txt

CSSB 116(L&C): "An Act relating to the Uniform Money Services Act, to money transmission services, and to currency exchange services; and providing for an effective date."

00                      CS FOR SENATE BILL NO. 116(L&C)                                                                    
01 "An Act relating to the Uniform Money Services Act, to money transmission services,                                     
02 and to currency exchange services; and providing for an effective date."                                                
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 06 is amended by adding a new chapter to read:                                                     
05                Chapter 55. Alaska Uniform Money Services Act.                                                         
06                   Article 1. Money Transmission Licenses.                                                             
07            Sec. 06.55.101. License required. (a) A person may not engage in the                                       
08       business of money transmission or advertise, solicit, or hold the person out as                                   
09       providing money transmission unless the person                                                                    
10                 (1)  holds a money transmission license; or                                                             
11                 (2)  is an authorized delegate of a person who holds a money                                            
12       transmission licensee.                                                                                            
13            (b)  A money transmission license is not transferable or assignable.                                         
14            Sec. 06.55.102. Application for license. (a) A person applying for a money                                 
01       transmission license shall apply in a form and in a medium prescribed by the                                      
02       department. The application must state or contain                                                                 
03                 (1)  the legal name and residential and business addresses of the                                       
04       applicant and any fictitious or trade name used by the applicant in conducting the                                
05       applicant's business;                                                                                             
06                 (2)  a list of any criminal convictions of the applicant and any material                               
07       litigation in which the applicant has been involved in the 10-year period next                                    
08       preceding the submission of the application;                                                                      
09                 (3)  a description of any money services previously provided by the                                     
10       applicant and the money services that the applicant seeks to provide in this state;                               
11                 (4)  a list of the applicant's proposed authorized delegates and the                                    
12       locations in this state where the applicant and its authorized delegates propose to                               
13       engage in money transmission or provide other money services;                                                     
14                 (5)  a list of other states in which the applicant is licensed to engage in                             
15       money transmission or provide other money services and any license revocations,                                   
16       suspensions, or other disciplinary action taken against the applicant in another state;                           
17                 (6)  information concerning any bankruptcy or receivership                                              
18       proceedings affecting the applicant;                                                                              
19                 (7)  a sample form of contract for authorized delegates, if applicable,                                 
20       and a sample form of payment instrument or instrument on which stored value is                                    
21       recorded, if applicable;                                                                                          
22                 (8)  the name and address of any bank through which the applicant's                                     
23       payment instruments and stored value will be paid;                                                                
24                 (9)  a description of the source of money and credit to be used by the                                  
25       applicant to provide money services; and                                                                          
26                 (10)  any other information the department reasonably requires with                                     
27       respect to the applicant.                                                                                         
28            (b)  If an applicant is a corporation, a limited liability company, a partnership,                           
29       or another entity, the applicant shall also provide                                                               
30                 (1)  the date of the applicant's incorporation or formation and state or                                
31       country of incorporation or formation;                                                                            
01                 (2)  if applicable, a certificate of good standing from the state or                                    
02       country in which the applicant is incorporated or formed;                                                         
03                 (3)  a brief description of the structure or organization of the applicant,                             
04       including any parent or subsidiary of the applicant, and whether any parent or                                    
05       subsidiary is publicly traded;                                                                                    
06                 (4)  the legal name, any fictitious or trade name, all business and                                     
07       residential addresses, and the employment, in the 10-year period next preceding the                               
08       submission of the application of each executive officer, manager, director, or person                             
09       who has control of the applicant;                                                                                 
10                 (5)  a list of any criminal convictions and material litigation in which                                
11       any executive officer, manager, director, or person in control of the applicant has been                          
12       involved in the 10-year period next preceding the submission of the application;                                  
13                 (6)  a copy of the applicant's audited financial statements for the most                                
14       recent fiscal year and, if available, for the two-year period next preceding the                                  
15       submission of the application;                                                                                    
16                 (7)  a copy of the applicant's unconsolidated financial statements for the                              
17       current fiscal year, whether audited or not, and, if available, for the two-year period                           
18       next preceding the submission of the application;                                                                 
19                 (8)  if the applicant is publicly traded, a copy of the most recent report                              
20       filed with the United States Securities and Exchange Commission under 15 U.S.C.                                   
21       78m (Securities Exchange Act of 1934);                                                                            
22                 (9)  if the applicant is a wholly owned subsidiary of                                                   
23                      (A)  a corporation publicly traded in the United States, a copy of                                 
24            audited financial statements for the parent corporation for the most recent                                  
25            fiscal year or a copy of the parent corporation's most recent report filed under                             
26            15 U.S.C. 78m (Securities Exchange Act of 1934); or                                                          
27                      (B)  a corporation publicly traded outside the United States, a                                    
28            copy of documentation that is similar to the documentation required by (A) of                                
29            this paragraph and that is filed with the regulator of the parent corporation's                              
30            domicile outside the United States;                                                                          
31                 (10)  if the applicant has a registered agent in this state, the name and                               
01       address of the applicant's registered agent in this state; and                                                    
02                 (11)  any other information the department reasonably requires with                                     
03       respect to the applicant.                                                                                         
04            (c)  A nonrefundable application fee and a license fee must accompany an                                     
05       application for a money transmission license. The license fee shall be refunded if the                            
06       application is denied.                                                                                            
07            (d)  The department may waive a requirement of (a) and (b) of this section or                                
08       permit an applicant to submit other information instead of the required information.                              
