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CSHB 271(L&C): "An Act relating to money transmission and currency exchange businesses; 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 on certain stored-value cards; relating to record retention, reporting requirements, and enforcement provisions; relating to exemptions; relating to money services Internet activities; relating to transmitting value and currency; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 271(L&C)                                                                    
01 "An Act relating to money transmission and currency exchange businesses; relating to                                    
02 transmitting value that substitutes for money; relating to licensing requirements and                                   
03 registration through the Nationwide Multistate Licensing System and Registry; relating                                  
04 to surety bonding requirements; authorizing certain licensees to contract to use                                        
05 subdelegates for reloading funds on certain stored-value cards; relating to record                                      
06 retention, reporting requirements, and enforcement provisions; relating to exemptions;                                  
07 relating to money services Internet activities; relating to transmitting value and                                      
08 currency; and providing for an effective date."                                                                         
09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
10    * Section 1. AS 06.55.101(a) is amended to read:                                                                   
11            (a)  Unless exempt under AS 06.55.802, a [A] person may not engage in the                                
12       business of money transmission or advertise, solicit, or hold the person out as                                   
01       providing money transmission unless the person                                                                    
02                 (1)  holds a money transmission license; or                                                             
03                 (2)  is an authorized delegate of a person who holds a money                                            
04       transmission license.                                                                                             
05    * Sec. 2. AS 06.55.101 is amended by adding a new subsection to read:                                              
06            (c)  A person required to be licensed under AS 06.55.101 - 06.55.106 shall                                   
07       register with the registry and maintain a valid unique identifier issued by the registry.                         
08    * Sec. 3. AS 06.55.102 is repealed and reenacted to read:                                                          
09            Sec. 06.55.102. Application for license. An application for a money                                        
10       transmission license must                                                                                         
11                 (1)  be in a format established by the department;                                                      
12                 (2)  contain complete information required by the department;                                           
13                 (3)  include each control person's fingerprints for submission to the                                   
14       Department of Public Safety or the Federal Bureau of Investigation and any                                        
15       governmental agency or entity authorized to receive that information to obtain a report                           
16       of criminal justice information and a national criminal history record check;                                     
17                 (4)  include personal history and experience in a format established by                                 
18       the department to obtain                                                                                          
19                      (A)  an independent credit report from a consumer reporting                                        
20            agency; and                                                                                                  
21                      (B)  information related to administrative, civil, or criminal                                     
22            findings by a governmental jurisdiction;                                                                     
23                 (5)  contain other information or supporting material that the                                          
24       department may require concerning the applicant, including the organization and                                   
25       operations of an applicant for a money transmission license and the financial                                     
26       responsibility, background, experience, and activities of the applicant;                                          
27                 (6)  include a nonrefundable application fee and an initial license fee, as                             
28       established by the department; and                                                                                
29                 (7)  include a surety bond as required by AS 06.55.104.                                                 
30    * Sec. 4. AS 06.55.104(a) is amended to read:                                                                      
31            (a)  A [EXCEPT AS OTHERWISE PROVIDED IN (b) OF THIS SECTION,                                             
01       A] surety bond [, A LETTER OF CREDIT, OR ANOTHER SIMILAR SECURITY                                                 
02       ACCEPTABLE TO THE DEPARTMENT IN THE AMOUNT OF $25,000 PLUS                                                        
03       $5,000 FOR EACH LOCATION, NOT EXCEEDING A TOTAL ADDITION OF                                                       
04       $125,000,] must accompany an application for a money transmission license. The                                
05       surety bond must be at least $25,000 and may not exceed $1,000,000 as                                         
06       established by the department.                                                                                
07    * Sec. 5. AS 06.55.104(b) is amended to read:                                                                      
08            (b)  The surety bond [SECURITY] must be in a form satisfactory to the                                    
09       department and payable to the state for the benefit of the state and any person who                           
10       suffers loss because of a violation of this chapter by a [CLAIMANT AGAINST                                    
11       THE] money transmission licensee or [TO SECURE THE FAITHFUL                                                   
12       PERFORMANCE OF THE OBLIGATIONS OF] the money transmission licensee's                                          
13       authorized delegate [LICENSEE WITH RESPECT TO MONEY TRANSMISSION].                                            
14    * Sec. 6.  AS 06.55.104(d) is amended to read:                                                                     
15            (d)  A surety bond must cover claims for as long as the department specifies,                                
16       but for at least five years after the date the money transmission licensee stops                          
17       providing [CEASES TO PROVIDE] money services in this state. The [HOWEVER,                                 
18       THE] department may permit the amount of security to be reduced or eliminated                                     
19       before the expiration of that time to the extent the amount of the money transmission                             
20       licensee's payment instruments or stored-value obligations outstanding [IN THIS                                   
21       STATE] is reduced. [THE DEPARTMENT MAY PERMIT A MONEY                                                             
22       TRANSMISSION LICENSEE TO SUBSTITUTE ANOTHER FORM OF                                                               
23       SECURITY ACCEPTABLE TO THE DEPARTMENT FOR THE SECURITY                                                            
24       EFFECTIVE AT THE TIME THE MONEY TRANSMISSION LICENSEE CEASES                                                      
25       TO PROVIDE MONEY SERVICES IN THIS STATE.]                                                                         
26    * Sec. 7. AS 06.55.104 is amended by adding new subsections to read:                                               
27            (g)  The surety bond must be obtained from a surety company authorized to do                                 
28       business in this state.                                                                                           
29            (h)  If a money transmission licensee does not maintain a surety bond in the                                 
30       amount required under (a) of this section, the department may issue an order under                                
31       AS 06.55.603.                                                                                                     
01    * Sec. 8. AS 06.55.105(a) is amended to read:                                                                      
02            (a)  When an application is filed under AS 06.55.102, the department shall                                   
03       investigate the applicant's financial condition and responsibility, financial and business                        
04       experience, competence, character, and general fitness. The department may conduct                            
05       an [ON-SITE] investigation of the applicant, the reasonable cost of which the                                     
06       applicant shall pay. The department shall issue a money transmission license to an                            
07       applicant under AS 06.55.102 if the department finds that all of the following                                    
08       conditions have been fulfilled:                                                                                   
09                 (1)  the applicant has complied with the requirements of this chapter                               
10       for obtaining the license [AS 06.55.102, 06.55.104, AND 06.55.107]; [AND]                                     
11                 (2)  the financial condition and responsibility, financial and business                                 
12       experience, competence, character, and general fitness of the applicant [, AND THE                            
13       COMPETENCE, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF                                                         
14       THE EXECUTIVE OFFICERS, MANAGERS, DIRECTORS, AND PERSONS IN                                                       
15       CONTROL OF THE APPLICANT] indicate that it is in the interest of the public to                                    
16       permit the applicant to engage in money transmission; and                                                     
17                 (3)  the applicant, including any employees or independent                                          
18       contractors of the applicant, is not listed on the Specially Designated Nationals                             
19       and Blocked Persons List or any other Office of Foreign Assets Control sanctions                              
20       list prepared by the United States Department of the Treasury or the United                                   
21       States Department of the Treasury's designated successor agency.                                              
