CSHB 227(JUD): "An Act relating to the Uniform Money Services Act, to money transmission services, and to currency exchange services; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 227(JUD) 01 "An Act relating to the Uniform Money Services Act, to money transmission services, 02 and to currency exchange services; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 06 is amended by adding a new chapter to read: 05 Chapter 55. Alaska Uniform Money Services Act. 06 Article 1. Money Transmission Licenses. 07 Sec. 06.55.101. License required. (a) A person may not engage in the 08 business of money transmission or advertise, solicit, or hold the person out as 09 providing money transmission unless the person 10 (1) holds a money transmission license; or 11 (2) is an authorized delegate of a person who holds a money 12 transmission license. 13 (b) A money transmission license is not transferable or assignable. 14 Sec. 06.55.102. Application for license. (a) A person applying for a money
01 transmission license shall apply in a form and in a medium prescribed by the 02 department. The application must state or contain 03 (1) the legal name and residential and business addresses of the 04 applicant and any fictitious or trade name used by the applicant in conducting the 05 applicant's business; 06 (2) a list of any criminal convictions of the applicant and any material 07 litigation in which the applicant has been involved in the 10-year period next 08 preceding the submission of the application; 09 (3) a description of any money services previously provided by the 10 applicant and the money services that the applicant seeks to provide in this state; 11 (4) a list of the applicant's proposed authorized delegates and the 12 locations in this state where the applicant and its authorized delegates propose to 13 engage in money transmission or provide other money services; 14 (5) a list of other states in which the applicant is licensed to engage in 15 money transmission or provide other money services and any license revocations, 16 suspensions, or other disciplinary action taken against the applicant in another state; 17 (6) information concerning any bankruptcy or receivership 18 proceedings affecting the applicant; 19 (7) a sample form of contract for authorized delegates, if applicable, 20 and a sample form of payment instrument or instrument on which stored value is 21 recorded, if applicable; 22 (8) the name and address of any bank through which the applicant's 23 payment instruments and stored value will be paid; 24 (9) a description of the source of money and credit to be used by the 25 applicant to provide money services; and 26 (10) any other information the department reasonably requires with 27 respect to the applicant. 28 (b) If an applicant is a corporation, a limited liability company, a partnership, 29 or another entity, the applicant shall also provide 30 (1) the date of the applicant's incorporation or formation and state or 31 country of incorporation or formation;
01 (2) if applicable, a certificate of good standing from the state or 02 country in which the applicant is incorporated or formed; 03 (3) a brief description of the structure or organization of the applicant, 04 including any parent or subsidiary of the applicant, and whether any parent or 05 subsidiary is publicly traded; 06 (4) the legal name, any fictitious or trade name, all business and 07 residential addresses, and the employment, in the 10-year period next preceding the 08 submission of the application of each executive officer, manager, director, or person 09 who has control of the applicant; 10 (5) a list of any criminal convictions and material litigation in which 11 any executive officer, manager, director, or person in control of the applicant has been 12 involved in the 10-year period next preceding the submission of the application; 13 (6) a copy of the applicant's audited financial statements for the most 14 recent fiscal year and, if available, for the two-year period next preceding the 15 submission of the application; 16 (7) a copy of the applicant's unconsolidated financial statements for the 17 current fiscal year, whether audited or not, and, if available, for the two-year period 18 next preceding the submission of the application; 19 (8) if the applicant is publicly traded, a copy of the most recent report 20 filed with the United States Securities and Exchange Commission under 15 U.S.C. 21 78m (Securities Exchange Act of 1934); 22 (9) if the applicant is a wholly owned subsidiary of 23 (A) a corporation publicly traded in the United States, a copy of 24 audited financial statements for the parent corporation for the most recent 25 fiscal year or a copy of the parent corporation's most recent report filed under 26 15 U.S.C. 78m (Securities Exchange Act of 1934); or 27 (B) a corporation publicly traded outside the United States, a 28 copy of documentation that is similar to the documentation required by (A) of 29 this paragraph and that is filed with the regulator of the parent corporation's 30 domicile outside the United States; 31 (10) if the applicant has a registered agent in this state, the name and
01 address of the applicant's registered agent in this state; and 02 (11) any other information the department reasonably requires with 03 respect to the applicant. 04 (c) A nonrefundable application fee and a license fee must accompany an 05 application for a money transmission license. The license fee shall be refunded if the 06 application is denied. 07 (d) The department may waive a requirement of (a) and (b) of this section or 08 permit an applicant to submit other information instead of the required information. 09 (e) In this section, 10 (1) "material litigation" means litigation that, according to generally 11 accepted accounting principles, is significant to an applicant's or a money transmission 12 licensee's financial health and would be required to be disclosed in the applicant's or 13 money transmission licensee's annual audited financial statements, report to 14 shareholders, or similar records; 15 (2) "money transmission license" does not include an approval under 16 AS 06.55.103. 17 Sec. 06.55.103. Approval to engage in money transmission when licensed 18 in another state. (a) A person who is licensed to engage in money transmission in at 19 least one other state, with the approval of the department and under this section, may 20 engage in money transmission, currency exchange, or both money transmission and 21 currency exchange in this state without being licensed under AS 06.55.102 if 22 (1) the state in which the person is licensed has enacted the Uniform 23 Money Services Act or the department determines that the money transmission laws of 24 the state in which the person is licensed are substantially similar to those imposed by 25 this chapter; 26 (2) the person submits to, and in the form required by, the department 27 (A) in a record, an application for approval to engage in money 28 transmission, currency exchange, or both money transmission and currency 29 exchange in this state without being licensed under AS 06.55.102; 30 (B) a nonrefundable application fee; 31 (C) a fee for the first year of operating with the approval given
01 under this section; this fee shall be refunded if the application is denied; and 02 (D) a certification of license history in the other state. 03 (b) Before granting a person approval under this section to engage in money 04 transmission, currency exchange, or both money transmission and currency exchange 05 in this state, the department shall make findings and conclusions as required by 06 regulation. 07 (c) When an application for approval under this section is complete, the 08 department shall promptly notify the applicant, in a record, of the date on which the 09 request was determined to be complete, and 10 (1) the department shall approve or deny the request within 120 days 11 after that date; or 12 (2) if the request is not approved or denied within 120 days after that 13 date, 14 (A) the request is approved; and 15 (B) the approval takes effect as of the first business day after 16 expiration of the 120-day period. 17 (d) An applicant whose application under this section is denied by the 18 department may appeal, within 30 days after receipt of the notice of the denial, and 19 request a hearing. 20 Sec. 06.55.104. Security. (a) Except as otherwise provided in (b) of this 21 section, a surety bond, a letter of credit, or another similar security acceptable to the 22 department in the amount of $25,000 plus $5,000 for each location, not exceeding a 23 total addition of $125,000, must accompany an application for a money transmission 24 license. 25 (b) Security must be in a form satisfactory to the department and payable to 26 the state for the benefit of a claimant against the money transmission licensee to 27 secure the faithful performance of the obligations of the money transmission licensee 28 with respect to money transmission. 29 (c) The aggregate liability on a surety bond may not exceed the principal sum 30 of the bond. A claimant against a money transmission licensee may maintain an action 31 on the bond, or the department may maintain an action on behalf of the claimant.
