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HB 271: "An Act relating to a money services business; relating to transmitting value that substitutes for money; relating to licensing requirements and registration through the Nationwide Multistate Licensing System and Registry; relating to surety bonding requirements; authorizing certain licensees to contract to use subdelegates for reloading funds onto stored-value cards; relating to record retention, reporting requirements, and enforcement provisions; relating to exemptions; relating to money services Internet activities; relating to definitions regarding the transmitting value, currency, and money transmission business activities; and providing for an effective date."

00                             HOUSE BILL NO. 271                                                                          
01 "An Act relating to a money services business; relating to transmitting value that                                      
02 substitutes for money; relating to licensing requirements and registration through the                                  
03 Nationwide Multistate Licensing System and Registry; relating to surety bonding                                         
04 requirements; authorizing certain licensees to contract to use subdelegates for reloading                               
05 funds onto stored-value cards; relating to record retention, reporting requirements, and                                
06 enforcement provisions; relating to exemptions; relating to money services Internet                                     
07 activities; relating to definitions regarding the transmitting value, currency, and money                               
08 transmission business activities; and providing for an effective date."                                                 
09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
10    * Section 1. AS 06.55.101(a) is amended to read:                                                                   
11            (a)  Unless exempt under AS 06.55.802, a [A] person may not engage in the                                
12       business of money transmission or advertise, solicit, or hold the person out as                                   
01       providing money transmission unless the person                                                                    
02                 (1)  holds a money transmission license; or                                                             
03                 (2)  is an authorized delegate of a person who holds a money                                            
04       transmission license.                                                                                             
05    * Sec. 2. AS 06.55.101(c) is amended by adding a new subsection to read:                                           
06            (c)  A person required to be licensed under AS 06.55.101 - 06.55.106 shall                                   
07       register with the registry and maintain a valid unique identifier issued by the registry.                         
08    * Sec. 3. AS 06.55.102 is repealed and reenacted to read:                                                          
09            Sec. 06.55.102. Application for license. An application for a money                                        
10       transmission license under this chapter must                                                                      
11                 (1)  be in a format established by the department;                                                      
12                 (2)  contain complete information required by the department;                                           
13                 (3)  include each control person's fingerprints for submission to the                                   
14       Department of Public Safety or the Federal Bureau of Investigations and any                                       
15       governmental agency or entity authorized to receive that information to obtain a report                           
16       of criminal justice information and a national criminal history record check;                                     
17                 (4)  include personal history and experience in a format established by                                 
18       the department to obtain                                                                                          
19                      (A)  an independent credit report from a consumer reporting                                        
20            agency; and                                                                                                  
21                      (B)  information related to administrative, civil, or criminal                                     
22            findings by a governmental jurisdiction;                                                                     
23                 (5)  contain other information or supporting material that the                                          
24       department may require concerning the applicant, including the organization and                                   
25       operations of an applicant for a money transmission license and the financial                                     
26       responsibility, background, experience, and activities of the applicant;                                          
27                 (6)  include a nonrefundable application fee and an initial license fee, as                             
28       established by the department; and                                                                                
29                 (7)  include a surety bond as required by AS 06.55.104.                                                 
30    * Sec. 4. AS 06.55.104 is repealed and reenacted to read:                                                          
31            Sec. 06.55.104. Security. (a) A surety bond must accompany an application                                
01       for a money transmission license. The surety bond must be at least $25,000 and may                                
02       not exceed $1,000,000 as established by the department.                                                           
03            (b)  The surety bond must be in a form satisfactory to the department and                                    
04       payable to the state for the benefit of the state and any person or persons who suffer                            
05       loss due to a violation of this chapter by a licensee or a licensee's authorized delegate.                        
06            (c)  The aggregate liability on a surety bond may not exceed the principal sum                               
07       of the bond. A claimant against a money transmission licensee may maintain an action                              
08       on the bond, or the department may maintain an action on behalf of the claimant.                                  
09            (d)  A surety bond must cover claims for as long as the department specifies,                                
10       but for at least five years after the date the money transmission licensee stops                                  
11       providing money services in this state. The department may permit the amount of                                   
12       security to be reduced or eliminated before the expiration of that time to the extent the                         
13       amount of the money transmission licensee's payment instruments or stored-value                                   
14       obligations outstanding is reduced.                                                                               
15            (e)  The bond must be obtained from a surety company authorized to do                                        
16       business in this state.                                                                                           
17            (f)  If a money transmission licensee does not maintain a surety bond in the                                 
18       amount required under (a) of this section, the department may issue an order under                                
19       AS 06.55.603.                                                                                                     
20    * Sec. 5. AS 06.55.105 is repealed and reenacted to read:                                                          
21            Sec. 06.55.105. Issuance of license. (a) When an application is filed under                                
22       AS 06.55.102, the department shall investigate the applicant's financial condition and                            
23       responsibility, financial and business experience, competence, character, and general                             
24       fitness. The department may conduct an investigation of the applicant, the reasonable                             
25       cost of which the applicant shall pay. The department shall issue a money transmission                            
26       license to an applicant under AS 06.55.102 if the department finds that all of the                                
27       following conditions have been fulfilled:                                                                         
28                 (1)  the applicant has complied with the requirements of this chapter for                               
29       obtaining the license;                                                                                            
30                 (2)  the financial condition and responsibility, financial and business                                 
31       experience, competence, character, and general fitness of the applicant indicate that it                          
01       is in the interest of the public to permit the applicant to engage in money transmission;                         
02       and                                                                                                               
03                 (3)  the applicant, including any employees or independent contractors                                  
04       of the applicant, is not listed on the Specially Designated Nationals and Blocked                                 
05       Persons List or any other Office of Foreign Assets Control sanctions list prepared by                             
06       the United States Department of the Treasury or designated successor agency.                                      
07            (b)  When an application for an original money transmission license under                                    
08       AS 06.55.102 is complete, the department shall promptly notify the applicant in a                                 
09       record of the date on which the application was determined to be complete and the                                 
10       department shall approve or deny the application not later than 120 days after that                               
11       date.                                                                                                             
12            (c)  The department may for good cause extend the application period.                                        
13            (d)  An applicant whose application under AS 06.55.102 is denied by the                                      
14       department under AS 06.55.101 - 06.55.106 may appeal, not later than 30 days after                                
15       receipt of the notice of the denial, and request a hearing.                                                       
16            (e)  A license issued under AS 06.55.101 - 06.55.106 remains in effect until                                 
17       December 31 of the year in which the license is issued, unless the license is revoked,                            
18       is suspended, or is surrendered.                                                                                  
19    * Sec. 6. AS 06.55.106 is repealed and reenacted to read:                                                          
20            Sec. 06.55.106. Renewal of license. (a) To renew a license, the licensee shall                             
21       submit to the department a                                                                                        
22                 (1)  renewal application at a time and in a format established by the                                   
23       department;                                                                                                       
24                 (2)  renewal fee as established by the department; and                                                  
25                 (3)  report identifying any changes in the information previously                                       
26       provided and any additional information requested by the department.                                              
27            (b)  The department shall approve or deny the application for renewal of a                                   
28       license not later than 60 days after the renewal application is filed.                                            
29    * Sec. 7. AS 06.55 is amended by adding a new section to read:                                                     
30            Sec. 06.55.108. Annual assessment fee and annual report. (a) A licensee                                    
31       shall pay an annual assessment fee as established by the department not later than the                            
01       annual assessment due date or, if the annual assessment due date is not a business day,                           
02       on the next business day. Annual assessment fees shall be established by the                                      
03       department in regulation.                                                                                         
04            (b)  A licensee shall submit an accurate annual report with the annual                                       
05       assessment in a format established by the department.                                                             
06            (c)  If a licensee does not file an annual report or pay its annual assessment by                            
07       the assessment due date, the department shall assess the licensee a late fee as                                   
08       established by the department.                                                                                    
09    * Sec. 8. AS 06.55.201(a) is amended to read:                                                                      
10            (a)  Unless exempt under AS 06.55.802, a [A] person may not engage in the                            
11       business of currency exchange or advertise, solicit, or hold the person out as providing                      
12       currency exchange for which the person receives revenues equal or greater than five                               
13       percent of total revenues unless the person                                                                       
14                 (1)  holds a currency exchange license; or                                                          
15                 (2)  holds a money transmission license [; OR                                                           
16                 (3)  IS AN AUTHORIZED DELEGATE OF A PERSON WHO                                                          
17       HOLDS A MONEY TRANSMISSION LICENSE].                                                                              
18    * Sec. 9. AS 06.55.201 is amended by adding a new subsection to read:                                              
19            (c)  A person required to be licensed under AS 06.201 - 06.55.206 must                                       
20       register with the registry and maintain a valid unique identifier issued by the registry.                         
