Substitute House Bill No. 6991 seeks to modernize the state's Money Transmission Act by updating definitions and clarifying advertising practices for money transmission licensees. The bill introduces new terms such as "digital wallet," which refers to electronic functionalities for storing and processing payment credentials, and expands the definition of "money transmission" to include digital wallets and mobile applications. Additionally, it introduces terms like "control person" and "passive investor" to better define the roles of individuals involved in money transmission. The bill also repeals Section 36a-596 and deletes outdated definitions, such as "existing customer" and "new customer," while renumbering the remaining definitions.

Moreover, the bill imposes new advertising restrictions, prohibiting licensed money transmitters from claiming that deposited funds are eligible for Federal Deposit Insurance Corporation (FDIC) protections. It also revises the definition of "stored value" to "electronic or digital record," which now includes claims against the issuer of monetary value. The effective date for these changes is set for October 1, 2025. Overall, the bill aims to ensure that the regulatory framework governing money transmission reflects current technological advancements and practices in the financial sector without imposing any fiscal impact on the state or municipalities.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 194: