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SF0040 • 2021

Wyoming Money Transmitters Act-amendments.

AN ACT relating to trade and commerce; amending definitions applicable to the Wyoming Money Transmitters Act; amending actions and entities exempted from the act; amending fees, bonds and security requirements; clarifying application procedures; repealing definitions of the act; specifying applicability; and providing for an effective date.

Land
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Minerals
Last action
2021-04-01
Official status
enrolled
Effective date
7/1/2021

Plain English Breakdown

The official source material does not provide specific details on how annual renewal fees will be set by the State Banking Commissioner.

Wyoming Money Transmitters Act Amendments

This law updates definitions, adjusts bonding requirements for money transmitters, and clarifies application procedures under Wyoming's Money Transmitters Act.

What This Bill Does

  • Updates the definition of 'payment instrument' to include prepaid access as defined by federal regulation.
  • Sets a maximum bond amount of $500,000 for applicants seeking to operate as money transmitters in Wyoming.
  • Removes limits on annual license renewal fees and allows the State Banking Commissioner to set these fees through rules.
  • Clarifies that applications can be conditionally approved without immediate provision of security devices like bonds or letters of credit.

Who It Names or Affects

  • Money transmitters operating in Wyoming
  • The State Banking Commissioner

Terms To Know

Payment Instrument
A financial tool like a check, draft, money order, prepaid card used to transmit money.
Bonding Requirement
The need for businesses to provide security (like bonds) as assurance against losses due to their operations.

Limits and Unknowns

  • Does not specify how the State Banking Commissioner will set annual renewal fees.
  • Does not clarify what happens if a money transmitter fails to meet bonding requirements after conditional approval.

Bill History

  1. 2021-04-01 LSO

    Assigned Chapter Number 61

  2. 2021-04-01 Governor

    Governor Signed SEA No. 0023

  3. 2021-03-30 House

    H Speaker Signed SEA No. 0023

  4. 2021-03-29 Senate

    S President Signed SEA No. 0023

  5. 2021-03-29 LSO

    Assigned Number SEA No. 0023

  6. 2021-03-29 House

    H 3rd Reading:Passed 58-1-1-0-0

  7. 2021-03-26 House

    H 2nd Reading:Passed

  8. 2021-03-25 House

    H COW:Passed

  9. 2021-03-23 House

    H Placed on General File

  10. 2021-03-23 House

    H09 - Minerals:Recommend Do Pass 8-1-0-0-0

  11. 2021-03-17 House

    H Introduced and Referred to H09 - Minerals

  12. 2021-03-04 House

    H Received for Introduction

  13. 2021-03-04 Senate

    S 3rd Reading:Passed 30-0-0-0-0

  14. 2021-03-03 Senate

    S 2nd Reading:Passed

  15. 2021-03-02 Senate

    S COW:Passed

  16. 2021-03-01 Senate

    S Placed on General File

  17. 2021-03-01 Senate

    S09 - Minerals:Recommend Do Pass 5-0-0-0-0

  18. 2021-01-12 Senate

    S Introduced and Referred to S09 - Minerals

  19. 2021-01-12 Senate

    S Received for Introduction

  20. 2021-01-08 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 21LSO-0002
Bill No.:

SF0040

Effective:

7/1/2021 12:00:00 AM

LSO No.:

21LSO-0002

Enrolled Act No.:

SEA No. 0023

Chapter No.:

61

Prime Sponsor:

Joint Minerals, Business & Economic Development Interim Committee

Catch Title:

Wyoming Money Transmitters Act-amendments.

Subject:

Amending bonding and fee requirements, definitions and other provisions of the Wyoming Money Transmitters Act.

Summary/Major Elements:

This act amends various provisions of the Wyoming Money Transmitters Act, which regulates money transmitters in Wyoming, including conforming amendments to correct references to the State Banking Commissioner.

The act clarifies the types of entities subject to the Money Transmitters Act by amending the definition of "payment instrument" to include prepaid access as defined in federal regulation.

The act amends bonding requirements for persons and entities applying to operate as a money transmitter in Wyoming, including setting a maximum bond amount of five hundred thousand dollars ($500,000.00) and authorizing the State Banking Commissioner to conditionally accept an application without provision of a security device.

The bill removes limits on the annual license renewal fee, making the fee subject to rule of the Banking Commissioner.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
21LSO-0002

ORIGINAL Senate

File No
.
SF0040

ENROLLED ACT NO. 23,

SENATE

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session

AN ACT relating to trade and commerce; amending definitions applicable to the Wyoming Money Transmitters Act; amending actions and entities exempted from the act; amending fees, bonds and security requirements; clarifying application procedures; repealing definitions of the act; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 40
‑
22
‑
102(a)(ii), (xiii) and (xv), 40
‑
22
‑
104(a)(vi), 40
‑
22
‑
106(a), 40
‑
22
‑
108(f), (g), (h)(ii)(intro), (j) and (k), 40
‑
22
‑
111(a) and 40
‑
22
‑
115(b) are amended to read:

40
‑
22
‑
102.