01 (d) A surety bond must cover claims for as long as the department specifies, 02 but for at least five years after the money transmission licensee ceases to provide 03 money services in this state. However, the department may permit the amount of 04 security to be reduced or eliminated before the expiration of that time to the extent the 05 amount of the money transmission licensee's payment instruments or stored-value 06 obligations outstanding in this state is reduced. The department may permit a money 07 transmission licensee to substitute another form of security acceptable to the 08 department for the security effective at the time the money transmission licensee 09 ceases to provide money services in this state. 10 (e) Instead of the security prescribed in this section, an applicant for a money 11 transmission license or a money transmission licensee may provide security in a form 12 prescribed by the department. 13 (f) The department may increase the amount of security required to a 14 maximum of $500,000 if the financial condition of a money transmission licensee 15 requires the increase, as evidenced by reduction of net worth, financial losses, or other 16 relevant criteria. 17 Sec. 06.55.105. Issuance of license. (a) When an application is filed under 18 AS 06.55.102, the department shall investigate the applicant's financial condition and 19 responsibility, financial and business experience, character, and general fitness. The 20 department may conduct an on-site investigation of the applicant, the reasonable cost 21 of which the applicant shall pay. The department shall issue a license to an applicant 22 under AS 06.55.102 if the department finds that all of the following conditions have 23 been fulfilled: 24 (1) the applicant has complied with AS 06.55.102, 06.55.104, and 25 06.55.107; and 26 (2) the financial condition and responsibility, financial and business 27 experience, character, and general fitness of the applicant, and the competence, 28 experience, character, and general fitness of the executive officers, managers, 29 directors, and persons in control of the applicant indicate that it is in the interest of the 30 public to permit the applicant to engage in money transmission; 31 (b) When an application for an original money transmission license under
01 AS 06.55.102 is complete, the department shall promptly notify the applicant in a 02 record of the date on which the application was determined to be complete, and 03 (1) the department shall approve or deny the application within 120 04 days after that date; or 05 (2) if the application is not approved or denied within 120 days after 06 that date, 07 (A) the application is approved; and 08 (B) the money transmission license takes effect as of the first 09 business day after expiration of the 120-day period. 10 (c) The department may for good cause extend the application period. 11 (d) An applicant whose application under AS 06.55.102 is denied by the 12 department under AS 06.55.101 - 06.55.107 may appeal, within 30 days after receipt 13 of the notice of the denial, and request a hearing. 14 (e) In this section, "money transmission license" does not include an approval 15 under AS 06.55.103. 16 Sec. 06.55.106. Renewal of license. (a) A money transmission licensee shall 17 pay an annual renewal fee not later than 30 days before the anniversary of the issuance 18 of the money transmission license or, if the last day is not a business day, on the next 19 business day. 20 (b) A money transmission licensee shall submit a renewal report with the 21 renewal fee, in a form and in a medium prescribed by the department. The renewal 22 report must state or contain 23 (1) a copy of the money transmission licensee's most recent audited 24 annual financial statement or, if the money transmission licensee is a wholly owned 25 subsidiary of another corporation, the most recent audited consolidated annual 26 financial statement of the parent corporation or the money transmission licensee's 27 most recent audited consolidated annual financial statement; 28 (2) the number and monetary amount of payment instruments and 29 stored value sold by the money transmission licensee in this state that have not been 30 included in a renewal report, and the monetary amount of payment instruments and 31 stored value currently outstanding;
01 (3) a description of each material change in information submitted by 02 the money transmission licensee in its original license application that has not been 03 reported to the department on any required report; 04 (4) a list of the money transmission licensee's permissible investments 05 and a certification that the money transmission licensee continues to maintain 06 permissible investments according to the requirements set out in AS 06.55.501 and 07 06.55.502; 08 (5) proof that the money transmission licensee continues to maintain 09 adequate security as required by AS 06.55.104; and 10 (6) a list of the locations in this state where the money transmission 11 licensee or an authorized delegate of the money transmission licensee engages in 12 money transmission or provides other money services. 13 (c) If a money transmission licensee does not file a renewal report or pay its 14 renewal fee by the renewal date or any extension of time granted by the department, 15 the department shall send the money transmission licensee a notice of suspension. 16 Unless the money transmission licensee files the report and pays the renewal fee 17 before expiration of 10 days after the notice is sent, the money transmission licensee's 18 license is suspended 10 days after the department sends the notice of suspension. The 19 suspension shall be lifted if, within 20 days after its money transmission license is 20 suspended, the money transmission licensee 21 (1) files the report and pays the renewal fee; and 22 (2) pays a late fee for each day after suspension that the department did 23 not receive the renewal report and the renewal fee. 24 (d) The department for good cause may grant an extension of the renewal date. 25 Sec. 06.55.107. Net worth. A money transmission licensee shall maintain a net 26 worth of at least $25,000 determined under generally accepted accounting principles. 27 Article 2. Currency Exchange Licenses. 28 Sec. 06.55.201. License required. (a) A person may not engage in currency 29 exchange or advertise, solicit, or hold the person out as providing currency exchange 30 for which the person receives revenues equal or greater than five percent of total 31 revenues unless the person
01 (1) holds a currency exchange license; 02 (2) holds a money transmission license; or 03 (3) is an authorized delegate of a person who holds a money 04 transmission license. 05 (b) A currency exchange license is not transferable or assignable. 06 Sec. 06.55.202. Application for license. (a) A person applying for a currency 07 exchange license under AS 06.55.201 - 06.55.204 shall apply in a form and in a 08 medium prescribed by the department. The application must state or contain 09 (1) the legal name and residential and business addresses of the 10 applicant if the applicant is an individual or, if the applicant is not an individual, the 11 name of each partner, executive officer, manager, and director; 12 (2) the location of the principal office of the applicant; 13 (3) the complete addresses of other locations in this state where the 14 applicant proposes to engage in currency exchange, including all mobile locations; 15 (4) a description of the source of money and credit to be used by the 16 applicant to engage in currency exchange; and 17 (5) other information the department reasonably requires with respect 18 to the applicant, but not more than the department may require under AS 06.55.101 - 19 06.55.107. 20 (b) A nonrefundable application fee and a currency exchange license fee must 21 accompany an application for a currency exchange license. The currency exchange 22 license fee shall be refunded if the application is denied. 23 Sec. 06.55.203. Issuance of license. (a) When an application for a currency 24 exchange license is filed under AS 06.55.201 - 06.55.204, the department shall 25 investigate the applicant's financial condition and responsibility, financial and business 26 experience, character, and general fitness. The department may conduct an on-site 27 investigation of the applicant, the reasonable cost of which the applicant shall pay. The 28 department shall issue a currency exchange license to an applicant under AS 06.55.201 29 - 06.55.204 if the department finds that all of the following conditions have been 30 fulfilled: 31 (1) the applicant has complied with AS 06.55.202; and
