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SB 116: "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                             SENATE BILL NO. 116                                                                         
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)  is licensed under AS 06.55.101 - 06.55.107 or approved to engage                                   
11       in money transmission under AS 06.55.103;                                                                         
12                 (2)  is an authorized delegate of a person licensed under AS 06.55.101 -                                
13       06.55.107; or                                                                                                     
14                 (3)  is an authorized delegate of a person approved to engage in money                                  
01       transmission under AS 06.55.103.                                                                                  
02            (b)  A license under AS 06.55.101 - 06.55.107 is not transferable or assignable.                             
03            Sec. 06.55.102. Application for license. (a) A person applying for a license                               
04       under AS 06.55.101 - 06.55.107 shall apply in a form and in a medium prescribed by                                
05       the department. The application must state or contain                                                             
06                 (1)  the legal name and residential and business addresses of the                                       
07       applicant and any fictitious or trade name used by the applicant in conducting the                                
08       applicant's business;                                                                                             
09                 (2)  a list of any criminal convictions of the applicant and any material                               
10       litigation in which the applicant has been involved in the 10-year period next                                    
11       preceding the submission of the application;                                                                      
12                 (3)  a description of any money services previously provided by the                                     
13       applicant and the money services that the applicant seeks to provide in this state;                               
14                 (4)  a list of the applicant's proposed authorized delegates and the                                    
15       locations in this state where the applicant and its authorized delegates propose to                               
16       engage in money transmission or provide other money services;                                                     
17                 (5)  a list of other states in which the applicant is licensed to engage in                             
18       money transmission or provide other money services and any license revocations,                                   
19       suspensions, or other disciplinary action taken against the applicant in another state;                           
20                 (6)  information concerning any bankruptcy or receivership                                              
21       proceedings affecting the licensee;                                                                               
22                 (7)  a sample form of contract for authorized delegates, if applicable,                                 
23       and a sample form of payment instrument or instrument on which stored value is                                    
24       recorded, if applicable;                                                                                          
25                 (8)  the name and address of any bank through which the applicant's                                     
26       payment instruments and stored value will be paid;                                                                
27                 (9)  a description of the source of money and credit to be used by the                                  
28       applicant to provide money services; and                                                                          
29                 (10)  any other information the department reasonably requires with                                     
30       respect to the applicant.                                                                                         
31            (b)  If an applicant is a corporation, a limited liability company, a partnership,                           
01       or another entity, the applicant shall also provide                                                               
02                 (1)  the date of the applicant's incorporation or formation and state or                                
03       country of incorporation or formation;                                                                            
04                 (2)  if applicable, a certificate of good standing from the state or                                    
05       country in which the applicant is incorporated or formed;                                                         
06                 (3)  a brief description of the structure or organization of the applicant,                             
07       including any parent or subsidiary of the applicant, and whether any parent or                                    
08       subsidiary is publicly traded;                                                                                    
09                 (4)  the legal name, any fictitious or trade name, all business and                                     
10       residential addresses, and the employment, in the 10-year period next preceding the                               
11       submission of the application of each executive officer, manager, director, or person                             
12       who has control of the applicant;                                                                                 
13                 (5)  a list of any criminal convictions and material litigation in which                                
14       any executive officer, manager, director, or person in control of the applicant has been                          
15       involved in the 10-year period next preceding the submission of the application;                                  
16                 (6)  a copy of the applicant's audited financial statements for the most                                
17       recent fiscal year and, if available, for the two-year period next preceding the                                  
18       submission of the application;                                                                                    
19                 (7)  a copy of the applicant's unconsolidated financial statements for the                              
20       current fiscal year, whether audited or not, and, if available, for the two-year period                           
21       next preceding the submission of the application;                                                                 
22                 (8)  if the applicant is publicly traded, a copy of the most recent report                              
23       filed with the United States Securities and Exchange Commission under 15 U.S.C.                                   
24       78m (Securities Exchange Act of 1934);                                                                            
25                 (9)  if the applicant is a wholly owned subsidiary of                                                   
26                      (A)  a corporation publicly traded in the United States, a copy of                                 
27            audited financial statements for the parent corporation for the most recent                                  
28            fiscal year or a copy of the parent corporation's most recent report filed under                             
29            15 U.S.C. 78m (Securities Exchange Act of 1934); or                                                          
30                      (B)  a corporation publicly traded outside the United States, a                                    
31            copy of documentation that is similar to the documentation required by (A) of                                
01            this paragraph and that is filed with the regulator of the parent corporation's                              
02            domicile outside the United States;                                                                          
03                 (10)  if the applicant has a registered agent in this state, the name and                               
04       address of the applicant's registered agent in this state; and                                                    
05                 (11)  any other information the department reasonably requires with                                     
06       respect to the applicant.                                                                                         
07            (c)  A nonrefundable application fee and a license fee must accompany an                                     
08       application for a license under AS 06.55.101 - 06.55.107. The license fee shall be                                
09       refunded if the application is denied.                                                                            
10            (d)  The department may waive a requirement of (a) and (b) of this section or                                
11       permit an applicant to submit other information instead of the required information.                              
12            (e)  In this section, "material litigation" means litigation that, according to                              
13       generally accepted accounting principles, is significant to an applicant's or a licensee's                        
14       financial health and would be required to be disclosed in the applicant's or licensee's                           
15       annual audited financial statements, report to shareholders, or similar records.                                  