22    * Sec. 9. AS 06.55.105(b) is amended to read:                                                                      
23            (b)  When an application for an original money transmission license under                                    
24       AS 06.55.102 is complete, the department shall promptly notify the applicant in a                                 
25       record of the date on which the application was determined to be complete, and                                    
26                 [(1)]  the department shall approve or deny the application not later                               
27       than [WITHIN] 120 days after that date [; OR                                                                  
28                 (2)  IF THE APPLICATION IS NOT APPROVED OR DENIED                                                       
29       WITHIN 120 DAYS AFTER THAT DATE,                                                                                  
30                      (A)  THE APPLICATION IS APPROVED; AND                                                              
31                      (B)  THE MONEY TRANSMISSION LICENSE TAKES                                                          
01            EFFECT AS OF THE FIRST BUSINESS DAY AFTER EXPIRATION OF                                                      
02            THE 120-DAY PERIOD].                                                                                         
03    * Sec. 10. AS 06.55.105(d) is amended to read:                                                                     
04            (d)  An applicant whose application under AS 06.55.102 is denied by the                                      
05       department under AS 06.55.101 - 06.55.108 [AS 06.55.101 - 06.55.107] may appeal,                              
06       not later than [WITHIN] 30 days after receipt of the notice of the denial, and request                        
07       a hearing.                                                                                                        
08    * Sec. 11. AS 06.55.105 is amended by adding a new subsection to read:                                             
09            (f)  A money transmission license issued under AS 06.55.101 - 06.55.106                                      
10       remains in effect until December 31 of the year in which the money transmission                                   
11       license is issued, unless the money transmission license is revoked, suspended, or                                
12       surrendered.                                                                                                      
13    * Sec. 12. AS 06.55.106 is repealed and reenacted to read:                                                         
14            Sec. 06.55.106. Renewal of money transmission license. (a) To renew a                                      
15       money transmission license, a money transmission licensee shall submit to the                                     
16       department a                                                                                                      
17                 (1)  renewal application at a time and in a format established by the                                   
18       department;                                                                                                       
19                 (2)  renewal fee as established by the department; and                                                  
20                 (3)  report identifying any changes in the information that the money                                   
21       transmission licensee previously provided and any additional information requested by                             
22       the department.                                                                                                   
23            (b)  The department shall approve or deny the application for renewal of a                                   
24       money transmission license not later than 60 days after the renewal application is                                
25       filed.                                                                                                            
26            (c)  An applicant whose renewal application is denied by the department under                                
27       this section may appeal,  not later than 30 days after receipt of the notice of the denial,                       
28       and request a hearing.                                                                                            
29    * Sec. 13. AS 06.55 is amended by adding a new section to article 1 to read:                                       
30            Sec. 06.55.108. Annual assessment fee and annual report. (a) A money                                       
31       transmission licensee shall pay an annual assessment fee as established by the                                    
01       department not later than the annual assessment fee due date or, if the annual                                    
02       assessment fee due date is not a business day, on the next business day. The                                      
03       department shall establish the annual assessment fee in regulation.                                               
04            (b)  A money transmission licensee shall submit an accurate annual report with                               
05       the annual assessment fee in a format established by the department.                                              
06            (c)  If a money transmission licensee does not file an annual report or pay the                              
07       annual assessment fee by the annual assessment fee due date, the department may                                   
08       assess the licensee a late fee, and may impose another consequence, as established by                             
09       the department in regulation.                                                                                     
10    * Sec. 14. AS 06.55.201(a) is amended to read:                                                                     
11            (a)  Unless exempt under AS 06.55.802, a [A] person may not engage in the                            
12       business of currency exchange or advertise, solicit, or hold the person out as providing                      
13       currency exchange for which the person receives revenue [REVENUES] equal or                                   
14       greater than five percent of total revenue [REVENUES] unless the person                                       
15                 (1)  holds a currency exchange license; or                                                          
16                 (2)  holds a money transmission license [; OR                                                           
17                 (3)  IS AN AUTHORIZED DELEGATE OF A PERSON WHO                                                          
18       HOLDS A MONEY TRANSMISSION LICENSE].                                                                              
19    * Sec. 15. AS 06.55.201 is amended by adding a new subsection to read:                                             
20            (c)  A person required to be licensed under AS 06.55.201 - 06.55.206 shall                                   
21       register with the registry and maintain a valid unique identifier issued by the registry.                         
22    * Sec. 16. AS 06.55.202 is repealed and reenacted to read:                                                         
23            Sec. 06.55.202. Application for currency exchange license. An application                                  
24       for a currency exchange license must                                                                              
25                 (1)  be in a format established by the department;                                                      
26                 (2)  contain complete information required by the department;                                           
27                 (3)  include each control person's fingerprints for submission to the                                   
28       Department of Public Safety or the Federal Bureau of Investigations and any                                       
29       governmental agency or entity authorized to receive that information to obtain a report                           
30       of criminal justice information and a national criminal history record check;                                     
31                 (4)  include personal history and experience in a format established by                                 
01       the department to obtain                                                                                          
02                      (A)  an independent credit report from a consumer reporting                                        
03            agency; and                                                                                                  
04                      (B)  information related to administrative, civil, or criminal                                     
05            findings by a governmental jurisdiction;                                                                     
06                 (5)  contain other information or supporting material that the                                          
07       department may require concerning the applicant, including the organization and                                   
08       operations of an applicant for a currency exchange license and the financial                                      
09       responsibility, background, experience, and activities of the applicant;                                          
10                 (6)  include a nonrefundable application fee and an initial license fee, as                             
11       established by the department;                                                                                    
12                 (7)  include a surety bond as required by AS 06.55.206.                                                 
13    * Sec. 17. AS 06.55.203(a) is amended to read:                                                                     
14            (a)  When an application [FOR A CURRENCY EXCHANGE LICENSE] is                                                
15       filed under AS 06.55.202 [AS 06.55.201 - 06.55.204], the department shall investigate                         
16       the applicant's financial condition and responsibility, financial and business                                    
17       experience, competence, character, and general fitness. The department may conduct                            
18       an [ON-SITE] investigation of the applicant, the reasonable cost of which the                                     
19       applicant shall pay. The department shall issue a currency exchange license to an                                 
20       applicant under AS 06.55.202 [AS 06.55.201 - 06.55.204] if the department finds that                          
21       all of the following conditions have been fulfilled:                                                              
22                 (1)  the applicant has complied with the requirements of this chapter                               
23       for obtaining the currency exchange license under AS 06.55.202; [AND]                                         
24                 (2)  the financial condition and responsibility, financial and business                                 
25       experience, competence, character, and general fitness of the applicant [, AND THE                            
26       COMPETENCE, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF                                                         
27       THE EXECUTIVE OFFICERS, MANAGERS, DIRECTORS, AND PERSONS IN                                                       
