAID MAY BE REIMBURSED THROUGH AN INCOME 8
TAX CREDIT; TO PROVIDE FOR LICENSE SUSPENSION AND CLAIMS ON A 9
LICENSEE'S SURETY BOND; TO PROVIDE THAT THIS ACT SHALL NOT APPLY 10
TO TRANSACTIONS IN WHICH THE FUNDS BEING TRANSFERRED ARE WITHDRAWN 11
FROM AN ACCOUNT HELD IN OR BY A FEDERALLY INSURED FINANCIAL 12
INSTITUTION, OR FUNDED WITH A DEBIT CARD OR A CREDIT CARD ISSUED 13
IN THE UNITED STATES; TO PROVIDE FOR THE REPEAL OF THE ABOVE 14
PROVISIONS ON JULY 1, 2029; TO CREATE THE LAW ENFORCEMENT 287(G) 15
PROGRAM FUND TO ASSIST THE ENFORCEMENT EFFORTS OF STATE AND LOCAL 16
LAW ENFORCEMENT OFFICERS PARTNERING WITH U.S. IMMIGRATION AND 17
CUSTOMS ENFORCEMENT (ICE) THROUGH THE 287(G) PROGRAM UNDER THE 18
IMMIGRATION AND NATIONALITY ACT; TO CREATE AN INCOME TAX CREDIT 19
FOR FEES PAID UNDER THIS ACT DURING CALENDAR YEAR 2026 OR ANY 20
CALENDAR YEAR THEREAFTER; TO AMEND SECTION 75-16-5, MISSISSIPPI 21
CODE OF 1972, TO DEFINE "COMMISSIONER" AS THE COMMISSIONER OF 22
BANKING AND CONSUMER FINANCE, AND "DEPARTMENT" AS THE DEPARTMENT 23
OF BANKING AND CONSUMER FINANCE, FOR PURPOSES OF THE MONEY 24
TRANSMISSION MODERNIZATION ACT; AND FOR RELATED PURPOSES. 25
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 26
SECTION 1. (1) Any licensee under this chapter shall 27
collect a fee of Seven Dollars and Fifty Cents ($7.50) for each 28
transaction not in excess of Five Hundred Dollars ($500.00) and, 29
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in addition, an amount equal to one and one-half percent (1.5%) of 30
any amount in excess of Five Hundred Dollars ($500.00). 31
(2) The fee prescribed by subsection (1) of this section 32
shall be remitted quarterly to the Department of Revenue on forms 33
prescribed by the department. All required forms and remittances 34
shall be filed with the Department of Revenue not later than the 35
fifteenth day of the month following the close of each calendar 36
quarter. 37
(3) The Department of Revenue shall remit half of the 38
revenues derived from the fee to the Law Enforcement 287(g) 39
Program Fund created in Section 2 of this act, and the other half 40
of the revenues derived from the fee to the State General Fund. 41
(4) Every licensee shall post a notice, on a form prescribed 42
by the Department of Revenue, informing customers that, upon 43
filing an individual income tax return with either a valid social 44
security number or a valid taxpayer identification number, the 45
customer shall be entitled to an income tax credit equal to the 46
amount of the fee paid by the customer for the transaction, as 47
provided in Section 3 of this act. 48
(5) If a licensee fails to file the forms or remit the fees 49
as required by subsection (2) of this section, the commissioner 50
shall have the authority to suspend the license of the licensee. 51
The licensee may not reapply for a license until all required 52
forms have been filed and all required fee amounts have been 53
remitted. 54
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(6) Upon request from the Department of Revenue, the 55
commissioner or the Attorney General may make a claim against the 56
surety bond of the licensee on behalf of the State of Mississippi. 57
(7) This section shall not apply to any transaction for 58
which the funds being transferred are: 59
(a) Withdrawn from an account held in or by a federally 60
insured financial institution; or 61
(b) Funded with a debit card or a credit card issued in 62
the United States. 63
(8) This section shall stand repealed on July 1, 2029. 64
SECTION 2. (1) A special fund, to be designated as the "Law 65
Enforcement 287(g) Program Fund," is created within the State 66
Treasury. The fund shall be maintained by the State Treasurer as 67
a separate and special fund, separate and apart from the General 68
Fund of the state. Unexpended amounts remaining in the fund at 69
the end of a fiscal year shall not lapse into the State General 70
Fund, and any interest earned or investment earnings on amounts in 71
the fund shall be deposited into such fund. 72
(2) Monies deposited into the fund shall be disbursed, in 73
the discretion of the Department of Public Safety, to assist the 74
enforcement efforts of state and local law enforcement officers 75
partnering with U.S. Immigration and Customs Enforcement (ICE) 76
through the 287(g) Program under the Immigration and Nationality 77
Act. 78
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SECTION 3. There shall be allowed as a credit against the 79
