00 HOUSE BILL NO. 180 01 "An Act relating to money transmission and currency exchange businesses; relating to 02 transmitting value that substitutes for money; relating to licensing requirements and 03 registration through the Nationwide Multistate Licensing System and Registry; relating 04 to surety bonding requirements; authorizing certain licensees to contract to use 05 subdelegates for reloading funds on certain stored-value cards; relating to record 06 retention, reporting requirements, and enforcement provisions; relating to exemptions; 07 relating to money services Internet activities; relating to transmitting value and 08 currency; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10  * Section 1. AS 06.55.101(a) is amended to read: 11 (a) Unless exempt under AS 06.55.802, a [A] person may not engage in the 12 business of money transmission or advertise, solicit, or hold the person out as 01 providing money transmission unless the person 02 (1) holds a money transmission license; or 03 (2) is an authorized delegate of a person who holds a money 04 transmission license. 05  * Sec. 2. AS 06.55.101 is amended by adding a new subsection to read: 06 (c) A person required to be licensed under AS 06.55.101 - 06.55.106 shall 07 register with the registry and maintain a valid unique identifier issued by the registry. 08  * Sec. 3. AS 06.55.102 is repealed and reenacted to read: 09 Sec. 06.55.102. Application for license. An application for a money 10 transmission license must 11 (1) be in a format established by the department; 12 (2) contain complete information required by the department; 13 (3) include each control person's fingerprints for submission to the 14 Department of Public Safety or the Federal Bureau of Investigation and any 15 governmental agency or entity authorized to receive that information to obtain a report 16 of criminal justice information and a national criminal history record check; 17 (4) include personal history and experience in a format established by 18 the department to obtain 19 (A) an independent credit report from a consumer reporting 20 agency; and 21 (B) information related to administrative, civil, or criminal 22 findings by a governmental jurisdiction; 23 (5) contain other information or supporting material that the 24 department may require concerning the applicant, including the organization and 25 operations of an applicant for a money transmission license and the financial 26 responsibility, background, experience, and activities of the applicant; 27 (6) include a nonrefundable application fee and an initial license fee, as 28 established by the department; and 29 (7) include a surety bond as required by AS 06.55.104. 30  * Sec. 4. AS 06.55.104(a) is amended to read: 31 (a) A [EXCEPT AS OTHERWISE PROVIDED IN (b) OF THIS SECTION, 01 A] surety bond [, A LETTER OF CREDIT, OR ANOTHER SIMILAR SECURITY 02 ACCEPTABLE TO THE DEPARTMENT IN THE AMOUNT OF $25,000 PLUS 03 $5,000 FOR EACH LOCATION, NOT EXCEEDING A TOTAL ADDITION OF 04 $125,000,] must accompany an application for a money transmission license. The  05 surety bond must be at least $25,000 and may not exceed $1,000,000 as  06 established by the department. 07  * Sec. 5. AS 06.55.104(b) is amended to read: 08 (b) The surety bond [SECURITY] must be in a form satisfactory to the 09 department and payable to the state for the benefit of the state and any person who  10 suffers loss because of a violation of this chapter by a [CLAIMANT AGAINST 11 THE] money transmission licensee or [TO SECURE THE FAITHFUL 12 PERFORMANCE OF THE OBLIGATIONS OF] the money transmission licensee's  13 authorized delegate [LICENSEE WITH RESPECT TO MONEY TRANSMISSION]. 14  * Sec. 6. AS 06.55.104(d) is amended to read: 15 (d) A surety bond must cover claims for as long as the department specifies, 16 but for at least five years after the date the money transmission licensee stops  17 providing [CEASES TO PROVIDE] money services in this state. The [HOWEVER, 18 THE] department may permit the amount of security to be reduced or eliminated 19 before the expiration of that time to the extent the amount of the money transmission 20 licensee's payment instruments or stored-value obligations outstanding [IN THIS 21 STATE] is reduced. [THE DEPARTMENT MAY PERMIT A MONEY 22 TRANSMISSION LICENSEE TO SUBSTITUTE ANOTHER FORM OF 23 SECURITY ACCEPTABLE TO THE DEPARTMENT FOR THE SECURITY 24 EFFECTIVE AT THE TIME THE MONEY TRANSMISSION LICENSEE CEASES 25 TO PROVIDE MONEY SERVICES IN THIS STATE.] 26  * Sec. 7. AS 06.55.104 is amended by adding new subsections to read: 27 (g) The surety bond must be obtained from a surety company authorized to do 28 business in this state. 29 (h) If a money transmission licensee does not maintain a surety bond in the 30 amount required under (a) of this section, the department may issue an order under 31 AS 06.55.603. 01  * Sec. 8. AS 06.55.105(a) is amended to read: 02 (a) When an application is filed under AS 06.55.102, the department shall 03 investigate the applicant's financial condition and responsibility, financial and business 04 experience, competence, character, and general fitness. The department may conduct 05 an [ON-SITE] investigation of the applicant, the reasonable cost of which the 06 applicant shall pay. The department shall issue a money transmission license to an 07 applicant under AS 06.55.102 if the department finds that all of the following 08 conditions have been fulfilled: 09 (1) the applicant has complied with the requirements of this chapter  10 for obtaining the license [AS 06.55.102, 06.55.104, AND 06.55.107]; [AND] 11 (2) the financial condition and responsibility, financial and business 12 experience, competence, character, and general fitness of the applicant [, AND THE 13 COMPETENCE, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF 14 THE EXECUTIVE OFFICERS, MANAGERS, DIRECTORS, AND PERSONS IN 15 CONTROL OF THE APPLICANT] indicate that it is in the interest of the public to 16 permit the applicant to engage in money transmission; and  17 (3) the applicant, including any employees or independent  18 contractors of the applicant, is not listed on the Specially Designated Nationals  19 and Blocked Persons List or any other Office of Foreign Assets Control sanctions  20 list prepared by the United States Department of the Treasury or the United  21 States Department of the Treasury's designated successor agency. 22  * Sec. 9. AS 06.55.105(b) is amended to read: 23 (b) When an application for an original money transmission license under 24 AS 06.55.102 is complete, the department shall promptly notify the applicant in a 25 record of the date on which the application was determined to be complete, and 26 [(1)] the department shall approve or deny the application not later  27 than [WITHIN] 120 days after that date [; OR 28 (2) IF THE APPLICATION IS NOT APPROVED OR DENIED 29 WITHIN 120 DAYS AFTER THAT DATE, 30 (A) THE APPLICATION IS APPROVED; AND 31 (B) THE MONEY TRANSMISSION LICENSE TAKES 01 EFFECT AS OF THE FIRST BUSINESS DAY AFTER EXPIRATION OF 02 THE 120-DAY PERIOD]. 03  * Sec. 10. AS 06.55.105(d) is amended to read: 04 (d) An applicant whose application under AS 06.55.102 is denied by the 05 department under AS 06.55.101 - 06.55.108 [AS 06.55.101 - 06.55.107] may appeal, 06 not later than [WITHIN] 30 days after receipt of the notice of the denial, and request 07 a hearing. 08  * Sec. 11. AS 06.55.105 is amended by adding a new subsection to read: 09 (f) A money transmission license issued under AS 06.55.101 - 06.55.106 10 remains in effect until December 31 of the year in which the money transmission 11 license is issued, unless the money transmission license is revoked, suspended, or 12 surrendered. 