28       CONTROL OF THE APPLICANT] indicate that it is in the interest of the public to                                    
29       permit the applicant to engage in currency exchange; and                                                      
30                 (3)  the applicant, including any employees or independent                                          
31       contractors of the applicant, is not listed on the Specially Designated Nationals                             
01       and Blocked Persons List or any other Office of Foreign Assets Control sanctions                              
02       list prepared by the United States Department of the Treasury or its designated                               
03       successor agency.                                                                                             
04    * Sec. 18. AS 06.55.203(b) is amended to read:                                                                     
05            (b)  When an application for an original currency exchange license under                                     
06       AS 06.55.202 [AS 06.55.201 - 06.55.204] is complete, the department shall promptly                            
07       notify the applicant in a record of the date on which the application was determined to                           
08       be complete, and                                                                                                  
09                 [(1)]  the department shall approve or deny the application not later                               
10       than [WITHIN] 120 days after that date [; OR                                                                  
11                 (2)  IF THE APPLICATION IS NOT APPROVED OR DENIED                                                       
12       WITHIN 120 DAYS AFTER THAT DATE,                                                                                  
13                      (A)  THE APPLICATION IS APPROVED; AND                                                              
14                      (B)  THE DEPARTMENT SHALL ISSUE THE CURRENCY                                                       
15            EXCHANGE LICENSE UNDER AS 06.55.201 - 06.55.204 TO TAKE                                                      
16            EFFECT AS OF THE FIRST BUSINESS DAY AFTER EXPIRATION OF                                                      
17            THE PERIOD].                                                                                                 
18    * Sec. 19. AS 06.55.203(d) is amended to read:                                                                     
19            (d)  An applicant whose application under AS 06.55.202 is denied by the                                  
20       department under AS 06.55.201 - 06.55.206 [AS 06.55.201 - 06.55.204] may appeal                               
21       the denial not later than [, WITHIN] 30 days after receipt of the notice of the denial,                       
22       [FROM THE DENIAL] and request a hearing.                                                                          
23    * Sec. 20. AS 06.55.203 is amended by adding a new subsection to read:                                             
24            (e)  A currency exchange license issued under AS 06.55.201 - 06.55.206                                       
25       remains in effect until December 31 of the year in which the currency exchange                                    
26       license is issued, unless the license is revoked, suspended, or surrendered.                                      
27    * Sec. 21. AS 06.55.204 is repealed and reenacted to read:                                                         
28            Sec. 06.55.204. Renewal of license. (a) To renew a currency exchange license,                              
29       the currency exchange licensee shall submit to the department a                                                   
30                 (1)  renewal application at a time and in a format established by the                                   
31       department;                                                                                                       
01                 (2)  renewal fee as established by the department; and                                                  
02                 (3)  report identifying any changes in the information previously                                       
03       provided by the currency exchange licensee and any additional information requested                               
04       by the department.                                                                                                
05            (b)  The department shall approve or deny the application for renewal of a                                   
06       currency exchange license not later than 60 days after the renewal application is filed.                          
07            (c)  An applicant whose renewal application is denied by the department under                                
08       this section may appeal,  not later than 30 days after receipt of the notice of the denial,                       
09       and request a hearing.                                                                                            
10    * Sec. 22. AS 06.55 is amended by adding new sections to article 2 to read:                                        
11            Sec. 06.55.206. Security. (a) A surety bond must accompany an application                                  
12       for a currency exchange license. The surety bond must be at least $25,000 and may not                             
13       exceed $1,000,000 as established by the department.                                                               
14            (b)  The surety bond must be in a form satisfactory to the department and                                    
15       payable to this state for the benefit of this state and any person or persons who suffer                          
16       loss because of a violation of this chapter by a currency exchange licensee or a                                  
17       currency exchange licensee's authorized delegate.                                                                 
18            (c)  The aggregate liability on a surety bond may not exceed the principal sum                               
19       of the bond. A claimant against a currency exchange licensee may maintain an action                               
20       on the bond, or the department may maintain an action on behalf of the claimant.                                  
21            (d)  A surety bond must cover claims for as long as the department specifies,                                
22       but for at least five years after the date the currency exchange licensee stops providing                         
23       currency exchange in this state. The department may permit the amount of security to                              
24       be reduced or eliminated before the expiration of that time to the extent the amount of                           
25       the currency exchange licensee's outstanding obligations in this state is reduced.                                
26            (e)  The bond shall be obtained from a surety company authorized to do                                       
27       business in this state.                                                                                           
28            (f)  If a currency exchange licensee does not maintain a surety bond in the                                  
29       amount required under (a) of this section, the department may issue an order under                                
30       AS 06.55.603.                                                                                                     
31            Sec. 06.55.207. Annual assessment fee and annual report. (a) A currency                                    
01       exchange licensee shall pay an annual assessment fee as established by the department                             
02       not later than the annual assessment fee due date or, if the annual assessment fee due                            
03       date is not a business day, on the next business day. The department shall establish the                          
04       annual assessment fee.                                                                                            
05            (b)  A currency exchange licensee shall submit an accurate annual report with                                
06       the annual assessment fee in a format established by the department.                                              
07            (c)  If a currency exchange licensee does not file an annual report or pay the                               
08       annual assessment fee by the annual assessment fee due date, the department may                                   
09       assess the currency exchange licensee a late fee, and may impose another                                          
10       consequence, as established by the department in regulation.                                                      
11    * Sec. 23. AS 06.55.301(b) is amended to read:                                                                     
12            (b)  An authorized delegate shall remit all money owing to the money services                                
13       licensee under the terms of the contract between the money services licensee and the                              
14       authorized delegate. In this subsection, "remit" means to make direct payments of                                 
15       money to a money services licensee or its representative authorized to receive the                            
16       money, or to deposit the money in a bank, credit union, savings and loan                              
17       association, or another similar financial institution in an account specified by the                          
18       money services licensee.                                                                                          
19    * Sec. 24. AS 06.55.301(d) is amended to read:                                                                     
20            (d)  An authorized delegate may not provide money services outside the scope                                 
21       of activity permissible under the contract between the authorized delegate and the                                
22       money services licensee, except activity in which the authorized delegate is authorized                           
23       to engage under AS 06.55.101 - 06.55.206 [AS 06.55.101 - 06.55.204]. An authorized                            
24       delegate of a money services licensee holds in trust for the benefit of the money                                 
25       services licensee all money net of fees received from money services                                          
26       [TRANSMISSION].                                                                                                   
27    * Sec. 25. AS 06.55 is amended by adding a new section to article 3 to read:                                       
28            Sec. 06.55.304. Limited authorization of subdelegate. (a) A money services                                 
29       licensee may contract with another money services licensee to use the other money                                 
30       services licensee's existing authorized delegate as a subdelegate to load funds on the                            
31       first money services licensee's existing open-loop stored-value cards. If the                                     
01       subdelegate sells new open-loop stored-value cards for the first licensee, the money                              
02       services licensee shall add the subdelegate to the licensee's authorized delegate roster.                         