16            Sec. 06.55.103. Approval to engage in money transmission when licensed                                     
17       in another state. (a) A person who is licensed to engage in money transmission in at                            
18       least one other state, with the approval of the department and under this section, may                            
19       engage in money transmission, currency exchange, or both money transmission and                                   
20       currency exchange in this state without being licensed under AS 06.55.102 if                                      
21                 (1)  the state in which the person is licensed has enacted the Uniform                                  
22       Money Services Act or the department determines that the money transmission laws of                               
23       the state in which the person is licensed are substantially similar to those imposed by                           
24       this chapter;                                                                                                     
25                 (2)  the person submits to, and in the form required by, the department                                 
26                      (A)  in a record, an application for approval to engage in money                                   
27            transmission, currency exchange, or both money transmission and currency                                     
28            exchange in this state without being licensed under AS 06.55.102;                                            
29                      (B)  a nonrefundable fee; and                                                                      
30                      (C)  a certification of license history in the other state.                                        
31            (b)  Before granting a person approval under this section to engage in money                                 
01       transmission, currency exchange, or both money transmission and currency exchange                                 
02       in this state, the department shall make findings and conclusions as required by                                  
03       regulation.                                                                                                       
04            (c)  When an application for approval under this section is complete, the                                    
05       department shall promptly notify the applicant, in a record, of the date on which the                             
06       request was determined to be complete, and                                                                        
07                 (1)  the department shall approve or deny the request within 120 days                                   
08       after that date; or                                                                                               
09                 (2)  if the request is not approved or denied within 120 days after that                                
10       date,                                                                                                             
11                      (A)  the request is approved; and                                                                  
12                      (B)  the approval takes effect as of the first business day after                                  
13            expiration of the 120-day period.                                                                            
14            (d)  A person who engages in money transmission, currency exchange, or both                                  
15       money transmission and currency exchange in this state under this section shall                                   
16       comply with the requirements of, and is subject to the sanctions under, AS 06.55.401 -                            
17       06.55.607 as if the person were licensed under AS 06.55.102.                                                      
18            Sec. 06.55.104. Security. (a) Except as otherwise provided in (b) of this                                  
19       section, a surety bond, a letter of credit, or another similar security acceptable to the                         
20       department in the amount of $25,000 plus $5,000 for each location, not exceeding a                                
21       total addition of $125,000, must accompany an application for a license.                                          
22            (b)  Security must be in a form satisfactory to the department and payable to                                
23       the state for the benefit of a claimant against the licensee to secure the faithful                               
24       performance of the obligations of the licensee with respect to money transmission.                                
25            (c)  The aggregate liability on a surety bond may not exceed the principal sum                               
26       of the bond. A claimant against a licensee may maintain an action on the bond, or the                             
27       department may maintain an action on behalf of the claimant.                                                      
28            (d)  A surety bond must cover claims for as long as the department specifies,                                
29       but for at least five years after the licensee ceases to provide money services in this                           
30       state. However, the department may permit the amount of security to be reduced or                                 
31       eliminated before the expiration of that time to the extent the amount of the licensee's                          
01       payment instruments or stored-value obligations outstanding in this state is reduced.                             
02       The department may permit a licensee to substitute another form of security                                       
03       acceptable to the department for the security effective at the time the licensee ceases to                        
04       provide money services in this state.                                                                             
05            (e)  Instead of the security prescribed in this section, an applicant for a license                          
06       or a licensee may provide security in a form prescribed by the department.                                        
07            (f)  The department may increase the amount of security required to a                                        
08       maximum of $500,000 if the financial condition of a licensee requires the increase, as                            
09       evidenced by reduction of net worth, financial losses, or other relevant criteria.                                
10            Sec. 06.55.105. Issuance of license. (a) When an application is filed under                                
11       AS 06.55.101 - 06.55.107, the department shall investigate the applicant's financial                              
12       condition and responsibility, financial and business experience, character, and general                           
13       fitness. The department may conduct an on-site investigation of the applicant, the                                
14       reasonable cost of which the applicant shall pay. The department shall issue a license                            
15       to an applicant under AS 06.55.101 - 06.55.107 if the department finds that all of the                            
16       following conditions have been fulfilled:                                                                         
17                 (1)  the applicant has complied with AS 06.55.102, 06.55.104, and                                       
18       06.55.107; and                                                                                                    
19                 (2)  the financial condition and responsibility, financial and business                                 
20       experience, character, and general fitness of the applicant, and the competence,                                  
21       experience, character, and general fitness of the executive officers, managers,                                   
22       directors, and persons in control of the applicant indicate that it is in the interest of the                     
23       public to permit the applicant to engage in money transmission;                                                   
24            (b)  When an application for an original license under AS 06.55.101 -                                        
25       06.55.107 is complete, the department shall promptly notify the applicant in a record                             
26       of the date on which the application was determined to be complete, and                                           
27                 (1)  the department shall approve or deny the application within 120                                    
28       days after that date; or                                                                                          
29                 (2)  if the application is not approved or denied within 120 days after                                 
30       that date,                                                                                                        
31                      (A)  the application is approved; and                                                              
01                      (B)  the license takes effect as of the first business day after                                   
02            expiration of the 120-day period.                                                                            
03            (c)  The department may for good cause extend the application period.                                        
04            (d)  An applicant whose application is denied by the department under                                        
05       AS 06.55.101 - 06.55.107 may appeal, within 30 days after receipt of the notice of the                            
06       denial, from the denial and request a hearing.                                                                    
07            Sec. 06.55.106. Renewal of license. (a) A licensee under AS 06.55.101 -                                    
08       06.55.107 shall pay an annual renewal fee not later than 30 days before the                                       
09       anniversary of the issuance of the license or, if the last day is not a business day, on the                      
10       next business day.                                                                                                
11            (b)  A licensee under AS 06.55.101 - 06.55.107 shall submit a renewal report                                 
12       with the renewal fee, in a form and in a medium prescribed by the department. The                                 
13       renewal report must state or contain                                                                              
14                 (1)  a copy of the licensee's most recent audited annual financial                                      
15       statement or, if the licensee is a wholly owned subsidiary of another corporation, the                            
16       most recent audited consolidated annual financial statement of the parent corporation                             
17       or the licensee's most recent audited consolidated annual financial statement;                                    
18                 (2)  the number and monetary amount of payment instruments and                                          
19       stored value sold by the licensee in this state that have not been included in a renewal                          
20       report, and the monetary amount of payment instruments and stored value currently                                 
21       outstanding;                                                                                                      
22                 (3)  a description of each material change in information submitted by                                  
23       the licensee in its original license application that has not been reported to the                                
24       department on any required report;                                                                                
25                 (4)  a list of the licensee's permissible investments and a certification                               
26       that the licensee continues to maintain permissible investments according to the                                  
27       requirements set out in AS 06.55.501 and 06.55.502;                                                               
28                 (5)  proof that the licensee continues to maintain adequate security as                                 
29       required by AS 06.55.104; and                                                                                     
30                 (6)  a list of the locations in this state where the licensee or an                                     
31       authorized delegate of the licensee engages in money transmission or provides other                               
01       money services.                                                                                                   
02            (c)  If a licensee does not file a renewal report or pay its renewal fee by the                              
03       renewal date or any extension of time granted by the department, the department shall                             
04       send the licensee a notice of suspension. Unless the licensee files the report and pays                           
05       the renewal fee before expiration of 10 days after the notice is sent, the licensee's                             
06       license is suspended 10 days after the department sends the notice of suspension. The                             
07       suspension shall be lifted if, within 20 days after its license is suspended, the licensee                        
08                 (1)  files the report and pays the renewal fee; and                                                     
09                 (2)  pays a late fee for each day after suspension that the department did                              
10       not receive the renewal report and the renewal fee.                                                               
11            (d)  The department for good cause may grant an extension of the renewal date.                               
