AB 430 — Exempts persons engaged in the provision of payroll processing services from provisions governing money transmission. (BDR 55-1072)

A.B.Assembly Bill No.

430430–Assemblymembers AFlanagan; SSEMBLY B ILLN O.

430–ASSEMBLYMEMBERSBrown-May, FLANAGAND’Silva ;and Nguyen CHAPTER..........

B ROWN -M AY, D’SILVA AND NGUYEN M ARCH 13, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Exempts persons engaged in the provision of payroll processing services from provisions governing money transmission.

(BDR 55-1072) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law provides for the licensure and regulation by the Commissioner of NRS)Financial ExistingInstitutions law defines “money transmission” to include payroll processing1 of services,persons thereby requiring a person engaged solely in themoney provisiontransmission. of payroll processing services to be licensed by the Commissioner.

(Chapter 671 of services, thereby requiring a person engaged solely in the provision of payroll processing services to be licensed by the Commissioner.

-EXPLANATION *AB430* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

- 83rd Session (2025) – 2 – Sec.

Federally insured depository financial institution, privately insured depository financial institution, bank holding company or any subsidiary thereof, office of an international bankingbankingpany or corporation, foreign bank that establishes a federal branch pursuant to 12 U.S.C.

Operator of a payment system to the extent that it provides processing, clearing or settlement services between or among persons exempted pursuant to this section or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearinghouse transfers or sim3.arPersonsimilar appointedtransfers as an agent of amoney. payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, so long as:

3.

Person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission, provided to the payor by the payee, so long as:

and (c) Payment for the goods and services is treated as received by the payee upon receipt by the agent so that the obligation of the payor is extinguished and there is no risk of loss to the payor if the agent fails to remit the money to the payee.

- *AB430* – 3 – 4.

and (c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including, without limitation, the obligation to make the sender whole in connection with any failure- to83rd transmitSession the(2025) money– to3 the– designated recipient of the sender.

to transmit the money to the designated recipient of the 5.

Board of trade designated as a contract market under the Commodityperson Exchangethat, Act,in 7the U.S.C.ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board of trade.

§§ 1 et seq., as amended, or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board of trade.

- *AB430* – 4 – 14.

Person expressly appointed as a third-party service provider to or agent of an entity exempt pursuant to subsection 1 to the(a) The third-party service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the extentexempt that:entity that sets forth the specific functions that the third-party service provider or agent is to perform;

(a)and (b) The third-partyexempt serviceentity providerassumes orall agentrisk isof engagingloss inand moneylegal transmissionresponsibility onfor behalfsatisfying ofthe andoutstanding pursuantmoney totransmission aobligations writtenowed agreementto withpurchasers theand exemptholders entityof thatthe setsoutstanding forthmoney thetransmission specificobligations functionsupon thatreceipt by the third-party service- provider83rd orSession agent(2025) is– to4 perform;– holder.

and (b) The exempt entity assumes all risk of loss and legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt by the third-party holder.

TEXT~~~~~ OF25 REPEALED- SECTION83rd 671.275Session Duties(2025) of licensee providing payroll processing services;

exception.

1.

Except as otherwise provided in subsection 2, a licensee that pro(a) Issue to a client a report detailing the payroll obligations for the client before the money or monetary value for payroll is deducted from an account;

and (b) Make available to each worker a paystub or an equivalent statement.

2.

The provisions of subsection 1 do not apply to a licensee providing payroll processing services if the client of the licensee designates the intended recipients to the licensee and is responsible for providing the disclosures required by paragraph (b) of subsection 1.

H - *AB430*