13  * Sec. 12. AS 06.55.106 is repealed and reenacted to read: 14 Sec. 06.55.106. Renewal of money transmission license. (a) To renew a 15 money transmission license, a money transmission licensee shall submit to the 16 department a 17 (1) renewal application at a time and in a format established by the 18 department; 19 (2) renewal fee as established by the department; and 20 (3) report identifying any changes in the information that the money 21 transmission licensee previously provided and any additional information requested by 22 the department. 23 (b) The department shall approve or deny the application for renewal of a 24 money transmission license not later than 60 days after the renewal application is 25 filed. 26 (c) An applicant whose renewal application is denied by the department under 27 this section may appeal, not later than 30 days after receipt of the notice of the denial, 28 and request a hearing. 29  * Sec. 13. AS 06.55 is amended by adding a new section to article 1 to read: 30 Sec. 06.55.108. Annual assessment fee and annual report. (a) A money 31 transmission licensee shall pay an annual assessment fee as established by the 01 department not later than the annual assessment fee due date or, if the annual 02 assessment fee due date is not a business day, on the next business day. The 03 department shall establish the annual assessment fee in regulation. 04 (b) A money transmission licensee shall submit an accurate annual report with 05 the annual assessment fee in a format established by the department. 06 (c) If a money transmission licensee does not file an annual report or pay the 07 annual assessment fee by the annual assessment fee due date, the department may 08 assess the licensee a late fee, and may impose another consequence, as established by 09 the department in regulation. 10  * Sec. 14. AS 06.55.201(a) is amended to read: 11 (a) Unless exempt under AS 06.55.802, a [A] person may not engage in the  12 business of currency exchange or advertise, solicit, or hold the person out as providing 13 currency exchange for which the person receives revenue [REVENUES] equal or 14 greater than five percent of total revenue [REVENUES] unless the person 15 (1) holds a currency exchange license; or  16 (2) holds a money transmission license [; OR 17 (3) IS AN AUTHORIZED DELEGATE OF A PERSON WHO 18 HOLDS A MONEY TRANSMISSION LICENSE]. 19  * Sec. 15. AS 06.55.201 is amended by adding a new subsection to read: 20 (c) A person required to be licensed under AS 06.55.201 - 06.55.206 shall 21 register with the registry and maintain a valid unique identifier issued by the registry. 22  * Sec. 16. AS 06.55.202 is repealed and reenacted to read: 23 Sec. 06.55.202. Application for currency exchange license. An application 24 for a currency exchange license must 25 (1) be in a format established by the department; 26 (2) contain complete information required by the department; 27 (3) include each control person's fingerprints for submission to the 28 Department of Public Safety or the Federal Bureau of Investigations and any 29 governmental agency or entity authorized to receive that information to obtain a report 30 of criminal justice information and a national criminal history record check; 31 (4) include personal history and experience in a format established by 01 the department to obtain 02 (A) an independent credit report from a consumer reporting 03 agency; and 04 (B) information related to administrative, civil, or criminal 05 findings by a governmental jurisdiction; 06 (5) contain other information or supporting material that the 07 department may require concerning the applicant, including the organization and 08 operations of an applicant for a currency exchange license and the financial 09 responsibility, background, experience, and activities of the applicant; 10 (6) include a nonrefundable application fee and an initial license fee, as 11 established by the department; 12 (7) include a surety bond as required by AS 06.55.206. 13  * Sec. 17. AS 06.55.203(a) is amended to read: 14 (a) When an application [FOR A CURRENCY EXCHANGE LICENSE] is 15 filed under AS 06.55.202 [AS 06.55.201 - 06.55.204], the department shall investigate 16 the applicant's financial condition and responsibility, financial and business 17 experience, competence, character, and general fitness. The department may conduct 18 an [ON-SITE] investigation of the applicant, the reasonable cost of which the 19 applicant shall pay. The department shall issue a currency exchange license to an 20 applicant under AS 06.55.202 [AS 06.55.201 - 06.55.204] if the department finds that 21 all of the following conditions have been fulfilled: 22 (1) the applicant has complied with the requirements of this chapter  23 for obtaining the currency exchange license under AS 06.55.202; [AND] 24 (2) the financial condition and responsibility, financial and business 25 experience, competence, character, and general fitness of the applicant [, AND THE 26 COMPETENCE, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF 27 THE EXECUTIVE OFFICERS, MANAGERS, DIRECTORS, AND PERSONS IN 28 CONTROL OF THE APPLICANT] indicate that it is in the interest of the public to 29 permit the applicant to engage in currency exchange; and  30 (3) the applicant, including any employees or independent  31 contractors of the applicant, is not listed on the Specially Designated Nationals  01 and Blocked Persons List or any other Office of Foreign Assets Control sanctions  02 list prepared by the United States Department of the Treasury or its designated  03 successor agency. 04  * Sec. 18. AS 06.55.203(b) is amended to read: 05 (b) When an application for an original currency exchange license under 06 AS 06.55.202 [AS 06.55.201 - 06.55.204] is complete, the department shall promptly 07 notify the applicant in a record of the date on which the application was determined to 08 be complete, and 09 [(1)] the department shall approve or deny the application not later  10 than [WITHIN] 120 days after that date [; OR 11 (2) IF THE APPLICATION IS NOT APPROVED OR DENIED 12 WITHIN 120 DAYS AFTER THAT DATE, 13 (A) THE APPLICATION IS APPROVED; AND 14 (B) THE DEPARTMENT SHALL ISSUE THE CURRENCY 15 EXCHANGE LICENSE UNDER AS 06.55.201 - 06.55.204 TO TAKE 16 EFFECT AS OF THE FIRST BUSINESS DAY AFTER EXPIRATION OF 17 THE PERIOD]. 18  * Sec. 19. AS 06.55.203(d) is amended to read: 19 (d) An applicant whose application under AS 06.55.202 is denied by the 20 department under AS 06.55.201 - 06.55.206 [AS 06.55.201 - 06.55.204] may appeal 21 the denial not later than [, WITHIN] 30 days after receipt of the notice of the denial, 22 [FROM THE DENIAL] and request a hearing. 23  * Sec. 20. AS 06.55.203 is amended by adding a new subsection to read: 24 (e) A currency exchange license issued under AS 06.55.201 - 06.55.206 25 remains in effect until December 31 of the year in which the currency exchange 26 license is issued, unless the license is revoked, suspended, or surrendered. 27  * Sec. 21. AS 06.55.204 is repealed and reenacted to read: 28 Sec. 06.55.204. Renewal of license. (a) To renew a currency exchange license, 29 the currency exchange licensee shall submit to the department a 30 (1) renewal application at a time and in a format established by the 31 department; 01 (2) renewal fee as established by the department; and 02 (3) report identifying any changes in the information previously 03 provided by the currency exchange licensee and any additional information requested 04 by the department. 05 (b) The department shall approve or deny the application for renewal of a 06 currency exchange license not later than 60 days after the renewal application is filed. 07 (c) An applicant whose renewal application is denied by the department under 08 this section may appeal, not later than 30 days after receipt of the notice of the denial, 09 and request a hearing. 10  * Sec. 22. AS 06.55 is amended by adding new sections to article 2 to read: 11 Sec. 06.55.206. Security. (a) A surety bond must accompany an application 12 for a currency exchange license. The surety bond must be at least $25,000 and may not 13 exceed $1,000,000 as established by the department. 