21    * Sec. 10. AS 06.55.202 is repealed and reenacted to read:                                                         
22            Sec. 06.55.202. Application for license. An application for a currency                                     
23       exchange license must                                                                                             
24                 (1)  be in a format established by the department;                                                      
25                 (2)  contain complete information required by the department;                                           
26                 (3)  include each control person's fingerprints for submission to the                                   
27       Department of Public Safety or the Federal Bureau of Investigations and any                                       
28       governmental agency or entity authorized to receive that information to obtain a report                           
29       of criminal justice information and a national criminal history record check.                                     
30                 (4)  include personal history and experience in a format established by                                 
31       the department to obtain                                                                                          
01                      (A)  an independent credit report from a consumer reporting                                        
02            agency; and                                                                                                  
03                      (B)  information related to administrative, civil, or criminal                                     
04            findings by a governmental jurisdiction;                                                                     
05                 (5)  contain other information or supporting material that the                                          
06       department may require concerning the applicant, including the organization and                                   
07       operations of an applicant for a currency exchange license and the financial                                      
08       responsibility, background, experience, and activities of the applicant;                                          
09                 (6)  include a nonrefundable application fee and an initial license fee, as                             
10       established by the department;                                                                                    
11                 (7)  include a surety bond as required by AS 06.55.206.                                                 
12    * Sec. 11. AS 06.55.203(a) is amended to read:                                                                     
13            (a)  When an application [FOR A CURRENCY EXCHANGE LICENSE] is                                                
14       filed under AS 06.55.202 [AS 06.55.201 - 06.55.204], the department shall investigate                         
15       the applicant's financial condition and responsibility, financial and business                                    
16       experience, competence, character, and general fitness. The department may conduct                            
17       an [ON-SITE] investigation of the applicant, the reasonable cost of which the                                     
18       applicant shall pay. The department shall issue a currency exchange license to an                                 
19       applicant under AS 06.55.202 [AS 06.55.201 - 06.55.204] if the department finds that                          
20       all of the following conditions have been fulfilled:                                                              
21                 (1)  the applicant has complied with the requirements of this chapter                               
22       for obtaining the license [AS 06.55.202]; and                                                                 
23                 (2)  the financial condition and responsibility, financial and business                                 
24       experience, competence, character, and general fitness [OF THE APPLICANT, AND                                 
25       THE COMPETENCE, EXPERIENCE, CHARACTER, AND GENERAL FITNESS                                                        
26       OF THE EXECUTIVE OFFICERS, MANAGERS, DIRECTORS, AND PERSONS                                                       
27       IN CONTROL] of the applicant indicate that it is in the interest of the public to permit                          
28       the applicant to engage in currency exchange; and                                                             
29                 (3)  the applicant, including any employees or independent                                          
30       contractors of the applicant, is not listed on the Specially Designated Nationals                             
31       and Blocked Persons List or any other Office of Foreign Assets Control sanctions                              
01       list prepared by the United States Department of the Treasury or designated                                   
02       successor agency.                                                                                             
03    * Sec. 12. AS 06.55.203(b) is amended to read:                                                                     
04            (b)  When an application for an original currency exchange license under                                     
05       AS 06.55.202 [AS 06.55.201 - 06.55.204] is complete, the department shall promptly                            
06       notify the applicant in a record of the date on which the application was determined to                           
07       be complete, and                                                                                                  
08                 [(1)]  the department shall approve or deny the application not later                               
09       than [WITHIN] 120 days after that date [; OR                                                                  
10                 (2)  IF THE APPLICATION IS NOT APPROVED OR DENIED                                                       
11       WITHIN 120 DAYS AFTER THAT DATE,                                                                                  
12                      (A)  THE APPLICATION IS APPROVED; AND                                                              
13                      (B)  THE DEPARTMENT SHALL ISSUE THE CURRENCY                                                       
14            EXCHANGE LICENSE UNDER AS 06.55.201 - 06.55.204 TO TAKE                                                      
15            EFFECT AS OF THE FIRST BUSINESS DAY AFTER EXPIRATION OF                                                      
16            THE PERIOD].                                                                                                 
17    * Sec. 13. AS 06.55.203(d) is amended to read:                                                                     
18            (d)  An applicant whose application under AS 06.55.202 is denied by the                                  
19       department under AS 06.55.201 - 06.55.206 [AS 06.55.201 - 06.55.204] may appeal,                              
20       not later than [WITHIN] 30 days after receipt of the notice of the denial, [FROM                              
21       THE DENIAL] and request a hearing.                                                                                
22    * Sec. 14. AS 06.55.203 is amended by adding a new subsection to read:                                             
23            (e)  A license issued under AS 06.55.201 - 06.55.206 remains in effect until                                 
24       December 31 of the year in which the license is issued, unless the license is revoked,                            
25       is suspended, or is surrendered.                                                                                  
26    * Sec. 15. AS 06.55.204 is repealed and reenacted to read:                                                         
27            Sec. 06.55.204. Renewal of license. (a) To renew a license, the licensee shall                             
28       submit to the department a                                                                                        
29                 (1)  renewal application at a time and in a format established by the                                   
30       department;                                                                                                       
31                 (2)  renewal fee as established by the department; and                                                  
01                 (3)  report identifying any changes in the information previously                                       
02       provided and any additional information requested by the department.                                              
03            (b)  The department shall approve or deny the application for renewal of a                                   
04       license not later than 60 days after the renewal application is filed.                                            
05    * Sec. 16. AS 06.55 is amended by adding a new section to article 2 to read:                                       
06            Sec. 06.55.206. Security. (a) A surety bond must accompany an application                                  
07       for a currency exchange license. The surety bond must be at least $25,000 and may not                             
08       exceed $1,000,000 as established by the department.                                                               
09            (b)  The surety bond must be in a form satisfactory to the department and                                    
10       payable to this state for the benefit of this state and any person or persons who suffer                          
11       loss due to a violation of this chapter by a licensee or a licensee's authorized delegate.                        
