HB 1241 is a comprehensive bill that seeks to modernize the regulation of money transmission services in the state. It redefines and introduces terms such as "money transmission," "authorized delegate," "convertible virtual currency," and "money transmission obligations," and repeals and reenacts RSA 399-G, which governs the licensing of money transmitters. The bill also modifies renewal procedures for consumer credit entities and encourages the public deposit investment pool's investment advisor to maintain funds in eligible banks. It exempts certain entities from the provisions of the chapter on money transmission, including banks, government entities, and retailers issuing stored value credits or gift cards, among others. The bill grants the commissioner authority to enforce the chapter, adopt rules, assess fees, and conduct examinations and investigations of licensees. It also specifies application requirements for a money transmission license, including personal, business, and legal information, and a nonrefundable application fee of $500.

The bill details the process for issuing, renewing, and maintaining money transmission licenses, including the requirement for a surety bond or deposit and the maintenance of permissible investments. It sets forth the conditions for the commissioner to disclose confidential information and the public information available, such as licensee names and contact details. The bill outlines the requirements for licensees to conduct business through authorized delegates, including written contracts and background investigations. It also introduces financial requirements for licensees, such as maintaining a tangible net worth and providing a surety bond. The bill addresses permissible investments for licensees, enforcement actions, and penalties for violations. Additionally, it provides a transition period until January 1, 2026, for persons currently licensed in money transmission to adapt to the new requirements. The effective dates for the various sections of the bill are staggered, with most taking effect on October 22, 2024, and the remainder on August 23, 2024.

Statutes affected:
As Amended by the House: 397-A:5, 397-A:8, 399-A:5, 399-D:5
As Amended by the Senate: 397-A:5, 397-A:8, 399-A:5, 399-D:5, 358-A:2, 6:45, 6:46
Version adopted by both bodies: 397-A:5, 397-A:8, 399-A:5, 399-D:5, 6:45, 6:46
CHAPTERED FINAL VERSION: 397-A:5, 399-A:5, 399-D:5, 6:45, 6:46