12            Sec. 06.55.107. Net worth. A licensee under AS 06.55.101 - 06.55.107 shall                                 
13       maintain a net worth of at least $25,000 determined under generally accepted                                      
14       accounting principles.                                                                                            
15                    Article 2. Currency Exchange Licenses.                                                             
16            Sec. 06.55.201. License required. (a) A person may not engage in currency                                  
17       exchange or advertise, solicit, or hold the person out as providing currency exchange                             
18       for which the person receives revenues equal or greater than five percent of total                                
19       revenues unless the person                                                                                        
20                 (1)  is licensed under AS 06.55.201 - 06.55.204;                                                        
21                 (2)  is licensed for money transmission under AS 06.55.101 - 06.55.107                                  
22       or approved to engage in money transmission under AS 06.55.103;                                                   
23                 (3)  is an authorized delegate of a person licensed under AS 06.55.101 -                                
24       06.55.107; or                                                                                                     
25                 (4)  is an authorized delegate of a person approved to engage in money                                  
26       transmission under AS 06.55.103.                                                                                  
27            (b)  A license under AS 06.55.201 - 06.55.204 is not transferable or assignable.                             
28            Sec. 06.55.202. Application for license. (a) A person applying for a license                               
29       under AS 06.55.201 - 06.55.204 shall apply in a form and in a medium prescribed by                                
30       the department. The application must state or contain                                                             
31                 (1)  the legal name and residential and business addresses of the                                       
01       applicant if the applicant is an individual or, if the applicant is not an individual, the                        
02       name of each partner, executive officer, manager, and director;                                                   
03                 (2)  the location of the principal office of the applicant;                                             
04                 (3)  the complete addresses of other locations in this state where the                                  
05       applicant proposes to engage in currency exchange, including all mobile locations;                                
06                 (4)  a description of the source of money and credit to be used by the                                  
07       applicant to engage in currency exchange; and                                                                     
08                 (5)  other information the department reasonably requires with respect                                  
09       to the applicant, but not more than the department may require under AS 06.55.101 -                               
10       06.55.107.                                                                                                        
11            (b)  A nonrefundable application fee and a license fee must accompany an                                     
12       application for a license under AS 06.55.201 - 06.55.204. The license fee shall be                                
13       refunded if the application is denied.                                                                            
14            Sec. 06.55.203. Issuance of license. (a) When an application is filed under                                
15       AS 06.55.201 - 06.55.204, the department shall investigate the applicant's financial                              
16       condition and responsibility, financial and business experience, character, and general                           
17       fitness. The department may conduct an on-site investigation of the applicant, the                                
18       reasonable cost of which the applicant shall pay. The department shall issue a license                            
19       to an applicant under AS 06.55.201 - 06.55.204 if the department finds that all of the                            
20       following conditions have been fulfilled:                                                                         
21                 (1)  the applicant has complied with AS 06.55.202; and                                                  
22                 (2)  the financial condition and responsibility, financial and business                                 
23       experience, character, and general fitness of the applicant, and the competence,                                  
24       experience, character, and general fitness of the executive officers, managers,                                   
25       directors, and persons in control of the applicant indicate that it is in the interest of the                     
26       public to permit the applicant to engage in currency exchange.                                                    
27            (b)  When an application for an original license under AS 06.55.201 -                                        
28       06.55.204 is complete, the department shall promptly notify the applicant in a record                             
29       of the date on which the application was determined to be complete, and                                           
30                 (1)  the department shall approve or deny the application within 120                                    
31       days after that date; or                                                                                          
01                 (2)  if the application is not approved or denied within 120 days after                                 
02       that date,                                                                                                        
03                      (A)  the application is approved; and                                                              
04                      (B)  the department shall issue the license under AS 06.55.201 -                                   
05            06.55.204, to take effect as of the first business day after expiration of the                               
06            period.                                                                                                      
07            (c)  The department may for good cause extend the application period.                                        
08            (d)  An applicant whose application is denied by the department under                                        
09       AS 06.55.201 - 06.55.204 may appeal, within 30 days after receipt of the notice of the                            
10       denial, from the denial and request a hearing.                                                                    
11            Sec. 06.55.204. Renewal of license. (a) A licensee under AS 06.55.201 -                                    
12       06.55.204 shall pay a biennial renewal fee not later than 30 days before each biennial                            
13       anniversary of the issuance of the license or, if the last day is not a business day, on the                      
14       next business day.                                                                                                
15            (b)  A licensee under AS 06.55.201 - 06.55.204 shall submit a renewal report                                 
16       with the renewal fee, in a form and in a medium prescribed by the department. The                                 
17       renewal report must state or contain                                                                              
18                 (1)  a description of each material change in information submitted by                                  
19       the licensee in its original license application that has not been reported to the                                
20       department on any required report; and                                                                            
21                 (2)  a list of the locations in this state where the licensee or an                                     
22       authorized delegate of the licensee engages in currency exchange, including mobile                                
23       locations.                                                                                                        
24            (c)  If a licensee does not file a renewal report and pay its renewal fee by the                             
25       renewal date or any extension of time granted by the department, the department shall                             
26       send the licensee a notice of suspension. Unless the licensee files the report and pays                           
27       the renewal fee before expiration of 10 days after the notice is sent, the licensee's                             
28       license is suspended 10 days after the department sends the notice of suspension.                                 
29            (d)  The department for good cause may grant an extension of the renewal date.                               