01 (2) the financial condition and responsibility, financial and business 02 experience, character, and general fitness of the applicant, and the competence, 03 experience, character, and general fitness of the executive officers, managers, 04 directors, and persons in control of the applicant indicate that it is in the interest of the 05 public to permit the applicant to engage in currency exchange. 06 (b) When an application for an original currency exchange license under 07 AS 06.55.201 - 06.55.204 is complete, the department shall promptly notify the 08 applicant in a record of the date on which the application was determined to be 09 complete, and 10 (1) the department shall approve or deny the application within 120 11 days after that date; or 12 (2) if the application is not approved or denied within 120 days after 13 that date, 14 (A) the application is approved; and 15 (B) the department shall issue the currency exchange license 16 under AS 06.55.201 - 06.55.204 to take effect as of the first business day after 17 expiration of the period. 18 (c) The department may for good cause extend the application period. 19 (d) An applicant whose application is denied by the department under 20 AS 06.55.201 - 06.55.204 may appeal, within 30 days after receipt of the notice of the 21 denial, from the denial and request a hearing. 22 Sec. 06.55.204. Renewal of license. (a) A currency exchange licensee shall 23 pay a biennial renewal fee not later than 30 days before each biennial anniversary of 24 the issuance of the currency exchange license or, if the last day is not a business day, 25 on the next business day. 26 (b) A currency exchange licensee under AS 06.55.201 - 06.55.204 shall submit 27 a renewal report with the renewal fee, in a form and in a medium prescribed by the 28 department. The renewal report must state or contain 29 (1) a description of each material change in information submitted by 30 the currency exchange licensee in its original currency exchange license application 31 that has not been reported to the department on any required report; and
01 (2) a list of the locations in this state where the currency exchange 02 licensee or an authorized delegate of the currency exchange licensee engages in 03 currency exchange, including mobile locations. 04 (c) If a currency exchange licensee does not file a renewal report and pay its 05 renewal fee by the renewal date or any extension of time granted by the department, 06 the department shall send the currency exchange licensee a notice of suspension. 07 Unless the currency exchange licensee files the report and pays the renewal fee before 08 expiration of 10 days after the notice is sent, the currency exchange license is 09 suspended 10 days after the department sends the notice of suspension. 10 (d) The department for good cause may grant an extension of the renewal date. 11 Article 3. Authorized Delegates. 12 Sec. 06.55.301. Relationship between licensee and authorized delegate. (a) 13 A contract between a money services licensee and an authorized delegate must require 14 the authorized delegate to operate in full compliance with this chapter. The money 15 services licensee shall furnish in a record to each authorized delegate policies and 16 procedures sufficient for compliance with this chapter. 17 (b) An authorized delegate shall remit all money owing to the money services 18 licensee under the terms of the contract between the money services licensee and the 19 authorized delegate. In this subsection, "remit" means to make direct payments of 20 money to a money services licensee or its representative authorized to receive money 21 or to deposit money in a bank in an account specified by the money services licensee. 22 (c) If a money services license is suspended or revoked or a money services 23 licensee does not renew its money services license, the department shall notify all 24 authorized delegates of the money services licensee whose names are in a record filed 25 with the department of the suspension, revocation, or nonrenewal. After notice is sent 26 or publication is made, an authorized delegate shall immediately cease to provide 27 money services as an authorized delegate of the money services licensee. 28 (d) An authorized delegate may not provide money services outside the scope 29 of activity permissible under the contract between the authorized delegate and the 30 money services licensee, except activity in which the authorized delegate is authorized 31 to engage under AS 06.55.101 - 06.55.204. An authorized delegate of a money
01 services licensee holds in trust for the benefit of the money services licensee all money 02 net of fees received from money transmission. 03 (e) An authorized delegate may not use a subdelegate to conduct money 04 services on behalf of a money services licensee. 05 Sec. 06.55.302. Unauthorized activities. A person may not act as an 06 authorized delegate for, or otherwise provide money services on behalf of, a person 07 who does not hold a money services license under this chapter. 08 Article 4. Examinations, Reports, Records. 09 Sec. 06.55.401. Authority to conduct examinations. (a) The department may 10 conduct an annual examination of a money services licensee or of any of its authorized 11 delegates upon 45 days' notice in a record to the money services licensee. 12 (b) The department may examine a money services licensee or its authorized 13 delegate, at any time, without notice, if the department has reason to believe that the 14 money services licensee or authorized delegate is engaging in an unsafe or unsound 15 practice or has violated or is violating this chapter or a regulation adopted or an order 16 issued under this chapter. 17 (c) If the department concludes that an on-site examination is necessary under 18 (a) of this section, the money services licensee shall pay the reasonable cost of the 19 examination. 20 (d) Information obtained during an examination under this chapter may be 21 disclosed only as provided in AS 06.55.407. 22 Sec. 06.55.402. Cooperation. The department may consult and cooperate with 23 other state money services regulators in enforcing and administering this chapter. The 24 department and other state money service regulators may jointly pursue examinations 25 and take other official action that they are otherwise empowered to take. 26 Sec. 06.55.403. Reports. (a) A money services licensee shall file with the 27 department within 15 business days any material changes in information provided in a 28 money services licensee's application as prescribed by the department. 29 (b) A money services licensee shall file with the department within 45 days 30 after the end of each fiscal quarter a current list of all authorized delegates and 31 locations in this state where the money services licensee or an authorized delegate of