09            (e)  In this section,                                                                                        
10                 (1)  "material litigation" means litigation that, according to generally                                
11       accepted accounting principles, is significant to an applicant's or a money transmission                          
12       licensee's financial health and would be required to be disclosed in the applicant's or                           
13       money transmission licensee's annual audited financial statements, report to                                      
14       shareholders, or similar records;                                                                                 
15                 (2)  "money transmission licensee" does not include an approval under                                   
16       AS 06.55.103.                                                                                                     
17            Sec. 06.55.103. Approval to engage in money transmission when licensed                                     
18       in another state. (a) A person who is licensed to engage in money transmission in at                            
19       least one other state, with the approval of the department and under this section, may                            
20       engage in money transmission, currency exchange, or both money transmission and                                   
21       currency exchange in this state without being licensed under AS 06.55.102 if                                      
22                 (1)  the state in which the person is licensed has enacted the Uniform                                  
23       Money Services Act or the department determines that the money transmission laws of                               
24       the state in which the person is licensed are substantially similar to those imposed by                           
25       this chapter;                                                                                                     
26                 (2)  the person submits to, and in the form required by, the department                                 
27                      (A)  in a record, an application for approval to engage in money                                   
28            transmission, currency exchange, or both money transmission and currency                                     
29            exchange in this state without being licensed under AS 06.55.102;                                            
30                      (B)  a nonrefundable application fee;                                                              
31                      (C)  a fee for the first year of operating with the approval given                                 
01            under this section; this fee shall be refunded if the application is denied; and                             
02                      (D)  a certification of license history in the other state.                                        
03            (b)  Before granting a person approval under this section to engage in money                                 
04       transmission, currency exchange, or both money transmission and currency exchange                                 
05       in this state, the department shall make findings and conclusions as required by                                  
06       regulation.                                                                                                       
07            (c)  When an application for approval under this section is complete, the                                    
08       department shall promptly notify the applicant, in a record, of the date on which the                             
09       request was determined to be complete, and                                                                        
10                 (1)  the department shall approve or deny the request within 120 days                                   
11       after that date; or                                                                                               
12                 (2)  if the request is not approved or denied within 120 days after that                                
13       date,                                                                                                             
14                      (A)  the request is approved; and                                                                  
15                      (B)  the approval takes effect as of the first business day after                                  
16            expiration of the 120-day period.                                                                            
17            Sec. 06.55.104. Security. (a) Except as otherwise provided in (b) of this                                  
18       section, a surety bond, a letter of credit, or another similar security acceptable to the                         
19       department in the amount of $25,000 plus $5,000 for each location, not exceeding a                                
20       total addition of $125,000, must accompany an application for a money transmission                                
21       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 money transmission licensee to                                
24       secure the faithful performance of the obligations of the money transmission licensee                             
25       with respect to money transmission.                                                                               
26            (c)  The aggregate liability on a surety bond may not exceed the principal sum                               
27       of the bond. A claimant against a money transmission licensee may maintain an action                              
28       on the bond, or the department may maintain an action on behalf of the claimant.                                  
29            (d)  A surety bond must cover claims for as long as the department specifies,                                
30       but for at least five years after the money transmission licensee ceases to provide                               
31       money services in this state. However, the department may permit the amount of                                    
01       security to be reduced or eliminated before the expiration of that time to the extent the                         
02       amount of the money transmission licensee's payment instruments or stored-value                                   
03       obligations outstanding in this state is reduced. The department may permit a money                               
04       transmission licensee to substitute another form of security acceptable to the                                    
05       department for the security effective at the time the money transmission licensee                                 
06       ceases to provide money services in this state.                                                                   
07            (e)  Instead of the security prescribed in this section, an applicant for a money                            
08       transmission license or a money transmission licensee may provide security in a form                              
09       prescribed by the department.                                                                                     
10            (f)  The department may increase the amount of security required to a                                        
11       maximum of $500,000 if the financial condition of a money transmission licensee                                   
12       requires the increase, as evidenced by reduction of net worth, financial losses, or other                         
13       relevant criteria.                                                                                                
14            Sec. 06.55.105. Issuance of license. (a) When an application is filed under                                
15       AS 06.55.102, the department shall investigate the applicant's financial condition and                            
16       responsibility, financial and business experience, character, and general fitness. The                            
17       department may conduct an on-site investigation of the applicant, the reasonable cost                             
18       of which the applicant shall pay. The department shall issue a license to an applicant                            
19       under AS 06.55.102 if the department finds that all of the following conditions have                              
20       been fulfilled:                                                                                                   
21                 (1)  the applicant has complied with AS 06.55.102, 06.55.104, and                                       
22       06.55.107; and                                                                                                    
23                 (2)  the financial condition and responsibility, financial and business                                 
24       experience, character, and general fitness of the applicant, and the competence,                                  
25       experience, character, and general fitness of the executive officers, managers,                                   
26       directors, and persons in control of the applicant indicate that it is in the interest of the                     
27       public to permit the applicant to engage in money transmission;                                                   
28            (b)  When an application for an original money transmission license under                                    
29       AS 06.55.102 is complete, the department shall promptly notify the applicant in a                                 
30       record of the date on which the application was determined to be complete, and                                    
31                 (1)  the department shall approve or deny the application within 120                                    
01       days after that date; or                                                                                          
02                 (2)  if the application is not approved or denied within 120 days after                                 
03       that date,                                                                                                        
04                      (A)  the application is approved; and                                                              
05                      (B)  the money transmission license takes effect as of the first                                   
06            business day after expiration of the 120-day period.                                                         
07            (c)  The department may for good cause extend the application period.                                        
08            (d)  An applicant whose application under AS 06.55.102 is denied by the                                      
09       department under AS 06.55.101 - 06.55.107 may appeal, within 30 days after receipt                                
10       of the notice of the denial, and request a hearing.                                                               
11            (e)  In this section, "money transmission license" does not include an approval                              
12       under AS 06.55.103.                                                                                               
13            Sec. 06.55.106. Renewal of license. (a) A money transmission licensee shall                                
14       pay an annual renewal fee not later than 30 days before the anniversary of the issuance                           
15       of the money transmission license or, if the last day is not a business day, on the next                          
16       business day.                                                                                                     
17            (b)  A money transmission licensee shall submit a renewal report with the                                    
18       renewal fee, in a form and in a medium prescribed by the department. The renewal                                  
19       report must state or contain                                                                                      
20                 (1)  a copy of the money transmission licensee's most recent audited                                    
21       annual financial statement or, if the money transmission licensee is a wholly owned                               
22       subsidiary of another corporation, the most recent audited consolidated annual                                    
23       financial statement of the parent corporation or the money transmission licensee's                                
24       most recent audited consolidated annual financial statement;                                                      
25                 (2)  the number and monetary amount of payment instruments and                                          
26       stored value sold by the money transmission licensee in this state that have not been                             
27       included in a renewal report, and the monetary amount of payment instruments and                                  
28       stored value currently outstanding;                                                                               
29                 (3)  a description of each material change in information submitted by                                  
30       the money transmission licensee in its original license application that has not been                             
31       reported to the department on any required report;                                                                
01                 (4)  a list of the money transmission licensee's permissible investments                                
02       and a certification that the money transmission licensee continues to maintain                                    
03       permissible investments according to the requirements set out in AS 06.55.501 and                                 
04       06.55.502;                                                                                                        
05                 (5)  proof that the money transmission licensee continues to maintain                                   
06       adequate security as required by AS 06.55.104; and                                                                
07                 (6)  a list of the locations in this state where the money transmission                                 
08       licensee or an authorized delegate of the money transmission licensee engages in                                  
09       money transmission or provides other money services.                                                              
10            (c)  If a money transmission licensee does not file a renewal report or pay its                              
11       renewal fee by the renewal date or any extension of time granted by the department,                               
12       the department shall send the money transmission licensee a notice of suspension.                                 
13       Unless the money transmission licensee files the report and pays the renewal fee                                  
14       before expiration of 10 days after the notice is sent, the money transmission licensee's                          
15       license is suspended 10 days after the department sends the notice of suspension. The                             
16       suspension shall be lifted if, within 20 days after its money transmission license is                             
17       suspended, the money transmission licensee                                                                        
18                 (1)  files the report and pays the renewal fee; and                                                     
19                 (2)  pays a late fee for each day after suspension that the department did                              
20       not receive the renewal report and the renewal fee.                                                               
21            (d)  The department for good cause may grant an extension of the renewal date.                               
