Sustainable Economies Law Center has been fighting hard and may now be able to take credit for small reforms to one of California’s most draconian and economically repressive laws, the Money Transmission Act (MTA). The MTA presents a nearly insurmountable barrier for small enterprises and cooperatives that facilitate the sale of products and services by receiving payment from one person and transferring it to another.

Most people’s jaws drop when they learn that they may be committing a felony if they do not meet the requirement of a $5,000 initial license application fee, $2,500 annual renewal fee, a $250,000 or $500,000 bond or securities on deposit, and a minimum net worth of $250,000. The CA Department of Business Oversight’s latest draft of proposed regulations incorporates SELC’s suggestions that 501(c)(3) nonprofits be exempt from registration and that the Department create a process for other enterprises to apply for an exemption. It’s a small victory, and we will continue to urge the state to consider SELC’s proposals for a more sensible law.

Learn more about Money Transmission Laws and the potential implications for community currencies, cooperatives, and other small enterprises at CommunityCurrenciesLaw.org