01 the money services licensee provides money services, including mobile locations. The 02 money services licensee shall state the name and street address of each location and 03 authorized delegate. 04 (c) A money services licensee shall file a report with the department within 05 one business day after the money services licensee has reason to know of the 06 occurrence of any of the following events: 07 (1) the filing of a petition by or against the money services licensee 08 under 11 U.S.C. 101 - 110 (Bankruptcy Code) for bankruptcy or reorganization; 09 (2) the filing of a petition by or against the money services licensee for 10 receivership, the commencement of any other judicial or administrative proceeding for 11 its dissolution or reorganization, or the making of a general assignment for the benefit 12 of its creditors; 13 (3) the commencement of a proceeding to revoke or suspend its money 14 services license in a state or country in which the money services licensee engages in 15 business or is licensed; 16 (4) the cancellation or other impairment of the money services 17 licensee's bond or other security; 18 (5) a charge against or conviction of the money services licensee or of 19 an executive officer, manager, director, or person in control of the money services 20 licensee for a felony; or 21 (6) a charge against or conviction of an authorized delegate for a 22 felony. 23 Sec. 06.55.404. Change of control. (a) A money services licensee shall 24 (1) give the department notice in a record of a proposed change of 25 control within 15 days after learning of the proposed change of control; 26 (2) request approval of the acquisition; and 27 (3) submit a nonrefundable fee with the notice. 28 (b) After review of a request for approval under (a) of this section, the 29 department may require the money services licensee to provide additional information 30 concerning the proposed persons in control of the money services licensee. The 31 additional information must be limited to the same types required of the money
01 services licensee or persons in control of the money services licensee as part of its 02 original money services license or renewal application. 03 (c) The department shall approve a request for change of control under (a) of 04 this section if, after investigation, the department determines that the person or group 05 of persons requesting approval has the competence, experience, character, and general 06 fitness to operate the money services licensee or person in control of the money 07 services licensee in a lawful and proper manner and that the public interest will not be 08 jeopardized by the change of control. 09 (d) When an application for a change of control under AS 06.55.401 - 10 06.55.407 is complete, the department shall notify the money services licensee in a 11 record of the date on which the request was determined to be complete, and 12 (1) the department shall approve or deny the request within 120 days 13 after that date; or 14 (2) if the request is not approved or denied within 120 days after that 15 date, 16 (A) the request is approved; and 17 (B) the department shall permit the change of control under this 18 section, to take effect as of the first business day after expiration of the period. 19 (e) The department, by regulation or order, may exempt a person from any of 20 the requirements of (a)(2) and (3) of this section if it is in the public interest to exempt 21 the person. 22 (f) The provisions of (a) of this section do not apply to a public offering of 23 securities. 24 (g) Before filing a request for approval to acquire control of a money services 25 licensee or person in control of a money services licensee, a person may request in a 26 record a determination from the department as to whether the person would be 27 considered a person in control of a money services licensee upon consummation of a 28 proposed transaction. If the department determines that the person would not be a 29 person in control of a money services licensee, the department shall enter an order to 30 that effect, and the proposed person and transaction are not subject to the requirements 31 of (a) - (c) of this section.
01 Sec. 06.55.405. Records. (a) A money services licensee shall maintain the 02 following records for determining its compliance with this chapter for at least three 03 years: 04 (1) a record of each payment instrument or stored-value obligation 05 sold; 06 (2) a general ledger posted at least monthly containing all asset, 07 liability, capital, income, and expense accounts; 08 (3) bank statements and bank reconciliation records; 09 (4) records of outstanding payment instruments and stored-value 10 obligations; 11 (5) records of each payment instrument and stored-value obligation 12 paid within the three-year period; 13 (6) a list of the last known names and addresses of all of the money 14 services licensee's authorized delegates; and 15 (7) any other records the department reasonably requires by regulation. 16 (b) The items specified in (a) of this section may be maintained in any form of 17 record. 18 (c) Records may be maintained outside this state if they are made accessible to 19 the department on seven business days' notice that is sent in a record. 20 (d) All records maintained by the money services licensee as required in (a) - 21 (c) of this section are open to inspection by the department under AS 06.55.401. 22 Sec. 06.55.406. Money laundering reports. (a) A money services licensee and 23 an authorized delegate shall file with the attorney general all reports required by 24 federal currency reporting, record keeping, and suspicious transaction reporting 25 requirements as set out in 31 U.S.C. 5311, 31 C.F.R. 103, and other federal and state 26 laws pertaining to money laundering. 27 (b) The timely filing of a complete and accurate report required under (a) of 28 this section with the appropriate federal agency is compliance with the requirements of 29 (a) of this section, unless the department notifies the money services licensee that the 30 attorney general has notified the department that reports of this type are not being 31 regularly and comprehensively transmitted by the federal agency to the attorney
01 general. 02 Sec. 06.55.407. Confidentiality. (a) Except as otherwise provided in (b) of this 03 section, all information or reports obtained by the department from an applicant, a 04 licensee, or an authorized delegate are confidential and not subject to disclosure under 05 AS 40.25.100 - 40.25.220, including 06 (1) all information contained in or related to examination, 07 investigation, operating, or condition reports prepared by, on behalf of, or for the use 08 of the department; and 09 (2) financial statements, balance sheets, and authorized delegate 10 information. 11 (b) The department may disclose information that is not otherwise subject to 12 disclosure under (a) of this section to representatives of state or federal agencies who 13 promise in a record that they will maintain the confidentiality of the information or if 14 the department finds that the release is reasonably necessary for the protection of the 15 public and in the interests of justice, and the money services licensee has been given 16 previous notice by the department of its intent to release the information. 17 (c) This section does not prohibit the department from disclosing to the public 18 a list of money services licensees or the aggregated financial data concerning those 19 money services licensees. 20 Article 5. Permissible Investments. 21 Sec. 06.55.501. Maintenance of permissible investments. (a) A money 22 services licensee shall maintain at all times permissible investments that have a market 23 value computed under generally accepted accounting principles of not less than the 24 aggregate amount of all of its outstanding payment instruments and stored value 25 obligations issued or sold in all states and money transmitted from all states by the 26 money services licensee. 27 (b) The department, with respect to any money services licensees, may limit 28 the extent to which a type of investment within a class of permissible investments may 29 be considered a permissible investment, except for money and certificates of deposit 30 issued by a bank. The department by regulation may prescribe or by order allow other 31 types of investments that the department determines to have a safety substantially