30                      Article 3. Authorized Delegates.                                                                 
31            Sec. 06.55.301. Relationship between licensee and authorized delegate. (a)                                 
01       A contract between a licensee and an authorized delegate must require the authorized                              
02       delegate to operate in full compliance with this chapter. The licensee shall furnish in a                         
03       record to each authorized delegate policies and procedures sufficient for compliance                              
04       with this chapter.                                                                                                
05            (b)  An authorized delegate shall remit all money owing to the licensee under                                
06       the terms of the contract between the licensee and the authorized delegate. In this                               
07       subsection, "remit" means to make direct payments of money to a licensee or its                                   
08       representative authorized to receive money or to deposit money in a bank in an                                    
09       account specified by the licensee.                                                                                
10            (c)  If a license is suspended or revoked or a licensee does not renew its                                   
11       license, the department shall notify all authorized delegates of the licensee whose                               
12       names are in a record filed with the department of the suspension, revocation, or                                 
13       nonrenewal. After notice is sent or publication is made, an authorized delegate shall                             
14       immediately cease to provide money services as an authorized delegate of the licensee.                            
15            (d)  An authorized delegate may not provide money services outside the scope                                 
16       of activity permissible under the contract between the authorized delegate and the                                
17       licensee, except activity in which the authorized delegate is authorized to engage                                
18       under AS 06.55.101 - 06.55.204. An authorized delegate of a licensee holds in trust for                           
19       the benefit of the licensee all money net of fees received from money transmission.                               
20            (e)  An authorized delegate may not use a subdelegate to conduct money                                       
21       services on behalf of a licensee.                                                                                 
22            Sec. 06.55.302. Unauthorized activities. A person may not act as an                                        
23       authorized delegate for, or otherwise provide money services on behalf of, a person                               
24       not licensed under this chapter.                                                                                  
25                  Article 4. Examinations, Reports, Records.                                                           
26            Sec. 06.55.401. Authority to conduct examinations. (a) The department may                                  
27       conduct an annual examination of a licensee or of any of its authorized delegates upon                            
28       45 days' notice in a record to the licensee.                                                                      
29            (b)  The department may examine a licensee or its authorized delegate, at any                                
30       time, without notice, if the department has reason to believe that the licensee or                                
31       authorized delegate is engaging in an unsafe or unsound practice or has violated or is                            
01       violating this chapter or a regulation adopted or an order issued under this chapter.                             
02            (c)  If the department concludes that an on-site examination is necessary under                              
03       (a) of this section, the licensee shall pay the reasonable cost of the examination.                               
04            (d)  Information obtained during an examination under this chapter may be                                    
05       disclosed only as provided in AS 06.55.407.                                                                       
06            Sec. 06.55.402. Cooperation. The department may consult and cooperate with                                 
07       other state money services regulators in enforcing and administering this chapter. The                            
08       department and other state money service regulators may jointly pursue examinations                               
09       and take other official action that they are otherwise empowered to take.                                         
10            Sec. 06.55.403. Reports. (a) A licensee shall file with the department within 15                           
11       business days any material changes in information provided in a licensee's application                            
12       as prescribed by the department.                                                                                  
13            (b)  A licensee shall file with the department within 45 days after the end of                               
14       each fiscal quarter a current list of all authorized delegates and locations in this state                        
15       where the licensee or an authorized delegate of the licensee provides money services,                             
16       including mobile locations. The licensee shall state the name and street address of                               
17       each location and authorized delegate.                                                                            
18            (c)  A licensee shall file a report with the department within one business day                              
19       after the licensee has reason to know of the occurrence of any of the following events:                           
20                 (1)  the filing of a petition by or against the licensee under 11 U.S.C.                                
21       101 - 110 (Bankruptcy Code) for bankruptcy or reorganization;                                                     
22                 (2)  the filing of a petition by or against the licensee for receivership,                              
23       the commencement of any other judicial or administrative proceeding for its                                       
24       dissolution or reorganization, or the making of a general assignment for the benefit of                           
25       its creditors;                                                                                                    
26                 (3)  the commencement of a proceeding to revoke or suspend its license                                  
27       in a state or country in which the licensee engages in business or is licensed;                                   
28                 (4)  the cancellation or other impairment of the licensee's bond or other                               
29       security;                                                                                                         
30                 (5)  a charge against or conviction of the licensee or of an executive                                  
31       officer, manager, director, or person in control of the licensee for a felony; or                                 
01                 (6)  a charge against or conviction of an authorized delegate for a                                     
02       felony.                                                                                                           
03            Sec. 06.55.404. Change of control. (a) A licensee shall                                                    
04                 (1)  give the department notice in a record of a proposed change of                                     
05       control within 15 days after learning of the proposed change of control;                                          
06                 (2)  request approval of the acquisition; and                                                           
07                 (3)  submit a nonrefundable fee with the notice.                                                        
08            (b)  After review of a request for approval under (a) of this section, the                                   
09       department may require the licensee to provide additional information concerning the                              
10       proposed persons in control of the licensee. The additional information must be                                   
11       limited to the same types required of the licensee or persons in control of the licensee                          
12       as part of its original license or renewal application.                                                           
13            (c)  The department shall approve a request for change of control under (a) of                               
14       this section if, after investigation, the department determines that the person or group                          
15       of persons requesting approval has the competence, experience, character, and general                             
16       fitness to operate the licensee or person in control of the licensee in a lawful and                              
17       proper manner and that the public interest will not be jeopardized by the change of                               
18       control.                                                                                                          
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 licensee in a record of the date                           
21       on which the request was determined to be complete, and                                                           
22                 (1)  the department shall approve or deny the request within 120 days                                   
23       after that date; or                                                                                               
24                 (2)  if the request is not approved or denied within 120 days after that                                
25       date,                                                                                                             
26                      (A)  the request is approved; and                                                                  
27                      (B)  the department shall permit the change of control under this                                  
28            section, to take effect as of the first business day after expiration of the period.                         
29            (e)  The department, by regulation or order, may exempt a person from any of                                 
30       the requirements of (a)(2) and (3) of this section if it is in the public interest to exempt                      
31       the person.                                                                                                       
01            (f)  The provisions of (a) of this section do not apply to a public offering of                              
02       securities.                                                                                                       
03            (g)  Before filing a request for approval to acquire control of a licensee or                                
04       person in control of a licensee, a person may request in a record a determination from                            
05       the department as to whether the person would be considered a person in control of a                              
06       licensee upon consummation of a proposed transaction. If the department determines                                
07       that the person would not be a person in control of a licensee, the department shall                              
08       enter an order to that effect, and the proposed person and transaction are not subject to                         
09       the requirements of (a) - (c) of this section.                                                                    
10            Sec. 06.55.405. Records. (a) A licensee shall maintain the following records                               
11       for determining its compliance with this chapter for at least three years:                                        
12                 (1)  a record of each payment instrument or stored-value obligation                                     
13       sold;                                                                                                             
14                 (2)  a general ledger posted at least monthly containing all asset,                                     
15       liability, capital, income, and expense accounts;                                                                 
16                 (3)  bank statements and bank reconciliation records;                                                   
17                 (4)  records of outstanding payment instruments and stored-value                                        
18       obligations;                                                                                                      
19                 (5)  records of each payment instrument and stored-value obligation                                     
20       paid within the three-year period;                                                                                
21                 (6)  a list of the last known names and addresses of all of the licensee's                              
22       authorized delegates; and                                                                                         
23                 (7)  any other records the department reasonably requires by regulation.                                