03            (b)  A money services licensee shall maintain all contracts under (a) of this                                
04       section as part of the licensee's books and records and make them available to the                                
05       department on request.                                                                                            
06    * Sec. 26. AS 06.55.401 is repealed and reenacted to read:                                                         
07            Sec. 06.55.401. Authority to conduct examinations. (a) A money services                                    
08       licensee or another person subject to this chapter shall make available to the                                    
09       department on request the place of business, books, records, accounts, safes, and                                 
10       vaults relating to the operations of the money services licensee or other person subject                          
11       to this chapter. The department may interview any person, including a control person,                             
12       officer, principal, employee, authorized delegate, and customer of the money services                             
13       licensee or other person subject to this chapter concerning the licensee's or other                               
14       person's business.                                                                                                
15            (b)  The department may conduct an examination or investigation of the books,                                
16       records, accounts, papers, documents, files, and other information used in the business                           
17       of a money services licensee or its authorized delegates in conjunction with                                      
18       representatives of other state agencies or agencies of another state or the federal                               
19       government. The department may accept an examination report or investigation report                               
20       of an agency of this state, another state, or the federal government.                                             
21            (c)  A joint examination or investigation, or an acceptance of an examination                                
22       or investigation report, does not preclude the department from conducting an                                      
23       examination or investigation under this chapter. A joint report or a report accepted                              
24       under this section is an official report of the department for all purposes.                                      
25            (d)  For the purpose of hearings, investigations, or other proceedings under this                            
26       chapter, the department or an officer designated by the department may administer                                 
27       oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take                              
28       evidence, and require the production of books, papers, correspondence, memoranda,                                 
29       agreements, or other documents or records that the department considers relevant or                               
30       material to the matter. Information obtained during an examination under this chapter                             
31       may be disclosed only as provided in AS 06.55.407.                                                                
01            (e)  A person shall reimburse the department for reasonable costs incurred by                                
02       the department to conduct an examination or investigation of the person under this                                
03       section.                                                                                                          
04    * Sec. 27. AS 06.55.402 is amended to read:                                                                        
05            Sec. 06.55.402. Cooperation; consultation. The department may consult and                                
06       cooperate with other state and federal [MONEY SERVICES] regulators in enforcing                               
07       and administering this chapter. [THE DEPARTMENT AND OTHER STATE                                                   
08       MONEY SERVICE REGULATORS MAY JOINTLY PURSUE EXAMINATIONS                                                          
09       AND TAKE OTHER OFFICIAL ACTION THAT THEY ARE OTHERWISE                                                            
10       EMPOWERED TO TAKE.]                                                                                               
11    * Sec. 28. AS 06.55.403(b) is repealed and reenacted to read:                                                    
12            (b)  A money services licensee shall file with the department not later than 45                              
13       days after the end of each fiscal quarter a report containing information about the                               
14       licensee, its locations, authorized delegates, and other information required by the                              
15       department. The department shall establish the content and format of the report.                                  
16    * Sec. 29. AS 06.55.403(c) is amended to read:                                                                     
17            (c)  A money services licensee shall file a report with the department not later                         
18       than [WITHIN] one business day after the money services licensee has reason to                                
19       know of the occurrence of one or more [ANY] of the following events:                                          
20                 (1)  the filing of a petition by or against the money services licensee                                 
21       under 11 U.S.C. 101 - 112 [11 U.S.C. 101 - 110] (Bankruptcy Code) for bankruptcy or                           
22       reorganization;                                                                                                   
23                 (2)  the filing of a petition by or against the money services licensee for                             
24       receivership, the commencement of any other judicial or administrative proceeding for                             
25       its dissolution or reorganization, or the making of a general assignment for the benefit                          
26       of its creditors;                                                                                                 
27                 (3)  the commencement of a proceeding to revoke or suspend its money                                    
28       services license in a state or country in which the money services licensee engages in                            
29       business or is licensed;                                                                                          
30                 (4)  the cancellation or other impairment of the money services                                         
31       licensee's bond [OR OTHER SECURITY];                                                                              
01                 (5)  a charge against or conviction of the money services licensee or of                                
02       an [EXECUTIVE] officer, manager, director, or control person [IN CONTROL] of                                  
03       the money services licensee for a felony; or                                                                      
04                 (6)  a charge against or conviction of an authorized delegate for a                                     
05       felony.                                                                                                           
06    * Sec. 30. AS 06.55.403 is amended by adding a new subsection to read:                                             
07            (d)  The department may establish a late fee or other consequence for a money                                
08       services licensee who fails to file a report as required by this section.                                         
09    * Sec. 31. AS 06.55.404(a) is amended to read:                                                                     
10            (a)  A money services licensee shall                                                                         
11                 (1)  give the department notice in a record 30 days before [OF] a                                   
12       proposed change of control [WITHIN 15 DAYS AFTER LEARNING OF THE                                                  
13       PROPOSED CHANGE OF CONTROL];                                                                                      
14                 (2)  request approval of the change of control by submitting the                                    
15       information required by the department [ACQUISITION]; and                                                     
16                 (3)  submit a nonrefundable fee with the notice as required by the                                  
17       department.                                                                                                   
18    * Sec. 32. AS 06.55.404(d) is amended to read:                                                                     
19            (d)  When an application for a change of control [UNDER AS 06.55.401 -                                       
20       06.55.407] is complete, the department shall notify the money services licensee in a                              
21       record of the date on which the request was determined to be complete, and                                        
22                 [(1)]  the department shall approve or deny the request not later than                              
23       [WITHIN] 120 days after that date [; OR                                                                           
24                 (2)  IF THE REQUEST IS NOT APPROVED OR DENIED WITHIN                                                    
25       120 DAYS AFTER THAT DATE,                                                                                         
26                      (A)  THE REQUEST IS APPROVED; AND                                                                  
27                      (B)  THE DEPARTMENT SHALL PERMIT THE CHANGE                                                        
28            OF CONTROL UNDER THIS SECTION, TO TAKE EFFECT AS OF THE                                                      
29            FIRST BUSINESS DAY AFTER EXPIRATION OF THE PERIOD].                                                          
30    * Sec. 33. AS 06.55.405(a) is amended to read:                                                                     
31            (a)  A money services licensee shall maintain the following records for                                      
01       determining its compliance with this chapter for at least five [THREE] years:                                 
02                 (1)  a record of each payment instrument or stored-value obligation                                     
03       sold;                                                                                                             
04                 (2)  a general ledger posted at least monthly containing all asset,                                     
05       liability, capital, income, and expense accounts;                                                                 
06                 (3)  bank statements and bank reconciliation records;                                                   
07                 (4)  records of outstanding payment instruments and stored-value                                        
08       obligations;                                                                                                      
09                 (5)  records of each payment instrument and stored-value obligation                                     
10       paid within the five-year [THREE-YEAR] period;                                                                
11                 (6)  a list of the last known names and addresses of all of the money                                   
12       services licensee's authorized delegates; [AND]                                                                   
13                 (7)  copies of all currency transaction reports and suspicious                                      
14       activity reports filed in compliance with AS 06.55.406; and                                                   
15                 (8)  any other records the department reasonably requires by regulation.                            
