The payments and money transmission regulatory landscape continues to evolve. A key new development is that Michigan has affirmed by legislation that “agent of a payee” transactions meeting certain criteria are not subject to regulation under the state’s money transmission licensing law. However, the California Department of Business Oversight (the DBO), which regulates money transmission in California, continues to scrutinize the scope of what constitutes payee-agency activity exempt from money transmission licensing.

WHAT IS AN AGENT OF A PAYEE IN MICHIGAN? -

On December 31, 2018, Michigan governor Rick Snyder signed S.B. 729 into law, effective 90 days from signature (i.e., April 1, 2019). S.B. 729 makes a number of changes to the Michigan Money Transmission Services Act, Mich. Comp. Laws §§ 487.1001 et seq. (the “Act”). One important change excludes from the applicability of the Act “an agent of a payee,” provided certain conditions are met.