22            Sec. 06.55.107. Net worth. A money transmission licensee, except a person                                  
23       holding an approval under AS 06.55.103, shall maintain a net worth of at least $25,000                            
24       determined under generally accepted accounting principles.                                                        
25                    Article 2. Currency Exchange Licenses.                                                             
26            Sec. 06.55.201. License required. (a) A person may not engage in currency                                  
27       exchange or advertise, solicit, or hold the person out as providing currency exchange                             
28       for which the person receives revenues equal or greater than five percent of total                                
29       revenues unless the person                                                                                        
30                 (1)  holds a currency exchange license;                                                                 
31                 (2)  holds a money transmission license; or                                                             
01                 (3)  is an authorized delegate of a person who holds a money                                            
02       transmission license.                                                                                             
03            (b)  A currency exchange license is not transferable or assignable.                                          
04            Sec. 06.55.202. Application for license. (a) A person applying for a currency                              
05       exchange license under AS 06.55.201 - 06.55.204 shall apply in a form and in a                                    
06       medium prescribed by the department. The application must state or contain                                        
07                 (1)  the legal name and residential and business addresses of the                                       
08       applicant if the applicant is an individual or, if the applicant is not an individual, the                        
09       name of each partner, executive officer, manager, and director;                                                   
10                 (2)  the location of the principal office of the applicant;                                             
11                 (3)  the complete addresses of other locations in this state where the                                  
12       applicant proposes to engage in currency exchange, including all mobile locations;                                
13                 (4)  a description of the source of money and credit to be used by the                                  
14       applicant to engage in currency exchange; and                                                                     
15                 (5)  other information the department reasonably requires with respect                                  
16       to the applicant, but not more than the department may require under AS 06.55.101 -                               
17       06.55.107.                                                                                                        
18            (b)  A nonrefundable application fee and a currency exchange license fee must                                
19       accompany an application for a currency exchange license. The currency exchange                                   
20       license fee shall be refunded if the application is denied.                                                       
21            Sec. 06.55.203. Issuance of license. (a) When an application for a currency                                
22       exchange license is filed under AS 06.55.201 - 06.55.204, the department shall                                    
23       investigate the applicant's financial condition and responsibility, financial and business                        
24       experience, character, and general fitness. The department may conduct an on-site                                 
25       investigation of the applicant, the reasonable cost of which the applicant shall pay. The                         
26       department shall issue a currency exchange license to an applicant under AS 06.55.201                             
27       - 06.55.204 if the department finds that all of the following conditions have been                                
28       fulfilled:                                                                                                        
29                 (1)  the applicant has complied with AS 06.55.202; and                                                  
30                 (2)  the financial condition and responsibility, financial and business                                 
31       experience, character, and general fitness of the applicant, and the competence,                                  
01       experience, character, and general fitness of the executive officers, managers,                                   
02       directors, and persons in control of the applicant indicate that it is in the interest of the                     
03       public to permit the applicant to engage in currency exchange.                                                    
04            (b)  When an application for an original currency exchange license under                                     
05       AS 06.55.201 - 06.55.204 is complete, the department shall promptly notify the                                    
06       applicant in a record of the date on which the application was determined to be                                   
07       complete, and                                                                                                     
08                 (1)  the department shall approve or deny the application within 120                                    
09       days after that date; or                                                                                          
10                 (2)  if the application is not approved or denied within 120 days after                                 
11       that date,                                                                                                        
12                      (A)  the application is approved; and                                                              
13                      (B)  the department shall issue the currency exchange license                                      
14            under AS 06.55.201 - 06.55.204 to take effect as of the first business day after                             
15            expiration of the period.                                                                                    
16            (c)  The department may for good cause extend the application period.                                        
17            (d)  An applicant whose application is denied by the department under                                        
18       AS 06.55.201 - 06.55.204 may appeal, within 30 days after receipt of the notice of the                            
19       denial, from the denial and request a hearing.                                                                    
20            Sec. 06.55.204. Renewal of license. (a) A currency exchange licensee shall                                 
21       pay a biennial renewal fee not later than 30 days before each biennial anniversary of                             
22       the issuance of the currency exchange license or, if the last day is not a business day,                          
23       on the next business day.                                                                                         
24            (b)  A currency exchange licensee under AS 06.55.201 - 06.55.204 shall submit                                
25       a renewal report with the renewal fee, in a form and in a medium prescribed by the                                
26       department. The renewal report must state or contain                                                              
27                 (1)  a description of each material change in information submitted by                                  
28       the currency exchange licensee in its original currency exchange license application                              
29       that has not been reported to the department on any required report; and                                          
30                 (2)  a list of the locations in this state where the currency exchange                                  
31       licensee or an authorized delegate of the currency exchange licensee engages in                                   
01       currency exchange, including mobile locations.                                                                    
02            (c)  If a currency exchange licensee does not file a renewal report and pay its                              
03       renewal fee by the renewal date or any extension of time granted by the department,                               
04       the department shall send the currency exchange licensee a notice of suspension.                                  
05       Unless the currency exchange licensee files the report and pays the renewal fee before                            
06       expiration of 10 days after the notice is sent, the currency exchange license is                                  
07       suspended 10 days after the department sends the notice of suspension.                                            
08            (d)  The department for good cause may grant an extension of the renewal date.                               
09                      Article 3. Authorized Delegates.                                                                 
10            Sec. 06.55.301. Relationship between licensee and authorized delegate. (a)                                 
11       A contract between a money services licensee and an authorized delegate must require                              
12       the authorized delegate to operate in full compliance with this chapter. The money                                
13       services licensee shall furnish in a record to each authorized delegate policies and                              
14       procedures sufficient for compliance with this chapter.                                                           
15            (b)  An authorized delegate shall remit all money owing to the money services                                
16       licensee under the terms of the contract between the money services licensee and the                              
17       authorized delegate. In this subsection, "remit" means to make direct payments of                                 
18       money to a money services licensee or its representative authorized to receive money                              
19       or to deposit money in a bank in an account specified by the money services licensee.                             