tax imposed by this chapter the amount of any fee paid under 80
Section 1 of this act during calendar year 2026 or any calendar 81
year thereafter. The credit may be claimed for the taxable year 82
in which the fee was paid. Any credit claimed under this section 83
but not used in any taxable year may be carried forward for the 84
three (3) succeeding tax years. 85
SECTION 4. Section 75-16-5, Mississippi Code of 1972, is 86
amended as follows: 87
75-16-5. Definitions. For purposes of this chapter, the 88
following definitions shall apply: 89
(a) "Acting in concert" means persons knowingly acting 90
together with a common goal of jointly acquiring control of a 91
licensee whether or not pursuant to an express agreement. 92
(b) "Authorized delegate" means a person a licensee 93
designates to engage in money transmission on behalf of the 94
licensee. 95
(c) "Average daily money transmission liability" means 96
the amount of the licensee's outstanding money transmission 97
obligations in this state at the end of each day in a given period 98
of time, added together and divided by the total number of days in 99
the given period of time. For purposes of calculating average 100
daily money transmission liability under this chapter for any 101
licensee required to do so, the given period of time shall be the 102
quarters ending March 31, June 30, September 30 and December 31. 103
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(d) "Bank Secrecy Act" means the Bank Secrecy Act, 31 104
USC Section 5311 et seq. and its implementing regulations, as 105
amended and recodified from time to time. 106
(e) "Closed loop stored value" means stored value that 107
is redeemable by the issuer only for goods or services provided by 108
the issuer or its affiliate or franchisees of the issuer or its 109
affiliate, except to the extent required by applicable law to be 110
redeemable in cash for its cash value. 111
(f) "Commissioner" means the Commissioner of Banking 112
and Consumer Finance of the State of Mississippi. 113
( * * *g) "Control" means: 114
(i) 1. The power to vote, directly or indirectly, 115
at least twenty-five percent (25%) of the outstanding voting 116
shares or voting interests of a licensee or person in control of a 117
licensee; 118
2. The power to elect or appoint a majority 119
of key individuals or executive officers, managers, directors, 120
trustees or other persons exercising managerial authority of a 121
person in control of a licensee; or 122
3. The power to exercise, directly or 123
indirectly, a controlling influence over the management or 124
policies of a licensee or person in control of a licensee; 125
(ii) Rebuttable Presumption of Control; 126
1. A person is presumed to exercise a 127
controlling influence when the person holds the power to vote, 128
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directly or indirectly, at least ten percent (10%) of the 129
outstanding voting shares or voting interests of a licensee or 130
person in control of a licensee; 131
2. A person presumed to exercise a 132
controlling influence as defined by this paragraph (f) can rebut 133
the presumption of control if the person is a passive investor; 134
(iii) For purposes of determining the percentage 135
of a person controlled by any other person, the person's interest 136
shall be aggregated with the interest of any other immediate 137
family member, including the person's spouse, parents, children, 138
siblings, mothers- and fathers-in-law, sons- and daughters-in-law, 139
brothers- and sisters-in-law, and any other person who shares such 140
person's home. 141
(h) "Department" means the Mississippi Department of 142
Banking and Consumer Finance. 143
( * * *i) "Eligible rating" means a credit rating of 144
any of the three (3) highest rating categories provided by an 145
eligible rating service, whereby each category may include rating 146
category modifiers such as "plus" or "minus" for S&P, or the 147
equivalent for any other eligible rating service. Long-term 148
credit ratings are deemed eligible if the rating is equal to A- or 149
higher by S&P, or the equivalent from any other eligible rating 150
service. Short-term credit ratings are deemed eligible if the 151
rating is equal to or higher than A-2 or SP-2 by S&P, or the 152
equivalent from any other eligible rating service. In the event 153
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that ratings differ among eligible rating services, the highest 154