12            (c)  The aggregate liability on a surety bond may not exceed the principal sum                               
13       of the bond. A claimant against a currency exchange licensee may maintain an action                               
14       on the bond, or the department may maintain an action on behalf of the claimant.                                  
15            (d)  A surety bond must cover claims for as long as the department specifies,                                
16       but for at least five years after the date the currency exchange licensee stops providing                         
17       currency exchange in this state. The department may permit the amount of security to                              
18       be reduced or eliminated before the expiration of that time to the extent the amount of                           
19       the currency exchange licensee's outstanding obligations in this state is reduced.                                
20            (e)  The bond shall be obtained from a surety company authorized to do                                       
21       business in this state.                                                                                           
22            (f)  If a currency exchange licensee does not maintain a surety bond in the                                  
23       amount required under (a) of this section, the department may issue an order under                                
24       AS 06.55.603.                                                                                                     
25    * Sec. 17. AS 06.55 is amended by adding a new section to read:                                                    
26            Sec. 06.55.207. Annual assessment and annual report. (a) A licensee shall                                  
27       pay an annual assessment as established by the department not later than the annual                               
28       assessment due date or, if the annual assessment due date is not a business day, on the                           
29       next business day. Annual assessment fees shall be established by the department.                                 
30            (b)  A licensee shall submit an accurate annual report with the annual                                       
31       assessment in a format established by the department.                                                             
01            (c)  If a licensee does not file an annual report or pay its annual assessment by                            
02       the assessment due date, the department shall assess the licensee a late fee as                                   
03       established by the department.                                                                                    
04    * Sec. 18. AS 06.55.301(b) is amended to read:                                                                     
05            (b)  An authorized delegate shall remit all money owing to the money services                                
06       licensee under the terms of the contract between the money services licensee and the                              
07       authorized delegate. [IN THIS SUBSECTION, "REMIT" MEANS TO MAKE                                                   
08       DIRECT PAYMENTS OF MONEY TO A MONEY SERVICES LICENSEE OR ITS                                                      
09       REPRESENTATIVE AUTHORIZED TO RECEIVE MONEY OR TO DEPOSIT                                                          
10       MONEY IN A BANK IN AN ACCOUNT SPECIFIED BY THE MONEY                                                              
11       SERVICES LICENSEE.]                                                                                               
12    * Sec. 19. AS 06.55.301(d) is amended to read:                                                                     
13            (d)  An authorized delegate may not provide money services outside the scope                                 
14       of activity permissible under the contract between the authorized delegate and the                                
15       money services licensee, except activity in which the authorized delegate is authorized                           
16       to engage under AS 06.55.101 - 06.55.206 [AS 06.55.101 - 06.55.204]. An authorized                            
17       delegate of a money services licensee holds in trust for the benefit of the money                                 
18       services licensee all money net of fees received from money services.                                             
19    * Sec. 20. AS 06.55.301 is amended by adding a new subsection to read:                                             
20            (f)  A money services licensee may conduct business regulated under this                                     
21       chapter through an authorized delegate appointed by the licensee in accordance with                               
22       this section. A licensee is responsible for acts of the authorized delegate, of which the                         
23       licensee has or reasonably should have knowledge, that are conducted under the                                    
24       authority granted by the licensee and that relate to the licensee's money services                                
25       business.                                                                                                         
26    * Sec. 21. AS 06.55 is amended by adding a new section to article 3 to read:                                       
27            Sec. 06.55.304. Limited authorization of subdelegate. (a) A money services                                 
28       licensee may contract with another money services licensee to use that other licensee's                           
29       existing authorized delegate as a subdelegate to load funds onto the first licensee's                             
30       existing open-loop stored-value cards. If the subdelegate sells new open-loop stored-                             
31       value cards for the first licensee, that licensee shall add the subdelegate to the                                
01       licensee's authorized delegate roster.                                                                            
02            (b)  A money services licensee shall maintain all contracts under (a) of this                                
03       section as part of the licensee's books and records and make them available to the                                
04       department on request.                                                                                            
05    * Sec. 22. AS 06.55.401 is repealed and reenacted to read:                                                         
06            Sec. 06.55.401. Authority to conduct examinations. (a) A licensee or other                                 
07       person subject to this chapter shall make available to the department, on request, the                            
08       place of business, books, records, accounts, safes, and vaults relating to the operations                         
09       of the licensee or other person subject to this chapter. The department may interview                             
10       any person, including control persons, officers, principals, employees, authorized                                
11       delegates, and customers of the licensee or other person subject to this chapter                                  
12       concerning the licensee's or other person's business.                                                             
13            (b)  The department may conduct an examination or investigation of the books,                                
14       accounts, records, papers, documents, files, and other information used in the business                           
15       of a money services licensee or its authorized delegates in conjunction with                                      
16       representatives of other state agencies or agencies of another state or of the federal                            
17       government. The department may accept an examination report or an investigation                                   
18       report of an agency of this state or of another state or of the federal government.                               
19            (c)  A joint examination or investigation, or an acceptance of an examination                                
20       or investigation report, does not preclude the department from conducting an                                      
21       examination or investigation under this chapter. A joint report or a report accepted                              
22       under this section is an official report of the department for all purposes.                                      
23            (d)  For the purpose of hearings, investigations, or other proceedings under this                            
24       chapter, the department or an officer designated by the department may administer                                 
25       oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take                              
26       evidence, and require the production of books, papers, correspondence, memoranda,                                 
27       agreements, or other documents or records that the department considers relevant or                               
28       material to the matter. Information obtained during an examination under this chapter                             
29       may be disclosed only as provided in AS 06.55.407.                                                                
30            (e)  A person shall reimburse the department for reasonable costs incurred by                                
31       the department to conduct an examination or investigation under this section.                                     
01    * Sec. 23. AS 06.55.402 is repealed and reenacted to read:                                                         
02            Sec. 06.55.402. Cooperation. The department may consult and cooperate with                                 
03       other state and federal regulators in enforcing and administering this chapter.                                   
04    * Sec. 24. AS 06.55.403(b) is repealed and reenacted to read:                                                    
05            (b)  A money services licensee shall file with the department not later than 45                              
06       days after the end of each fiscal quarter a report containing information about the                               
07       licensee, its locations, authorized delegates, and any other information as required by                           
08       the department. The department shall establish the content and form of the report.                                
