Colorado § 11-110-301 - Exemptions.

§ 11-110-301. Exemptions.

(1) This article 110 does not apply to:

(a) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar money transfers;

(b) A person appointed as an agent of a payee to collect and process a payment from a payer to the payee for goods or services, other than money transmission itself, provided to the payer by the payee, so long as:

(I) There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payers on the payee's behalf;

(II) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf; and

(III) Payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payer's obligation is extinguished and there is no risk of loss to the payer if the agent fails to remit the money to the payee;

(c) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender's designated recipient, if the entity:

(I) Is properly licensed or exempt from licensing requirements under this article 110;

(II) Provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and

(III) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the money to the sender's designated recipient;

(d) The United States or a department, agency, or instrumentality of the United States or its agent;

(e) Money transmission by the United States postal service or by an agent of the United States postal service;

(f) A state, county, or city or any other governmental agency or governmental subdivision or instrumentality of a state or its agent;

(g) A federally insured depository financial institution; a bank holding company; an office of an international banking corporation; a foreign bank that establishes a federal branch pursuant to the federal "International Bank Act", 12 U.S.C. sec. 3102, as amended; a corporation organized pursuant to the federal "Bank Service Corporation Act", 12 U.S.C. secs. 1861 to 1867, as amended; a corporation organized under the "Edge Act", 12 U.S.C. secs. 611 to 633, as amended; or an entity organized under the general banking, savings and loan, or credit union laws of this state, another state, or the United States;

(h) An electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality of the United States or on behalf of a state or governmental subdivision, agency, or instrumentality of a state;

(i) A board of trade designated as a contract market under the federal "Commodity Exchange Act", 7 U.S.C. secs. 1 to 25, 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 such a board;

(j) A registered futures commission merchant under federal commodities laws to the extent of its operation as such a merchant;

(k) A person registered as a securities broker-dealer under federal or state securities laws to the extent of the person's operation as such a broker-dealer;

(l) An individual employed by a licensee, an authorized delegate, or any person exempted from the licensing requirements of this article 110 when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor;

(m) A person expressly appointed as a third-party service provider to or agent of an entity exempt under subsection (1)(g) of this section, solely to the extent that:

(I) The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and

(II) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser's or holder's money or monetary value by the service provider or agent; or

(n) A person exempt by regulation or order if the banking board finds an exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of this article 110.

Source: L. 2025: Entire article R&RE, (HB 25-1201), ch. 91, p. 381, § 1, effective August 6.