rating shall apply when determining whether a security bears an 155
eligible rating. 156
( * * *j) "Eligible rating service" means any 157
Nationally Recognized Statistical Rating Organization (NRSRO) as 158
defined by the U.S. Securities and Exchange Commission, and any 159
other organization designated by the commissioner by rule, 160
regulation or order. 161
( * * *k) "Federally insured depository financial 162
institution" means a bank, credit union, savings and loan 163
association, trust company, savings association, savings bank, 164
industrial bank or industrial loan company organized under the 165
laws of the United States or any state of the United States, when 166
such bank, credit union, savings and loan association, trust 167
company, savings association, savings bank, industrial bank or 168
industrial loan company has federally insured deposits. 169
( * * *l) "In this state" means at a physical location 170
within this state for a transaction requested in person. For a 171
transaction requested electronically or by phone, the provider of 172
money transmission may determine if the person requesting the 173
transaction is "in this state" by relying on other information 174
provided by the person regarding the location of the individual's 175
residential address or a business entity's principal place of 176
business or other physical address location, and any records 177
associated with the person that the provider of money transmission 178
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may have that indicate such location, including, but not limited 179
to, an address associated with an account. 180
( * * *m) "Individual" means a natural person. 181
( * * *n) "Key individual" means any individual 182
ultimately responsible for establishing or directing policies and 183
procedures of the licensee, such as an executive officer, manager, 184
director or trustee. 185
( * * *o) "Licensee" means a person licensed under this 186
chapter. 187
( * * *p) "Material litigation" means litigation, that 188
according to United States generally accepted accounting 189
principles, is significant to a person's financial health and 190
would be required to be disclosed in the person's annual audited 191
financial statements, report to shareholders, or similar records. 192
( * * *q) "Money" means a medium of exchange that is 193
authorized or adopted by the United States or a foreign 194
government. The term includes a monetary unit of account 195
established by an intergovernmental organization or by agreement 196
between two (2) or more governments. 197
( * * *r) "Monetary value" means a medium of exchange, 198
whether or not redeemable in money. 199
( * * *s) "Money transmission" means any of the 200
following: 201
(i) Selling or issuing payment instruments to a 202
person located in this state; 203
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(ii) Selling or issuing stored value to a person 204
located in this state; and 205
(iii) Receiving money or monetary value for 206
transmission from a person located in this state. 207
( * * *t) "MSB accredited state" means a state agency 208
that is accredited by the Conference of State Bank Supervisors and 209
Money Transmitter Regulators Association for money transmission 210
licensing and supervision. 211
( * * *u) "Multistate licensing process" means any 212
agreement entered into by and among state regulators relating to 213
coordinated processing of applications for money transmission 214
licenses, applications for the acquisition of control of a 215
licensee, control determinations, or notice and information 216
requirements for a change of key individuals. 217
( * * *v) "NMLS" means the Nationwide Multistate 218
Licensing System and Registry developed by the Conference of State 219
Bank Supervisors and the American Association of Residential 220
Mortgage Regulators and owned and operated by the State Regulatory 221
Registry, LLC, or any successor or affiliated entity, for the 222
licensing and registration of persons in financial services 223
industries. 224
( * * *w) "Outstanding money transmission obligations" 225
shall be established and extinguished in accordance with 226
applicable state law and shall mean: 227
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(i) Any payment instrument or stored value issued 228
or sold by the licensee to a person located in the United States 229
