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LouisianaHB 12302026 Regular SessionHouseWALLET

COMMERCIAL REGULATIONS: Provides relative to the Louisiana Money Transmission Act

Sponsored By: Daryl Andrew Deshotel (Republican)

Signed by Governor

Commerce, Consumer Protection and International AffairsCommerce

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Bill Overview

Analyzed Economic Effects

26 provisions identified: 8 benefits, 10 costs, 8 mixed.

Clearer receipts for money transfer customers

Beginning July 1, 2026, covered transfers require receipts showing sender and recipient names, date, transaction ID, amount, fees, and taxes. Receipts must identify the provider, its licensing-system ID, and contact information. They must use English and any other language mainly used to advertise or arrange the transfer. Electronic receipts must be retainable; in-person customers must request or agree to them. Federal Remittance Rule transfers, non-household transfers, and written payee agreements for goods-or-services payment processing are excluded.

Deadlines for sending and refunding money

Money transmitters and agents must send, commit, or return transfer funds, minus fees, within 10 business days. Exceptions cover different sender instructions, specified stored-value or goods payments, and reasonable suspicion of fraud, crime, or legal violations. Senders can ask why money was not forwarded, unless the law bars an answer. Written refund requests require repayment within 10 calendar days, except for forwarded funds or commitments, agreed later forwarding, suspected crime, or missing identifying details. This refund rule excludes transfers covered by the federal Remittance Rule and goods-or-services payments processed under written payee agreements.

Protection against penalties on lawful transfers

Beginning July 1, 2026, providers cannot impose agreement-based financial penalties on consumers or charities for lawful, valid transactions. Providers must notify customers about policy-related fund seizures unless the law bars notice. Funds found lawful must follow the law’s timely-transfer rules, generally requiring transfer or return within 10 business days. Providers must return funds and penalties taken under invalid agreement terms, but may then cancel service. Contract terms choosing another state’s law cannot override Louisiana public policy.

Money transmitters must report security breaches

Licensees must report listed bankruptcy, receivership, dissolution, reorganization, creditor-assignment, or license-revocation proceedings within one business day after learning of them. Listed felony matters and qualifying breaches involving Louisiana residents' personal information require reports within three business days. When Louisiana law requires resident notification, the commissioner must receive a copy before or with that notice. Law enforcement can delay breach notice when it would impede an investigation. Notice must follow in good faith without unreasonable delay once that impediment ends.

Regulators can stop harmful transfer practices

Beginning July 1, 2026, the commissioner can suspend or revoke licenses and agent appointments for listed violations, fraud, unsafe practices, or insolvency. Agents also face removal for listed misconduct, lack of fitness, money-laundering convictions, or refusing examinations, and can seek relief. Suspected unlicensed transmitters can be ordered to explain why they should not be stopped; emergencies allow court restraints without a state bond. The commissioner can seek preliminary or permanent injunctions in the Nineteenth Judicial District Court in East Baton Rouge Parish. Signed consent orders can resolve regulatory matters and can state that signing does not admit a violation.

Stronger enforcement protects money transfer customers

Beginning July 1, 2026, the commissioner can stop violations, order refunds of unauthorized fees, and seek court injunctions. Civil fines can reach $1,000 per day per violation, plus investigation and prosecution costs, including reasonable attorney fees. Violations also count as unfair trade practices; that enforcement section excludes federally insured banks and related companies, plus exempt payment-system companies for specified services. Recordkeeping violations receive written notice and 30 calendar days to correct, with up to two additional 30-day extensions. Immediate suspension grounds include inadequate net worth or bonding, emergency safety violations, unpaid or returned fees, disqualifying felonies, and another jurisdiction’s suspension or revocation. An immediately suspended license holder has 30 calendar days from the order to request a hearing.

Qualifying payment providers avoid licensing rules

Exemptions cover qualifying payment processors, governments, financial institutions, market participants, payroll processors, supervised employees, and licensed lenders making covered loan disbursements. Payment agents need written payee agreements, public identification, and payment receipt that ends the payer's obligation. Payment intermediaries must identify the licensed or exempt entity that remains solely responsible for the transfer. Third-party providers for exempt financial institutions need written agreements, with those institutions accepting loss risk and legal responsibility. The commissioner can require records proving exemption eligibility; employee exemptions exclude independent contractors, and lender exemptions cover specified loan disbursements only.