16    * Sec. 34. AS 06.55.405(b) is amended to read:                                                                     
17            (b)  The items specified in (a) of this section shall [MAY] be provided                              
18       [MAINTAINED] in a format established by the department [ANY FORM OF                                           
19       RECORD].                                                                                                          
20    * Sec. 35. AS 06.55.406(a) is amended to read:                                                                     
21            (a)  A money services licensee and an authorized delegate shall file with the                                
22       United States Department of the Treasury, or its designated successor agency,                                 
23       [ATTORNEY GENERAL] all reports required by federal currency reporting, record                                     
24       keeping, and suspicious transaction reporting requirements as set out in 31 U.S.C.                            
25       5311 - 5332 [31 U.S.C. 5311, 31 C.F.R. 103,] and other federal and state laws                                 
26       pertaining to money laundering.                                                                                   
27    * Sec. 36. AS 06.55.407(b) is amended to read:                                                                     
28            (b)  The department may disclose information that is not otherwise subject to                                
29       disclosure under (a) of this section to representatives of state or federal agencies who                          
30       agree in writing to [PROMISE IN A RECORD THAT THEY WILL] maintain the                                         
31       confidentiality of the information or if the department finds that the release is                                 
01       reasonably necessary for the protection of the public and in the interests of justice [,                          
02       AND THE MONEY SERVICES LICENSEE HAS BEEN GIVEN PREVIOUS                                                           
03       NOTICE BY THE DEPARTMENT OF ITS INTENT TO RELEASE THE                                                             
04       INFORMATION].                                                                                                     
05    * Sec. 37. AS 06.55.407(c) is amended to read:                                                                     
06            (c)  This section does not prohibit the department from disclosing to the public                             
07                 (1)  a list of money services licensees or authorized delegates,                                
08       including addresses and the names of contact individuals;                                                     
09                 (2)  the identity of a money services licensee or authorized delegate                               
10       subject to an emergency or final order of the department; or                                                  
11                 (3)  the aggregated financial data of [CONCERNING THOSE] money                                  
12       services licensees.                                                                                               
13    * Sec. 38. AS 06.55.501(a) is amended to read:                                                                     
14            (a)  Except as provided in (b) of this section, a [A] money services licensee                            
15       shall maintain at all times permissible investments that have a market value computed                             
16       under generally accepted accounting principles of not less than the aggregate amount                              
17       of all of its outstanding payment instruments and stored-value [STORED VALUE]                                 
18       obligations issued or sold in all states and money transmitted from all states by the                             
19       money services licensee.                                                                                          
20    * Sec. 39. AS 06.55.501(c) is amended to read:                                                                     
21            (c)  A permissible investment subject to this section [PERMISSIBLE                                       
22       INVESTMENTS], even if commingled with other assets of the money services                                          
23       licensee, is considered by operation of law to be [ARE] held in trust for the benefit                         
24       of any individual to whom an obligation arising under this chapter is owed by the                             
25       money services licensee and may not be considered an asset or property of the                                 
26       money services licensee [THE PURCHASERS AND HOLDERS OF THE MONEY                                              
27       SERVICES LICENSEE'S OUTSTANDING PAYMENT INSTRUMENTS AND                                                           
28       STORED VALUE OBLIGATIONS] in the event of bankruptcy, [OR] receivership, or                               
29       a claim against [OF] the money services licensee unrelated to any of the money                            
30       services licensee's obligations under this chapter.                                                           
31    * Sec. 40. AS 06.55.601 is amended to read:                                                                        
01            Sec. 06.55.601. Suspension and revocation; receivership. (a) The                                           
02       department may issue an order under AS 06.55.603 to suspend or revoke a money                                 
03       services license, place a money services licensee in receivership, or order a money                               
04       services licensee to revoke the designation of an authorized delegate if                                          
05                 (1)  the money services licensee violates this chapter or a regulation                                  
06       adopted or an order issued under this chapter;                                                                    
07                 (2)  the money services licensee does not permit or cooperate with an                               
08       examination or investigation by the department;                                                                   
09                 (3)  the money services licensee engages in fraud, intentional                                          
10       misrepresentation, or gross negligence;                                                                           
11                 (4)  a money services licensee or an authorized delegate is convicted                               
12       of a violation of a state or federal anti-money laundering statute or a law listed in                         
13       AS 06.55.860, or violates a regulation adopted or an order issued under this chapter, as                      
14       a result of the money services licensee's wilful misconduct or wilful blindness;                                  
15                 (5)  the competence, experience, character, or general fitness of the                                   
16       money services licensee, authorized delegate, control person [IN CONTROL] of a                                
17       money services licensee, or responsible person of the money services licensee or                                  
18       authorized delegate indicates that it is not in the public interest to permit the person to                       
19       provide money services;                                                                                           
20                 (6)  the money services licensee engages in an unsafe or unsound                                        
21       practice;                                                                                                         
22                 (7)  the money services licensee is insolvent, suspends payment of its                                  
23       obligations, or makes a general assignment for the benefit of its creditors; [OR]                                 
24                 (8)  the money services licensee does not remove an authorized                                          
25       delegate after the department issues and serves upon the money services licensee a                                
26       final order including a finding that the authorized delegate has violated this chapter;                       
27                 (9)  a fact or condition exists that, if it had been known at the time                              
28       the money services licensee applied for the license, would have been grounds for                              
29       denying the application;                                                                                      
30                 (10)  the money services licensee engages in false, misleading, or                                  
31       deceptive advertising;                                                                                        
01                 (11)  the money services licensee fails to pay, not later than the 30th                             
02       day after the date the stay of execution expires or is terminated, as applicable, a                           
03       judgment entered in favor of a claimant or creditor in an action arising out of the                           
04       money services licensee's activities under this chapter; or                                                   
05                 (12)  the money services licensee knowingly makes a material                                        
06       misstatement or suppresses or withholds material information on an application,                               