14 (b) The surety bond must be in a form satisfactory to the department and 15 payable to this state for the benefit of this state and any person or persons who suffer 16 loss because of a violation of this chapter by a currency exchange licensee or a 17 currency exchange licensee's authorized delegate. 18 (c) The aggregate liability on a surety bond may not exceed the principal sum 19 of the bond. A claimant against a currency exchange licensee may maintain an action 20 on the bond, or the department may maintain an action on behalf of the claimant. 21 (d) A surety bond must cover claims for as long as the department specifies, 22 but for at least five years after the date the currency exchange licensee stops providing 23 currency exchange in this state. The department may permit the amount of security to 24 be reduced or eliminated before the expiration of that time to the extent the amount of 25 the currency exchange licensee's outstanding obligations in this state is reduced. 26 (e) The bond shall be obtained from a surety company authorized to do 27 business in this state. 28 (f) If a currency exchange licensee does not maintain a surety bond in the 29 amount required under (a) of this section, the department may issue an order under 30 AS 06.55.603. 31 Sec. 06.55.207. Annual assessment fee and annual report. (a) A currency 01 exchange licensee shall pay an annual assessment fee as established by the department 02 not later than the annual assessment fee due date or, if the annual assessment fee due 03 date is not a business day, on the next business day. The department shall establish the 04 annual assessment fee. 05 (b) A currency exchange licensee shall submit an accurate annual report with 06 the annual assessment fee in a format established by the department. 07 (c) If a currency exchange licensee does not file an annual report or pay the 08 annual assessment fee by the annual assessment fee due date, the department may 09 assess the currency exchange licensee a late fee, and may impose another 10 consequence, as established by the department in regulation. 11  * Sec. 23. AS 06.55.301(b) is amended to read: 12 (b) An authorized delegate shall remit all money owing to the money services 13 licensee under the terms of the contract between the money services licensee and the 14 authorized delegate. In this subsection, "remit" means to make direct payments of 15 money to a money services licensee or its representative authorized to receive the 16 money, or to deposit the money in a bank, credit union, savings and loan  17 association, or another similar financial institution in an account specified by the 18 money services licensee. 19  * Sec. 24. AS 06.55.301(d) is amended to read: 20 (d) An authorized delegate may not provide money services outside the scope 21 of activity permissible under the contract between the authorized delegate and the 22 money services licensee, except activity in which the authorized delegate is authorized 23 to engage under AS 06.55.101 - 06.55.206 [AS 06.55.101 - 06.55.204]. An authorized 24 delegate of a money services licensee holds in trust for the benefit of the money 25 services licensee all money net of fees received from money services 26 [TRANSMISSION]. 27  * Sec. 25. AS 06.55 is amended by adding a new section to article 3 to read: 28 Sec. 06.55.304. Limited authorization of subdelegate. (a) A money services 29 licensee may contract with another money services licensee to use the other money 30 services licensee's existing authorized delegate as a subdelegate to load funds on the 31 first money services licensee's existing open-loop stored-value cards. If the 01 subdelegate sells new open-loop stored-value cards for the first licensee, the money 02 services licensee shall add the subdelegate to the licensee's authorized delegate roster. 03 (b) A money services licensee shall maintain all contracts under (a) of this 04 section as part of the licensee's books and records and make them available to the 05 department on request. 06  * Sec. 26. AS 06.55.401 is repealed and reenacted to read:  07 Sec. 06.55.401. Authority to conduct examinations. (a) A money services 08 licensee or another person subject to this chapter shall make available to the 09 department on request the place of business, books, records, accounts, safes, and 10 vaults relating to the operations of the money services licensee or other person subject 11 to this chapter. The department may interview any person, including a control person, 12 officer, principal, employee, authorized delegate, and customer of the money services 13 licensee or other person subject to this chapter concerning the licensee's or other 14 person's business. 15 (b) The department may conduct an examination or investigation of the books, 16 records, accounts, papers, documents, files, and other information used in the business 17 of a money services licensee or its authorized delegates in conjunction with 18 representatives of other state agencies or agencies of another state or the federal 19 government. The department may accept an examination report or investigation report 20 of an agency of this state, another state, or the federal government. 21 (c) A joint examination or investigation, or an acceptance of an examination 22 or investigation report, does not preclude the department from conducting an 23 examination or investigation under this chapter. A joint report or a report accepted 24 under this section is an official report of the department for all purposes. 25 (d) For the purpose of hearings, investigations, or other proceedings under this 26 chapter, the department or an officer designated by the department may administer 27 oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take 28 evidence, and require the production of books, papers, correspondence, memoranda, 29 agreements, or other documents or records that the department considers relevant or 30 material to the matter. Information obtained during an examination under this chapter 31 may be disclosed only as provided in AS 06.55.407. 01 (e) A person shall reimburse the department for reasonable costs incurred by 02 the department to conduct an examination or investigation of the person under this 03 section. 04  * Sec. 27. AS 06.55.402 is amended to read: 05 Sec. 06.55.402. Cooperation; consultation. The department may consult and 06 cooperate with other state and federal [MONEY SERVICES] regulators in enforcing 07 and administering this chapter. [THE DEPARTMENT AND OTHER STATE 08 MONEY SERVICE REGULATORS MAY JOINTLY PURSUE EXAMINATIONS 09 AND TAKE OTHER OFFICIAL ACTION THAT THEY ARE OTHERWISE 10 EMPOWERED TO TAKE.] 11  * Sec. 28. AS 06.55.403(b) is repealed and reenacted to read:  12 (b) A money services licensee shall file with the department not later than 45 13 days after the end of each fiscal quarter a report containing information about the 14 licensee, its locations, authorized delegates, and other information required by the 15 department. The department shall establish the content and format of the report. 16  * Sec. 29. AS 06.55.403(c) is amended to read: 17 (c) A money services licensee shall file a report with the department not later  18 than [WITHIN] one business day after the money services licensee has reason to 19 know of the occurrence of one or more [ANY] of the following events: 20 (1) the filing of a petition by or against the money services licensee 21 under 11 U.S.C. 101 - 112 [11 U.S.C. 101 - 110] (Bankruptcy Code) for bankruptcy or 22 reorganization; 23 (2) the filing of a petition by or against the money services licensee for 24 receivership, the commencement of any other judicial or administrative proceeding for 25 its dissolution or reorganization, or the making of a general assignment for the benefit 26 of its creditors; 27 (3) the commencement of a proceeding to revoke or suspend its money 28 services license in a state or country in which the money services licensee engages in 29 business or is licensed; 30 (4) the cancellation or other impairment of the money services 31 licensee's bond [OR OTHER SECURITY]; 01 (5) a charge against or conviction of the money services licensee or of 02 an [EXECUTIVE] officer, manager, director, or control person [IN CONTROL] of 03 the money services licensee for a felony; or 04 (6) a charge against or conviction of an authorized delegate for a 05 felony. 