or reported as sold by an authorized delegate of the licensee to a 230
person who is located in the United States that has not yet been 231
paid or refunded by or for the licensee, or escheated in 232
accordance with applicable abandoned property laws; 233
(ii) Any money received for transmission by the 234
licensee or an authorized delegate in the United States from a 235
person located in the United States that has not been received by 236
the payee or refunded to the sender, or escheated in accordance 237
with applicable abandoned property laws; or 238
(iii) For purposes of this paragraph (u), "in the 239
United States" shall include, to the extent applicable, a person 240
in any state, territory, or possession of the United States; the 241
District of Columbia; the Commonwealth of Puerto Rico; or a U.S. 242
military installation that is located in a foreign country. 243
( * * *x) "Passive investor" means a person that: 244
(i) Does not have the power to elect a majority of 245
key individuals or executive officers, managers, directors, 246
trustees or other persons exercising managerial authority of a 247
person in control of a licensee; 248
(ii) Is not employed by and does not have any 249
managerial duties of the licensee or person in control of a 250
licensee; 251
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(iii) Does not have the power to exercise, 252
directly or indirectly, a controlling influence over the 253
management or policies of a licensee or person in control of a 254
licensee; and 255
(iv) Either: 256
1. Attests to subparagraphs (i), (ii) and 257
(iii) in this paragraph, in a form and in a medium prescribed by 258
the commissioner; or 259
2. Commits to the passivity characteristics 260
of subparagraphs (i), (ii) and (iii) of this paragraph, in a 261
written document. 262
( * * *y) "Payment instrument" means a written or 263
electronic check, draft, money order, traveler's check or other 264
written or electronic instrument for the transmission or payment 265
of money or monetary value, whether or not negotiable. The term 266
does not include stored value or any instrument that (i) is 267
redeemable by the issuer only for goods or services provided by 268
the issuer or its affiliate or franchisees of the issuer or its 269
affiliate, except to the extent required by applicable law to be 270
redeemable in cash for its cash value; or (ii) is not sold to the 271
public but issued and distributed as part of a loyalty, rewards, 272
or promotional program. 273
( * * *z) "Person" means any individual, general 274
partnership, limited partnership, limited liability company, 275
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corporation, trust, association, joint-stock corporation or other 276
corporate entity identified by the commissioner. 277
( * * *aa) "Receiving money for transmission" or "money 278
received for transmission" means receiving money or monetary value 279
in the United States for transmission within or outside the United 280
States by electronic or other means. 281
( * * *ab) "Stored value" means monetary value 282
representing a claim against the issuer evidenced by an electronic 283
or digital record, and that is intended and accepted for use as a 284
means of redemption for money or monetary value, or payment for 285
goods or services. The term includes, but is not limited to, 286
"prepaid access" as defined by 31 CFR Section 1010.100, as amended 287
or recodified from time to time. Notwithstanding the foregoing, 288
the term "stored value" does not include a payment instrument or 289
closed loop stored value, or stored value not sold to the public 290
but issued and distributed as part of a loyalty, rewards or 291
promotional program. 292
( * * *ac) "Tangible net worth" means the aggregate 293
assets of a licensee excluding all intangible assets, less 294
liabilities, as determined in accordance with United States 295
generally accepted accounting principles. 296
SECTION 5. Section 1 of this act shall be codified in 297
Chapter 16, Title 75, Mississippi Code of 1972. Section 3 of this 298
act shall be codified in Chapter 7, Title 27, Mississippi Code of 299
1972. 300
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ST: Money Transmission Modernization Act;
require licensee to charge fee for 287(g) and
General Fund, refundable via income tax credit.
SECTION 6. This act shall take effect and be in force from 301
and after July 1, 2026, and shall stand repealed on June 30, 2026. 302