Iowa 2023-2024 Regular Session

Iowa House Bill HF431

Introduced
2/24/23  
Introduced
2/24/23  

Caption

A bill for an act relating to money transmission services.(Formerly HSB 128; See HF 675.)

Impact

The proposed bill is set to significantly impact state laws governing financial institutions by expanding the requirements for obtaining and maintaining a money transmission license. It introduces conditions where licensees must maintain a minimum net worth and obtain surety bonds reflective of their financial liabilities. Furthermore, it mandates timely transaction processing and outlines clearer refund procedures for consumers. Such provisions are intended to enhance the protection of consumers by ensuring that money transmission services are financially stable and accountable for their operations.

Summary

House File 431 is a legislative proposal aimed at modernizing the licensing framework for money transmission services in Iowa, repealing outdated provisions and adopting more efficient and uniform licensing procedures. This bill encourages the Superintendent of Banking to collaborate across state lines, promoting consistency in regulatory practices for businesses engaging in money transmission services. The new framework aims to provide clear guidelines and requirements for applicants, including comprehensive financial disclosures, criminal background checks, and more stringent licensure conditions that account for the evolving financial landscape.

Contention

Throughout the legislative process, discussion around HF431 has centered on its implications for businesses operating within Iowa's financial services sector. Supporters argue that the bill streamlines operations and aligns Iowa's regulations with national standards, therefore facilitating smoother interstate business transactions. Conversely, critics have voiced concerns regarding the potential for increased compliance burdens on smaller businesses and the risks of limiting local flexibility to respond to unique market conditions. These tensions reflect a broader dialogue about the balance between regulatory efficiency and local governance in financial regulation.

Companion Bills

IA SSB1102

Related A bill for an act relating to money transmission services.(See SF 421, SF 566.)

IA HSB128

Related A bill for an act relating to money transmission services.(See HF 431, HF 675.)

IA SF421

Similar To A bill for an act relating to money transmission services.(Formerly SSB 1102; See SF 566.)

IA HF675

Similar To A bill for an act relating to money transmission services. (Formerly HF 431, HSB 128.) Effective date: 07/01/2023.

IA SF566

Similar To A bill for an act relating to money transmission services.(Formerly SF 421, SSB 1102.)

Previously Filed As

IA HF601

A bill for an act relating to fees for wire transmissions, and related income tax credits.(See HF 2750.)

IA HF2750

A bill for an act relating to the collection and distribution of fees for wire transmissions, the establishment of the school security grant program, and including contingent effective date provisions. (Formerly HF 601.)

IA HF304

A bill for an act relating to rate-regulated utilities, including telecommunications and electronic transmission services.(Formerly HSB 65; See HF 2181.)

IA HF2181

A bill for an act relating to rate-regulated utilities, including telecommunications and electronic transmission services.(Formerly HF 304, HSB 65.)

IA HF1011

A bill for an act relating to human trafficking, including the establishment of human trafficking prosecution units and the remittance of wire transmission fees to the office to combat human trafficking.(Formerly HF 831, HF 463; See HF 2565.)

IA HF831

A bill for an act relating to human trafficking, including the establishment of human trafficking prosecution units and the remittance of wire transmission fees to the office to combat human trafficking.(Formerly HF 463; See HF 1011, HF 2565.)

IA HF1047

A bill for an act relating to prison infrastructure.(Formerly HSB 333; See HF 2753.)

IA HF2709

A bill for an act providing for services relating to agricultural equipment.(Formerly HSB 751; See HF 2763.)

IA LD1110

An Act to Require Remittance Fees for Money Transmissions

IA SB887

Relating to requirements for licensure and regulation of money transmission services

Similar Bills

No similar bills found.