09    * Sec. 25. AS 06.55.403(c) is amended to read:                                                                     
10            (c)  A money services licensee shall file a report with the department not later                         
11       than [WITHIN] one business day after the money services licensee has reason to                                
12       know of the occurrence of one or more [ANY] of the following events:                                          
13                 (1)  the filing of a petition by or against the money services licensee                                 
14       under 11 U.S.C. 101 - 110 (Bankruptcy Code) for bankruptcy or reorganization;                                     
15                 (2)  the filing of a petition by or against the money services licensee for                             
16       receivership, the commencement of any other judicial or administrative proceeding for                             
17       its dissolution or reorganization, or the making of a general assignment for the benefit                          
18       of its creditors;                                                                                                 
19                 (3)  the commencement of a proceeding to revoke or suspend its money                                    
20       services license in a state or country in which the money services licensee engages in                            
21       business or is licensed;                                                                                          
22                 (4)  the cancellation or other impairment of the money services                                         
23       licensee's bond [OR OTHER SECURITY];                                                                              
24                 (5)  a charge against or conviction of the money services licensee or of                                
25       an officer, manager, director, or person in control of the money services licensee for a                          
26       felony; or                                                                                                        
27                 (6)  a charge against or conviction of an authorized delegate for a                                     
28       felony.                                                                                                           
29    * Sec. 26. AS 06.55.403 is amended by adding a new subsection to read:                                             
30            (d)  The department may establish a late fee or other consequence for a money                                
31       services licensee who fails to file a report as required by this section.                                         
01    * Sec. 27. AS 06.55.404(a) is amended to read:                                                                     
02            (a)  A money services licensee shall                                                                         
03                 (1)  give the department notice in a record 30 days before [OF] a                                   
04       proposed change of control and give the department notice in a record not later                               
05       than [WITHIN] 15 days after learning of the proposed change of control;                                       
06                 (2)  request approval of the change of control by submitting the                                    
07       information required by the department [ACQUISITION]; and                                                     
08                 (3)  submit a nonrefundable fee with the notice as required by the                                  
09       department.                                                                                                   
10    * Sec. 28. AS 06.55.404(d) is amended to read:                                                                     
11            (d)  When an application for a change of control [UNDER AS 06.55.401 -                                       
12       06.55.407] is complete, the department shall notify the money services licensee in a                              
13       record of the date on which the request was determined to be complete, and                                        
14                 [(1)]  the department shall approve or deny the request not later than                              
15       [WITHIN] 120 days after that date [; OR                                                                           
16                 (2)  IF THE REQUEST IS NOT APPROVED OR DENIED WITHIN                                                    
17       120 DAYS AFTER THAT DATE,                                                                                         
18                      (A)  THE REQUEST IS APPROVED; AND                                                                  
19                      (B)  THE DEPARTMENT SHALL PERMIT THE CHANGE                                                        
20            OF CONTROL UNDER THIS SECTION, TO TAKE EFFECT AS OF THE                                                      
21            FIRST BUSINESS DAY AFTER EXPIRATION OF THE PERIOD].                                                          
22    * Sec. 29. AS 06.55.405(a) is amended to read:                                                                     
23            (a)  A [MONEY SERVICES] licensee shall maintain the following records for                                    
24       determining its compliance with this chapter for at least five [THREE] years:                                 
25                 (1)  a record of each payment instrument or stored-value obligation                                     
26       sold;                                                                                                             
27                 (2)  a general ledger posted at least monthly containing all asset,                                     
28       liability, capital, income, and expense accounts;                                                                 
29                 (3)  bank statements and bank reconciliation records;                                                   
30                 (4)  records of outstanding payment instruments and stored-value                                        
31       obligations;                                                                                                      
01                 (5)  records of each payment instrument and stored-value obligation                                     
02       paid within the five-year [THREE-YEAR] period;                                                                
03                 (6)  a list of the last known names and addresses of all of the money                                   
04       services licensee's authorized delegates;                                                                         
05                 (7)  copies of all currency transaction reports and suspicious                                      
06       activity reports filed in compliance with AS 06.55.406; and                                                   
07                 (8) [(7)]  any other records the department reasonably requires by                                  
08       regulation.                                                                                                       
09    * Sec. 30. AS 06.55.405(b) is repealed and reenacted to read:                                                      
10            (b)  The items specified in (a) of this section must be provided in a format                                 
11       established by the department.                                                                                    
12    * Sec. 31. AS 06.55.406 is repealed and reenacted to read:                                                         
13            Sec. 06.55.406. Money laundering reports. A money services licensee and an                                 
14       authorized delegate shall file with the United States Department of the Treasury, or its                          
15       designated successor agency, all reports required by federal currency reporting, record                           
16       keeping, and suspicious transaction reporting requirements as set out in 31 U.S.C.                                
17       5311 - 5332 and other federal and state laws pertaining to money laundering.                                      
18    * Sec. 32. AS 06.55.407(b) is amended to read:                                                                     
19            (b)  The department may disclose information that is not otherwise subject to                                
20       disclosure under (a) of this section to representatives of state or federal agencies who                          
21       agree in writing to [PROMISE IN A RECORD THAT THEY WILL] maintain the                                         
22       confidentiality of the information or if the department finds that the release is                                 
23       reasonably necessary for the protection of the public and in the interests of justice [,                          
24       AND THE MONEY SERVICES LICENSEE HAS BEEN GIVEN PREVIOUS                                                           
25       NOTICE BY THE DEPARTMENT OF ITS INTENT TO RELEASE THE                                                             
26       INFORMATION].                                                                                                     
27    * Sec. 33. AS 06.55.407(c) is amended to read:                                                                     
28            (c)  This section does not prohibit the department from disclosing to the public                           
29                 (1)  a list of money services licensees or authorized delegates,                                
30       including addresses and the names of contact individuals;                                                     
31                 (2)  the identity of a money services licensee or authorized delegate                               
01       subject to an emergency or final order of the department; or                                                  
02                 (3)  the aggregated financial data of [CONCERNING THOSE] money                                  
03       services licensees.                                                                                               
04    * Sec. 34. AS 06.55.501(a) is amended to read:                                                                     
05            (a)  Except as provided in (b) of this section, a [A] money services licensee                            
06       shall maintain at all times permissible investments that have a market value computed                             
07       under generally accepted accounting principles of not less than the aggregate amount                              
08       of all of its outstanding payment instruments and stored-value obligations issued or                              
09       sold in all states and money transmitted from all states by the money services licensee.                          