Definitions.

(a)

As used in this act:

(ii)

"Authorized delegate" means an entity designated by the licensee to engage in the business of
transmitting
money
transmission
on behalf of a licensee;

(xiii)

"Money transmission" means to engage in business to sell or issue payment instruments
, stored value
or receive money or monetary value for transmission to a location within or outside the United States by any and all means, including but not limited to wire, facsimile or electronic transfer;

(xv)

"Payment instrument" means any electronic or written check, draft, money order, travelers check or other electronic or written instrument or order for the transmission or payment of money, sold or issued to one (1) or more persons, whether or not the instrument is negotiable.
"Payment instrument" shall include prepaid
access as defined in 31 C.F.R. 1010.100(ww). For purposes of this act, stored value shall be deemed equivalent to prepaid access.
The term "payment instrument" does not include any credit card voucher, any letter of credit or any instrument which is redeemable by the issuer in goods or services;

40
‑
22
‑
104.

Exemptions; applicability.

(a)

This act shall not apply to:

(vi)

Buying, selling, issuing, or taking custody of payment instruments
or stored value
in the form of virtual currency or receiving virtual currency for transmission to a location within or outside the United States by any means;

40
‑
22
‑
106.

Bond or other security device.

(a)

Each application shall be accompanied by
A
surety bond, irrevocable letter of credit or other similar security device acceptable to the commissioner
shall be provided with a license application or upon approval of the application, as determined by the applicant. An application without a security device may be conditionally approved by the commissioner pending receipt of the security device. The surety bond, irrevocable letter of credit or other security device shall be
in the amount of ten thousand dollars ($10,000.00) or two and one
‑
half (2½) times the outstanding payment instruments, whichever is greater
, not to exceed five hundred thousand dollars ($500,000.00)
.

The commissioner may increase the required amount of the
bond or
security device
up
to
a
the
maximum
of five hundred thousand dollars ($500,000.00)
amount authorized by this subsection
upon the basis of the impaired financial
condition of a licensee as evidenced by a reduction in net worth, financial losses or other relevant criteria.

The security device shall be in a form satisfactory to the commissioner and shall run to the state for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission and payment of money in connection with the sale and issuance of payment instruments or transmission of money.

In the case of a bond, the aggregate liability of the surety in no event shall exceed the principal sum of the bond.

Claimants against the licensee may bring suit directly on the security device or the commissioner may bring suit on behalf of the claimants either in one (1) action or in successive actions.

40
‑
22
‑
108.

Application for license.

(f)

The commissioner may determine the content of application forms and the means by which an applicant applies for, renews or amends a license under this act.

The
administrator
commissioner
may allow applicants to utilize the registry or an entity designated by the registry for the processing of applications and fees.

(g)

In order to fulfill the purposes of this act, the
administrator
commissioner
may establish relationships or contract with the registry or any other entity designated by the registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this act.

(h)

In connection with an application for licensing the applicant shall, at a minimum, furnish the commissioner or the registry information concerning the identity of the
applicant, the owners or persons in charge of the applicant and individuals designated in charge of the applicant's places of business, including:

(ii)

Personal history and experience, including the submission of authorization for the registry or the
administrator
commissioner
to obtain:

(j)

For the purposes of this section and in order to reduce the points of contact which the federal bureau of investigation may have to maintain for purposes of paragraph (h)(i) of this section and subparagraph (h)(ii)(B) of this section, the
administrator
commissioner
may use the registry as a channeling agent for requesting information from and distributing information to the department of justice or any governmental agency.

(k)

For the purposes of this section and in order to reduce the points of contact which the
administrator
commissioner
may have to maintain for purposes of paragraph (h)(ii) of this section, the
administrator
commissioner
may use the registry as a channeling agent for requesting and distributing information to and from any source as directed by the
administrator
commissioner
.

40
‑
22
‑
111.

Renewal of license and annual report.

(a)

Each license issued under this act shall expire on December 31.

The license shall be renewed annually not later than December 1.

Each licensee shall pay an annual renewal fee
not to exceed two thousand dollars ($2,000.00), plus not more than one hundred dollars ($100.00) for each authorized delegate and subdelegate not to exceed seven thousand dollars ($7,000.00),
as set by rule of the commissioner.

40
‑
22
‑
115.

Examinations.

(b)

Each licensee or person subject to examination or investigation under this act shall pay to the commissioner an amount assessed by the commissioner to cover the direct
and indirect
cost of examinations or investigations conducted pursuant to this section.

Section 2.

W.S. 40
‑
22
‑
102(a)(vii) and (xviii) is repealed.

Section 3
.

This act shall apply to all applications and renewal applications filed for the 2022 licensing year and to all examinations conducted on or after January 1, 2022.

Section 4
.

This act is effective July 1, 2021
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1