01 equivalent to other permissible investments. 02 (c) Permissible investments, even if commingled with other assets of the 03 money services licensee, are held in trust for the benefit of the purchasers and holders 04 of the money services licensee's outstanding payment instruments and stored value 05 obligations in the event of bankruptcy or receivership of the money services licensee. 06 Sec. 06.55.502. Types of permissible investments. (a) Except to the extent 07 otherwise limited by the department under AS 06.55.501, the following investments 08 are permissible under AS 06.55.501: 09 (1) cash, a certificate of deposit, or a senior debt obligation of an 10 insured depository institution; in this paragraph, "insured depository institution" has 11 the meaning given in 12 U.S.C. 1813 (Federal Deposit Insurance Act); 12 (2) banker's acceptance or bill of exchange that is eligible for purchase 13 on endorsement by a member bank of the Federal Reserve System and is eligible for 14 purchase by a Federal Reserve Bank; 15 (3) an investment bearing a rating of one of the three highest grades as 16 defined by a nationally recognized organization that rates securities; 17 (4) an investment security that is an obligation of the United States or a 18 department, agency, or instrumentality of the United States, an investment in an 19 obligation that is guaranteed fully as to principal and interest by the United States, or 20 an investment in an obligation of a state or a governmental subdivision, agency, or 21 instrumentality of a state; 22 (5) receivables that are payable to a money services licensee from its 23 authorized delegates, in the ordinary course of business, under contracts that are not 24 past due or doubtful of collection if the aggregate amount of receivables under this 25 paragraph does not exceed 20 percent of the total permissible investments of a money 26 services licensee and the money services licensee does not hold at one time 27 receivables under this paragraph in any one person aggregating more than 10 percent 28 of the money services licensee's total permissible investments; and 29 (6) a share or a certificate issued by an open-end management 30 investment company that is registered with the United States Securities and Exchange 31 Commission under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act of 1940), and
01 whose portfolio is restricted by the management company's investment policy to 02 investments specified in (1) - (4) of this subsection. 03 (b) The following investments are permissible under AS 06.55.501, but only 04 to the extent specified: 05 (1) an interest-bearing bill, note, bond, or debenture of a person whose 06 equity shares are traded on a national securities exchange or on a national over-the- 07 counter market, if the aggregate of investments under this paragraph does not exceed 08 20 percent of the total permissible investments of a money services licensee and the 09 money services licensee does not at one time hold investments under this paragraph in 10 any one person aggregating more than 10 percent of the money services licensee's 11 total permissible investments; 12 (2) a share of a person traded on a national securities exchange or a 13 national over-the-counter market or a share or a certificate issued by an open-end 14 management investment company that is registered with the United States Securities 15 and Exchange Commission under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act 16 of 1940), and whose portfolio is restricted by the management company's investment 17 policy to shares of a person traded on a national securities exchange or a national over- 18 the-counter market, if the aggregate of investments under this paragraph does not 19 exceed 20 percent of the total permissible investments of a money services licensee 20 and the money services licensee does not at one time hold investments in any one 21 person aggregating more than 10 percent of the money services licensee's total 22 permissible investments; 23 (3) a demand-borrowing agreement made to a corporation or a 24 subsidiary of a corporation whose securities are traded on a national securities 25 exchange, if the aggregate of the amount of principal and interest outstanding under 26 demand-borrowing agreements under this paragraph does not exceed 20 percent of the 27 total permissible investments of a money services licensee and the money services 28 licensee does not at one time hold principal and interest outstanding under demand- 29 borrowing agreements under this paragraph with any one person aggregating more 30 than 10 percent of the money services licensee's total permissible investments; and 31 (4) any other investment the department designates, to the extent
01 specified by the department. 02 (c) The aggregate of investments under (b) of this section may not exceed 50 03 percent of the total permissible investments of a money services licensee calculated 04 under AS 06.55.501. 05 Article 6. Enforcement. 06 Sec. 06.55.601. Suspension and revocation; receivership. (a) The 07 department may suspend or revoke a money services license, place a money services 08 licensee in receivership, or order a money services licensee to revoke the designation 09 of an authorized delegate if 10 (1) the money services licensee violates this chapter or a regulation 11 adopted or an order issued under this chapter; 12 (2) the money services licensee does not cooperate with an 13 examination or investigation by the department; 14 (3) the money services licensee engages in fraud, intentional 15 misrepresentation, or gross negligence; 16 (4) an authorized delegate is convicted of a violation of a state or 17 federal anti-money laundering statute, or violates a regulation adopted or an order 18 issued under this chapter, as a result of the money services licensee's wilful 19 misconduct or wilful blindness; 20 (5) the competence, experience, character, or general fitness of the 21 money services licensee, authorized delegate, person in control of a money services 22 licensee, or responsible person of the money services licensee or authorized delegate 23 indicates that it is not in the public interest to permit the person to provide money 24 services; 25 (6) the money services licensee engages in an unsafe or unsound 26 practice; 27 (7) the money services licensee is insolvent, suspends payment of its 28 obligations, or makes a general assignment for the benefit of its creditors; or 29 (8) the money services licensee does not remove an authorized 30 delegate after the department issues and serves upon the money services licensee a 31 final order including a finding that the authorized delegate has violated this chapter.