10    * Sec. 35. AS 06.55.501(c) is repealed and reenacted to read:                                                      
11            (c)  A permissible investment subject to this section, even if commingled with                               
12       other assets of the money services licensee, is considered by operation of law to be                              
13       held in trust for the benefit of any individual to whom an obligation arising under this                          
14       chapter is owed and may not be considered an asset or property of the licensee in the                             
15       event of bankruptcy, receivership, or a claim against the licensee unrelated to any of                            
16       the licensee's obligations under this chapter.                                                                    
17    * Sec. 36. AS 06.55.601(a) is amended to read:                                                                     
18            (a)  The department may issue an order under AS 06.55.603 to suspend or                                  
19       revoke a money services license, place a money services licensee in receivership, or                              
20       order a money services licensee to revoke the designation of an authorized delegate if                            
21                 (1)  the money services licensee violates this chapter or a regulation                                  
22       adopted or an order issued under this chapter;                                                                    
23                 (2)  the money services licensee did not permit or [DOES NOT]                                       
24       cooperate with an examination or investigation by the department;                                                 
25                 (3)  the money services licensee engages in fraud, intentional                                          
26       misrepresentation, or gross negligence;                                                                           
27                 (4)  a money services licensee or an authorized delegate is convicted                               
28       of a violation of a state or federal anti-money laundering statute, or a law listed in                        
29       AS 06.55.860, or violates a regulation adopted or an order issued under this chapter, as                      
30       a result of the money services licensee's wilful misconduct or wilful blindness;                                  
31                 (5)  the competence, experience, character, or general fitness of the                                   
01       money services licensee, authorized delegate, person in control of a money services                               
02       licensee, or responsible person of the money services licensee or authorized delegate                             
03       indicates that it is not in the public interest to permit the person to provide money                             
04       services;                                                                                                         
05                 (6)  the money services licensee engages in an unsafe or unsound                                        
06       practice;                                                                                                         
07                 (7)  the money services licensee is insolvent, suspends payment of its                                  
08       obligations, or makes a general assignment for the benefit of its creditors; [OR]                                 
09                 (8)  the money services licensee does not remove an authorized                                          
10       delegate after the department issues and serves upon the money services licensee a                                
11       final order including a finding that the authorized delegate has violated this chapter;                       
12                 (9)  a fact or condition exists that, if it had been known at the time                              
13       the money services licensee applied for the license, would have been grounds for                              
14       denying the application;                                                                                      
15                 (10)  the money services licensee has engaged in false, misleading,                                 
16       or deceptive advertising;                                                                                     
17                 (11)  the money services licensee has failed to pay a judgment                                      
18       entered in favor of a claimant or creditor in an action arising out of the money                              
19       services licensee's activities under this chapter not later than the 30th day after                           
20       the date the stay of execution expires or is terminated, as applicable; or                                    
21                 (12)  the money services licensee knowingly made a material                                         
22       misstatement or has suppressed or withheld material information on an                                         
23       application, request for approval, report, or other document required to be filed                             
24       with the department under this chapter.                                                                       
25    * Sec. 37. AS 06.55.601(b) is amended to read:                                                                     
26            (b)  In determining whether a money services licensee is engaging in an unsafe                               
27       or unsound practice, the department may consider the size and condition of the money                              
28       services licensee's money transmission or currency exchange, the magnitude of the                             
29       loss or potential loss, the gravity of the violation of this chapter or an order issued                   
30       under this chapter, or an action taken against the money services licensee by this                            
31       state, another state, or the federal government, and the previous conduct of the                              
01       person involved.                                                                                                  
02    * Sec. 38. AS 06.55.602(a) is amended to read:                                                                     
03            (a)  The department may issue an order under AS 06.55.603 to suspend or                                  
04       revoke [SUSPENDING OR REVOKING] the designation of an authorized delegate                                     
05       or the limited designation of a subdelegate if [THE DEPARTMENT FINDS THAT]                                    
06                 (1)  the authorized delegate or subdelegate violated this chapter or a                              
07       regulation adopted or an order issued under this chapter or any other state or federal                        
08       law applicable to a money services business;                                                                  
09                 (2)  the authorized delegate or subdelegate did not permit or                                   
10       cooperate with an examination or investigation by the department;                                                 
11                 (3)  in connection with the operation of the delegate's business on                                 
12       behalf of the money services licensee or any transaction subject to this chapter the                          
13       authorized delegate or subdelegate has engaged in fraud, intentional                                          
14       misrepresentation, deceit, [OR] gross negligence, or an unfair or deceptive act or                        
15       practice;                                                                                                     
16                 (4)  the authorized delegate or subdelegate is convicted of a violation                             
17       of a state or federal anti-money laundering statute or any law listed in AS 06.55.860;                        
18                 (5)  the competence, experience, character, or general fitness of the                                   
19       authorized delegate, or subdelegate, or a person in control of the authorized delegate                      
20       or subdelegate indicates that it is not in the public interest to permit the authorized                       
21       delegate or subdelegate to provide money services; [OR]                                                       
22                 (6)  the authorized delegate is engaging in an unsafe or unsound                                        
23       practice or                                                                                                   
24                 (7)  the authorized delegate, a person in control of the authorized                                 
25       delegate, or the subdelegate is listed on the Specially Designated Nationals and                              
26       Blocked Persons List, or any other Office of Foreign Assets Control sanctions list                            
27       prepared by the United States Department of the Treasury, or designated                                       
28       successor agency.                                                                                             
29    * Sec. 39. AS 06.55.602(b) is amended to read:                                                                     
30            (b)  In determining whether an authorized delegate or subdelegate is engaging                            
31       in an unsafe or unsound practice, the department may consider the size and condition                              
01       of the authorized delegate's or subdelegate's provision of money services, the                                
02       magnitude of the loss or potential loss, the gravity of the violation of this chapter or a                    
03       regulation adopted or order issued under this chapter, an action taken against the                            
04       delegate or subdelegate by this state, another state, or the federal government,                              
05       and the previous conduct of the authorized delegate or subdelegate.                                           
06    * Sec. 40. AS 06.55.603 is repealed and reenacted to read:                                                       
07            Sec. 06.55.603. Administrative orders. (a) If the department determines that a                             
08       violation of this chapter or an order issued under this chapter by a person licensed                              
09       under this chapter is likely to cause immediate and irreparable harm to the money                                 
10       services licensee, its customers, or the public as a result of the violation, or cause                            
11       insolvency or significant dissipation of assets of the money services licensee, the                               
12       department may issue an administrative order. The order becomes effective on service                              
13       of the order on a person licensed under this chapter.                                                             
14            (b)  The department may issue an order against a person licensed under this                                  
15       chapter to                                                                                                        
16                 (1)  stop providing money services;                                                                     
17                 (2)  compel payment of restitution to damaged parties;                                                  
18                 (3)  require affirmative action to comply with this chapter or regulation                               
19       adopted under this chapter; and                                                                                   
20                 (4)  remove from office or prohibit from participation an officer, person                               
21       in control, or employee.                                                                                          
22            (c)  An order remains effective and enforceable pending the completion of an                                 
23       administrative proceeding under AS 06.55.701 or 06.55.702.                                                        
24            (d)  A person licensed under this chapter who is served with an order may                                    
25       petition the superior court for a judicial order setting aside, limiting, or suspending the                       
26       enforcement, operation, or effectiveness of the order pending the completion of an                                
27       administrative proceeding under AS 06.55.701 or 06.55.702.                                                        
28    * Sec. 41. AS 06.55.607(a) is repealed and reenacted to read:                                                      
29            (a)  If the department has reason to believe that a person who is not a money                                
30       services licensee under AS 06.55.101, currency exchange licensee under                                            
31       AS 06.55.201, authorized delegate under AS 06.55.301, or subdelegate under                                        
01       AS 06.55.304 has violated or is violating AS 06.55.101 or 06.55.201, the department                               
02       may issue an order under AS 06.55.603.                                                                            
03    * Sec. 42. AS 06.55.607(c) is amended to read:                                                                     
04            (c)  An order [TO CEASE AND DESIST] becomes effective upon service of                                        
05       the order [IT] upon the person.                                                                               