06  * Sec. 30. AS 06.55.403 is amended by adding a new subsection to read: 07 (d) The department may establish a late fee or other consequence for a money 08 services licensee who fails to file a report as required by this section. 09  * Sec. 31. AS 06.55.404(a) is amended to read: 10 (a) A money services licensee shall 11 (1) give the department notice in a record 30 days before [OF] a 12 proposed change of control [WITHIN 15 DAYS AFTER LEARNING OF THE 13 PROPOSED CHANGE OF CONTROL]; 14 (2) request approval of the change of control by submitting the  15 information required by the department [ACQUISITION]; and 16 (3) submit a nonrefundable fee with the notice as required by the  17 department. 18  * Sec. 32. AS 06.55.404(d) is amended to read: 19 (d) When an application for a change of control [UNDER AS 06.55.401 - 20 06.55.407] is complete, the department shall notify the money services licensee in a 21 record of the date on which the request was determined to be complete, and 22 [(1)] the department shall approve or deny the request not later than 23 [WITHIN] 120 days after that date [; OR 24 (2) IF THE REQUEST IS NOT APPROVED OR DENIED WITHIN 25 120 DAYS AFTER THAT DATE, 26 (A) THE REQUEST IS APPROVED; AND 27 (B) THE DEPARTMENT SHALL PERMIT THE CHANGE 28 OF CONTROL UNDER THIS SECTION, TO TAKE EFFECT AS OF THE 29 FIRST BUSINESS DAY AFTER EXPIRATION OF THE PERIOD]. 30  * Sec. 33. AS 06.55.405(a) is amended to read: 31 (a) A money services licensee shall maintain the following records for 01 determining its compliance with this chapter for at least five [THREE] years: 02 (1) a record of each payment instrument or stored-value obligation 03 sold; 04 (2) a general ledger posted at least monthly containing all asset, 05 liability, capital, income, and expense accounts; 06 (3) bank statements and bank reconciliation records; 07 (4) records of outstanding payment instruments and stored-value 08 obligations; 09 (5) records of each payment instrument and stored-value obligation 10 paid within the five-year [THREE-YEAR] period; 11 (6) a list of the last known names and addresses of all of the money 12 services licensee's authorized delegates; [AND] 13 (7) copies of all currency transaction reports and suspicious  14 activity reports filed in compliance with AS 06.55.406; and  15 (8) any other records the department reasonably requires by regulation. 16  * Sec. 34. AS 06.55.405(b) is amended to read: 17 (b) The items specified in (a) of this section shall [MAY] be provided 18 [MAINTAINED] in a format established by the department [ANY FORM OF 19 RECORD]. 20  * Sec. 35. AS 06.55.406(a) is amended to read: 21 (a) A money services licensee and an authorized delegate shall file with the 22 United States Department of the Treasury, or its designated successor agency, 23 [ATTORNEY GENERAL] all reports required by federal currency reporting, record 24 keeping, and suspicious transaction reporting requirements as set out in 31 U.S.C.  25 5311 - 5332 [31 U.S.C. 5311, 31 C.F.R. 103,] and other federal and state laws 26 pertaining to money laundering. 27  * Sec. 36. AS 06.55.407(b) is amended to read: 28 (b) The department may disclose information that is not otherwise subject to 29 disclosure under (a) of this section to representatives of state or federal agencies who 30 agree in writing to [PROMISE IN A RECORD THAT THEY WILL] maintain the 31 confidentiality of the information or if the department finds that the release is 01 reasonably necessary for the protection of the public and in the interests of justice [, 02 AND THE MONEY SERVICES LICENSEE HAS BEEN GIVEN PREVIOUS 03 NOTICE BY THE DEPARTMENT OF ITS INTENT TO RELEASE THE 04 INFORMATION]. 05  * Sec. 37. AS 06.55.407(c) is amended to read: 06 (c) This section does not prohibit the department from disclosing to the public 07 (1) a list of money services licensees or authorized delegates,  08 including addresses and the names of contact individuals;  09 (2) the identity of a money services licensee or authorized delegate  10 subject to an emergency or final order of the department; or  11 (3) the aggregated financial data of [CONCERNING THOSE] money 12 services licensees. 13  * Sec. 38. AS 06.55.501(a) is amended to read: 14 (a) Except as provided in (b) of this section, a [A] money services licensee 15 shall maintain at all times permissible investments that have a market value computed 16 under generally accepted accounting principles of not less than the aggregate amount 17 of all of its outstanding payment instruments and stored-value [STORED VALUE] 18 obligations issued or sold in all states and money transmitted from all states by the 19 money services licensee. 20  * Sec. 39. AS 06.55.501(c) is amended to read: 21 (c) A permissible investment subject to this section [PERMISSIBLE 22 INVESTMENTS], even if commingled with other assets of the money services 23 licensee, is considered by operation of law to be [ARE] held in trust for the benefit 24 of any individual to whom an obligation arising under this chapter is owed by the  25 money services licensee and may not be considered an asset or property of the  26 money services licensee [THE PURCHASERS AND HOLDERS OF THE MONEY 27 SERVICES LICENSEE'S OUTSTANDING PAYMENT INSTRUMENTS AND 28 STORED VALUE OBLIGATIONS] in the event of bankruptcy, [OR] receivership, or  29 a claim against [OF] the money services licensee unrelated to any of the money  30 services licensee's obligations under this chapter. 31  * Sec. 40. AS 06.55.601 is amended to read: 01 Sec. 06.55.601. Suspension and revocation; receivership. (a) The 02 department may issue an order under AS 06.55.603 to suspend or revoke a money 03 services license, place a money services licensee in receivership, or order a money 04 services licensee to revoke the designation of an authorized delegate if 05 (1) the money services licensee violates this chapter or a regulation 06 adopted or an order issued under this chapter; 07 (2) the money services licensee does not permit or cooperate with an 08 examination or investigation by the department; 09 (3) the money services licensee engages in fraud, intentional 10 misrepresentation, or gross negligence; 11 (4) a money services licensee or an authorized delegate is convicted 12 of a violation of a state or federal anti-money laundering statute or a law listed in  13 AS 06.55.860, or violates a regulation adopted or an order issued under this chapter, as 14 a result of the money services licensee's wilful misconduct or wilful blindness; 15 (5) the competence, experience, character, or general fitness of the 16 money services licensee, authorized delegate, control person [IN CONTROL] of a 17 money services licensee, or responsible person of the money services licensee or 18 authorized delegate indicates that it is not in the public interest to permit the person to 19 provide money services; 20 (6) the money services licensee engages in an unsafe or unsound 21 practice; 22 (7) the money services licensee is insolvent, suspends payment of its 23 obligations, or makes a general assignment for the benefit of its creditors; [OR] 24 (8) the money services licensee does not remove an authorized 25 delegate after the department issues and serves upon the money services licensee a 26 final order including a finding that the authorized delegate has violated this chapter;  27 (9) a fact or condition exists that, if it had been known at the time  28 the money services licensee applied for the license, would have been grounds for  29 denying the application;  30 (10) the money services licensee engages in false, misleading, or  31 deceptive advertising;  01 (11) the money services licensee fails to pay, not later than the 30th  02 day after the date the stay of execution expires or is terminated, as applicable, a  03 judgment entered in favor of a claimant or creditor in an action arising out of the  04 money services licensee's activities under this chapter; or  05 (12) the money services licensee knowingly makes a material  06 misstatement or suppresses or withholds material information on an application,  07 request for approval, report, or other document required to be filed with the  08 department under this chapter. 