01 (b) In determining whether a money services licensee is engaging in an unsafe 02 or unsound practice, the department may consider the size and condition of the money 03 services licensee's money transmission, the magnitude of the loss, the gravity of the 04 violation of this chapter, and the previous conduct of the person involved. 05 Sec. 06.55.602. Suspension and revocation of authorized delegates. (a) The 06 department may issue an order suspending or revoking the designation of an 07 authorized delegate if the department finds that 08 (1) the authorized delegate violated this chapter or a regulation adopted 09 or an order issued under this chapter; 10 (2) the authorized delegate did not cooperate with an examination or 11 investigation by the department; 12 (3) the authorized delegate engaged in fraud, intentional 13 misrepresentation, or gross negligence; 14 (4) the authorized delegate is convicted of a violation of a state or 15 federal anti-money laundering statute; 16 (5) the competence, experience, character, or general fitness of the 17 authorized delegate or a person in control of the authorized delegate indicates that it is 18 not in the public interest to permit the authorized delegate to provide money services; 19 or 20 (6) the authorized delegate is engaging in an unsafe or unsound 21 practice. 22 (b) In determining whether an authorized delegate is engaging in an unsafe or 23 unsound practice, the department may consider the size and condition of the 24 authorized delegate's provision of money services, the magnitude of the loss, the 25 gravity of the violation of this chapter or a regulation adopted or order issued under 26 this chapter, and the previous conduct of the authorized delegate. 27 Sec. 06.55.603. Orders to cease and desist. (a) If the department determines 28 that a violation of this chapter or of a regulation adopted or an order issued under this 29 chapter by a money services licensee or authorized delegate is likely to cause 30 immediate and irreparable harm to the money services licensee, its customers, or the 31 public as a result of the violation, or cause insolvency or significant dissipation of
01 assets of the money services licensee, the department may issue an order requiring the 02 money services licensee or authorized delegate to cease and desist from the violation. 03 The order becomes effective on service of it on the money services licensee or 04 authorized delegate. 05 (b) The department may issue an order against a money services licensee to 06 cease and desist from providing money services through an authorized delegate who is 07 the subject of a separate order by the department. 08 (c) An order to cease and desist remains effective and enforceable pending the 09 completion of an administrative proceeding under AS 06.55.601 or 06.55.602. 10 (d) A money services licensee or an authorized delegate who is served with an 11 order to cease and desist may petition the superior court for a judicial order setting 12 aside, limiting, or suspending the enforcement, operation, or effectiveness of the order 13 pending the completion of an administrative proceeding under AS 06.55.601 or 14 06.55.602. 15 (e) An order to cease and desist expires unless the department commences an 16 administrative proceeding under AS 06.55.601 or 06.55.602 within 10 days after it is 17 issued. 18 Sec. 06.55.604. Consent orders. The department may enter into a consent 19 order at any time with a person to resolve a matter arising under this chapter or a 20 regulation adopted or order issued under this chapter. A consent order shall be signed 21 by the person to whom it is issued or by the person's authorized representative and 22 must indicate agreement with the terms contained in the order. A consent order may 23 provide that it does not constitute an admission by a person that this chapter or a 24 regulation adopted or an order issued under this chapter has been violated. 25 Sec. 06.55.605. Civil penalties. The department may assess a civil penalty 26 against a person who violates this chapter or a regulation adopted or an order issued 27 under this chapter in an amount not to exceed $1,000 each day for each day the 28 violation is outstanding. 29 Sec. 06.55.606. Criminal penalties. (a) A person who intentionally makes a 30 false statement, misrepresentation, or false certification in a record filed or required to 31 be maintained under this chapter or who intentionally makes a false entry or omits a
01 material entry in a record filed or required to be maintained under this chapter is guilty 02 of a class C felony. 03 (b) A person who knowingly engages in an activity for which a money 04 services license is required under this chapter without being licensed as a money 05 services licensee and who receives more than $500 in compensation within a 30-day 06 period from this activity is guilty of a class C felony. 07 (c) A person who knowingly engages in an activity for which a money 08 services license is required under this chapter without being licensed as a money 09 services licensee and who receives no more than $500 in compensation within a 30- 10 day period from this activity is guilty of a class A misdemeanor. 11 Sec. 06.55.607. Unlicensed persons. (a) If the department has reason to 12 believe that a person has violated or is violating AS 06.55.101 or 06.55.201, the 13 department may issue an order to show cause why an order to cease and desist should 14 not issue requiring that the person cease and desist from the violation of AS 06.55.101 15 or 06.55.201. 16 (b) In an emergency, the department may petition the superior court for the 17 issuance of a temporary restraining order. 18 (c) An order to cease and desist becomes effective upon service of it upon the 19 person. 20 (d) An order to cease and desist remains effective and enforceable pending the 21 completion of an administrative proceeding under AS 06.55.701 and 06.55.702. 22 (e) A person who is served with an order to cease and desist for violating 23 AS 06.55.101 or 06.55.201 may petition the superior court for a judicial order setting 24 aside, limiting, or suspending the enforcement, operation, or effectiveness of the order 25 pending the completion of an administrative proceeding under AS 06.55.701 and 26 06.55.702. 27 (f) An order to cease and desist expires unless the department commences an 28 administrative proceeding within 10 days after it is issued. 29 Article 7. Administrative Procedures. 30 Sec. 06.55.701. Administrative proceedings. All administrative proceedings 31 under this chapter shall be conducted under AS 44.62 (Administrative Procedure Act),