Simpler approval paths for business takeovers

Beginning July 1, 2026, some money transfer business takeovers are exempt from the usual prior-approval and application process. Exceptions cover proxy voting, inheritance, legal representatives, specified exempt buyers, public offerings, unchanged-control reorganizations, and commissioner-approved public-interest exemptions. Except for proxy holders, exempt buyers must notify the commissioner within 15 calendar days; inheriting buyers must have no felony conviction and meet licensing requirements. Previously approved buyers can instead use notice if they have no license suspension or revocation involving themselves or businesses they controlled during the previous five years. Licensed buyers must be well managed with at least satisfactory compliance ratings when rated; affected businesses must meet financial safeguards and make no material business-plan changes. This notice requires an attestation and is approved unless rejected within 30 calendar days after the commissioner finds it complete.

Criminal penalties for dishonest transfer operators

Beginning July 1, 2026, intentionally falsifying required records or omitting material entries is a felony. Conviction requires a $500–$3,000 fine and allows one to five years in prison. Knowingly operating without a required license is also a felony when compensation exceeds $500 within 30 days, with the same penalties. Compensation of $500 or less within 30 days makes unlicensed activity a misdemeanor. That offense carries a $100–$500 fine and possible imprisonment for up to one year.

Debt adjustors face payment handling limits

Beginning July 1, 2026, providers cannot use the money transmission law to handle or transmit debtor funds for debt adjustment. The ban includes acting as an intermediary for a debtor or debt adjustor. Providers cannot evade it through transaction structuring, relabeling funds, or pooled accounts. Debt-adjusting activities expressly allowed by Louisiana’s separate debt-adjusting statute remain permitted.

License loss limits providers’ return

Beginning July 1, 2026, the commissioner can revoke licenses for violations, unpaid annual fees, or grounds that justify denying a license. Automatic final revocation grounds include unreplaced canceled bonds, failure to request a hearing or provide an additional required bond, and final covered convictions. Failure to file required information also triggers revocation after notice and a reasonable correction period; final revocation orders also apply. After final revocation, providers must apply anew and generally cannot reapply for at least five years, unless the commissioner changes that date. The waiting period also covers owners holding at least 10%, specified members, partners, officers, directors, and others deemed closely related.

Licensing limits for money transfer businesses

Beginning July 1, 2026, providers need a license to offer or advertise covered money transfers in Louisiana. Coverage includes issuing payment instruments or stored value to Louisiana customers and receiving their money for transmission. In-person location controls; phone and online providers may rely on location records, while closed-loop value and qualifying rewards are excluded. Contracted authorized agents and legally exempt providers do not need separate licenses, but licenses cannot be transferred or assigned. Applicants with any felony or listed fraud, theft, forgery, bribery, embezzlement, or false-statement misdemeanors are barred. Anyone transmitting for an unlicensed, nonexempt business shares liability with it; either party can be held responsible for the full liability.

Money transmitter leaders face background checks

Controllers, proposed buyers of control, and key individuals must provide fingerprints and personal-history information through the multistate licensing system. Anyone who lived outside the United States during the past 10 years must also provide an independent investigative report. People currently abroad who lived abroad throughout those 10 years are exempt from fingerprints. The commissioner reviews applicants' finances, experience, character, and fitness before issuing a license. Applicants must meet the law's qualifications and pay for any on-site investigation the commissioner conducts.

Money transmitters file regular compliance reports

Licensees must file quarterly financial, transfer, and investment reports within 45 calendar days, unless the commissioner extends the deadline. One specified set of information is required only in the fourth-quarter report; agent reports are also due within 45 calendar days. Annual audited statements require an independent accountant's opinion and are due within 90 calendar days after fiscal year-end, unless extended. Licensees and agents must file required money-laundering reports; timely, complete, accurate federal filings satisfy the state reporting duty. Licensees must also maintain written procedures for following applicable laws and rules.

