Maryland Money Transmission Act - Definition of Money Transmitter - Alteration

SB 261 amends Maryland's Money Transmission Act to exclude certain payroll processors from being classified as "money transmitters." It specifically exempts agents of payors (companies handling payroll for others) from licensing requirements if they meet three conditions: a written agreement with the payor, the payor presenting them as the service provider to employees, and the payor remaining liable if funds aren't remitted. This directly affects payroll processing businesses operating under these arrangements, removing a regulatory burden they previously faced. The bill takes effect October 1, 2026.