20            (c)  If a money services license is suspended or revoked or a money services                                 
21       licensee does not renew its money services license, the department shall notify all                               
22       authorized delegates of the money services licensee whose names are in a record filed                             
23       with the department of the suspension, revocation, or nonrenewal. After notice is sent                            
24       or publication is made, an authorized delegate shall immediately cease to provide                                 
25       money services as an authorized delegate of the money services licensee.                                          
26            (d)  An authorized delegate may not provide money services outside the scope                                 
27       of activity permissible under the contract between the authorized delegate and the                                
28       money services licensee, except activity in which the authorized delegate is authorized                           
29       to engage under AS 06.55.101 - 06.55.204. An authorized delegate of a money                                       
30       services licensee holds in trust for the benefit of the money services licensee all money                         
31       net of fees received from money transmission.                                                                     
01            (e)  An authorized delegate may not use a subdelegate to conduct money                                       
02       services on behalf of a money services licensee.                                                                  
03            Sec. 06.55.302. Unauthorized activities. A person may not act as an                                        
04       authorized delegate for, or otherwise provide money services on behalf of, a person                               
05       who does not hold a money services license under this chapter.                                                    
06                  Article 4. Examinations, Reports, Records.                                                           
07            Sec. 06.55.401. Authority to conduct examinations. (a) The department may                                  
08       conduct an annual examination of a money services licensee or of any of its authorized                            
09       delegates upon 45 days' notice in a record to the money services licensee.                                        
10            (b)  The department may examine a money services licensee or its authorized                                  
11       delegate, at any time, without notice, if the department has reason to believe that the                           
12       money services licensee or authorized delegate is engaging in an unsafe or unsound                                
13       practice or has violated or is violating this chapter or a regulation adopted or an order                         
14       issued under this chapter.                                                                                        
15            (c)  If the department concludes that an on-site examination is necessary under                              
16       (a) of this section, the money services licensee shall pay the reasonable cost of the                             
17       examination.                                                                                                      
18            (d)  Information obtained during an examination under this chapter may be                                    
19       disclosed only as provided in AS 06.55.407.                                                                       
20            Sec. 06.55.402. Cooperation. The department may consult and cooperate with                                 
21       other state money services regulators in enforcing and administering this chapter. The                            
22       department and other state money service regulators may jointly pursue examinations                               
23       and take other official action that they are otherwise empowered to take.                                         
24            Sec. 06.55.403. Reports. (a) A money services licensee shall file with the                                 
25       department within 15 business days any material changes in information provided in a                              
26       money services licensee's application as prescribed by the department.                                            
27            (b)  A money services licensee shall file with the department within 45 days                                 
28       after the end of each fiscal quarter a current list of all authorized delegates and                               
29       locations in this state where the money services licensee or an authorized delegate of                            
30       the money services licensee provides money services, including mobile locations. The                              
31       money services licensee shall state the name and street address of each location and                              
01       authorized delegate.                                                                                              
02            (c)  A money services licensee shall file a report with the department within                                
03       one business day after the money services licensee has reason to know of the                                      
04       occurrence of any of the following events:                                                                        
05                 (1)  the filing of a petition by or against the money services licensee                                 
06       under 11 U.S.C. 101 - 110 (Bankruptcy Code) for bankruptcy or reorganization;                                     
07                 (2)  the filing of a petition by or against the money services licensee for                             
08       receivership, the commencement of any other judicial or administrative proceeding for                             
09       its dissolution or reorganization, or the making of a general assignment for the benefit                          
10       of its creditors;                                                                                                 
11                 (3)  the commencement of a proceeding to revoke or suspend its money                                    
12       services license in a state or country in which the money services licensee engages in                            
13       business or is licensed;                                                                                          
14                 (4)  the cancellation or other impairment of the money services                                         
15       licensee's bond or other security;                                                                                
16                 (5)  a charge against or conviction of the money services licensee or of                                
17       an executive officer, manager, director, or person in control of the money services                               
18       licensee for a felony; or                                                                                         
19                 (6)  a charge against or conviction of an authorized delegate for a                                     
20       felony.                                                                                                           
21            Sec. 06.55.404. Change of control. (a) A money services licensee shall                                     
22                 (1)  give the department notice in a record of a proposed change of                                     
23       control within 15 days after learning of the proposed change of control;                                          
24                 (2)  request approval of the acquisition; and                                                           
25                 (3)  submit a nonrefundable fee with the notice.                                                        
26            (b)  After review of a request for approval under (a) of this section, the                                   
27       department may require the money services licensee to provide additional information                              
28       concerning the proposed persons in control of the money services licensee. The                                    
29       additional information must be limited to the same types required of the money                                    
30       services licensee or persons in control of the money services licensee as part of its                             
31       original money services license or renewal application.                                                           
01            (c)  The department shall approve a request for change of control under (a) of                               
02       this section if, after investigation, the department determines that the person or group                          
03       of persons requesting approval has the competence, experience, character, and general                             
04       fitness to operate the money services licensee or person in control of the money                                  
05       services licensee in a lawful and proper manner and that the public interest will not be                          
06       jeopardized by the change of control.                                                                             
07            (d)  When an application for a change of control under AS 06.55.401 -                                        
08       06.55.407 is complete, the department shall notify the money services licensee in a                               
09       record of the date on which the request was determined to be complete, and                                        
10                 (1)  the department shall approve or deny the request within 120 days                                   
11       after that date; or                                                                                               
12                 (2)  if the request is not approved or denied within 120 days after that                                
13       date,                                                                                                             
14                      (A)  the request is approved; and                                                                  
15                      (B)  the department shall permit the change of control under this                                  
16            section, to take effect as of the first business day after expiration of the period.                         
17            (e)  The department, by regulation or order, may exempt a person from any of                                 
18       the requirements of (a)(2) and (3) of this section if it is in the public interest to exempt                      
19       the person.                                                                                                       
20            (f)  The provisions of (a) of this section do not apply to a public offering of                              
21       securities.                                                                                                       
22            (g)  Before filing a request for approval to acquire control of a money services                             
23       licensee or person in control of a money services licensee, a person may request in a                             
24       record a determination from the department as to whether the person would be                                      
25       considered a person in control of a money services licensee upon consummation of a                                
26       proposed transaction. If the department determines that the person would not be a                                 
27       person in control of a money services licensee, the department shall enter an order to                            
28       that effect, and the proposed person and transaction are not subject to the requirements                          
29       of (a) - (c) of this section.                                                                                     
30            Sec. 06.55.405. Records. (a) A money services licensee shall maintain the                                  
31       following records for determining its compliance with this chapter for at least three                             
01       years:                                                                                                            
02                 (1)  a record of each payment instrument or stored-value obligation                                     
03       sold;                                                                                                             
04                 (2)  a general ledger posted at least monthly containing all asset,                                     
05       liability, capital, income, and expense accounts;                                                                 
06                 (3)  bank statements and bank reconciliation records;                                                   
07                 (4)  records of outstanding payment instruments and stored-value                                        
08       obligations;                                                                                                      
09                 (5)  records of each payment instrument and stored-value obligation                                     
10       paid within the three-year period;                                                                                
11                 (6)  a list of the last known names and addresses of all of the money                                   
12       services licensee's authorized delegates; and                                                                     
13                 (7)  any other records the department reasonably requires by regulation.                                
14            (b)  The items specified in (a) of this section may be maintained in any form of                             
15       record.                                                                                                           
16            (c)  Records may be maintained outside this state if they are made accessible to                             
17       the department on seven business days' notice that is sent in a record.                                           
18            (d)  All records maintained by the money services licensee as required in (a) -                              
19       (c) of this section are open to inspection by the department under AS 06.55.401.                                  