06    * Sec. 43. AS 06.55.607(d) is amended to read:                                                                     
07            (d)  An order [TO CEASE AND DESIST] remains effective and enforceable                                        
08       pending the completion of an administrative proceeding under AS 06.55.701 and                                     
09       06.55.702.                                                                                                        
10    * Sec. 44. AS 06.55.607 is amended by adding a new subsection to read:                                             
11            (g)  An order issued by the department may include an additional monetary                                    
12       penalty if the department has reason to believe that a person who is not a money                                  
13       services licensee under AS 06.55.101, currency exchange licensee under                                            
14       AS 06.55.201, authorized delegate under AS 06.55.301, or subdelegate under                                        
15       AS 06.55.304 has violated or is violating AS 06.55.101 or 06.55.201.                                              
16    * Sec. 45. AS 06.55.802 is amended to read:                                                                        
17            Sec. 06.55.802. Exemptions [EXCLUSIONS]. This chapter does not apply to                                
18                 (1)  the United States or a department, an agency, or an instrumentality                                
19       of the United States;                                                                                             
20                 (2)  money transmission by the United States Postal Service or by a                                     
21       contractor on behalf of the United States Postal Service;                                                         
22                 (3)  a state, a municipality, a county, or another governmental agency                                  
23       or governmental subdivision of a state;                                                                           
24                 (4)  a bank, a bank holding company, an office of an international                                      
25       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
26       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
27       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States, if it does                            
28       not issue, sell, or provide payment instruments or stored value through an authorized                             
29       delegate who is not a bank, a bank holding company, an office of an international                                 
30       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
31       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
01       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States;                                       
02                 (5)  electronic funds transfer of governmental benefits for a federal,                                  
03       state, or municipal agency or a state political subdivision by a contractor on behalf of                          
04                      (A)  the United States or a department, an agency, or an                                           
05            instrumentality of the United States; or                                                                     
06                      (B)  a state, or a department, an agency, or an instrumentality of                                 
07            a state;                                                                                                     
08                 (6)  a board of trade or a person who, in the ordinary course of                                        
09       business, provides clearance and settlement services for a board of trade, to the extent                          
10       of the operation of the person for a board of trade; in this paragraph, "board of trade"                          
11       means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f                                     
12       (Commodity Exchange Act);                                                                                         
13                 (7)  a registered futures commission merchant under the federal                                         
14       commodities laws, to the extent of the merchant's operation as a registered futures                               
15       commission merchant under the federal commodities laws;                                                           
16                 (8)  a person who provides clearance or settlement services under a                                     
17       registration as a clearing agency or an exemption from the registration granted under                             
18       the federal securities laws, to the extent of the person's operation as a provider of                             
19       clearance or settlement services under a registration as a clearing agency or an                                  
20       exemption from the registration granted under the federal securities laws;                                        
21                 (9)  an operator of a payment system to the extent that the operator                                    
22       provides processing, clearing, or settlement services, between or among persons                                   
23       excluded by this section, in connection with wire transfers, credit card transactions,                            
24       debit card transactions, stored-value transactions, automated clearing house transfers,                           
25       or similar funds transfers; [OR]                                                                                  
26                 (10)  a person registered as a securities broker-dealer under federal or                                
27       state securities laws, to the extent of the person's operation as a securities broker-                            
28       dealer under federal or state securities laws;                                                                
29                 (11)  an insurance company, title insurance company, or escrow                                      
30       agent to the extent that the entity is lawfully authorized to conduct business in                             
31       this state as an insurance company, title insurance company, or escrow agent and                              
01       to the extent that the entity engages in money transmission or currency exchange                              
02       as an ancillary service when conducting insurance, title insurance, or escrow                                 
03       activity; or                                                                                                  
04                 (12)  an attorney, to the extent that the attorney is lawfully                                      
05       authorized to practice law in this state and to the extent that the attorney engages                          
06       in money transmission or currency exchange as an ancillary service to the                                     
07       practice of law.                                                                                              
08    * Sec. 46. AS 06.55.810 is repealed and reenacted to read:                                                       
09            Sec. 06.55.810. Notices required. (a) A money services licensee shall provide                              
10       a customer with notice of how to file a complaint. The money services licensee shall                              
11       provide notice at each location where the money services licensee                                                 
12                 (1)  provides money services under this chapter; and                                                    
13                 (2)  has not designated an authorized delegate or subdelegate to provide                                
14       money services on behalf of the money services licensee at the location.                                          
15            (b)  An authorized delegate or subdelegate shall provide a notice of how to file                             
16       a complaint at each location where the authorized delegate or subdelegate provides                                
17       money services under this chapter.                                                                                
18            (c)  The notice required under this section must be in a content and format as                               
19       established by the department.                                                                                    
20    * Sec. 47. AS 06.55.820 is repealed and reenacted to read:                                                         
21            Sec. 06.55.820. Transmission, receipt, and refund. A money services                                        
22       licensee who receives money or equivalent value for money transmission or currency                                
23       exchange shall comply with transmission, receipt, and refund provisions according to                              
24       federal law (Federal Remittance Transfer Rule, 12 C.F.R. Part 1005, Subpart B) and                                
25       any requirements established by the department.                                                                   
26    * Sec. 48. AS 06.55 is amended by adding new sections to read:                                                     
27            Sec. 06.55.860. Compliance with federal requirements. A person subject to                                  
28       this chapter shall conduct the person's money services activities in compliance with                              
29                 (1)  31 U.S.C. 5311 - 5314 (Intelligence Reform and Terrorism                                           
30       Prevention Act of 2004);                                                                                          
31                 (2)  31 U.S.C. 5316 - 5329 (Money Laundering Control Act of 1986);                                      
01                 (3)  31 U.S.C. 5330 (Money Laundering Suppression Act of 1994);                                         
02                 (4)  31 U.S.C. 5331 - 5332 (International Money Laundering                                              
03       Abatement and Financial Anti-Terrorism Act of 2001);                                                              
04                 (5)  12 U.S.C. 1829b (Federal Deposit Insurance Act);                                                   
05                 (6)  12 U.S.C. 1951 - 1959 (Bank Secrecy Act);                                                          
06                 (7)  18 U.S.C. 981 - 982 (Money Laundering Control Act of 1986); and                                    
07                 (8)  any other federal statute or regulation the purpose of which is to                                 
08       regulate money transmission, currency exchange, or money services.                                                
09            Sec. 06.55.870. Escheatment of property. A person subject to this chapter                                  
10       shall comply with unclaimed property laws as defined in AS 34.45.                                                 
11            Sec. 06.55.880. Application to Internet activities. This chapter applies to a                              
12       person who engages in activities regulated under this chapter by using an Internet                                
13       website from within or outside the state.                                                                         
14    * Sec. 49. AS 06.55 is amended by adding new sections to article 9 to read:                                        
15            Sec. 06.55.900. Administration. (a) The department may require an applicant                                
16       or a licensee to submit information, documentation, or payment of a fee required under                            
17       this chapter through the registry in a format established by the department and                                   
18       acceptable to the registry.                                                                                       
19            (b)  The department may use the registry as a channeling agent for obtaining                                 
20       information required for licensing purposes under this chapter, including                                         
21                 (1)  criminal history record information from the Federal Bureau of                                     
22       Investigation, the United States Department of Justice, or any other agency or entity                             
23       identified by the department;                                                                                     
24                 (2)  information related to administrative, civil, or criminal findings by                              
25       other states.                                                                                                     
26            Sec. 06.55.920. Regulations. The department may adopt regulations under                                    
27       AS 44.62 (Administrative Procedure Act) to implement this chapter.                                                
28    * Sec. 50. AS 06.55.990 is repealed and reenacted to read:                                                         
29            Sec. 06.55.990. Definitions. In this chapter, unless the context indicates                                 
30       otherwise,                                                                                                        
31                 (1)  "applicant" means any person filing an application, a control                                      
01       person, officer, director, manager, and owner applicant for a money services license;                             
02                 (2)  "authorized delegate" means a person to whom a money services                                      