01 except that hearings shall be conducted by the office of administrative hearings 02 (AS 44.64.010). 03 Sec. 06.55.702. Hearings. (a) Except as otherwise provided in AS 06.55.603 04 and 06.55.607 and in (b) of this section, the department may not suspend or revoke a 05 money services license, place a money services licensee in receivership, issue an order 06 to cease and desist, suspend or revoke the designation of an authorized delegate, or 07 assess a civil penalty without notice and an opportunity to be heard. The department 08 shall also hold a hearing when requested to hold a hearing by an applicant whose 09 application for a money services license is denied. 10 (b) Under AS 06.55.106(c) and 06.55.204(c), the department may suspend a 11 money services license without a hearing unless the money services licensee requests 12 a hearing. 13 Sec. 06.55.703. Investigative powers. (a) In its investigations under this 14 chapter, the department may administer oaths or affirmations and, on its own motion 15 or on the request of a party to a proceeding, may subpoena witnesses, compel the 16 attendance of witnesses, take evidence, and require the production of material that is 17 relevant to the investigation, including the existence, description, nature, custody, 18 condition, and location of books, documents, and other tangible items, and the identity 19 and location of persons having knowledge of relevant facts or other material 20 reasonably calculated to lead to the discovery of admissible evidence. 21 (c) If a person fails without a lawful excuse to obey a subpoena, and after 22 reasonable notice to all persons affected by the failure, the department may apply to 23 the superior court for an order compelling the person to obey the subpoena. 24 Article 8. Miscellaneous Provisions. 25 Sec. 06.55.801. Uniformity of application and construction. In applying and 26 construing this chapter, consideration shall be given to the need to promote uniformity 27 of the law with respect to its subject matter among states that enact it. 28 Sec. 06.55.802. Exclusions. This chapter does not apply to 29 (1) the United States or a department, an agency, or an instrumentality 30 of the United States; 31 (2) money transmission by the United States Postal Service or by a
01 contractor on behalf of the United States Postal Service; 02 (3) a state, a municipality, a county, or another governmental agency 03 or governmental subdivision of a state; 04 (4) 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, if it does 08 not issue, sell, or provide payment instruments or stored value through an authorized 09 delegate who is not a bank, a bank holding company, an office of an international 10 banking corporation, a branch of a foreign bank, a corporation organized under 12 11 U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12 12 U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States; 13 (5) electronic funds transfer of governmental benefits for a federal, 14 state, or municipal agency or a state political subdivision by a contractor on behalf of 15 (A) the United States or a department, an agency, or an 16 instrumentality of the United States; or 17 (B) a state, or a department, an agency, or an instrumentality of 18 a state; 19 (6) a board of trade or a person who, in the ordinary course of 20 business, provides clearance and settlement services for a board of trade, to the extent 21 of the operation of the person for a board of trade; in this paragraph, "board of trade" 22 means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f 23 (Commodity Exchange Act); 24 (7) a registered futures commission merchant under the federal 25 commodities laws, to the extent of the merchant's operation as a registered futures 26 commission merchant under the federal commodities laws; 27 (8) a person who provides clearance or settlement services under a 28 registration as a clearing agency or an exemption from the registration granted under 29 the federal securities laws, to the extent of the person's operation as a provider of 30 clearance or settlement services under a registration as a clearing agency or an 31 exemption from the registration granted under the federal securities laws;
01 (9) an operator of a payment system to the extent that the operator 02 provides processing, clearing, or settlement services, between or among persons 03 excluded by this section, in connection with wire transfers, credit card transactions, 04 debit card transactions, stored-value transactions, automated clearing house transfers, 05 or similar funds transfers; or 06 (10) a person registered as a securities broker-dealer under federal or 07 state securities laws, to the extent of the person's operation as a securities broker- 08 dealer under federal or state securities laws. 09 Sec. 06.55.810. Notices required. (a) A money services licensee shall display 10 a sign at each location where the money services licensee 11 (1) provides money services under this chapter; and 12 (2) has not designated an authorized delegate to provide money 13 services on behalf of the money services licensee at the location. 14 (b) An authorized delegate shall display a sign at each location where the 15 authorized delegate provides money services under this chapter. 16 (c) The sign required by (a) or (b) of this section shall be displayed at all times 17 in full view of persons visiting the location and shall give the department's address and 18 the department's telephone number for receiving calls regarding complaints and other 19 concerns about money services licensees, authorized delegates, and the money 20 services provided by money services licensees and authorized delegates. 21 Sec. 06.55.820. Transmission. Within 10 business days after receiving the 22 money or equivalent value for money transmission, unless otherwise ordered by the 23 customer or unless the money transmission licensee has reason to believe a crime has 24 occurred, is occurring, or may occur as a result of the money transmission, a money 25 transmission licensee shall 26 (1) transmit after the deduction of fees the monetary equivalent of all 27 money or equivalent value received for the money transmission; or 28 (2) issue instructions making the money or its monetary equivalent 29 available to the person designated by the customer. 30 Sec. 06.55.830. Receipt. (a) A money transmission licensee who receives 31 money or equivalent value for a money transmission shall provide a receipt to the
01 customer that clearly states the amount of the money or the equivalent value presented 02 by the customer for the money transmission and the total fees charged by the money 03 transmission licensee. 04 (b) If a money transmission licensee fixes, when the money transmission is 05 initiated, the rate of exchange for a money transmission to be paid in the currency of 06 another government, the receipt provided by (a) of this section must disclose the rate 07 of exchange for the transaction and any limit on the length of time that the payment 08 will be made at that fixed rate of exchange. 09 (c) If a money transmission licensee does not fix the rate of exchange for a 10 money transmission to be paid in the currency of another government, the receipt 11 provided under (a) of this section must disclose that the rate of exchange for the 12 money transmission will be set when the person designated by the customer to receive 13 the money takes possession of the money. 14 Sec. 06.55.840. Refunds. Within 10 days after receiving a written request for a 15 refund, a money transmission licensee shall refund to a customer money equal to the 16 money or equivalent value received from the customer for a money transmission, 17 unless 18 (1) before receiving the written request 19 (A) the money has been transmitted to the person designated by 20 the customer to receive the money transmission and the person has taken 21 possession of the money; in this section, "transmitted" means made available 22 to the person designated by the customer to receive the money, whether or not 23 the person designated by the customer has taken possession of the money; or 24 (B) instructions have been given making a monetary equivalent 25 available to the person designated by the customer to receive the money 26 transmission; 27 (2) the money transmission licensee has reason to believe that a crime 28 has occurred, is occurring, or may occur as a result of transmitting or refunding the 29 money as requested by the customer; or 30 (3) the money transmission licensee is otherwise prohibited by law 31 from making a refund.
