SF4495

Purpose

• Establishes a prohibition related to remittances by people who participate in certain public assistance programs. It aims to stop using money transmitters to send money to foreign countries and to add reporting requirements so authorities can enforce the rule.

Key Provisions

• Prohibition on sending remittances abroad

  • People who participate in listed public programs may not use a money transmitter to send money to a foreign country.

• Public programs covered

  • Minnesota family investment program (MFIP)
  • Supplemental Nutrition Assistance Program (SNAP)
  • General Assistance and Minnesota Supplemental Aid
  • Housing Support
  • Medical Assistance (MA)
  • MinnesotaCare
  • Child Care Assistance

• Consequences for violations

  • If a person violates the rule, they can be disenrolled from all public programs they participate in.

• Money transmitter reporting requirement (to state agencies)

  • Money transmitters must report certain information about individuals who send remittances to foreign countries.
  • Reports must be provided on a defined schedule and include identifying information about the individuals involved.

Reporting and Enforcement

• Section 142A.03 (remittance reporting to the Department of Children, Youth and Families)

  • Money transmitters must provide a biannual (every six months) electronic report identifying each individual who used the transmitter to send money abroad in the prior six months.
  • The department must check whether those individuals are enrolled in any public programs (MFIP, SNAP, MA, MinnesotaCare, etc.).
  • If an individual is enrolled, their eligibility for the relevant public program must be terminated according to existing laws and rules.

• Section 256.01 (remittance reporting to the Department of Human Services)

  • Money transmitters must provide a biannual report to the Department of Human Services identifying individuals who sent money abroad in the prior six months.
  • The department must check whether those individuals are enrolled in MA, General Assistance or Minnesota Supplemental Aid, or MinnesotaCare.
  • If enrolled, their eligibility for the public programs must be terminated consistent with current law and regulations.

Significant Changes to Existing Law

• Adds new remittance reporting requirements
  • Creates Subdivision 36 in Chapter 142A.03 (Remittances) for the reporting of remittance activity to the Department of Children, Youth and Families.
  • Creates Subdivision 45 in Chapter 256.01 (Remittances) for the reporting of remittance activity to the Department of Human Services.
• Establishes a new prohibition on remittances to foreign countries for public program participants under a new section (53B.681) and defines the relevant public programs.
• Expands enforcement authority by tying remittance activity to eligibility termination across multiple public programs.

Potential Impacts and Considerations

• Access to money transfer services

  • Public program participants may face new barriers to sending money abroad, depending on whether they can still use money transmitters or must acquire exemptions.

• Privacy and data-sharing concerns

  • State agencies will collect and review identifiable information about individuals who use remittance services, raising questions about data privacy and use.

• Administrative burden

  • Money transmitters have new reporting duties; agencies must process reports and determine program eligibility implications.

• Scope and civil/administrative remedies

  • The bill links remittance activity to automatic termination of public program eligibility, which could affect families’ access to essential support.

Status

• As introduced and referred to Health and Human Services for consideration.

Relevant Terms

• public programs
• money transmitter
• remittance / remittances
• sending money to a foreign country
• disenrollment / termination of eligibility
• MFIP (Minnesota family investment program)
• SNAP (Supplemental Nutrition Assistance Program)
• General Assistance
• Minnesota Supplemental Aid
• housing support
• Medical Assistance (MA)
• MinnesotaCare
• Child Care Assistance
• cross-agency reporting
• Commissioner of Children, Youth and Families
• Commissioner of Human Services
• Chapter 58B (money transmitter licensing)
• Sections 142A.03, 256.01, 53B.681
• biannual reporting
• enrollment status checks
• data reporting and enforcement

Note: This summary focuses on the bill’s stated purpose, main provisions, and changes to law, in plain language. It reflects the introduced text and does not cover potential amendments or final legislative changes.