On Apr. 18, 2025, COL LEG reported governor signed bill into law, effective Aug. 6.
On Apr. 8, COL LEG passed bill amending money transmission rules.
COL LEG passed bill HB 25-1201 implementing act to modernize money transmission.
Makes amendments to COL FIN 11-110 relating to money transmitters regulations.
Bill Provisions
Repeals the Money transmitters act, replaces it with Money transmission modernization act, enacts a model law developed in conjunction with the money transmitter industry.
Reduces regulatory burden by modernizing outdated and inconsistent requirements.
Clarifies definition of control of licensee, introduces rebuttable presumption of control.
Enables Colorado's participation in multistate licensing initiatives, codifies agent-to-payee exemption to licensure, expands enforcement actions in case of nonperformance
Also revises prudential standards required for licensing and ongoing monitoring, including in relation to tangible net worth and permissible investment calculations.
Additionally establishes irrevocable, standby letter of credit as permissible investment.
Legislative History
On Feb. 10, 2025, bill was introduced in House; on Mar. 7, 2025, bill passed House.
On Mar. 12, 2025, bill was introduced in Senate; on Mar. 24, 2025, bill passed Senate.
On Apr. 8, 2025, bill was delivered to the governor, and is pending governor action.
Effectiveness
If approved, the bill takes effect at 12:01 am on the day following the expiration of the ninety-day period after the final adjournment of the Colorado general assembly.
Provided, however, that bill is subject to referendum and if referendum petition is filed, bill will not take effect unless approved by the people at Nov. 2026 election.
If approved at such election, the bill will take effect on date vote is declared.
Apr. 2025 COL LEG Governor Approval
On Apr. 18, 2025, COL LEG reported governor signed bill into law, effective Aug. 6.
Regulators
COL LEG
Entity Types
Bank; MSB
Reference
Act, 4/18/2025; Bill HB25-1201, 4/8/2025; Citation: COL FIN 11-110;