20            Sec. 06.55.406. Money laundering reports. (a) A money services licensee and                                
21       an authorized delegate shall file with the attorney general all reports required by                               
22       federal currency reporting, record keeping, and suspicious transaction reporting                                  
23       requirements as set out in 31 U.S.C. 5311, 31 C.F.R. 103, and other federal and state                             
24       laws pertaining to money laundering.                                                                              
25            (b)  The timely filing of a complete and accurate report required under (a) of                               
26       this section with the appropriate federal agency is compliance with the requirements of                           
27       (a) of this section, unless the department notifies the money services licensee that the                          
28       attorney general has notified the department that reports of this type are not being                              
29       regularly and comprehensively transmitted by the federal agency to the attorney                                   
30       general.                                                                                                          
31            Sec. 06.55.407. Confidentiality. (a) Except as otherwise provided in (b) of this                           
01       section, all information or reports obtained by the department from an applicant, a                               
02       licensee, or an authorized delegate are confidential and not subject to disclosure under                          
03       AS 40.25.100 - 40.25.220, including                                                                               
04                 (1)  all information contained in or related to examination,                                            
05       investigation, operating, or condition reports prepared by, on behalf of, or for the use                          
06       of the department; and                                                                                            
07                 (2)  financial statements, balance sheets, and authorized delegate                                      
08       information.                                                                                                      
09            (b)  The department may disclose information that is not otherwise subject to                                
10       disclosure under (a) of this section to representatives of state or federal agencies who                          
11       promise in a record that they will maintain the confidentiality of the information or if                          
12       the department finds that the release is reasonably necessary for the protection of the                           
13       public and in the interests of justice, and the money services licensee has been given                            
14       previous notice by the department of its intent to release the information.                                       
15            (c)  This section does not prohibit the department from disclosing to the public                             
16       a list of money services licensees or the aggregated financial data concerning those                              
17       money services licensees.                                                                                         
18                     Article 5. Permissible Investments.                                                               
19            Sec. 06.55.501. Maintenance of permissible investments. (a) A money                                        
20       services licensee shall maintain at all times permissible investments that have a market                          
21       value computed under generally accepted accounting principles of not less than the                                
22       aggregate amount of all of its outstanding payment instruments and stored value                                   
23       obligations issued or sold in all states and money transmitted from all states by the                             
24       money services licensee.                                                                                          
25            (b)  The department, with respect to any money services licensees, may limit                                 
26       the extent to which a type of investment within a class of permissible investments may                            
27       be considered a permissible investment, except for money and certificates of deposit                              
28       issued by a bank. The department by regulation may prescribe or by order allow other                              
29       types of investments that the department determines to have a safety substantially                                
30       equivalent to other permissible investments.                                                                      
31            (c)  Permissible investments, even if commingled with other assets of the                                    
01       money services licensee, are held in trust for the benefit of the purchasers and holders                          
02       of the money services licensee's outstanding payment instruments and stored value                                 
03       obligations in the event of bankruptcy or receivership of the money services licensee.                            
04            Sec. 06.55.502. Types of permissible investments. (a) Except to the extent                                 
05       otherwise limited by the department under AS 06.55.501, the following investments                                 
06       are permissible under AS 06.55.501:                                                                               
07                 (1)  cash, a certificate of deposit, or a senior debt obligation of an                                  
08       insured depository institution; in this paragraph, "insured depository institution" has                           
09       the meaning given in 12 U.S.C. 1813 (Federal Deposit Insurance Act);                                              
10                 (2)  banker's acceptance or bill of exchange that is eligible for purchase                              
11       on endorsement by a member bank of the Federal Reserve System and is eligible for                                 
12       purchase by a Federal Reserve Bank;                                                                               
13                 (3)  an investment bearing a rating of one of the three highest grades as                               
14       defined by a nationally recognized organization that rates securities;                                            
15                 (4)  an investment security that is an obligation of the United States or a                             
16       department, agency, or instrumentality of the United States, an investment in an                                  
17       obligation that is guaranteed fully as to principal and interest by the United States, or                         
18       an investment in an obligation of a state or a governmental subdivision, agency, or                               
19       instrumentality of a state;                                                                                       
20                 (5)  receivables that are payable to a money services licensee from its                                 
21       authorized delegates, in the ordinary course of business, under contracts that are not                            
22       past due or doubtful of collection if the aggregate amount of receivables under this                              
23       paragraph does not exceed 20 percent of the total permissible investments of a money                              
24       services licensee and the money services licensee does not hold at one time                                       
25       receivables under this paragraph in any one person aggregating more than 10 percent                               
26       of the money services licensee's total permissible investments; and                                               
27                 (6)  a share or a certificate issued by an open-end management                                          
28       investment company that is registered with the United States Securities and Exchange                              
29       Commission under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act of 1940), and                                   
30       whose portfolio is restricted by the management company's investment policy to                                    
31       investments specified in (1) - (4) of this subsection.                                                            
01            (b)  The following investments are permissible under AS 06.55.501, but only                                  
02       to the extent specified:                                                                                          
03                 (1)  an interest-bearing bill, note, bond, or debenture of a person whose                               
04       equity shares are traded on a national securities exchange or on a national over-the-                             
05       counter market, if the aggregate of investments under this paragraph does not exceed                              
06       20 percent of the total permissible investments of a money services licensee and the                              
07       money services licensee does not at one time hold investments under this paragraph in                             
08       any one person aggregating more than 10 percent of the money services licensee's                                  
09       total permissible investments;                                                                                    
10                 (2)  a share of a person traded on a national securities exchange or a                                  
11       national over-the-counter market or a share or a certificate issued by an open-end                                
12       management investment company that is registered with the United States Securities                                
13       and Exchange Commission under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act                                    
14       of 1940), and whose portfolio is restricted by the management company's investment                                
15       policy to shares of a person traded on a national securities exchange or a national over-                         
16       the-counter market, if the aggregate of investments under this paragraph does not                                 
17       exceed 20 percent of the total permissible investments of a money services licensee                               
18       and the money services licensee does not at one time hold investments in any one                                  
19       person aggregating more than 10 percent of the money services licensee's total                                    
20       permissible investments;                                                                                          
21                 (3)  a demand-borrowing agreement made to a corporation or a                                            
22       subsidiary of a corporation whose securities are traded on a national securities                                  
23       exchange, if the aggregate of the amount of principal and interest outstanding under                              
24       demand-borrowing agreements under this paragraph does not exceed 20 percent of the                                
25       total permissible investments of a money services licensee and the money services                                 
26       licensee does not at one time hold principal and interest outstanding under demand-                               
27       borrowing agreements under this paragraph with any one person aggregating more                                    
28       than 10 percent of the money services licensee's total permissible investments; and                               
29                 (4)  any other investment the department designates, to the extent                                      
30       specified by the department.                                                                                      
31            (c)  The aggregate of investments under (b) of this section may not exceed 50                                
01       percent of the total permissible investments of a money services licensee calculated                              
02       under AS 06.55.501.                                                                                               
03                         Article 6. Enforcement.                                                                       
04            Sec. 06.55.601. Suspension and revocation; receivership. (a) The                                           
05       department may suspend or revoke a money services license, place a money services                                 
06       licensee in receivership, or order a money services licensee to revoke the designation                            
07       of an authorized delegate if                                                                                      
08                 (1)  the money services licensee violates this chapter or a regulation                                  
09       adopted or an order issued under this chapter;                                                                    
10                 (2)  the money services licensee does not cooperate with an                                             
11       examination or investigation by the department;                                                                   
12                 (3)  the money services licensee engages in fraud, intentional                                          
13       misrepresentation, or gross negligence;                                                                           
14                 (4)  an authorized delegate is convicted of a violation of a state or                                   
15       federal anti-money laundering statute, or violates a regulation adopted or an order                               
16       issued under this chapter, as a result of the money services licensee's wilful                                    
17       misconduct or wilful blindness;                                                                                   
18                 (5)  the competence, experience, character, or general fitness of the                                   
19       money services licensee, authorized delegate, person in control of a money services                               
20       licensee, or responsible person of the money services licensee or authorized delegate                             
21       indicates that it is not in the public interest to permit the person to provide money                             
22       services;                                                                                                         
23                 (6)  the money services licensee engages in an unsafe or unsound                                        
24       practice;                                                                                                         
25                 (7)  the money services licensee is insolvent, suspends payment of its                                  
26       obligations, or makes a general assignment for the benefit of its creditors; or                                   
27                 (8)  the money services licensee does not remove an authorized                                          
28       delegate after the department issues and serves upon the money services licensee a                                
29       final order including a finding that the authorized delegate has violated this chapter.                           
