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- 83rd Session (2025)
Assembly Bill No. 430–Assemblymembers Flanagan; Brown-May,
D’Silva and Nguyen
CHAPTER..........
AN ACT relating to money transmission; exempting a person
engaged solely in the provision of payroll processing services
from provisions governing the licensure and regulation of
persons engaged in money transmission; repealing provisions
imposing certain duties on persons engaged in the provision
of payroll processing services; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law provides for the licensure and reg ulation by the Commissioner of
Financial Institutions of persons engaged in money transmission. (Chapter 671 of
NRS) Existing law defines “money transmission” to include payroll processing
services, thereby requiring a person engaged solely in the provisio n of payroll
processing services to be licensed by the Commissioner. (NRS 671.013) Section 1
of this bill removes provisions which include the provision of payroll processing
services within the definition of money transmission. Section 2 of this bill exempts
a person engaged solely in the provision of payroll processing services from the
provisions governing money transmission. As such, under sections 1 and 2, a
person engaged solely in the provision of payroll processing services is not required
to obtain a license from the Commissioner, under the provisions of existing law
governing money transmission, to engage in the provision of payroll processing
services.
Section 3 of this bill repeals prov isions setting forth certain duties of persons
engaged in the provision of payroll processing services.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 671.013 is hereby amended to read as follows:
671.013 1. “Money transmission” means any of the
following:
(a) Selling or issuing payment instruments to a person located in
this State.
(b) Selling or issuing stored value to a person located in this
State.
(c) Receiving money or credits for transmission from a person
located in this State.
2. [The term includes payroll processing services.
3.] The term does not include the provision solely of online or
telecommunications services or network access.
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Sec. 2. NRS 671.020 is hereby amended to read as follows:
671.020 Except as otherwise provided in NRS 671.155, this
chapter does not apply to any:
1. Federally insured depository financial institution, privately
insured depository financial institution, bank holding company or
any subsidiary thereof, office of an international banking
corporation, foreign bank that establishes a federal branch pursuant
to 12 U.S.C. § 3102, as amended, corporation organization pursuant
to 12 U.S.C. §§ 1861 to 1867, inclusive, as amended, or corporation
organized pursuan t to 12 U.S.C. §§ 611 to 633, inclusive, as
amended, under the laws of a state or of the United States.
2. Operator of a payment system to the extent that it provides
processing, clearing or settlement services between or among
persons exempted pursuant to this section or licensees in connection
with wire transfers, credit card transactions, debit card transactions,
stored value transactions, automated clearinghouse transfers or
similar transfers of money.
3. Person appointed as an agent of a payee to c ollect and
process a payment from a payor to the payee for goods or services,
other than money transmission, provided to the payor by the payee,
so long as:
(a) A written agreement exists between the payee and the agent
directing the agent to collect and process payments from payors on
behalf of the payee;
(b) The payee holds the agent out to the public as accepting
payments for goods or services on behalf of the payee; and
(c) Payment for the goods and services is treated as received by
the payee upon receipt by the agent so that the obligation of the
payor is extinguished and there is no risk of loss to the payor if the
agent fails to remit the money to the payee.
4. Person that acts as an intermediary by processing payments
between an entity that ha s directly incurred an outstanding money
transmission obligation to a sender and the designated recipient of
the sender, so long as the entity:
(a) Is a licensee or exempt from licensure pursuant to this
chapter;
(b) Provides a receipt, electronic recor d or other written
confirmation to the sender identifying the entity as the provider of
money transmission in the transaction; and
(c) Bears sole responsibility to satisfy the outstanding money
transmission obligation to the sender, including, without lim itation,
the obligation to make the sender whole in connection with any
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failure to transmit the money to the designated recipient of the
sender.
5. Department, agency, instrumentality or agent of the United
States.
6. State, county, city or any other g overnmental agency,
subdivision, instrumentality or agent of a state.
7. Money transmission by the United States Postal Service or
by an agent of the United States Postal Service.
8. Trust company that is licensed or otherwise authorized to
engage in the business of a trust company in this State pursuant to
chapter 669 of NRS.
9. Electronic money transfer of governmental benefits for a
federal, state, county or governmental agency by a contractor on
behalf of the United States or a department, agency or
instrumentality thereof or on behalf of a state or governmental
subdivision, agency or instrumentality thereof.
10. Board of trade designated as a contract market under the
Commodity Exchange Act, 7 U.S.C. §§ 1 et seq., as amended, or a
person that, in the ordinary course of business, provides clearance
and settlement services for a board of trade to the extent of its
operation as or for the board of trade.
11. Registered futures commission merchant under the federal
commodities laws to the extent of its operation as such a merchant.
12. Person registered as a securities broker-dealer under federal
or state securities laws to the extent of the operations of the person
as such a securities broker-dealer.
13. Natural person employed by a licensee, authorized delegate
or any person exempt from licensure pursuant to this section when
acting within the scope of employment and under the supervision of
the licensee, authorized delegate or exempt person as an employee
and not as an independent contractor.
14. Person expressly appointed as a third -party service
provider to or agent of an entity exempt pursuant to subsection 1 to
the extent that:
(a) The third -party service provider or agent is engaging in
money transmission on behalf of and pursuant to a written agreement
with the exempt entity that sets forth the specific functions that the
third-party service provider or agent is to perform; and
(b) The exempt entity assumes all risk of loss and legal
responsibility for satisfying the outstanding money transmission
obligations owed to purchasers and holders of the outstanding
money transmission obligations upon receipt by the third -party
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service provider of the money or monetary value of the purchaser or
holder.
15. Employer who performs payroll services on his or her own
behalf or on behalf of an affiliate of an employer.
16. Professional employer organization, as defined in NRS
611.400, who performs payroll services.
17. Provider who is licensed pursuant to chapter 604D of NRS.
18. Person engaged solely in the provision of payroll
processing services.
19. Person exempt by regulation or order of the Commissioner
pursuant to NRS 671.0205.
Sec. 3. NRS 671.275 is hereby repealed.
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