03       licensee designates to provide money services on behalf of the money services                                     
04       licensee;                                                                                                         
05                 (3)  "bank" means an institution organized under federal or state law                                   
06       that                                                                                                              
07                      (A)  accepts demand deposits or deposits that the depositor may                                    
08            use for payment to third parties and engages in the business of making                                       
09            commercial loans; or                                                                                         
10                      (B)  engages in credit card operations and maintains only one                                      
11            office that accepts deposits, does not accept demand deposits or deposits that                               
12            the depositor may use for payments to third parties, does not accept a savings                               
13            or time deposit less than $100,000, and does not engage in the business of                                   
14            making commercial loans;                                                                                     
15                 (4)  "control" means the                                                                                
16                      (A)  ownership of, or the power to vote, directly or indirectly, at                                
17            least 10 percent of a class of voting securities or voting interests of a money                              
18            services licensee or person in control of a money services licensee; for                                     
19            purposes of determining the percentage of a money services licensee controlled                               
20            by a person, the percentage consists of the person's interest aggregated with the                            
21            interest of any spouse, parent, or child of the person;                                                      
22                      (B)  power to elect a majority of officers, managers, directors,                                   
23            trustees, or other persons exercising managerial authority of a money services                               
24            licensee or person in control of a money services licensee; or                                               
25                      (C)  power to exercise directly or indirectly, a controlling                                       
26            influence over the management or policies of a money services licensee or                                    
27            person in control of a money services licensee;                                                              
28                 (5)  "currency" means the coin and paper money of the United States or                                  
29       a foreign government that is                                                                                      
30                      (A)  designated as legal tender and circulates; and                                                
31                      (B)  customarily used and accepted as a medium of exchange in                                      
01            the country of issuance;                                                                                     
02                 (6)  "currency exchange" means receipt of revenues from the exchange                                    
03       of money of one government for money of another government;                                                       
04                 (7)  "currency exchange license" means a license under AS 06.55.201 -                                   
05       06.55.206;                                                                                                        
06                 (8)  "currency exchange licensee" means a person who holds a currency                                   
07       exchange license;                                                                                                 
08                 (9)  "department" means the Department of Commerce, Community,                                          
09       and Economic Development;                                                                                         
10                 (10)  "fiat currency" means government-issued currency that is                                          
11       designated as legal tender in its country of issuance through government decree,                                  
12       regulation, or law;                                                                                               
13                 (11)  "funds" means money or other value that may be accepted for                                       
14       money;                                                                                                            
15                 (12)  "informal value transfer system"                                                                  
16                      (A)  means any system, mechanism, or network that receives                                         
17            money for the purpose of making funds or an equivalent value payable to a                                    
18            third party in another geographic location, whether or not in the same form;                                 
19            and                                                                                                          
20                      (B)  generally takes place outside of a conventional banking                                       
21            system through nonbank financial institutions or other business entities whose                               
22            primary business activity may not be the transmission of money;                                              
23                 (13)  "medium of exchange" means something commonly accepted in                                         
24       exchange for goods and services and recognized as representing a standard of value;                               
25                 (14)  "monetary value" means a medium of exchange, whether or not                                       
26       redeemable in money;                                                                                              
27                 (15)  "money" means a medium of exchange that is authorized or                                          
28       adopted by the United States or a foreign government, including a monetary unit of                                
29       account established by an intergovernmental organization or by agreement between                                  
30       two or more governments;                                                                                          
31                 (16)  "money laundering" means an activity criminalized by 18 U.S.C.                                    
01       1956 or 1957, or an activity that would be criminalized by 18 U.S.C. 1956 or 1957 if it                           
02       occurred in the United States;                                                                                    
03                 (17)  "money services" means money transmission or currency                                             
04       exchange;                                                                                                         
05                 (18)  "money services license" means a currency exchange license or a                                   
06       money transmission license;                                                                                       
07                 (19)  "money services licensee" means a person who holds a currency                                     
08       exchange license or a money transmission license;                                                                 
09                 (20)  "money transmission" means                                                                        
10                      (A)  the acceptance and the transmission of currency, funds, or                                    
11            other value that substitutes for currency from one person to another location or                             
12            person within the United States or to locations abroad, by any means, including                              
13                           (i)  a financial agency or institution;                                                       
14                           (ii)  an electronic funds transfer network;                                                   
15                           (iii)  wire;                                                                                  
16                           (iv)  facsimile;                                                                              
17                           (v)  payment instrument; or                                                                   
18                           (vi)  an informal value transfer system;                                                      
19                      (B)  selling, issuing, or acting as an intermediary for open-loop                                  
20            stored-value devices and payment instruments; or                                                             
21                      (C)  a virtual currency business activity;                                                         
22                 (21)  "money transmission license" means a license under                                                
23       AS 06.55.101 - 06.55.106;                                                                                         
24                 (22)  "money transmission licensee" means a person who holds a                                          
25       money transmission license;                                                                                       
26                 (23)  "Nationwide Multistate Licensing System and Registry" means a                                     
27       licensing system developed by the Conference of State Bank Supervisors and the                                    
28       American Association of Residential Mortgage Regulators and owned and operated by                                 
29       the State Regulatory Registry, LLC, or any successor or an affiliated entity, for the                             
30       licensing and registration of persons in the mortgage and other financial services                                
31       industries;                                                                                                       
01                 (24)  "officer" means a president, a chair of the executive committee, a                                
02       chief financial officer, a chief compliance officer, a responsible individual, or another                         
03       individual who performs similar functions; in this paragraph, "responsible individual"                            
04       means an individual who is employed by a money services licensee and has principal                                
05       managerial authority over the provision of money services by the money services                                   
06       licensee in this state;                                                                                           
07                 (25)  "open-loop stored value" means stored value redeemable at                                         
08                      (A)  multiple, unaffiliated merchants or service providers; or                                     
09                      (B)  automated teller machines;                                                                    
10                 (26)  "outstanding" means                                                                               
11                      (A)  with respect to a payment instrument, a payment                                               
12            instrument that has been issued and sold in the United States directly by the                                
13            licensee, or sold by an authorized delegate or subdelegate of the licensee in the                            
14            United States and reported to the licensee, that has not yet been paid by or for                             
15            the licensee;                                                                                                
16                      (B)  with respect to a stored value, a stored value that has been                                  
17            issued and sold in the United States directly by the licensee, or sold by an                                 
18            authorized delegate or subdelegate of the licensee in the United States and                                  
19            reported to the licensee, until the funds are deposited into the program's issuing                           
20            bank account; or                                                                                             
21                      (C)  with respect to transmission, a money transmission for                                        
22            which the licensee, directly or through an authorized delegate of the licensee,                              
23            has received money or monetary value from the customer for transmission, but                                 
24            has not yet completed the money transmission by delivering the money or                                      
25            monetary value to the person designated by the customer or refunded the                                      
26            money or monetary value to the customer;                                                                     
27                 (27)  "payment instrument"                                                                              