24            (b)  The items specified in (a) of this section may be maintained in any form of                             
25       record.                                                                                                           
26            (c)  Records may be maintained outside this state if they are made accessible to                             
27       the department on seven business days' notice that is sent in a record.                                           
28            (d)  All records maintained by the licensee as required in (a) - (c) of this                                 
29       section are open to inspection by the department under AS 06.55.401.                                              
30            Sec. 06.55.406. Money laundering reports. (a) A licensee and an authorized                                 
31       delegate shall file with the attorney general all reports required by federal currency                            
01       reporting, record keeping, and suspicious transaction reporting requirements as set out                           
02       in 31 U.S.C. 5311, 31 C.F.R. 103, and other federal and state laws pertaining to money                            
03       laundering.                                                                                                       
04            (b)  The timely filing of a complete and accurate report required under (a) of                               
05       this section with the appropriate federal agency is compliance with the requirements of                           
06       (a) of this section, unless the department notifies the licensee that the attorney general                        
07       has notified the department that reports of this type are not being regularly and                                 
08       comprehensively transmitted by the federal agency to the attorney general.                                        
09            Sec. 06.55.407. Confidentiality. (a) Except as otherwise provided in (b) of this                           
10       section, all information or reports obtained by the department from an applicant, a                               
11       licensee, or an authorized delegate are confidential and not subject to disclosure under                          
12       AS 40.25.100 - 40.25.220, including                                                                               
13                 (1)  all information contained in or related to examination,                                            
14       investigation, operating, or condition reports prepared by, on behalf of, or for the use                          
15       of the department; and                                                                                            
16                 (2)  financial statements, balance sheets, and authorized delegate                                      
17       information.                                                                                                      
18            (b)  The department may disclose information that is not otherwise subject to                                
19       disclosure under (a) of this section to representatives of state or federal agencies who                          
20       promise in a record that they will maintain the confidentiality of the information or if                          
21       the department finds that the release is reasonably necessary for the protection of the                           
22       public and in the interests of justice, and the licensee has been given previous notice                           
23       by the department of its intent to release the information.                                                       
24            (c)  This section does not prohibit the department from disclosing to the public                             
25       a list of persons licensed under this chapter or the aggregated financial data concerning                         
26       those licensees.                                                                                                  
27                     Article 5. Permissible Investments.                                                               
28            Sec. 06.55.501. Maintenance of permissible investments. (a) A licensee shall                               
29       maintain at all times permissible investments that have a market value computed under                             
30       generally accepted accounting principles of not less than the aggregate amount of all                             
31       of its outstanding payment instruments and stored value obligations issued or sold in                             
01       all states and money transmitted from all states by the licensee.                                                 
02            (b)  The department, with respect to any licensees, may limit the extent to                                  
03       which a type of investment within a class of permissible investments may be                                       
04       considered a permissible investment, except for money and certificates of deposit                                 
05       issued by a bank. The department by regulation may prescribe or by order allow other                              
06       types of investments that the department determines to have a safety substantially                                
07       equivalent to other permissible investments.                                                                      
08            (c)  Permissible investments, even if commingled with other assets of the                                    
09       licensee, are held in trust for the benefit of the purchasers and holders of the licensee's                       
10       outstanding payment instruments and stored value obligations in the event of                                      
11       bankruptcy or receivership of the licensee.                                                                       
12            Sec. 06.55.502. Types of permissible investments. (a) Except to the extent                                 
13       otherwise limited by the department under AS 06.55.501, the following investments                                 
14       are permissible under AS 06.55.501:                                                                               
15                 (1)  cash, a certificate of deposit, or a senior debt obligation of an                                  
16       insured depository institution; in this paragraph, "insured depository institution" has                           
17       the meaning given in 12 U.S.C. 1813 (Federal Deposit Insurance Act);                                              
18                 (2)  banker's acceptance or bill of exchange that is eligible for purchase                              
19       on endorsement by a member bank of the Federal Reserve System and is eligible for                                 
20       purchase by a Federal Reserve Bank;                                                                               
21                 (3)  an investment bearing a rating of one of the three highest grades as                               
22       defined by a nationally recognized organization that rates securities;                                            
23                 (4)  an investment security that is an obligation of the United States or a                             
24       department, agency, or instrumentality of the United States, an investment in an                                  
25       obligation that is guaranteed fully as to principal and interest by the United States, or                         
26       an investment in an obligation of a state or a governmental subdivision, agency, or                               
27       instrumentality of a state;                                                                                       
28                 (5)  receivables that are payable to a licensee from its authorized                                     
29       delegates, in the ordinary course of business, under contracts that are not past due or                           
30       doubtful of collection if the aggregate amount of receivables under this paragraph does                           
31       not exceed 20 percent of the total permissible investments of a licensee and the                                  
01       licensee does not hold at one time receivables under this paragraph in any one person                             
02       aggregating more than 10 percent of the licensee's total permissible investments; and                             
03                 (6)  a share or a certificate issued by an open-end management                                          
04       investment company that is registered with the United States Securities and Exchange                              
05       Commission under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act of 1940), and                                   
06       whose portfolio is restricted by the management company's investment policy to                                    
07       investments specified in (1) - (4) of this subsection.                                                            
08            (b)  The following investments are permissible under AS 06.55.501, but only                                  
09       to the extent specified:                                                                                          
10                 (1)  an interest-bearing bill, note, bond, or debenture of a person whose                               
11       equity shares are traded on a national securities exchange or on a national over-the-                             
12       counter market, if the aggregate of investments under this paragraph does not exceed                              
13       20 percent of the total permissible investments of a licensee and the licensee does not                           
14       at one time hold investments under this paragraph in any one person aggregating more                              
15       than 10 percent of the licensee's total permissible investments;                                                  
16                 (2)  a share of a person traded on a national securities exchange or a                                  
17       national over-the-counter market or a share or a certificate issued by an open-end                                
18       management investment company that is registered with the United States Securities                                
19       and Exchange Commission under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act                                    
20       of 1940), and whose portfolio is restricted by the management company's investment                                
21       policy to shares of a person traded on a national securities exchange or a national over-                         
22       the-counter market, if the aggregate of investments under this paragraph does not                                 
23       exceed 20 percent of the total permissible investments of a licensee and the licensee                             
24       does not at one time hold investments in any one person aggregating more than 10                                  