07       request for approval, report, or other document required to be filed with the                                 
08       department under this chapter.                                                                                
09            (b)  In determining whether a money services licensee is engaging in an unsafe                               
10       or unsound practice, the department may consider the size and condition of the money                              
11       services licensee's money transmission or currency exchange, the magnitude of the                             
12       loss or potential loss, the gravity of the violation of this chapter or a regulation                      
13       adopted, an order issued under this chapter, or an action taken against the                                   
14       money services licensee by this state, another state, or the federal government,                              
15       and the previous conduct of the person involved.                                                                  
16    * Sec. 41. AS 06.55.602 is amended to read:                                                                        
17            Sec. 06.55.602. Suspension and revocation of authorized delegates. (a) The                                 
18       department may issue an order under AS 06.55.603 to suspend or revoke                                         
19       [SUSPENDING OR REVOKING] the designation of an authorized delegate or the                                     
20       designation of a subdelegate if [THE DEPARTMENT FINDS THAT]                                                   
21                 (1)  the authorized delegate or subdelegate violated this chapter, [OR]                         
22       a regulation adopted or an order issued under this chapter, or any other state or                             
23       federal order enforcing a law applicable to a money services business;                                        
24                 (2)  the authorized delegate or subdelegate did not permit or                                   
25       cooperate with an examination or investigation by the department;                                                 
26                 (3)  in connection with the operation of the delegate's business on                                 
27       behalf of the money services licensee or any transaction subject to this chapter,                             
28       the authorized delegate or subdelegate has engaged in fraud, intentional                                      
29       misrepresentation, deceit, [OR] gross negligence, or an unfair or deceptive act or                        
30       practice;                                                                                                     
31                 (4)  the authorized delegate or subdelegate is convicted of a violation                             
01       of a state or federal anti-money laundering statute or a law listed in AS 06.55.860;                          
02                 (5)  the competence, experience, character, or general fitness of the                                   
03       authorized delegate or subdelegate, or a control person [IN CONTROL] of the                               
04       authorized delegate or subdelegate, indicates that it is not in the public interest to                        
05       permit the authorized delegate or subdelegate to provide money services; [OR]                                 
06                 (6)  the authorized delegate or subdelegate is engaging in an unsafe or                             
07       unsound practice; or                                                                                          
08                 (7)  the authorized delegate, a control person of the authorized                                    
09       delegate, or the subdelegate is listed on the Specially Designated Nationals List                             
10       and the List of Persons Identified as Blocked Solely Pursuant to Executive Order                              
11       13599, or any other Office of Foreign Assets Control sanctions list prepared by                               
12       the United States Department of the Treasury, or the United States Department                                 
13       of the Treasury's designated successor agency.                                                                
14            (b)  In determining whether an authorized delegate or subdelegate is engaging                            
15       in an unsafe or unsound practice, the department may consider the size and condition                              
16       of the authorized delegate's or subdelegate's provision of money services, the                                
17       magnitude of the loss or potential loss, the gravity of the violation of this chapter or a                    
18       regulation adopted, an [OR] order issued under this chapter, or an action taken                           
19       against the delegate or subdelegate by this state, another state, or the federal                              
20       government, and the previous conduct of the authorized delegate or subdelegate.                           
21    * Sec. 42. AS 06.55.603(a) is amended to read:                                                                     
22            (a)  If the department determines that a violation of this chapter, or of a                              
23       regulation adopted or an order issued under this chapter, by a person [MONEY                              
24       SERVICES LICENSEE OR AUTHORIZED DELEGATE] is likely to cause                                                      
25       immediate and irreparable harm to the person [MONEY SERVICES LICENSEE], the                               
26       person's [ITS] customers, or the public as a result of the violation, or cause                                
27       insolvency or significant dissipation of the assets of the person [MONEY SERVICES                         
28       LICENSEE], the department may issue an administrative order [REQUIRING THE                                    
29       MONEY SERVICES LICENSEE OR AUTHORIZED DELEGATE TO CEASE                                                           
30       AND DESIST FROM THE VIOLATION]. The order becomes effective on service of                                         
31       the order [IT] on the person [MONEY SERVICES LICENSEE OR AUTHORIZED                                       
01       DELEGATE].                                                                                                        
02    * Sec. 43. AS 06.55.603(b) is amended to read:                                                                     
03            (b)  The department may issue an order against a person [MONEY                                           
04       SERVICES LICENSEE] to                                                                                             
05                 (1)  stop [CEASE AND DESIST FROM] providing money services;                                     
06                 (2)  compel payment of restitution to damaged parties;                                              
07                 (3)  require affirmative action to comply with this chapter or a                                    
08       regulation adopted under this chapter; and                                                                    
09                 (4)  remove from office or prohibit from participation an officer,                                  
10       control person, or employee [THROUGH AN AUTHORIZED DELEGATE WHO                                               
11       IS THE SUBJECT OF A SEPARATE ORDER BY THE DEPARTMENT].                                                            
12    * Sec. 44. AS 06.55.603(c) is amended to read:                                                                     
13            (c)  An order [TO CEASE AND DESIST] remains effective and enforceable                                        
14       pending the completion of an administrative proceeding under AS 06.55.701 or                                  
15       06.55.702 [AS 06.55.601 OR 06.55.602].                                                                        
16    * Sec. 45. AS 06.55.603(d) is amended to read:                                                                     
17            (d)  A person [MONEY SERVICES LICENSEE OR AN AUTHORIZED                                                  
18       DELEGATE] who is served with an order [TO CEASE AND DESIST] may petition                                          
19       the superior court for a judicial order setting aside, limiting, or suspending the                                
20       enforcement, operation, or effectiveness of the order pending the completion of an                                
21       administrative proceeding under AS 06.55.701 or 06.55.702 [AS 06.55.601 OR                                    
22       06.55.602].                                                                                                       
23    * Sec. 46. AS 06.55.607(a) is amended to read:                                                                     
24            (a)  If the department has reason to believe that a person who is not a money                            
25       transmission licensee under AS 06.55.101, currency exchange licensee under                                    
26       AS 06.55.201, authorized delegate under AS 06.55.301, or subdelegate under                                    
27       AS 06.55.304 has violated or is violating AS 06.55.101 or 06.55.201, the department                           
28       may issue an order under AS 06.55.603 [TO SHOW CAUSE WHY AN ORDER TO                                          
29       CEASE AND DESIST SHOULD NOT ISSUE REQUIRING THAT THE PERSON                                                       