30            (b)  In determining whether a money services licensee is engaging in an unsafe                               
31       or unsound practice, the department may consider the size and condition of the money                              
01       services licensee's money transmission, the magnitude of the loss, the gravity of the                             
02       violation of this chapter, and the previous conduct of the person involved.                                       
03            Sec. 06.55.602. Suspension and revocation of authorized delegates. (a) The                                 
04       department may issue an order suspending or revoking the designation of an                                        
05       authorized delegate if the department finds that                                                                  
06                 (1)  the authorized delegate violated this chapter or a regulation adopted                              
07       or an order issued under this chapter;                                                                            
08                 (2)  the authorized delegate did not cooperate with an examination or                                   
09       investigation by the department;                                                                                  
10                 (3)  the authorized delegate engaged in fraud, intentional                                              
11       misrepresentation, or gross negligence;                                                                           
12                 (4)  the authorized delegate is convicted of a violation of a state or                                  
13       federal anti-money laundering statute;                                                                            
14                 (5)  the competence, experience, character, or general fitness of the                                   
15       authorized delegate or a person in control of the authorized delegate indicates that it is                        
16       not in the public interest to permit the authorized delegate to provide money services;                           
17       or                                                                                                                
18                 (6)  the authorized delegate is engaging in an unsafe or unsound                                        
19       practice.                                                                                                         
20            (b)  In determining whether an authorized delegate is engaging in an unsafe or                               
21       unsound practice, the department may consider the size and condition of the                                       
22       authorized delegate's provision of money services, the magnitude of the loss, the                                 
23       gravity of the violation of this chapter or a regulation adopted or order issued under                            
24       this chapter, and the previous conduct of the authorized delegate.                                                
25            Sec. 06.55.603. Orders to cease and desist. (a) If the department determines                               
26       that a violation of this chapter or of a regulation adopted or an order issued under this                         
27       chapter by a money services licensee or authorized delegate is likely to cause                                    
28       immediate and irreparable harm to the money services licensee, its customers, or the                              
29       public as a result of the violation, or cause insolvency or significant dissipation of                            
30       assets of the money services licensee, the department may issue an order requiring the                            
31       money services licensee or authorized delegate to cease and desist from the violation.                            
01       The order becomes effective on service of it on the money services licensee or                                    
02       authorized delegate.                                                                                              
03            (b)  The department may issue an order against a money services licensee to                                  
04       cease and desist from providing money services through an authorized delegate who is                              
05       the subject of a separate order by the department.                                                                
06            (c)  An order to cease and desist remains effective and enforceable pending the                              
07       completion of an administrative proceeding under AS 06.55.601 or 06.55.602.                                       
08            (d)  A money services licensee or an authorized delegate who is served with an                               
09       order to cease and desist may petition the superior court for a judicial order setting                            
10       aside, limiting, or suspending the enforcement, operation, or effectiveness of the order                          
11       pending the completion of an administrative proceeding under AS 06.55.601 or                                      
12       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 money                                         
02       services license is required under this chapter without being licensed as a money                                 
03       services licensee and who receives more than $500 in compensation within a 30-day                                 
04       period from this activity is guilty of a class C felony.                                                          
05            (c)  A person who knowingly engages in an activity for which a money                                         
06       services license is required under this chapter without being licensed as a money                                 
07       services licensee and who receives no more than $500 in compensation within a 30-                                 
08       day period from this activity is guilty 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       money services license, place a money services licensee in receivership, issue an order                           
04       to cease and desist, suspend or revoke the designation of an authorized delegate, or                              
05       assess a civil penalty without notice and an opportunity to be heard. The department                              
06       shall also hold a hearing when requested to hold a hearing by an applicant whose                                  
07       application for a license is denied.                                                                              
08            (b)  Under AS 06.55.106(c) and 06.55.204(c), the department may suspend a                                    
09       money services license without a hearing unless the money services licensee requests                              
10       a hearing.                                                                                                        
11            Sec. 06.55.703. Investigative powers. (a) In its investigations under this                                 
12       chapter, the department may administer oaths or affirmations and, on its own motion                               
13       or on the request of a party to a proceeding, may subpoena witnesses, compel the                                  
14       attendance of witnesses, take evidence, and require the production of material that is                            
15       relevant to the investigation, including the existence, description, nature, custody,                             
16       condition, and location of books, documents, and other tangible items, and the identity                           
17       and location of persons having knowledge of relevant facts or other material                                      
18       reasonably calculated to lead to the discovery of admissible evidence.                                            
19            (c)  If a person fails without a lawful excuse to obey a subpoena, and after                                 
20       reasonable notice to all persons affected by the failure, the department may apply to                             
21       the superior court for an order compelling the person to obey the subpoena.                                     
