MarylandHB 01182026 Regular SessionHouseWALLET

Maryland Money Transmission Act - Definition of Money Transmitter - Alteration

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Payroll processors carved out of licensing

Beginning October 1, 2026, a payroll processor is not a money transmitter if three rules are met. There is a written agreement naming the agent to run payroll. The employer tells employees and other payees the agent acts for the employer. The employer still owes the payee if the agent fails to send money. This reduces licensing needs for payroll agents and keeps pay protections in place.

Bill-pay and mortgage services need licenses

Beginning October 1, 2026, Maryland treats anyone doing covered payment handling as a money transmitter, even if unlicensed. Bill-pay services and accelerated mortgage payment services are included. Providers must get a Maryland money transmitter license and follow state rules. Users, including homeowners, get protections that come with licensed services.

Sponsors & Cosponsors

Sponsor

Pam Queen
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 180 • No: 0

Senate vote • 4/8/2026

Third Reading Passed

Yes: 44 • No: 0 • Other: 2

House vote • 2/26/2026