09 (b) In determining whether a money services licensee is engaging in an unsafe 10 or unsound practice, the department may consider the size and condition of the money 11 services licensee's money transmission or currency exchange, the magnitude of the 12 loss or potential loss, the gravity of the violation of this chapter or a regulation  13 adopted, an order issued under this chapter, or an action taken against the  14 money services licensee by this state, another state, or the federal government, 15 and the previous conduct of the person involved. 16  * Sec. 41. AS 06.55.602 is amended to read: 17 Sec. 06.55.602. Suspension and revocation of authorized delegates. (a) The 18 department may issue an order under AS 06.55.603 to suspend or revoke 19 [SUSPENDING OR REVOKING] the designation of an authorized delegate or the  20 designation of a subdelegate if [THE DEPARTMENT FINDS THAT] 21 (1) the authorized delegate or subdelegate violated this chapter, [OR] 22 a regulation adopted or an order issued under this chapter, or any other state or  23 federal order enforcing a law applicable to a money services business; 24 (2) the authorized delegate or subdelegate did not permit or 25 cooperate with an examination or investigation by the department; 26 (3) in connection with the operation of the delegate's business on  27 behalf of the money services licensee or any transaction subject to this chapter, 28 the authorized delegate or subdelegate has engaged in fraud, intentional 29 misrepresentation, deceit, [OR] gross negligence, or an unfair or deceptive act or  30 practice; 31 (4) the authorized delegate or subdelegate is convicted of a violation 01 of a state or federal anti-money laundering statute or a law listed in AS 06.55.860; 02 (5) the competence, experience, character, or general fitness of the 03 authorized delegate or subdelegate, or a control person [IN CONTROL] of the 04 authorized delegate or subdelegate, indicates that it is not in the public interest to 05 permit the authorized delegate or subdelegate to provide money services; [OR] 06 (6) the authorized delegate or subdelegate is engaging in an unsafe or 07 unsound practice; or  08 (7) the authorized delegate, a control person of the authorized  09 delegate, or the subdelegate is listed on the Specially Designated Nationals List  10 and the List of Persons Identified as Blocked Solely Pursuant to Executive Order  11 13599, or any other Office of Foreign Assets Control sanctions list prepared by  12 the United States Department of the Treasury, or the United States Department  13 of the Treasury's designated successor agency. 14 (b) In determining whether an authorized delegate or subdelegate is engaging 15 in an unsafe or unsound practice, the department may consider the size and condition 16 of the authorized delegate's or subdelegate's provision of money services, the 17 magnitude of the loss or potential loss, the gravity of the violation of this chapter or a 18 regulation adopted, an [OR] order issued under this chapter, or an action taken  19 against the delegate or subdelegate by this state, another state, or the federal  20 government, and the previous conduct of the authorized delegate or subdelegate. 21  * Sec. 42. AS 06.55.603(a) is amended to read: 22 (a) If the department determines that a violation of this chapter, or of a 23 regulation adopted or an order issued under this chapter, by a person [MONEY 24 SERVICES LICENSEE OR AUTHORIZED DELEGATE] is likely to cause 25 immediate and irreparable harm to the person [MONEY SERVICES LICENSEE], the  26 person's [ITS] customers, or the public as a result of the violation, or cause 27 insolvency or significant dissipation of the assets of the person [MONEY SERVICES 28 LICENSEE], the department may issue an administrative order [REQUIRING THE 29 MONEY SERVICES LICENSEE OR AUTHORIZED DELEGATE TO CEASE 30 AND DESIST FROM THE VIOLATION]. The order becomes effective on service of 31 the order [IT] on the person [MONEY SERVICES LICENSEE OR AUTHORIZED 01 DELEGATE]. 02  * Sec. 43. AS 06.55.603(b) is amended to read: 03 (b) The department may issue an order against a person [MONEY 04 SERVICES LICENSEE] to 05 (1) stop [CEASE AND DESIST FROM] providing money services;  06 (2) compel payment of restitution to damaged parties;  07 (3) require affirmative action to comply with this chapter or a  08 regulation adopted under this chapter; and  09 (4) remove from office or prohibit from participation an officer,  10 control person, or employee [THROUGH AN AUTHORIZED DELEGATE WHO 11 IS THE SUBJECT OF A SEPARATE ORDER BY THE DEPARTMENT]. 12  * Sec. 44. AS 06.55.603(c) is amended to read: 13 (c) An order [TO CEASE AND DESIST] remains effective and enforceable 14 pending the completion of an administrative proceeding under AS 06.55.701 or  15 06.55.702 [AS 06.55.601 OR 06.55.602]. 16  * Sec. 45. AS 06.55.603(d) is amended to read: 17 (d) A person [MONEY SERVICES LICENSEE OR AN AUTHORIZED 18 DELEGATE] who is served with an order [TO CEASE AND DESIST] may petition 19 the superior court for a judicial order setting aside, limiting, or suspending the 20 enforcement, operation, or effectiveness of the order pending the completion of an 21 administrative proceeding under AS 06.55.701 or 06.55.702 [AS 06.55.601 OR 22 06.55.602]. 23  * Sec. 46. AS 06.55.607(a) is amended to read: 24 (a) If the department has reason to believe that a person who is not a money  25 transmission licensee under AS 06.55.101, currency exchange licensee under  26 AS 06.55.201, authorized delegate under AS 06.55.301, or subdelegate under  27 AS 06.55.304 has violated or is violating AS 06.55.101 or 06.55.201, the department 28 may issue an order under AS 06.55.603 [TO SHOW CAUSE WHY AN ORDER TO 29 CEASE AND DESIST SHOULD NOT ISSUE REQUIRING THAT THE PERSON 30 CEASE AND DESIST FROM THE VIOLATION OF AS 06.55.101 OR 06.55.201]. 31  * Sec. 47. AS 06.55.607(c) is amended to read: 01 (c) An order [TO CEASE AND DESIST] becomes effective upon service of 02 the order on [IT UPON] the person. 03  * Sec. 48. AS 06.55.607(d) is amended to read: 04 (d) An order [TO CEASE AND DESIST] remains effective and enforceable 05 pending the completion of an administrative proceeding under AS 06.55.701 and 06 06.55.702. 07  * Sec. 49. AS 06.55.607 is amended by adding a new subsection to read: 08 (g) An order issued by the department may include a monetary penalty in 09 addition to a civil penalty authorized under AS 06.55.605 or established by regulation, 10 if the department has reason to believe that a person who is not a money transmission 11 licensee under AS 06.55.101, currency exchange licensee under AS 06.55.201, 12 authorized delegate under AS 06.55.301, or subdelegate under AS 06.55.304 has 13 violated or is violating AS 06.55.101 or 06.55.201. 14  * Sec. 50. AS 06.55.702(a) is amended to read: 15 (a) Except as otherwise provided in AS 06.55.603 and 06.55.607 [AND IN (b) 16 OF THIS SECTION], the department may not suspend or revoke a money services 17 license, place a money services licensee in receivership, issue an order to cease and 18 desist, suspend, or revoke the designation of an authorized delegate, or assess a civil 19 penalty without notice and an opportunity to be heard. The department shall also hold 20 a hearing when requested to hold a hearing by an applicant whose application for a 21 money services license is denied. 