MD HB118

Excludes payroll processing agents from the definition of "money transmitter" under the Maryland Money Transmission Act, eliminating the requirement for these agents to obtain a money transmission license

Requires three conditions for the exclusion to apply: a written agreement between the payor and agent directing payroll services, the payor publicly representing the agent as acting on their behalf, and the payor's payment obligation to employees remaining intact if the agent fails to remit funds

Amends Section 12-401(q) of the Financial Institutions Article of the Annotated Code of Maryland

Takes effect October 1, 2026