25       percent of the licensee's total permissible investments;                                                          
26                 (3)  a demand-borrowing agreement made to a corporation or a                                            
27       subsidiary of a corporation whose securities are traded on a national securities                                  
28       exchange, if the aggregate of the amount of principal and interest outstanding under                              
29       demand-borrowing agreements under this paragraph does not exceed 20 percent of the                                
30       total permissible investments of a licensee and the licensee does not at one time hold                            
31       principal and interest outstanding under demand-borrowing agreements under this                                   
01       paragraph with any one person aggregating more than 10 percent of the licensee's total                            
02       permissible investments; and                                                                                      
03                 (4)  any other investment the department designates, to the extent                                      
04       specified by the department.                                                                                      
05            (c)  The aggregate of investments under (b) of this section may not exceed 50                                
06       percent of the total permissible investments of a licensee calculated under                                       
07       AS 06.55.501.                                                                                                     
08                         Article 6. Enforcement.                                                                       
09            Sec. 06.55.601. Suspension and revocation; receivership. (a) The                                           
10       department may suspend or revoke a license, place a licensee in receivership, or order                            
11       a licensee to revoke the designation of an authorized delegate if                                                 
12                 (1)  the licensee violates this chapter or a regulation adopted or an order                             
13       issued under this chapter;                                                                                        
14                 (2)  the licensee does not cooperate with an examination or                                             
15       investigation by the department;                                                                                  
16                 (3)  the licensee engages in fraud, intentional misrepresentation, or                                   
17       gross negligence;                                                                                                 
18                 (4)  an authorized delegate is convicted of a violation of a state or                                   
19       federal anti-money laundering statute, or violates a regulation adopted or an order                               
20       issued under this chapter, as a result of the licensee's wilful misconduct or wilful                              
21       blindness;                                                                                                        
22                 (5)  the competence, experience, character, or general fitness of the                                   
23       licensee, authorized delegate, person in control of a licensee, or responsible person of                          
24       the licensee or authorized delegate indicates that it is not in the public interest to                            
25       permit the person to provide money services;                                                                      
26                 (6)  the licensee engages in an unsafe or unsound practice;                                             
27                 (7)  the licensee is insolvent, suspends payment of its obligations, or                                 
28       makes a general assignment for the benefit of its creditors; or                                                   
29                 (8)  the licensee does not remove an authorized delegate after the                                      
30       department issues and serves upon the licensee a final order including a finding that                             
31       the authorized delegate has violated this chapter.                                                                
01            (b)  In determining whether a licensee is engaging in an unsafe or unsound                                   
02       practice, the department may consider the size and condition of the licensee's money                              
03       transmission, the magnitude of the loss, the gravity of the violation of this chapter, and                        
04       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 licensee or authorized delegate is likely to cause immediate and                                     
30       irreparable harm to the licensee, its customers, or the public as a result of the violation,                      
31       or cause insolvency or significant dissipation of assets of the licensee, the department                          
01       may issue an order requiring the licensee or authorized delegate to cease and desist                              
02       from the violation. The order becomes effective on service of it on the licensee or                               
03       authorized delegate.                                                                                              
04            (b)  The department may issue an order against a licensee to cease and desist                                
05       from providing money services through an authorized delegate who is the subject of a                              
06       separate order by the department.                                                                                 
07            (c)  An order to cease and desist remains effective and enforceable pending the                              
08       completion of an administrative proceeding under AS 06.55.601 or 06.55.602.                                       
09            (d)  A licensee or an authorized delegate who is served with an order to cease                               
10       and desist may petition the superior court for a judicial order setting aside, limiting, or                       
11       suspending the enforcement, operation, or effectiveness of the order pending the                                  
12       completion of an administrative proceeding under AS 06.55.601 or 06.55.602.                                       
13            (e)  An order to cease and desist expires unless the department commences an                                 
14       administrative proceeding under AS 06.55.601 or 06.55.602 within 10 days after it is                              
15       issued.                                                                                                           
16            Sec. 06.55.604. Consent orders. The department may enter into a consent                                    
17       order at any time with a person to resolve a matter arising under this chapter or a                               
18       regulation adopted or order issued under this chapter. A consent order shall be signed                            
19       by the person to whom it is issued or by the person's authorized representative and                               
20       must indicate agreement with the terms contained in the order. A consent order may                                
21       provide that it does not constitute an admission by a person that this chapter or a                               
22       regulation adopted or an order issued under this chapter has been violated.                                       
23            Sec. 06.55.605. Civil penalties. The department may assess a civil penalty                                 
24       against a person who violates this chapter or a regulation adopted or an order issued                             
25       under this chapter in an amount not to exceed $1,000 each day for each day the                                    
26       violation is outstanding.                                                                                         
27            Sec. 06.55.606. Criminal penalties. (a) A person who intentionally makes a                                 
28       false statement, misrepresentation, or false certification in a record filed or required to                       
29       be maintained under this chapter or who intentionally makes a false entry or omits a                              
30       material entry in a record filed or required to be maintained under this chapter is guilty                        
31       of a class C felony.                                                                                              
01            (b)  A person who knowingly engages in an activity for which a license is                                    
02       required under this chapter without being licensed under this chapter and who receives                            
03       more than $500 in compensation within a 30-day period from this activity is guilty of                             
04       a class C felony.                                                                                                 
05            (c)  A person who knowingly engages in an activity for which a license is                                    
06       required under this chapter without being licensed under this chapter and who receives                            
07       no more than $500 in compensation within a 30-day period from this activity is guilty                             
08       of a class A misdemeanor.                                                                                         
09            Sec. 06.55.607. Unlicensed persons. (a) If the department has reason to                                    
10       believe that a person has violated or is violating AS 06.55.101 or 06.55.201, the                                 
11       department may issue an order to show cause why an order to cease and desist should                               
12       not issue requiring that the person cease and desist from the violation of AS 06.55.101                           
13       or 06.55.201.                                                                                                     
14            (b)  In an emergency, the department may petition the superior court for the                                 
15       issuance of a temporary restraining order.                                                                        
16            (c)  An order to cease and desist becomes effective upon service of it upon the                              
17       person.                                                                                                           
18            (d)  An order to cease and desist remains effective and enforceable pending the                              
19       completion of an administrative proceeding under AS 06.55.701 and 06.55.702.                                      