22  * Sec. 51. AS 06.55.802 is amended to read: 23 Sec. 06.55.802. Exemptions [EXCLUSIONS]. This chapter does not apply to 24 (1) the United States or a department, an agency, or an instrumentality 25 of the United States; 26 (2) money transmission by the United States Postal Service or by a 27 contractor on behalf of the United States Postal Service; 28 (3) a state, a municipality, a county, or another governmental agency 29 or governmental subdivision of a state; 30 (4) a bank, a bank holding company, an office of an international 31 banking corporation, a branch of a foreign bank, a corporation organized under 12 01 U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12 02 U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States, if it does 03 not issue, sell, or provide payment instruments or stored value through an authorized 04 delegate who is not a bank, a bank holding company, an office of an international 05 banking corporation, a branch of a foreign bank, a corporation organized under 12 06 U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12 07 U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States; 08 (5) electronic funds transfer of governmental benefits for a federal, 09 state, or municipal agency or a state political subdivision by a contractor on behalf of 10 (A) the United States or a department, an agency, or an 11 instrumentality of the United States; or 12 (B) a state, or a department, an agency, or an instrumentality of 13 a state; 14 (6) a board of trade or a person who, in the ordinary course of 15 business, provides clearance and settlement services for a board of trade, to the extent 16 of the operation of the person for a board of trade; in this paragraph, "board of trade" 17 means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f 18 (Commodity Exchange Act); 19 (7) a registered futures commission merchant under the federal 20 commodities laws, to the extent of the merchant's operation as a registered futures 21 commission merchant under the federal commodities laws; 22 (8) a person who provides clearance or settlement services under a 23 registration as a clearing agency or an exemption from the registration granted under 24 the federal securities laws, to the extent of the person's operation as a provider of 25 clearance or settlement services under a registration as a clearing agency or an 26 exemption from the registration granted under the federal securities laws; 27 (9) an operator of a payment system to the extent that the operator 28 provides processing, clearing, or settlement services, between or among persons 29 excluded by this section, in connection with wire transfers, credit card transactions, 30 debit card transactions, stored-value transactions, automated clearing house transfers, 31 or similar funds transfers; [OR] 01 (10) a person registered as a securities broker-dealer under federal or 02 state securities laws, to the extent of the person's operation as a securities broker- 03 dealer under federal or state securities laws;  04 (11) an insurance company, title insurance company, or escrow  05 agent, to the extent that the entity is lawfully authorized to conduct business in  06 this state as an insurance company, title insurance company, or escrow agent and  07 to the extent that the entity engages in money transmission or currency exchange  08 as an ancillary service when conducting insurance, title insurance, or escrow  09 activity; or  10 (12) an attorney, to the extent that the attorney is lawfully  11 authorized to practice law in this state and to the extent that the attorney engages  12 in money transmission or currency exchange as an ancillary service to the  13 practice of law. 14  * Sec. 52. AS 06.55.810 is amended to read: 15 Sec. 06.55.810. Notices required. (a) A money services licensee shall provide  16 a customer with a notice of how to file a complaint. A money services licensee  17 shall provide notice [DISPLAY A SIGN] at each location where the money services 18 licensee 19 (1) provides money services under this chapter; and 20 (2) has not designated an authorized delegate or subdelegate to 21 provide money services on behalf of the money services licensee at the location. 22 (b) An authorized delegate shall provide [DISPLAY] a notice of how to file a  23 complaint [SIGN] at each location where the authorized delegate or subdelegate 24 provides money services under this chapter. 25 (c) The notice [SIGN] required by (a) or (b) of this section must [SHALL] be 26 in a format and contain the information required by the department 27 [DISPLAYED AT ALL TIMES IN FULL VIEW OF PERSONS VISITING THE 28 LOCATION AND SHALL GIVE THE DEPARTMENT'S ADDRESS AND THE 29 DEPARTMENT'S TELEPHONE NUMBER FOR RECEIVING CALLS 30 REGARDING COMPLAINTS AND OTHER CONCERNS ABOUT MONEY 31 SERVICES LICENSEES, AUTHORIZED DELEGATES, AND THE MONEY 01 SERVICES PROVIDED BY MONEY SERVICES LICENSEES AND 02 AUTHORIZED DELEGATES]. 03  * Sec. 53. AS 06.55.820 is repealed and reenacted to read:  04 Sec. 06.55.820. Transmission, receipt, and refund. A money services 05 licensee who receives money or equivalent value for money transmission or currency 06 exchange shall comply with transmission, receipt, and refund provisions according to 07 federal law under 12 C.F.R. Part 1005, Subpart B (Federal Remittance Transfer Rule) 08 and any requirements established by the department. 09  * Sec. 54. AS 06.55 is amended by adding new sections to read: 10 Sec. 06.55.855. Virtual currency. In this chapter, a reference to virtual 11 currency shall be broadly construed to cover digital units of exchange that 12 (1) have a centralized repository; in this paragraph, "centralized 13 repository" means a single third-party administrating authority that controls the 14 system, issues the currency, establishes the rules for the currency's use, maintains a 15 central payment ledger, and has authority to redeem the currency or withdraw the 16 currency from circulation; 17 (2) are decentralized, distributive, open-source, math-based, peer-to- 18 peer virtual currency with no central administrating authority and no central 19 monitoring or oversight; in this paragraph, 20 (A) "distributive" means validated through distribution among 21 a network of participants who run an algorithm to validate the transaction; 22 (B) "open-source" means available through software that can 23 be downloaded for free from an Internet website to send, receive, and store 24 virtual currency; or 25 (3) may be created or obtained by computing or manufacturing effort. 26 Sec. 06.55.860. Compliance with federal requirements. A person subject to 27 this chapter shall conduct the person's money services activities in compliance with 28 (1) 12 U.S.C. 1829b (Federal Deposit Insurance Act); 29 (2) 12 U.S.C. 1951 - 1959; 30 (3) 18 U.S.C. 981 - 982 (Money Laundering Control Act of 1986); 31 (4) 31 U.S.C. 5311 - 5314; 01 (5) 31 U.S.C. 5316 - 5329; 02 (6) 31 U.S.C. 5330 (Money Laundering Suppression Act of 1994); 03 (7) 31 U.S.C. 5331 - 5332 (International Money Laundering 04 Abatement and Financial Anti-Terrorism Act of 2001); and 05 (8) any other federal statute or regulation the purpose of which is to 06 regulate money transmission, currency exchange, or money services. 07 Sec. 06.55.870. Unclaimed property. A person subject to this chapter shall 08 comply with AS 34.45 (Uniform Unclaimed Property Act). 09 Sec. 06.55.880. Application to Internet activities. This chapter applies to a 10 person who engages in activities regulated under this chapter by using an Internet 11 website from within or outside the state. 