Money transmitters must preserve accessible records

Licensees must keep required transaction, accounting, bank, unpaid-transfer, paid-obligation, and agent records for at least five years. Licensees and agents must separate covered records from other business records and use the required Louisiana location unless approved otherwise. Electronic records are allowed unless the commissioner gives contrary written instructions; review must occur at an approved nonresidential location. Out-of-state records must be accessible on seven business days' written notice. Providers must make them available in Louisiana or pay reasonable examination costs where they are kept; designated officials can inspect them.

Money transmitters pay for regulatory examinations

The commissioner can charge proportionate, fair fees for applications, examinations, investigations, and related enforcement work. Licensees pay $50 per hour for each examiner. Out-of-state examinations also require payment of actual subsistence, lodging, and transportation costs within state travel limits. Failure to pay within 30 calendar days after assessment subjects the examined person to an administrative penalty.

Money transmitters pay license renewal fees

Applications carry a nonrefundable $1,500 fee; annual inflation adjustments start with calendar year 2026 and round upward to the nearest $100. The commissioner issues the adjustment memo by July 1 of the following year. Annual renewals are due December 31 and cost $800 plus $100 per Louisiana location beyond the first, capped at $6,000. Renewal reports disclose unreported material changes; licensees in the November–December window must submit the specified report unless issued a new license. Applying after December 31 but before March 1 adds a nonrefundable $600 late fee. Without payment before March 1, the license expires without notice or hearing and cannot be reinstated; a new application requires payment of penalties for unlicensed activity.

Tighter limits for money transfer agents

Beginning July 1, 2026, authorized agents cannot hire subagents to transmit money for a licensed provider. Agents must immediately stop working for a provider whose license is suspended, revoked, surrendered, or expired. Within five business days, the provider must document to the commissioner that it notified affected agents listed on file.

Emergency protections can pause transfer services

Beginning July 1, 2026, the commissioner can immediately order providers or agents to stop violations threatening serious harm, insolvency, or major asset losses. These orders take effect when served and remain effective until rescinded, released, or appealed. A provider can ask the Nineteenth Judicial District Court in East Baton Rouge Parish to change, suspend, or end an order. Emergency rules can also pause license issuance or renewal and some or all Louisiana money transfer activity. These powers protect customers but can interrupt access to transfer services.

Broader oversight with confidential regulator records

Beginning July 1, 2026, Louisiana’s commissioner can inspect provider records and investigate suspected unlicensed operators, including questioning witnesses under oath. The commissioner can conduct joint or multistate reviews and accept other state or federal regulators’ reports. Louisiana keeps its enforcement authority, and applicable examination fees still apply. Organizations receiving shared information must agree in writing to protect its confidentiality and security. Office records are generally confidential, protecting information but limiting public access, subject to Title 6 exceptions.

Existing transmitters get extra compliance time

The law takes effect July 1, 2026. Previously licensed Louisiana transmitters get extra time for new requirements or provisions that conflict with prior law. Their deadline is current-license renewal or July 1, 2027, whichever is later. Agent-contract updates apply to contracts entered or amended after the effective date or the applicable transition period. Agents' separate legal-compliance duties remain in force.

Investments must back unpaid money transfers

Licensees must keep eligible investments worth at least all unpaid transfer obligations nationwide, valued under standard U.S. accounting rules. In listed financial-failure or creditor proceedings, these assets enter a protected trust, shared fairly among claimants until obligations end. Eligible assets include qualifying cash, bank and government obligations, tightly regulated standby credit letters, and excess bond amounts. Unless the commissioner allows more, agent receivables under seven calendar days old are capped at 50% overall and 10% per agent. Listed investment categories have 20% individual and 50% combined caps; qualifying foreign-bank cash has a 10% cap, and the commissioner can restrict risky investments.

License applicants get a decision deadline

Money transmitters needing a Louisiana license must register with the Nationwide Multistate Licensing System and meet its renewal rules. Applications must include required personal, business, financial, and operating records, with added organizational materials for businesses. Applicants must promptly report material changes during review. The commissioner has 120 calendar days after finding an application complete to approve or deny it, with good-cause extensions allowed. Without a decision or extension, approval is automatic, and the license starts on the next business day after the deadline.