01 Sec. 06.55.850. Establishment of fees and other charges. (a) The department 02 shall adopt regulations that establish the amount and manner of payment of fees 03 required under this chapter. 04 (b) The department shall establish fee levels under (a) of this section so that 05 the total amount of fees collected for both money transmission licenses and currency 06 exchange licenses under this chapter approximately equals the department's actual 07 total regulatory costs for both money transmission licenses and currency exchange 08 licenses. The department shall set the fee levels so that the fee levels for both money 09 transmission licenses and currency exchange licenses are the same. 10 (c) The department shall annually review each fee level to determine whether 11 the regulatory costs are approximately equal to fee collections. If the review indicates 12 that fee collections and regulatory costs are not approximately equal, the department 13 shall calculate fee adjustments and adopt regulations under (a) of this section to 14 implement the adjustments. 15 (d) In January of each year, the department shall report to the office of 16 management and budget all fee levels and revisions made for the previous year under 17 this section. 18 (e) In this section, 19 (1) "fee" means an application fee, a money services license fee, a 20 first-year operation fee under AS 06.55.103(a)(2)(C), a renewal fee, the daily late fee 21 for not submitting a renewal report and paying the renewal fee under AS 06.55.106, 22 investigation costs under AS 06.55.105 and 06.55.203, an examination cost under 23 AS 06.55.401, and a fee for approving a change of control under AS 06.55.404; 24 (2) "regulatory costs" means the costs of the department that are 25 attributable to regulation of money services licensing under this chapter. 26 Sec. 06.55.890. Definitions. In AS 06.55.820 - 06.55.840, 27 (1) "fees" does not include revenue that a money services licensee 28 generates from a money transmission when converting the currency of one 29 government into the currency of another government; 30 (2) "monetary equivalent" means, for money transmissions that will be 31 redeemed in a currency other than the currency that the customer uses to purchase the
01 money transmission, the amount of money in the currency of the government that the 02 recipient of the money transmission is to receive, as converted at the retail exchange 03 rate offered by the money transmission licensee to the customer for the money 04 transmission. 05 (2) "money transmission licensee" means a person who holds a money 06 services license and a person who is an authorized delegate. 07 Article 9. General Provisions. 08 Sec. 06.55.990. Definitions. In this chapter, unless the context indicates 09 otherwise, 10 (1) "authorized delegate" means a person whom a money services 11 licensee designates to provide money services on behalf of the money services 12 licensee; 13 (2) "bank" means an institution organized under federal or state law 14 that 15 (A) accepts demand deposits or deposits that the depositor may 16 use for payment to third parties and engages in the business of making 17 commercial loans; or 18 (B) engages in credit card operations and maintains only one 19 office that accepts deposits, does not accept demand deposits or deposits that 20 the depositor may use for payments to third parties, does not accept a savings 21 or time deposit less than $100,000, and does not engage in the business of 22 making commercial loans; 23 (3) "control" means 24 (A) the ownership of, or the power to vote, directly or 25 indirectly, at least 25 percent of a class of voting securities or voting interests 26 of a money services licensee or person in control of a money services licensee; 27 (B) the power to elect a majority of executive officers, 28 managers, directors, trustees, or other persons exercising managerial authority 29 of a money services licensee or person in control of a money services licensee; 30 or 31 (C) the power to exercise directly or indirectly, a controlling
01 influence over the management or policies of a money services licensee or 02 person in control of a money services licensee; 03 (4) "currency exchange" means receipt of revenues from the exchange 04 of money of one government for money of another government; 05 (5) "currency exchange license" means a license under AS 06.55.201 - 06 06.55.204; 07 (6) "currency exchange licensee" means a person who holds a currency 08 exchange license; 09 (7) "department" means the Department of Commerce, Community, 10 and Economic Development; 11 (8) "executive officer" means a president, a chair of the executive 12 committee, a chief financial officer, a responsible individual, or another individual 13 who performs similar functions; in this paragraph, "responsible individual" means an 14 individual who is employed by a money services licensee and has principal managerial 15 authority over the provision of money services by the money services licensee in this 16 state; 17 (9) "mobile location" means a vehicle or a movable facility where 18 currency exchange occurs; 19 (10) "monetary value" means a medium of exchange, whether or not 20 redeemable in money; 21 (11) "money" means a medium of exchange that is authorized or 22 adopted by the United States or a foreign government, including a monetary unit of 23 account established by an intergovernmental organization or by agreement between 24 two or more governments; 25 (12) "money services" means money transmission or currency 26 exchange; 27 (13) "money services license" means a currency exchange license or a 28 money transmission license; 29 (14) "money services licensee" means a person who holds a currency 30 exchange license or a money transmission license; 31 (15) "money transmission" means selling or issuing payment
01 instruments or stored value, or receiving money or monetary value for transmission, 02 but does not include the provision solely of delivery, online services, 03 telecommunications services, or network access; 04 (16) "money transmission license" means a license under 05 AS 06.55.101 - 06.55.107 or an approval under AS 06.55.103; 06 (17) "money transmission licensee" means a person who holds a 07 money transmission license; 08 (18) "outstanding" with respect to a payment instrument, means issued 09 or sold by or for the money services licensee and reported as sold but not yet paid by 10 or for the licensee; 11 (19) "payment instrument" means a check, a draft, a money order, a 12 traveler's check, or another instrument for the transmission or payment of money or 13 monetary value, whether or not negotiable, but does not include a credit card voucher, 14 a letter of credit, or an instrument that is redeemable by the issuer in goods or services; 15 (20) "person" means an individual, a corporation, a business trust, an 16 estate, a trust, a partnership, a limited liability company, an association, a joint 17 venture, a government, a governmental subdivision, an agency, or an instrumentality, a 18 public corporation, or any other legal or commercial entity; 19 (21) "record" means information that is inscribed on a tangible 20 medium or that is stored in an electronic or other medium and is retrievable in 21 perceivable form; 22 (22) "state" means a state of the United States, the District of 23 Columbia, Puerto Rico, the United States Virgin Islands, or a territory or insular 24 possession subject to the jurisdiction of the United States; 25 (23) "stored value" means monetary value that is evidenced by an 26 electronic record; 27 (24) "unsafe or unsound practice" means a practice or conduct by a 28 money transmission licensee or an authorized delegate of the money transmission 29 licensee if the practice creates the likelihood of material loss, insolvency, or 30 dissipation of the money transmission licensee's assets, or otherwise materially 31 prejudices the interests of the money transmission licensee's customers.
01 Sec. 06.55.995. Short title. This chapter may be cited as the Alaska Uniform 02 Money Services Act. 03 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 APPLICABILITY. This Act applies to the provision of money services on or after 06 July 1, 2008. 07 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 10 Economic Development may proceed to adopt regulations necessary to implement the 11 changes made by this Act. The regulations take effect under AS 44.62 (Administrative 12 Procedure Act), but not before July 1, 2008. 13 * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 14 * Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect July 1, 2008.