12 Sec. 06.55.885. Open-loop stored-value reloads. In addition to any other 13 method allowed under this chapter, if a money services licensee, authorized delegate, 14 or subdelegate reloads funds under this chapter on an open-loop stored-value card, the 15 money services licensee, authorized delegate, or subdelegate may reload the funds by 16 using an Internet website. 17  * Sec. 55. AS 06.55 is amended by adding new sections to article 9 to read: 18 Sec. 06.55.900. Administration. (a) The department may require an applicant 19 or a licensee to submit information, documentation, or payment of a fee required under 20 this chapter through the registry in a format established by the department and 21 acceptable to the registry. 22 (b) The department may use the registry for obtaining information required for 23 licensing purposes under this chapter, including 24 (1) criminal history record information from the Federal Bureau of 25 Investigation, the United States Department of Justice, or any other agency or entity 26 identified by the department; 27 (2) information related to administrative, civil, or criminal findings by 28 other states.  29 Sec. 06.55.910. Regulations. The department may adopt regulations under 30 AS 44.62 (Administrative Procedure Act) to implement this chapter. 31  * Sec. 56. AS 06.55.990(3) is amended to read: 01 (3) "control" means 02 (A) the ownership of, or the power to vote, directly or 03 indirectly, at least 10 [25] percent, including the voting securities or voting  04 interests of any spouse, parent, or child, of a class of voting securities or 05 voting interests of 06 (i) a money services licensee; or 07 (ii) a person that owns or has the power to vote,  08 directly or indirectly, at least 10 percent, including the voting  09 securities or voting interests of any spouse, parent, or child of the  10 voting securities or voting interests of the [IN CONTROL OF A] 11 money services licensee referred to in (i) of this subparagraph; 12 (B) the power to elect a majority of [EXECUTIVE] officers, 13 managers, directors, trustees, or other persons exercising managerial authority 14 of 15 (i) a money services licensee; or 16 (ii) a person that has the power to elect a majority of  17 officers, managers, directors, trustees, or other persons exercising  18 managerial authority of the [IN CONTROL OF A] money services 19 licensee referred to in (i) of this subparagraph; or 20 (C) the power to exercise, directly or indirectly, an [A 21 CONTROLLING] influence over the management or policies of 22 (i) a money services licensee; or 23 (ii) a person that has the power to exercise, directly  24 or indirectly, an influence over the management or policies of the 25 [IN CONTROL OF A] money services licensee referred to in (i) of  26 this subparagraph; 27  * Sec. 57. AS 06.55.990(5) is amended to read: 28 (5) "currency exchange license" means a license under AS 06.55.201 -  29 06.55.207 [AS 06.55.201 - 06.55.204]; 30  * Sec. 58. AS 06.55.990(15) is repealed and reenacted to read: 31 (15) "money transmission" means 01 (A) the acceptance and the transmission of currency, funds, or 02 other value that substitutes for currency from one person to another location or 03 person within the United States or to locations abroad, by 04 (i) a financial agency or institution; 05 (ii) an electronic funds transfer network; 06 (iii) wire; 07 (iv) facsimile; 08 (v) payment instrument; 09 (vi) an informal value transfer system; in this sub- 10 subparagraph, "informal value transfer system" means a system, 11 mechanism, or network that receives money for the purpose of making 12 funds or an equivalent value payable to a third party in another 13 geographic location, whether or not in the same form, and that 14 generally takes place outside of a conventional banking system through 15 nonbank financial institutions or other business entities whose primary 16 business activity is not limited to the transmission of money; or 17 (vii) any other means; 18 (B) selling, issuing, or acting as an intermediary for open-loop 19 stored-value devices and payment instruments; or 20 (C) conducting the following types of activity in this state or 21 involving a resident of this state: 22 (i) receiving virtual currency for transmission; 23 (ii) transmitting virtual currency; 24 (iii) securing, storing, holding, or maintaining custody 25 or control of virtual currency on behalf of others; 26 (iv) buying and selling virtual currency as or through a 27 third party; 28 (v) performing retail conversion services, including the 29 conversion or exchange of fiat currency or other value into virtual 30 currency, the conversion or exchange of virtual currency into fiat 31 currency or other value, or the conversion or exchange of one form of 01 virtual currency into another form of virtual currency; or 02 (vi) controlling, administering, or issuing virtual 03 currency; 04  * Sec. 59. AS 06.55.990(16) is amended to read: 05 (16) "money transmission license" means a license under 06 AS 06.55.101 - 06.55.108 [AS 06.55.101 - 06.55.107 OR AN APPROVAL UNDER 07 AS 06.55.103]; 08  * Sec. 60. AS 06.55.990(18) is repealed and reenacted to read: 09 (18) "outstanding" means 10 (A) with respect to a payment instrument, a payment 11 instrument that has been issued and sold in the United States directly by a 12 money services licensee, or sold by an authorized delegate or subdelegate of 13 the money services licensee in the United States and reported to the money 14 services licensee, that has not yet been paid by or for the money services 15 licensee; 16 (B) with respect to a stored value, a stored value that has been 17 issued and sold in the United States directly by a money services licensee, or 18 sold by an authorized delegate or subdelegate of the money services licensee in 19 the United States and reported to the money services licensee, until the funds 20 are deposited into the stored value program's issuing bank account; or 21 (C) with respect to money transmission, a money transmission 22 for which the money transmission licensee, directly or through an authorized 23 delegate of the money transmission licensee, has received money or monetary 24 value from the customer for transmission, but has not yet completed the money 25 transmission by delivering the money or monetary value to the person 26 designated by the customer or refunded the money or monetary value to the 27 customer; 28  * Sec. 61. AS 06.55.990(19) is amended to read: 29 (19) "payment instrument" 30 (A) means an electronic or written [A] check, a draft, a 31 money order, a traveler's check, or another electronic or written instrument 01 order for the transmission or payment of money or monetary value, whether or 02 not the instrument is negotiable;  03 (B) [, BUT] does not include a credit card voucher, a letter of 04 credit, or any other [AN] instrument that is redeemable by the issuer in goods 05 or services; 06  * Sec. 62. AS 06.55.990(20) is amended to read: 07 (20) "person" means an individual, a corporation, a business trust, an 08 estate, a trust, a partnership, a limited liability company, an association, a joint 09 venture, a government, a governmental subdivision, a governmental [AN] agency, a  10 governmental [OR AN] instrumentality, a public corporation, or any other legal or 11 commercial entity; 12  * Sec. 63. AS 06.55.990(23) is amended to read: 13 (23) "stored value" 14 (A) means 15 (i) monetary value that is evidenced by an electronic 16 record that is prefunded and for which value is reduced on each  17 use;  18 (ii) access to funds or the value of funds that have  19 been paid in advance and can be retrieved or transferred at some  20 point in the future through an electronic device or vehicle; in this  21 sub-subparagraph, "electronic device or vehicle" means a card  22 code, electronic serial number, mobile identification number,  23 personal identification number, or other electronic device or  24 vehicle;  25 (B) does not include an electronic record that is primarily  26 intended to be redeemable only for goods or services from a specified  27 merchant or set of affiliated merchants, or others involved in transactions  28 functionally related to the issuer or the issuer's affiliates; 29  * Sec. 64. AS 06.55.990(24) is amended to read: 30 (24) "unsafe or unsound practice" means a practice or conduct by a 31 money services [TRANSMISSION] licensee or an authorized delegate or  01 subdelegate of the money services [TRANSMISSION] licensee if the practice creates 02 the likelihood of material loss, insolvency, or dissipation of the money services 03 [TRANSMISSION] licensee's assets, or otherwise materially prejudices the interests 04 of the money services [TRANSMISSION] licensee's customers. 