22                     Article 8. Miscellaneous Provisions.                                                              
23            Sec. 06.55.801. Uniformity of application and construction. In applying and                                
24       construing this chapter, consideration shall be given to the need to promote uniformity                           
25       of the law with respect to its subject matter among states that enact it.                                         
26            Sec. 06.55.802. Exclusions. This chapter does not apply to                                                 
27                 (1)  the United States or a department, an agency, or an instrumentality                                
28       of the United States;                                                                                             
29                 (2)  money transmission by the United States Postal Service or by a                                     
30       contractor on behalf of the United States Postal Service;                                                         
31                 (3)  a state, a municipality, a county, or another governmental agency                                  
01       or governmental subdivision of a state;                                                                           
02                 (4)  a bank, a bank holding company, an office of an international                                      
03       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
04       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
05       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States, if it does                            
06       not issue, sell, or provide payment instruments or stored value through an authorized                             
07       delegate who is not a bank, a bank holding company, an office of an international                                 
08       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
09       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
10       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States;                                       
11                 (5)  electronic funds transfer of governmental benefits for a federal,                                  
12       state, or municipal agency or a state political subdivision by a contractor on behalf of                          
13                      (A)  the United States or a department, an agency, or an                                           
14            instrumentality of the United States; or                                                                     
15                      (B)  a state, or a department, an agency, or an instrumentality of                                 
16            a state;                                                                                                     
17                 (6)  a board of trade or a person who, in the ordinary course of                                        
18       business, provides clearance and settlement services for a board of trade, to the extent                          
19       of the operation of the person for a board of trade; in this paragraph, "board of trade"                          
20       means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f                                     
21       (Commodity Exchange Act);                                                                                         
22                 (7)  a registered futures commission merchant under the federal                                         
23       commodities laws, to the extent of the merchant's operation as a registered futures                               
24       commission merchant under the federal commodities laws;                                                           
25                 (8)  a person who provides clearance or settlement services under a                                     
26       registration as a clearing agency or an exemption from the registration granted under                             
27       the federal securities laws, to the extent of the person's operation as a provider of                             
28       clearance or settlement services under a registration as a clearing agency or an                                  
29       exemption from the registration granted under the federal securities laws;                                        
30                 (9)  an operator of a payment system to the extent that the operator                                    
31       provides processing, clearing, or settlement services, between or among persons                                   
01       excluded by this section, in connection with wire transfers, credit card transactions,                            
02       debit card transactions, stored-value transactions, automated clearing house transfers,                           
03       or similar funds transfers; or                                                                                    
04                 (10)  a person registered as a securities broker-dealer under federal or                                
05       state securities laws, to the extent of the person's operation as a securities broker-                            
06       dealer under federal or state securities laws.                                                                    
07            Sec. 06.55.810. Notices required. (a) A money services licensee shall display                              
08       a sign at each location where the money services licensee provides money services                                 
09       under this chapter. An authorized delegate shall display a sign at each location where                            
10       the authorized delegate provides money services under this chapter.                                               
11            (b)  The sign required by (a) of this section shall be displayed at all times in                             
12       full view of persons visiting the location and shall give the department's address and                            
13       the department's telephone number for receiving calls regarding complaints and other                              
14       concerns about money services licensees, authorized delegates, and the money                                      
15       services provided by money services licensees and authorized delegates.                                           
16            Sec. 06.55.820. Transmission. Within 10 business days after receiving the                                  
17       money or equivalent value for money transmission, unless otherwise ordered by the                                 
18       customer or unless the money services licensee has reason to believe a crime has                                  
19       occurred, is occurring, or may occur as a result of the money transmission, a money                               
20       transmission licensee shall                                                                                       
21                 (1)  transmit after the deduction of fees the monetary equivalent of all                                
22       money or equivalent value received for the money transmission; or                                                 
23                 (2)  issue instructions making the money or its monetary equivalent                                     
24       available to the person designated by the customer.                                                               
25            Sec. 06.55.830. Receipt. (a) A money transmission licensee who receives                                    
26       money or equivalent value for a money transmission shall provide a receipt to the                                 
27       customer that clearly states the amount of the money or the equivalent value presented                            
28       by the customer for the money transmission and the total fees charged by the money                                
29       transmission licensee.                                                                                            
30            (b)  If a money transmission licensee fixes, when the money transmission is                                  
31       initiated, the rate of exchange for a money transmission to be paid in the currency of                            
01       another government, the receipt provided by (a) of this section must disclose the rate                            
02       of exchange for the transaction and any limit on the length of time that the payment                              
03       will be made at that fixed rate of exchange.                                                                      
04            (c)  If a money transmission licensee does not fix the rate of exchange for a                                
05       money transmission to be paid in the currency of another government, the receipt                                  
06       provided under (a) of this section must disclose that the rate of exchange for the                                
07       money transmission will be set when the person designated by the customer to receive                              
08       the money takes possession of the money.                                                                          
09            Sec. 06.55.840. Refunds. (a) Within 10 days after receiving a written request                              
10       for a refund, a money transmission licensee shall refund to a customer money equal to                             
11       the money or equivalent value received from the customer for a money transmission,                                
12       unless                                                                                                            
13                 (1)  before receiving the written request                                                               
14                      (A)  the money has been transmitted to the person designated by                                    
15            the customer to receive the money transmission and the person has taken                                      
16            possession of the money; in this section, "transmitted" means made available                                 
17            to the person designated by the customer to receive the money, whether or not                                
18            the person designated by the customer has taken possession of the money; or                                  
19                      (B)  instructions have been given making a monetary equivalent                                     
20            available to the person designated by the customer to receive the money                                      
21            transmission;                                                                                                
22                 (2)  the money transmission licensee has reason to believe that a crime                                 
23       has occurred, is occurring, or may occur as a result of transmitting or refunding the                             
24       money as requested by the customer; or                                                                            
25                 (3)  the money transmission licensee is otherwise prohibited by law                                     
26       from making a refund.                                                                                             
27            Sec. 06.55.850. Establishment of fees and other charges. (a) The department                                
28       shall adopt regulations that establish the amount and manner of payment of fees                                   
29       required under this chapter.                                                                                      
30            (b)  The department shall establish fee levels under (a) of this section so that                             
31       the total amount of fees collected for both money transmission licenses and currency                              
01       exchange licenses under this chapter approximately equals the department's actual                                 
02       total regulatory costs for both money transmission licenses and currency exchange                                 
03       licenses. The department shall set the fee levels so that the fee levels for both money                           
04       transmission licenser and currency exchange licenses are the same.                                                
05            (c)  The department shall annually review each fee level to determine whether                                
06       the regulatory costs are approximately equal to fee collections. If the review indicates                          
07       that fee collections and regulatory costs are not approximately equal, the department                             
08       shall calculate fee adjustments and adopt regulations under (a) of this section to                                
09       implement the adjustments.                                                                                        
10            (d)  In January of each year, the department shall report to the office of                                   
11       management and budget all fee levels and revisions made for the previous year under                               
12       this section.                                                                                                     