20            (e)  A person who is served with an order to cease and desist for violating                                  
21       AS 06.55.101 or 06.55.201 may petition the superior court for a judicial order setting                            
22       aside, limiting, or suspending the enforcement, operation, or effectiveness of the order                          
23       pending the completion of an administrative proceeding under AS 06.55.701 and                                     
24       06.55.702.                                                                                                        
25            (f)  An order to cease and desist expires unless the department commences an                                 
26       administrative proceeding within 10 days after it is issued.                                                      
27                    Article 7. Administrative Procedures.                                                              
28            Sec. 06.55.701. Administrative proceedings. All administrative proceedings                                 
29       under this chapter shall be conducted under AS 44.62 (Administrative Procedure Act),                              
30       except that hearings shall be conducted by the office of administrative hearings                                  
31       (AS 44.64.010).                                                                                                   
01            Sec. 06.55.702. Hearings. (a) Except as otherwise provided in AS 06.55.603                               
02       and 06.55.607 and in (b) of this section, the department may not suspend or revoke a                              
03       license, place a licensee in receivership, issue an order to cease and desist, suspend or                         
04       revoke the designation of an authorized delegate, or assess a civil penalty without                               
05       notice and an opportunity to be heard. The department shall also hold a hearing when                              
06       requested to hold a hearing by an applicant whose application for a license is denied.                            
07            (b)  Under AS 06.55.106(c) and 06.55.204(c), the department may suspend a                                    
08       license without a hearing unless the licensee requests a hearing.                                                 
09            Sec. 06.55.703. Investigative powers. (a) In its investigations under this                                 
10       chapter, the department may administer oaths or affirmations and, on its own motion                               
11       or on the request of a party to a proceeding, may subpoena witnesses, compel the                                  
12       attendance of witnesses, take evidence, and require the production of material that is                            
13       relevant to the investigation, including the existence, description, nature, custody,                             
14       condition, and location of books, documents, and other tangible items, and the identity                           
15       and location of persons having knowledge of relevant facts or other material                                      
16       reasonably calculated to lead to the discovery of admissible evidence.                                            
17            (c)  If a person fails without a lawful excuse to obey a subpoena, and after                                 
18       reasonable notice to all persons affected by the failure, the department may apply to                             
19       the superior court for an order compelling the person to obey the subpoena.                                     
20                     Article 8. Miscellaneous Provisions.                                                              
21            Sec. 06.55.801. Uniformity of application and construction. In applying and                                
22       construing this chapter, consideration shall be given to the need to promote uniformity                           
23       of the law with respect to its subject matter among states that enact it.                                         
24            Sec. 06.55.802. Exclusions. This chapter does not apply to                                                 
25                 (1)  the United States or a department, an agency, or an instrumentality                                
26       of the United States;                                                                                             
27                 (2)  money transmission by the United States Postal Service or by a                                     
28       contractor on behalf of the United States Postal Service;                                                         
29                 (3)  a state, a municipality, a county, or another governmental agency                                  
30       or governmental subdivision of a state;                                                                           
31                 (4)  a bank, a bank holding company, an office of an international                                      
01       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
02       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
03       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States, if it does                            
04       not issue, sell, or provide payment instruments or stored value through an authorized                             
05       delegate who is not a bank, a bank holding company, an office of an international                                 
06       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
07       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
08       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States;                                       
09                 (5)  electronic funds transfer of governmental benefits for a federal,                                  
10       state, or municipal agency or a state political subdivision by a contractor on behalf of                          
11                      (A)  the United States or a department, an agency, or an                                           
12            instrumentality of the United States; or                                                                     
13                      (B)  a state, or a department, an agency, or an instrumentality of                                 
14            a state;                                                                                                     
15                 (6)  a board of trade or a person who, in the ordinary course of                                        
16       business, provides clearance and settlement services for a board of trade, to the extent                          
17       of the operation of the person for a board of trade; in this paragraph, "board of trade"                          
18       means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f                                     
19       (Commodity Exchange Act);                                                                                         
20                 (7)  a registered futures commission merchant under the federal                                         
21       commodities laws, to the extent of the merchant's operation as a registered futures                               
22       commission merchant under the federal commodities laws;                                                           
23                 (8)  a person who provides clearance or settlement services under a                                     
24       registration as a clearing agency or an exemption from the registration granted under                             
25       the federal securities laws, to the extent of the person's operation as a provider of                             
26       clearance or settlement services under a registration as a clearing agency or an                                  
27       exemption from the registration granted under the federal securities laws;                                        
28                 (9)  an operator of a payment system to the extent that the operator                                    
29       provides processing, clearing, or settlement services, between or among persons                                   
30       excluded by this section, in connection with wire transfers, credit card transactions,                            
31       debit card transactions, stored-value transactions, automated clearing house transfers,                           
01       or similar funds transfers; or                                                                                    
02                 (10)  a person registered as a securities broker-dealer under federal or                                
03       state securities laws, to the extent of the person's operation as a securities broker-                            
04       dealer under federal or state securities laws.                                                                    
05            Sec. 06.55.810. Disclosures required. Before a licensee provides money                                     
06       services to a person under this chapter, the licensee shall provide to the person a                               
07       clearly written statement that                                                                                    
08                 (1)  explains all fees and commissions to be charged by the licensee for                                
09       providing the money services;                                                                                     
10                 (2)  explains, for money transmissions that will be redeemed in a                                       
11       currency other than the currency that the person uses to purchase the money                                       
12       transmission service, whether the exchange rate will be applied when the person                                   
13       purchases the money transmission service or when the recipient redeems the payment                                
14       instrument or stored value;                                                                                       
15                 (3)  gives the department's address and telephone number for receiving                                  
16       calls regarding complaints and concerns about licensees and the money services                                    
17       provided by licensees; and                                                                                        
18                 (4)  includes other information reasonably required by the department                                   
19       to inform and protect persons to whom licensees provide money services.                                           
20            Sec. 06.55.820. Establishment of fees and other charges. (a) The department                                
21       shall adopt regulations that establish the amount and manner of payment of fees                                   
22       required under this chapter.                                                                                      
23            (b)  The department shall establish fee levels under (a) of this section so that                             
