HB 479 - Idaho Money Transmission Modernization Act

• Repeals the existing Idaho Money Transmitters Act (Chapter 29, Title 26) and replaces it with a modernized version called the Idaho Money Transmission Modernization Act

• Establishes comprehensive licensing requirements for money transmitters through the Idaho Department of Finance, including application fees of $100, background checks, and maintenance of tangible net worth of at least $100,000 or 3% of total assets

• Requires licensees to maintain surety bonds or deposits equal to 100% of average daily money transmission liability (up to $500,000), and permissible investments matching outstanding money transmission obligations to protect customer funds

• Creates exemptions for various entities including banks, credit unions, payment processors, government agencies, securities brokers, and certain service providers acting on behalf of exempt entities

• Authorizes the director to participate in multistate licensing coordination and adopt NMLS (Nationwide Multistate Licensing System) for streamlined processing while maintaining confidentiality of licensee information

• Effective July 1, 2024, with a transition period allowing existing licensees six months or until license renewal to comply with new requirements