05  * Sec. 65. AS 06.55.990 is amended by adding new paragraphs to read: 06 (25) "applicant" means a person filing an application to receive a 07 money services license, whether the filing is done by the owner, a control person, an 08 officer, a director, or a manager of the person to receive the money services license; 09 (26) "currency" means the coin and paper money of the United States 10 or a foreign government that is 11 (A) designated as legal tender and circulates; and 12 (B) customarily used and accepted as a medium of exchange in 13 the country of issuance; 14 (27) "fiat currency" means government-issued currency that is 15 designated as legal tender in its country of issuance through government decree, 16 regulation, or law; 17 (28) "funds" means money or other value that may be accepted for 18 money; 19 (29) "medium of exchange" means something commonly accepted in 20 exchange for goods and services and recognized as representing a standard of value; 21 (30) "money laundering" means an activity criminalized by 18 U.S.C. 22 1956 or 1957, or an activity that would be criminalized by 18 U.S.C. 1956 or 1957 if 23 the activity occurred in the United States; 24 (31) "officer" means a president, a chair of the executive committee, a 25 chief financial officer, a chief compliance officer, a responsible individual, or another 26 individual who performs similar functions; in this paragraph, "responsible individual" 27 means an individual who is employed by a money services licensee and has principal 28 managerial authority over the provision of money services by the money services 29 licensee in this state; 30 (32) "open-loop stored value" means stored value redeemable at 31 (A) multiple, unaffiliated merchants or service providers; or 01 (B) automated teller machines; 02 (33) "payment system" means a system enabling the transfer of funds 03 between parties; 04 (34) "registry" means the Nationwide Multistate Licensing System and 05 Registry; in this paragraph, "Nationwide Multistate Licensing System and Registry" 06 means a licensing system developed by the Conference of State Bank Supervisors and 07 the American Association of Residential Mortgage Regulators and owned and 08 operated by the State Regulatory Registry, LLC, or a successor or an affiliated entity, 09 for the licensing and registration of persons in the mortgage and other financial 10 services industries; 11 (35) "subdelegate" means an authorized delegate that provides limited 12 money services on behalf of a money services licensee without having a direct 13 contractual relationship with the money services licensee; 14 (36) "virtual currency" 15 (A) means a digital representation of value that does not have 16 legal tender status in the United States but 17 (i) can be digitally traded and functions as a medium of 18 exchange, a unit of account, a store of value; or 19 (ii) is incorporated into payment system technology; 20 (B) does not include digital units that are used 21 (i) solely within online gaming platforms with no 22 market or application outside of those gaming platforms; or 23 (ii) exclusively as part of a customer affinity or rewards program, and can be 24 applied solely as payment for purchases with the issuer or other designated merchants, 25 and that cannot be converted into, or redeemed for, fiat currency. 26  * Sec. 66. AS 06.55.995 is amended to read: 27 Sec. 06.55.995. Short title. This chapter may be cited as the Alaska 28 [UNIFORM] Money Services Act. 29  * Sec. 67. AS 12.62.400(a) is amended to read: 30 (a) To obtain a national criminal history record check for determining a 31 person's qualifications for a license, permit, registration, employment, or position, a 01 person shall submit the person's fingerprints to the department with the fee established 02 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 03 of Investigation to obtain a national criminal history record check of the person for the 04 purpose of evaluating a person's qualifications for 05 (1) a license or conditional contractor's permit to manufacture, sell, 06 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 07 under AS 04.11; 08 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 09 loan originator under AS 06.60; 10 (3) admission to the Alaska Bar Association under AS 08.08; 11 (4) licensure as a collection agency operator under AS 08.24; 12 (5) a certificate of fitness to handle explosives under AS 08.52; 13 (6) licensure as a massage therapist under AS 08.61; 14 (7) licensure to practice nursing or certification as a nurse aide under 15 AS 08.68; 16 (8) certification as a real estate appraiser under AS 08.87; 17 (9) a position involving supervisory or disciplinary power over a minor 18 or dependent adult for which criminal justice information may be released under 19 AS 12.62.160(b)(9); 20 (10) a teacher certificate under AS 14.20; 21 (11) a registration or license to operate a marijuana establishment 22 under AS 17.38; 23 (12) licensure as a security guard under AS 18.65.400 - 18.65.490; 24 (13) a concealed handgun permit under AS 18.65.700 - 18.65.790; 25 (14) licensure as an insurance producer, managing general agent, 26 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 27 broker, or independent adjuster under AS 21.27; 28 (15) serving and executing process issued by a court by a person 29 designated under AS 22.20.130; 30 (16) a school bus driver license under AS 28.15.046; 31 (17) licensure as an operator or an instructor for a commercial driver 01 training school under AS 28.17; 02 (18) registration as a broker-dealer, agent, investment adviser 03 representative, or state investment adviser under AS 45.55.030 - 45.55.060;  04 (19) licensure as a money transmission licensee or a currency  05 exchange licensee under AS 06.55. 06  * Sec. 68. AS 12.62.400 is amended by adding a new subsection to read: 07 (c) Notwithstanding (a) of this section, an applicant for a license under 08 AS 06.55 may submit the applicant's fingerprints to the Nationwide Multistate 09 Licensing System and Registry. In this subsection, "Nationwide Multistate Licensing 10 System and Registry" has the meaning given to "registry" in AS 06.55.990. 11  * Sec. 69. AS 06.55.103, 06.55.104(e), 06.55.104(f), 06.55.105(e), 06.55.107, 06.55.404(g), 12 06.55.406(b), 06.55.607(f), 06.55.702(b), 06.55.801, 06.55.830, 06.55.840, 06.55.850(b), 13 06.55.850(c), 06.55.850(d), 06.55.850(e), 06.55.890, 06.55.990(8), and 06.55.990(9) are 14 repealed. 15  * Sec. 70. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 18 Economic Development may adopt regulations to implement this Act. The regulations take 19 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 20 law implemented by the regulation. 21  * Sec. 71. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 REVISOR'S INSTRUCTIONS. The revisor of statutes is requested to change the 24 chapter heading of AS 06.55 from "Alaska Uniform Money Services Act" to "Alaska Money 25 Services Act." 26  * Sec. 72. Section 70 of this Act takes effect immediately under AS 01.10.070(c). 27  * Sec. 73. Except as provided in sec. 72 of this Act, this Act takes effect July 1, 2017.