Shown verbatim: the complete text as captured from the official PDF posted by the Maryland General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
WES MOORE, Governor Ch. 21
Chapter 21
(Senate Bill 261)
AN ACT concerning
Maryland Money Transmission Act – Definition of Money Transmitter –
Alteration
FOR the purpose of altering, for a certain licensing requirement, the definition of “money
transmitter” under the Maryland Money Transmission Act to exclude a certain
person designated as an agent of a payor for the purpose of the agent’s provision of
payroll processing services under certain circumstances; and generally relating to
the Maryland Money Transmission Act.
BY repealing and reenacting, without amendments,
Article – Financial Institutions
Section 12–401(a)
Annotated Code of Maryland
(2020 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Financial Institutions
Section 12–401(q)
Annotated Code of Maryland
(2020 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Financial Institutions
12–401.
(a) In this subtitle the following words have the meanings indicated.
(q) (1) “Money transmitter” means a person that engages in money
transmission that is required to be licensed under this subtitle, whether or not the person
maintains a license.
(2) “Money transmitter” includes:
(i) A bill payer service; and
(ii) An accelerated mortgage payment service.
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Ch. 21 2026 LAWS OF MARYLAND
(3) “MONEY TRANSMITTER” DOES NOT INCLUDE A PERSON
DESIGNATED AS AN AGENT OF A PAYOR FOR THE PURPOSE OF PROVIDING PAYROLL
PROCESSING SERVICES FOR WHICH THE AGENT WOULD OTHERWISE NEED TO BE
LICENSED UNDER THIS SUBTITLE, IF:
(I) THERE IS WRITTEN AGREEMENT BETWEEN THE PAYOR AND
THE AGENT THAT DIRECTS THE AGENT TO PROVIDE PAYROLL PROCESSING
SERVICES ON THE PAYOR’S BEHALF;
(II) THE PAYOR HOLDS THE AGENT OUT TO EMPLOYEES AND
OTHER PAYEES AS PROVIDING PAYROLL PROCESSING SERVICES ON THE PAYOR’S
BEHALF; AND
(III) THE PAYOR’S OBLIGATION TO A PAYEE, INCLUDING AN
EMPLOYEE OR ANOTHER PARTY ENTITLED TO RECEIVE FUNDS VIA THE PAYROLL
PROCESSING SERVICES PROVIDED BY THE AGENT, IS NOT EXTINGUISHED IF THE
AGENT FAILS TO REMIT THE FUNDS TO THE PAYEE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.
Approved by the Governor, April 14, 2026.
–2–Every fact on this page links to its source, starting with the official bill record.