13            (e)  In this section,                                                                                        
14                 (1)  "fee" means an application fee, a money services license fee, an                                   
15       approval fee under AS 06.55.103, a renewal fee, the daily late fee for not submitting a                           
16       renewal report and paying the renewal fee under AS 06.55.106, investigation costs                                 
17       under AS 06.55.105 and 06.55.203, an examination cost under AS 06.55.401, and a                                   
18       fee for approving a change of control under AS 06.55.404;                                                         
19                 (2)  "regulatory costs" means the costs of the department that are                                      
20       attributable to regulation of money services licensing under this chapter.                                        
21            Sec. 06.55.890. Definitions. In AS 06.55.820 - 06.55.840,                                                  
22                 (1)  "fees" does not include revenue that a money services licensee                                     
23       generates from a money transmission when converting the currency of one                                           
24       government into the currency of another government;                                                               
25                 (2)  "monetary equivalent" means, for money transmissions that will be                                  
26       redeemed in a currency other than the currency that the customer uses to purchase the                             
27       money transmission, the amount of money in the currency of the government that the                                
28       recipient of the money transmission is to receive, as converted at the retail exchange                            
29       rate offered by the money transmission licensee to the customer for the money                                     
30       transmission.                                                                                                     
31                 (2)  "money transmission licensee" means a person who holds a money                                     
01       services license and a person who is an authorized delegate.                                                      
02                       Article 9. General Provisions.                                                                  
03            Sec. 06.55.990. Definitions. In this chapter, unless the context indicates                                 
04       otherwise,                                                                                                        
05                 (1)  "authorized delegate" means a person whom a money services                                         
06       licensee designates to provide money services on behalf of the money services                                     
07       licensee;                                                                                                         
08                 (2)  "bank" means an institution organized under federal or state law                                   
09       that accepts demand deposits or deposits that the depositor may use for payment to                                
10       third parties and engages in the business of making commercial loans;                                             
11                 (3)  "control" means                                                                                    
12                      (A)  the ownership of, or the power to vote, directly or                                           
13            indirectly, at least 25 percent of a class of voting securities or voting interests                          
14            of a money services licensee or person in control of a money services licensee;                              
15                      (B)  the power to elect a majority of executive officers,                                          
16            managers, directors, trustees, or other persons exercising managerial authority                              
17            of a money services licensee or person in control of a money services licensee;                              
18            or                                                                                                           
19                      (C)  the power to exercise directly or indirectly, a controlling                                   
20            influence over the management or policies of a money services licensee or                                    
21            person in control of a money services licensee;                                                              
22                 (4)  "currency exchange" means receipt of revenues from the exchange                                    
23       of money of one government for money of another government;                                                       
24                 (5)  "currency exchange license" means a license under AS 06.55.201 -                                   
25       06.55.204;                                                                                                        
26                 (6)  "currency exchange licensee" means a person who holds a currency                                   
27       exchange license;                                                                                                 
28                 (7)  "department" means the Department of Commerce, Community,                                          
29       and Economic Development;                                                                                         
30                 (8)  "executive officer" means a president, a chair of the executive                                    
31       committee, a chief financial officer, a responsible individual, or another individual                             
01       who performs similar functions; in this paragraph, "responsible individual" means an                              
02       individual who is employed by a money services licensee and has principal managerial                              
03       authority over the provision of money services by the money services licensee in this                             
04       state;                                                                                                            
05                 (9)  "mobile location" means a vehicle or a movable facility where                                      
06       currency exchange occurs;                                                                                         
07                 (10)  "monetary value" means a medium of exchange, whether or not                                       
08       redeemable in money;                                                                                              
09                 (11)  "money" means a medium of exchange that is authorized or                                          
10       adopted by the United States or a foreign government, including a monetary unit of                                
11       account established by an intergovernmental organization or by agreement between                                  
12       two or more governments;                                                                                          
13                 (12)  "money services" means money transmission or currency                                             
14       exchange;                                                                                                         
15                 (13)  "money services license" means a currency exchange license or a                                   
16       money transmission license;                                                                                       
17                 (14)  "money services licensee" means a person who holds a currency                                     
18       exchange license or a money transmission license;                                                                 
19                 (15)  "money transmission" means selling or issuing payment                                             
20       instruments or stored value, or receiving money or monetary value for transmission,                               
21       but does not include the provision solely of delivery, online services,                                           
22       telecommunications services, or network access;                                                                   
23                 (16)  "money transmission license" means a license under                                                
24       AS 06.55.101 - 06.55.107 or an approval under AS 06.55.103;                                                       
25                 (17)  "money transmission licensee" means a person who holds a                                          
26       money transmission license;                                                                                       
27                 (18)  "outstanding" with respect to a payment instrument, means issued                                  
28       or sold by or for the money services licensee and reported as sold but not yet paid by                            
29       or for the licensee;                                                                                              
30                 (19)  "payment instrument" means a check, a draft, a money order, a                                     
31       traveler's check, or another instrument for the transmission or payment of money or                               
01       monetary value, whether or not negotiable, but does not include a credit card voucher,                            
02       a letter of credit, or an instrument that is redeemable by the issuer in goods or services;                       
03                 (20)  "person" means an individual, a corporation, a business trust, an                                 
04       estate, a trust, a partnership, a limited liability company, an association, a joint                              
05       venture, a government, a governmental subdivision, an agency, or an instrumentality, a                            
06       public corporation, or any other legal or commercial entity;                                                      
07                 (21)  "record" means information that is inscribed on a tangible                                        
08       medium or that is stored in an electronic or other medium and is retrievable in                                   
09       perceivable form;                                                                                                 
10                 (22)  "state" means a state of the United States, the District of                                       
11       Columbia, Puerto Rico, the United States Virgin Islands, or a territory or insular                                
12       possession subject to the jurisdiction of the United States;                                                      
13                 (23)  "stored value" means monetary value that is evidenced by an                                       
14       electronic record;                                                                                                
15                 (24)  "unsafe or unsound practice" means a practice or conduct by a                                     
16       money transmission licensee or an authorized delegate of the money transmission                                   
17       licensee if the practice creates the likelihood of material loss, insolvency, or                                  
18       dissipation of the money transmission licensee's assets, or otherwise materially                                  
19       prejudices the interests of the money transmission licensee's customers.                                          
20            Sec. 06.55.995. Short title. This chapter may be cited as the Alaska Uniform                               
21       Money Services Act.                                                                                               
22    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
23 read:                                                                                                                   
24       APPLICABILITY. This Act applies to the provision of money services on or after                                    
25 July 1, 2008.                                                                                                           
26    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
27 read:                                                                                                                   
28       TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                               
29 Economic Development may proceed to adopt regulations necessary to implement the                                        
30 changes made by this Act. The regulations take effect under AS 44.62 (Administrative                                    
31 Procedure Act), but not before July 1, 2008.                                                                            
01    * Sec. 4. Section 3 of this Act takes effect immediately under AS 01.10.070(c).                                    
02    * Sec. 5. Except as provided in sec. 4 of this Act, this Act takes effect July 1, 2008.