Money transmitter ownership changes need review

A person or group acquiring control must seek written approval with the licensee and pay a nonrefundable $1,500 application fee. Required information must cover new key individuals who have not completed the applicable licensing checks. Complete control applications have a 60-calendar-day decision deadline; no action means approval, unless the commissioner extends review for good cause. New or replacement key individuals require notice within 15 calendar days and required information within 45 calendar days. They are approved unless disapproved within 90 days after notice is complete; licensees have 30 calendar days after written disapproval to appeal.

Money transmitters must maintain financial safeguards

Licensees must keep tangible net worth equal to the greater of $100,000 or a tiered asset calculation. That calculation adds 3% of the first $100 million, 2% from $100 million to $1 billion, and 0.5% above $1 billion. Applicants use audited statements, and licensees show compliance at application, renewal, and annually. Bonds must equal the greater of $100,000 or average daily Louisiana transfer liability over the last completed three-month period, capped at $500,000. The commissioner can raise bonds to $1 million, claimants can sue directly on them, and licensees face suspension or revocation for losing required qualifications.

Transfer agents face oversight and safeguards

Before using an agent, licensees must adopt compliance policies, sign a written contract, and conduct a risk-based background check. They must supervise agents, who must follow applicable state and federal laws. Contracts must cover handling money, remittance, records, examinations, and the commissioner's power over agent appointments. Agents must hold transfer money, minus fees, in trust for the licensee. If agents mix that money with their own assets, the trust covers mixed funds and property up to that amount.

Sponsors & Cosponsors

Sponsor

  • Daryl Andrew Deshotel

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 239 • No: 1

House vote • 5/29/2026

Read by title, roll called, yeas 91, nays 1. The Senate amendments, having received two-thirds vote of the elected members, were concurred in.

Yes: 91 • No: 1

Senate vote • 5/25/2026

Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

Yes: 38 • No: 0

House vote • 4/27/2026

Read third time by title, amended, roll called on final passage, yeas 98, nays 0. The bill, having received two-thirds vote of the elected members, was finally passed, title adopted, ordered to the Senate.

Yes: 98 • No: 0

House vote • 4/13/2026

Reported with amendments

Yes: 12 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 888.

    6/9/2026House

  2. Effective date: 07/01/2026.

    6/9/2026House

  3. Signed by the President of the Senate.

    6/1/2026Senate

  4. Sent to the Governor for executive approval.

    6/1/2026House

  5. Enrolled and signed by the Speaker of the House.

    5/31/2026House

  6. Read by title, roll called, yeas 91, nays 1. The Senate amendments, having received two-thirds vote of the elected members, were concurred in.

    5/29/2026House

  7. Scheduled for concurrence on 05/29/2026.

    5/27/2026House

  8. Received from the Senate with amendments.

    5/26/2026House

  9. Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

    5/25/2026Senate

  10. Reported with Legislative Bureau amendments which were read and adopted. Read by title and passed to third reading and final passage.

    5/18/2026Senate

  11. Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.

    5/14/2026Senate

  12. Reported with amendments.

    5/13/2026Senate

  13. Read second time by title and referred to the Committee on Commerce, Consumer Protection and International Affairs.

    4/29/2026Senate

  14. Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

    4/28/2026Senate

  15. Called from the calendar.

    4/27/2026House

  16. Read third time by title, amended, roll called on final passage, yeas 98, nays 0. The bill, having received two-thirds vote of the elected members, was finally passed, title adopted, ordered to the Senate.

    4/27/2026House

  17. Called from the calendar.

    4/21/2026House

  18. Read by title, returned to the calendar.

    4/21/2026House

  19. Notice given.

    4/21/2026House

  20. Scheduled for floor debate on 04/27/2026.

    4/21/2026House

  21. Read by title, amended, returned to the calendar.

    4/20/2026House

  22. Notice given.

    4/20/2026House

  23. Scheduled for floor debate on 04/21/2026.

    4/20/2026House

  24. Scheduled for floor debate on 04/20/2026.

    4/15/2026House

  25. Read by title, amended, ordered engrossed, passed to 3rd reading.

    4/14/2026House

Bill Text

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