24       the total amount of fees collected for both money transmission licensing and currency                             
25       exchange licensing under this chapter approximately equals the department's actual                                
26       total regulatory costs for both money transmission licensing and currency exchange                                
27       licensing. The department shall set the fee levels so that the fee levels for both money                          
28       transmission licensing and currency exchange licensing are the same.                                              
29            (c)  The department shall annually review each fee level to determine whether                                
30       the regulatory costs are approximately equal to fee collections. If the review indicates                          
31       that fee collections and regulatory costs are not approximately equal, the department                             
01       shall calculate fee adjustments and adopt regulations under (a) of this section to                                
02       implement the adjustments.                                                                                        
03            (d)  In January of each year, the department shall report to the office of                                   
04       management and budget all fee levels and revisions made for the previous year under                               
05       this section.                                                                                                     
06            (e)  In this section,                                                                                        
07                 (1)  "fee" means an application fee, a license fee, a renewal fee, the                                  
08       daily late fee for not submitting a renewal report and paying the renewal fee under                               
09       AS 06.55.106, investigation costs under AS 06.55.105 and 06.55.203, an examination                                
10       cost under AS 06.55.401, and a fee for approving a change of control under                                        
11       AS 06.55.404;                                                                                                     
12                 (2)  "regulatory costs" means the costs of the department that are                                      
13       attributable to regulation of money services licensing under this chapter.                                        
14                       Article 9. General Provisions.                                                                  
15            Sec. 06.55.990. Definitions. In this chapter,                                                              
16                 (1)  "applicant" means a person who files an application for a license                                  
17       under this chapter;                                                                                               
18                 (2)  "authorized delegate" means a person whom a licensee designates                                    
19       to provide money services on behalf of the licensee;                                                              
20                 (3)  "bank" means an institution organized under federal or state law                                   
21       that accepts demand deposits or deposits that the depositor may use for payment to                                
22       third parties and engages in the business of making commercial loans;                                             
23                 (4)  "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 licensee or person in control of a 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 licensee or person in control of a licensee; or                                                         
30                      (C)  the power to exercise directly or indirectly, a controlling                                   
31            influence over the management or policies of a licensee or person in control of                              
01            a licensee;                                                                                                  
02                 (5)  "currency exchange" means receipt of revenues from the exchange                                    
03       of money of one government for money of another government;                                                       
04                 (6)  "department" means the Department of Commerce, Community,                                          
05       and Economic Development;                                                                                         
06                 (7)  "executive officer" means a president, a chair of the executive                                    
07       committee, a chief financial officer, a responsible individual, or another individual                             
08       who performs similar functions; in this paragraph, "responsible individual" means an                              
09       individual who is employed by a licensee and has principal managerial authority over                              
10       the provision of money services by the licensee in this state;                                                    
11                 (8)  "licensee" means a person licensed under this chapter;                                             
12                 (9)  "mobile location" means a vehicle or a movable facility where                                      
13       currency exchange occurs;                                                                                         
14                 (10)  "monetary value" means a medium of exchange, whether or not                                       
15       redeemable in money;                                                                                              
16                 (11)  "money" means a medium of exchange that is authorized or                                          
17       adopted by the United States or a foreign government, including a monetary unit of                                
18       account established by an intergovernmental organization or by agreement between                                  
19       two or more governments;                                                                                          
20                 (12)  "money services" means money transmission or currency                                             
21       exchange;                                                                                                         
22                 (13)  "money transmission" means selling or issuing payment                                             
23       instruments or stored value, or receiving money or monetary value for transmission,                               
24       but does not include the provision solely of delivery, online services,                                           
25       telecommunications services, or network access;                                                                   
26                 (14)  "outstanding" with respect to a payment instrument, means issued                                  
27       or sold by or for the licensee and reported as sold but not yet paid by or for the                                
28       licensee;                                                                                                         
29                 (15)  "payment instrument" means a check, a draft, a money order, a                                     
30       traveler's check, or another instrument for the transmission or payment of money or                               
31       monetary value, whether or not negotiable, but does not include a credit card voucher,                            
01       a letter of credit, or an instrument that is redeemable by the issuer in goods or services;                       
02                 (16)  "person" means an individual, a corporation, a business trust, an                                 
03       estate, a trust, a partnership, a limited liability company, an association, a joint                              
04       venture, a government, a governmental subdivision, an agency, or an instrumentality, a                            
05       public corporation, or any other legal or commercial entity;                                                      
06                 (17)  "record" means information that is inscribed on a tangible                                        
07       medium or that is stored in an electronic or other medium and is retrievable in                                   
08       perceivable form;                                                                                                 
09                 (18)  "state" means a state of the United States, the District of                                       
10       Columbia, Puerto Rico, the United States Virgin Islands, or a territory or insular                                
11       possession subject to the jurisdiction of the United States;                                                      
12                 (19)  "stored value" means monetary value that is evidenced by an                                       
13       electronic record;                                                                                                
14                 (20)  "unsafe or unsound practice" means a practice or conduct by a                                     
15       person licensed to engage in money transmission or an authorized delegate of the                                  
16       person if the practice creates the likelihood of material loss, insolvency, or dissipation                        
17       of the licensee's assets, or otherwise materially prejudices the interests of the licensee's                      
18       customers.                                                                                                        
19            Sec. 06.55.995. Short title. This chapter may be cited as the Alaska Uniform                               
20       Money Services Act.                                                                                               
21    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
22 read:                                                                                                                   
23       APPLICABILITY. This Act applies to the provision of money services on or after                                    
24 July 1, 2008.                                                                                                           
25    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
26 read:                                                                                                                   
27       TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                               
28 Economic Development may proceed to adopt regulations necessary to implement the                                        
29 changes made by this Act. The regulations take effect under AS 44.62 (Administrative                                    
30 Procedure Act), but not before July 1, 2008.                                                                            
31    * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c).                                    
01    * Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect July 1, 2008.