28                      (A)  means an electronic or written check, a draft, a money                                        
29            order, a traveler's check, or other electronic or written instrument order for the                           
30            transmission or payment of money or monetary value, whether or not the                                       
31            instrument is negotiable;                                                                                    
01                      (B)  does not include a credit card voucher, a letter of credit, or                                
02            any other instrument that is redeemable by the issuer in goods or services;                                  
03                 (28)  "payment system" means any system enabling the transfer of                                        
04       funds between parties;                                                                                            
05                 (29)  "person" means an individual, a corporation, a business trust, an                                 
06       estate, a trust, a partnership, a limited liability company, an association, a joint                              
07       venture, a government, a governmental subdivision, an agency, or instrumentality, a                               
08       public corporation, or any other legal or commercial entity;                                                      
09                 (30)  "record" means information that is inscribed on a tangible                                        
10       medium or that is stored in an electronic or other medium and is retrievable in                                   
11       perceivable form;                                                                                                 
12                 (31)  "registry" means the Nationwide Multistate Licensing System and                                   
13       Registry;                                                                                                         
14                 (32)  "remit" means to do one or more of the following:                                                 
15                      (A)  make direct payment of the funds to the licensee or its                                       
16            representatives authorized to receive those funds;                                                           
17                      (B)  deposit the funds in a bank, credit union, or savings and                                     
18            loan association, or other similar financial institution in an account specified                             
19            by the licensee;                                                                                             
20                 (33)  "state" means a state of the United States, the District of                                       
21       Columbia, Puerto Rico, the United States Virgin Islands, or a territory or insular                                
22       possession subject to the jurisdiction of the United States;                                                      
23                 (34)  "stored value"                                                                                    
24                      (A)  means monetary value that is evidenced by an electronic                                       
25            record that is prefunded and for which value is reduced on each use;                                         
26                      (B)  includes prepaid access; in this subparagraph,                                                
27                           (i)  "prepaid access" means access to fund or the value                                       
28                 of funds that have been paid in advance and can be retrieved or                                         
29                 transferred at some point in the future through an electronic device or                                 
30                 vehicle;                                                                                                
31                           (ii)  "electronic device or vehicle" includes a card code,                                    
01                 electronic serial number, mobile identification number, or personal                                     
02                 identification number;                                                                                  
03                      (C)  does not include an electronic record that is primarily                                       
04            intended to be redeemable only for goods or services from a specified                                        
05            merchant or set of affiliated merchants, or others involved in transactions                                  
06            functionally related to the issuer or its affiliates;                                                        
07                 (35)  "subdelegate" means an authorized delegate that provides limited                                  
08       money services on behalf of a licensee without having a direct contractual relationship                           
09       with that licensee;                                                                                               
10                 (36)  "unsafe or unsound practice" means a practice or conduct by a                                     
11       money services licensee or an authorized delegate or subdelegate of the money                                     
12       services licensee if the practice creates the likelihood of material loss, insolvency, or                         
13       dissipation of the money services licensee's assets, or otherwise materially prejudices                           
14       the interests of the money services licensee's customers;                                                         
15                 (37)  "virtual currency"                                                                                
16                      (A)  means a digital representation of value that does not have                                    
17            legal tender status in the United States but                                                                 
18                           (i)  can be digitally traded and functions as a medium of                                     
19                 exchange, a unit of account, a store of value; or                                                       
20                           (ii)  is incorporated into payment system technology;                                         
21                      (B)  shall be broadly construed to include digital units of                                        
22            exchange that                                                                                                
23                           (i)  have a centralized repository; in this sub-                                              
24                 subparagraph, "centralized repository" means a single third-party                                       
25                 administrating authority that controls the system, issues the currency,                                 
26                 establishes the rules for the currency's use, maintains a central payment                               
27                 ledger, and has authority to redeem the currency or withdraw it from                                    
28                 circulation; or                                                                                         
29                           (ii)  are decentralized, distributive, open-source, math-                                     
30                 based, peer-to-peer virtual currency with no central administrating                                     
31                 authority and no central monitoring or oversight; or                                                    
01                           (iii)  may be created or obtained by computing or                                             
02                 manufacturing effort;                                                                                   
03                      (C)  does not include digital units that are used                                                  
04                           (i)  solely within online gaming platforms with no                                            
05                 market or application outside of those gaming platforms; or                                             
06                           (ii)  exclusively as part of a customer affinity or rewards                                   
07                 program, and can be applied solely as payment for purchases with the                                    
08                 issuer or other designated merchants, and that cannot be converted into,                                
09                 or redeemed for, fiat currency;                                                                         
10                 (38)  "virtual currency business activity" means the conduct of one or                                  
11       more of the following types of activities in this state or involving a resident of this                           
12       state:                                                                                                            
13                      (A)  receiving virtual currency for transmission;                                                  
14                      (B)  transmitting virtual currency;                                                                
15                      (C)  securing, storing, holding, or maintaining custody or                                         
16            control of virtual currency on behalf of others;                                                             
17                      (D)  buying and selling virtual currency as or through a third                                     
18            party;                                                                                                       
19                      (E)  performing retail conversion services, including the                                          
20            conversion or exchange of fiat currency or other value into virtual currency,                                
21            the conversion or exchange of virtual currency into fiat currency or other                                   
22            value, or the conversion or exchange of one form of virtual currency into                                    
23            another form of virtual currency; or                                                                         
24                      (F)  controlling, administering, or issuing virtual currency.                                      
25    * Sec. 51. AS 06.55 is amended to read:                                                                            
26            Sec. 06.55.995. Short title. This chapter may be cited as the Alaska                                       
27       [UNIFORM] Money Services Act.                                                                                     
28    * Sec. 52. AS 12.62.400(a) is amended by adding a new paragraph to read:                                           
29                 (18)  licensure as a money transmission licensee or a currency                                          
30       exchange licensee under AS 06.55.                                                                                 
31    * Sec. 53. AS 12.62.400 is amend by adding a new subsection to read:                                               
01            (c)  Notwithstanding (a) of this section, an applicant for a license under                                   
02       AS 06.55 may submit the applicant's fingerprints to the Nationwide Multistate                                     
03       Licensing System and Registry as defined in AS 06.55.990.                                                         
04    * Sec. 54. AS 06.55.103, 06.55.107, 06.55.404(g), 06.55.406(b), 06.55.607(f), 06.55.830,                           
05 06.55.840, 06.55.850(b), 06.55.850(c), 06.55.850(d), and 06.55.850(e) are repealed.                                     
06    * Sec. 55. The uncodified law of the State of Alaska is amended by adding a new section to                         
07 read:                                                                                                                   
08       TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                               
09 Economic Development may proceed to adopt regulations to implement this Act. The                                        
10 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before July 1,                           
11 2016.                                                                                                                   
12    * Sec. 56. REVISOR'S INSTRUCTIONS. The Revisor of Statutes is requested to change                                  
13 the                                                                                                                     
14            (1)  chapter heading of AS 06.55 from "Alaska Uniform Money Services Act"                                    
15 to "Alaska Money Services Act;"                                                                                         
16            (2)  catch lines of                                                                                          
17                 (A)  AS 06.55.601 from "Suspension and revocation; receivership" to                                     
18       "Suspension and revocation of licensees; receivership"; and                                                       
19                 (B)  AS 06.55.602 from "Suspension and revocation of authorized                                         
20       delegates" to "Suspension and revocation of authorized delegates and subdelegates."                               
21    * Sec. 57. Section 55 of this Act takes effect immediately under AS 01.10.070(c).                                
22    * Sec. 58. Except as provided in sec. 57 of this Act, this Act takes effect July 1, 2016.