HB 2412 — Prohibits the foreign remittance transfer of funds to unauthorized aliens

SECOND REGULAR SESSION HOUSE COMMITTEE SUBSTITUTE FOR HOUSE BILL NO.

2412 103RD GENERAL ASSEMBLY INTRODUCED4156H.04C BYJOSEPH REPRESENTATIVEENGLER, KEATHLEY.Chief Clerk AN ACT To amend chapter 361, RSMo, by adding thereto four new sections relating to foreign remittance transfers, with penalty provisions.

4156H.01I JOSEPH ENGLER, Chief Clerk AN ACT To amend chapter 361, RSMo, by adding thereto four new sections relating to foreign remittance transfers, with penalty provisions.

(1) "Department","Director", the departmentdirector of commercefinance andof insurance;the division of finance;

(2) "Director","Division", the directordivision of finance of the divisiondepartment of finance;commerce and insurance;

(3) "Division","Foreign theremittance divisiontransfer", ofa financeremittance oftransfer as defined in the departmentElectronic ofFund commerceTransfer andAct, insurance;15 U.S.C.

(4) "Foreign remittance transfer", a remittance transfer as defined in the Electronic Fund Transfer Act, 15 U.S.C.

(5)(4) "Licensee", a person licensed under sections 361.900 to 361.1035;

(6)(5) "Person", any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the director of the division;

(7)(6) "Unauthorized alien", ana alienperson who doesis notunlawfully havepresent in the legalUnited rightStates oraccording authorization under federal law to workthe interms of the Unitedfederal States,Immigration asand definedNationality underAct, 8 U.S.C.

Section 1324a(h)(3),1101, aset amended.seq.

EXPLANATIONThe —term Mattershall enclosedbe ininterpreted bold-facedconsistently bracketswith [thus]any inapplicable thefederal abovestatutes, billrules, isor notregulations. enacted and is intended to be omitted from the law.

Matter361.1042. in bold-face type in the above bill is proposed language.

HB 2412 2 361.1042.

2.EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law.

Matter in bold-face type in the above bill is proposed language.

HCS HB 2412 2 2.

The licensee shall submit the forms to the division not later than the fifteenthforty-fifth day of the month following theJune closethirtieth ofand eachDecember calendarthirty-first. quarter.

(2) Penalties owed under subdivision (1) of this subsection shall be remitted quarterlynot later than the forty-fifth day following June thirtieth and December thirty-first to the division in addition to any forms that the division may prescribe for such purpose.

All(3) suchNotwithstanding penaltiesany andother formsprovision shallof bethis submittedchapter, failure to thecomply divisionwith subsection 1 or 2 of this section does not latersubject thana thelicensee fifteenthto dayany ofpenalty other than the monthpenalty followingimposed theunder closesubdivision (1) of eachthis calendarsubsection. quarter.

(3) Notwithstanding any other provision of this chapter, failure to comply with subsections 1 and 2 of this section does not subject a licensee to any penalty other than the penalty imposed under subdivision (1) of this subsection.

NotwithstandingAll the provisions of section 361.915 or any other provision of law, all moneys collected by the division under sections 361.1040 to 361.1046 shall be deposited into the state treasury to the credit of the Missouricounty disasterpublic school fund establishedof underthe sectionseveral 44.032counties toas aidrequired inby carryingArticle outIX, theSection purpose7 of suchthe section.Constitution of Missouri.

(2) A general ledger posted at least monthly containing all asset,assets, liability, capital, income, and expense accounts;

(6) A list of the lastlast-known known names and addresses of all of the licensee's authorized delegates;

and HB 2412 3 (b) Penalties paid pursuant to subsection 3 of section 361.1042, including the date and amount of each foreign remittance transfer and the name, date of birth, and address of each sender;

HCS HB 2412 3 2.

A person who knowingly files a false or frivolous complaint under this subsection, including any complaint that violates federal law, shall be guilty of a Classclass B misdemeanor.

Upon receipt of a valid complaint that is substantiated by evidence of a violation of sections 361.1040 to 361.1046,361.1046 after an investigation, the division shall notify the licensee of the complaint and direct the licensee to pay the penalty required under subsection 3 of section 361.1042.

In addition to the requirements under subsection 1 of this section, beginning July 1, 2027,2028, the division shall conduct random quarterlyexaminations audits of licensees to ensure compliance with sections 361.1040 to 361.1046.

During an audit,examination or investigation, a licensee shall produce records of the documentation used to verify that each sender of a foreign remittance transfer is not an unauthorized alien.

A licensee that fails to substantially comply with sections 361.1040 andto 361.1046 is subject to the penalty under subsection 3 of section 361.1042.

Failure to substantially comply with subsection 4 of this section constitutes grounds for the suspension of all licenses held by the licensee that were issued by the division.

The statedivision bankingshall andnot savingsexamine anda loanlicensee boardmore createdthan underonce sectionevery 361.092two shallyears withfor reasonablecompliance promptnesswith hearsection and361.1042 byunless orderan determineexamination allwithin appealsthe permittedlast bysix lawmonths relatingfound to the suspensionlicensee ofto abe licensee'sin licensesnoncompliance bywith thesection division.361.1042.

The7. board shall render a decision within ninety days from the date of receiving an appeal.

The boarddivision shallmay establishpromulgate proceduresall applicablenecessary torules and regulations for the hearingsadministration consistentof withsections 361.1040 to 361.1046, including the provisionsadoption containedof inrules sectionsgoverning 361.094the procedures and forms necessary to 361.096.implement such sections.

HB 2412 4 7.

The division shall not audit a licensee more than once every two years unless an audit within the last six months found the licensee to be in noncompliance with section 361.1042.

8.

The department may promulgate all necessary rules and regulations for the administration of sections 361.1040 to 361.1046, including the adoption of rules governing the procedures and forms necessary to implement such sections.

This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to HCS HB 2412 4 disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.