30       CEASE AND DESIST FROM THE VIOLATION OF AS 06.55.101 OR 06.55.201].                                                
31    * Sec. 47. AS 06.55.607(c) is amended to read:                                                                     
01            (c)  An order [TO CEASE AND DESIST] becomes effective upon service of                                        
02       the order on [IT UPON] the person.                                                                            
03    * Sec. 48. AS 06.55.607(d) is amended to read:                                                                     
04            (d)  An order [TO CEASE AND DESIST] remains effective and enforceable                                        
05       pending the completion of an administrative proceeding under AS 06.55.701 and                                     
06       06.55.702.                                                                                                        
07    * Sec. 49. AS 06.55.607 is amended by adding a new subsection to read:                                             
08            (g)  An order issued by the department may include a monetary penalty in                                     
09       addition to a civil penalty authorized under AS 06.55.605 or established by regulation,                           
10       if the department has reason to believe that a person who is not a money transmission                             
11       licensee under AS 06.55.101, currency exchange licensee under AS 06.55.201,                                       
12       authorized delegate under AS 06.55.301, or subdelegate under AS 06.55.304 has                                     
13       violated or is violating AS 06.55.101 or 06.55.201.                                                               
14    * Sec. 50. AS 06.55.702(a) is amended to read:                                                                     
15            (a)  Except as otherwise provided in AS 06.55.603 and 06.55.607 [AND IN (b)                                  
16       OF THIS SECTION], the department may not suspend or revoke a money services                                       
17       license, place a money services licensee in receivership, issue an order to cease and                             
18       desist, suspend, or revoke the designation of an authorized delegate, or assess a civil                       
19       penalty without notice and an opportunity to be heard. The department shall also hold                             
20       a hearing when requested to hold a hearing by an applicant whose application for a                                
21       money services license is denied.                                                                                 
22    * Sec. 51. AS 06.55.802 is amended to read:                                                                        
23            Sec. 06.55.802. Exemptions [EXCLUSIONS]. This chapter does not apply to                                
24                 (1)  the United States or a department, an agency, or an instrumentality                                
25       of the United States;                                                                                             
26                 (2)  money transmission by the United States Postal Service or by a                                     
27       contractor on behalf of the United States Postal Service;                                                         
28                 (3)  a state, a municipality, a county, or another governmental agency                                  
29       or governmental subdivision of a state;                                                                           
30                 (4)  a bank, a bank holding company, an office of an international                                      
31       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
01       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
02       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States, if it does                            
03       not issue, sell, or provide payment instruments or stored value through an authorized                             
04       delegate who is not a bank, a bank holding company, an office of an international                                 
05       banking corporation, a branch of a foreign bank, a corporation organized under 12                                 
06       U.S.C. 1861 - 1867 (Bank Service Company Act), or a corporation organized under 12                                
07       U.S.C. 611 - 633 (Edge Act) under the laws of a state or the United States;                                       
08                 (5)  electronic funds transfer of governmental benefits for a federal,                                  
09       state, or municipal agency or a state political subdivision by a contractor on behalf of                          
10                      (A)  the United States or a department, an agency, or an                                           
11            instrumentality of the United States; or                                                                     
12                      (B)  a state, or a department, an agency, or an instrumentality of                                 
13            a state;                                                                                                     
14                 (6)  a board of trade or a person who, in the ordinary course of                                        
15       business, provides clearance and settlement services for a board of trade, to the extent                          
16       of the operation of the person for a board of trade; in this paragraph, "board of trade"                          
17       means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f                                     
18       (Commodity Exchange Act);                                                                                         
19                 (7)  a registered futures commission merchant under the federal                                         
20       commodities laws, to the extent of the merchant's operation as a registered futures                               
21       commission merchant under the federal commodities laws;                                                           
22                 (8)  a person who provides clearance or settlement services under a                                     
23       registration as a clearing agency or an exemption from the registration granted under                             
24       the federal securities laws, to the extent of the person's operation as a provider of                             
25       clearance or settlement services under a registration as a clearing agency or an                                  
26       exemption from the registration granted under the federal securities laws;                                        
27                 (9)  an operator of a payment system to the extent that the operator                                    
28       provides processing, clearing, or settlement services, between or among persons                                   
29       excluded by this section, in connection with wire transfers, credit card transactions,                            
30       debit card transactions, stored-value transactions, automated clearing house transfers,                           
31       or similar funds transfers; [OR]                                                                                  
01                 (10)  a person registered as a securities broker-dealer under federal or                                
02       state securities laws, to the extent of the person's operation as a securities broker-                            
03       dealer under federal or state securities laws;                                                                
04                 (11)  an insurance company, title insurance company, or escrow                                      
05       agent, to the extent that the entity is lawfully authorized to conduct business in                            
06       this state as an insurance company, title insurance company, or escrow agent and                              
07       to the extent that the entity engages in money transmission or currency exchange                              
08       as an ancillary service when conducting insurance, title insurance, or escrow                                 
09       activity; or                                                                                                  
10                 (12)  an attorney, to the extent that the attorney is lawfully                                      
11       authorized to practice law in this state and to the extent that the attorney engages                          
12       in money transmission or currency exchange as an ancillary service to the                                     
13       practice of law.                                                                                              
14    * Sec. 52. AS 06.55.810 is amended to read:                                                                        
15            Sec. 06.55.810. Notices required. (a) A money services licensee shall provide                          
16       a customer with a notice of how to file a complaint. A money services licensee                                
17       shall provide notice [DISPLAY A SIGN] at each location where the money services                               
18       licensee                                                                                                          
19                 (1)  provides money services under this chapter; and                                                    
20                 (2)  has not designated an authorized delegate or subdelegate to                                    
21       provide money services on behalf of the money services licensee at the location.                                  
22            (b)  An authorized delegate shall provide [DISPLAY] a notice of how to file a                        
23       complaint [SIGN] at each location where the authorized delegate or subdelegate                            
24       provides money services under this chapter.                                                                       
25            (c)  The notice [SIGN] required by (a) or (b) of this section must [SHALL] be                        
26       in a format and contain the information required by the department                                            
27       [DISPLAYED AT ALL TIMES IN FULL VIEW OF PERSONS VISITING THE                                                      
28       LOCATION AND SHALL GIVE THE DEPARTMENT'S ADDRESS AND THE                                                          
29       DEPARTMENT'S TELEPHONE NUMBER FOR RECEIVING CALLS                                                                 
30       REGARDING COMPLAINTS AND OTHER CONCERNS ABOUT MONEY                                                               
31       SERVICES LICENSEES, AUTHORIZED DELEGATES, AND THE MONEY                                                           
01       SERVICES PROVIDED BY MONEY SERVICES LICENSEES AND                                                                 
02       AUTHORIZED DELEGATES].                                                                                            
03    * Sec. 53. AS 06.55.820 is repealed and reenacted to read:                                                         
04            Sec. 06.55.820. Transmission, receipt, and refund. A money services                                        
05       licensee who receives money or equivalent value for money transmission or currency                                
06       exchange shall comply with transmission, receipt, and refund provisions according to                              
07       federal law under 12 C.F.R. Part 1005, Subpart B (Federal Remittance Transfer Rule)                               
08       and any requirements established by the department.                                                               
09    * Sec. 54. AS 06.55 is amended by adding new sections to read:                                                     
10            Sec. 06.55.855. Virtual currency. In this chapter, a reference to virtual                                  
11       currency shall be broadly construed to cover digital units of exchange that                                       
12                 (1)  have a centralized repository; in this paragraph, "centralized                                     
13       repository" means a single third-party administrating authority that controls the                                 
14       system, issues the currency, establishes the rules for the currency's use, maintains a                            
15       central payment ledger, and has authority to redeem the currency or withdraw the                                  
16       currency from circulation;                                                                                        
17                 (2)  are decentralized, distributive, open-source, math-based, peer-to-                                 
18       peer virtual currency with no central administrating authority and no central                                     
19       monitoring or oversight; in this paragraph,                                                                       
20                      (A)  "distributive" means validated through distribution among                                     
21            a network of participants who run an algorithm to validate the transaction;                                  
22                      (B)  "open-source" means available through software that can                                       
23            be downloaded for free from an Internet website to send, receive, and store                                  
24            virtual currency; or                                                                                         
25                 (3)  may be created or obtained by computing or manufacturing effort.                                   
26            Sec. 06.55.860. Compliance with federal requirements. A person subject to                                  
27       this chapter shall conduct the person's money services activities in compliance with                              
28                 (1)  12 U.S.C. 1829b (Federal Deposit Insurance Act);                                                   
29                 (2)  12 U.S.C. 1951 - 1959;                                                                             
30                 (3)  18 U.S.C. 981 - 982 (Money Laundering Control Act of 1986);                                        
31                 (4)  31 U.S.C. 5311 - 5314;                                                                             
01                 (5)  31 U.S.C. 5316 - 5329;                                                                             
02                 (6)  31 U.S.C. 5330 (Money Laundering Suppression Act of 1994);                                         
03                 (7)  31 U.S.C. 5331 - 5332 (International Money Laundering                                              
04       Abatement and Financial Anti-Terrorism Act of 2001); and                                                          
05                 (8)  any other federal statute or regulation the purpose of which is to                                 
06       regulate money transmission, currency exchange, or money services.                                                
07            Sec. 06.55.870. Unclaimed property. A person subject to this chapter shall                                 
08       comply with AS 34.45 (Uniform Unclaimed Property Act).                                                            
09            Sec. 06.55.880. Application to Internet activities. This chapter applies to a                              
10       person who engages in activities regulated under this chapter by using an Internet                                
11       website from within or outside the state.                                                                         
12    * Sec. 55. AS 06.55 is amended by adding new sections to article 9 to read:                                        
13            Sec. 06.55.900. Administration. (a) The department may require an applicant                                
14       or a licensee to submit information, documentation, or payment of a fee required under                            
15       this chapter through the registry in a format established by the department and                                   
16       acceptable to the registry.                                                                                       
17            (b)  The department may use the registry for obtaining information required for                              
18       licensing purposes under this chapter, including                                                                  
19                 (1)  criminal history record information from the Federal Bureau of                                     
20       Investigation, the United States Department of Justice, or any other agency or entity                             
21       identified by the department;                                                                                     
22                 (2)  information related to administrative, civil, or criminal findings by                              
23       other states.                                                                                                     
24            Sec. 06.55.910. Regulations. The department may adopt regulations under                                    
25       AS 44.62 (Administrative Procedure Act) to implement this chapter.                                                
26    * Sec. 56. AS 06.55.990(3) is amended to read:                                                                     
27                 (3)  "control" means                                                                                    
28                      (A)  the ownership of, or the power to vote, directly or                                           
29            indirectly, at least 10 [25] percent, including the voting securities or voting                      
30            interests of any spouse, parent, or child, of a class of voting securities or                            
31            voting interests of                                                                                          
01                           (i)  a money services licensee; or                                                    
02                           (ii)  a person that owns or has the power to vote,                                    
03                 directly or indirectly, at least 10 percent, including the voting                                   
04                 securities or voting interests of any spouse, parent, or child of the                               
05                 voting securities or voting interests of the [IN CONTROL OF A]                                      
06                 money services licensee referred to in (i) of this subparagraph;                                    
07                      (B)  the power to elect a majority of [EXECUTIVE] officers,                                        
08            managers, directors, trustees, or other persons exercising managerial authority                              
09            of                                                                                                           
10                           (i)  a money services licensee; or                                                    
11                           (ii)  a person that has the power to elect a majority of                              
12                 officers, managers, directors, trustees, or other persons exercising                                
13                 managerial authority of the [IN CONTROL OF A] money services                                        
14                 licensee referred to in (i) of this subparagraph; or                                                
15                      (C)  the power to exercise, directly or indirectly, an [A                                  
16            CONTROLLING] influence over the management or policies of                                                    
17                           (i)  a money services licensee; or                                                    
18                           (ii)  a person that has the power to exercise, directly                               
19                 or indirectly, an influence over the management or policies of the                                  
20                 [IN CONTROL OF A] money services licensee referred to in (i) of                                     
21                 this subparagraph;                                                                                  
22    * Sec. 57. AS 06.55.990(5) is amended to read:                                                                     
23                 (5)  "currency exchange license" means a license under AS 06.55.201 -                               
24       06.55.207 [AS 06.55.201 - 06.55.204];                                                                         
25    * Sec. 58. AS 06.55.990(15) is repealed and reenacted to read:                                                     
26                 (15)  "money transmission" means                                                                        
27                      (A)  the acceptance and the transmission of currency, funds, or                                    
28            other value that substitutes for currency from one person to another location or                             
29            person within the United States or to locations abroad, by                                                   
30                           (i)  a financial agency or institution;                                                       
31                           (ii)  an electronic funds transfer network;                                                   
01                           (iii)  wire;                                                                                  
02                           (iv)  facsimile;                                                                              
03                           (v)  payment instrument;                                                                      
04                           (vi)  an informal value transfer system; in this sub-                                         
05                 subparagraph, "informal value transfer system" means a system,                                          
06                 mechanism, or network that receives money for the purpose of making                                     
07                 funds or an equivalent value payable to a third party in another                                        
08                 geographic location, whether or not in the same form, and that                                          
09                 generally takes place outside of a conventional banking system through                                  
10                 nonbank financial institutions or other business entities whose primary                                 
11                 business activity is not limited to the transmission of money; or                                       
12                           (vii)  any other means;                                                                       
13                      (B)  selling, issuing, or acting as an intermediary for open-loop                                  
14            stored-value devices and payment instruments; or                                                             
15                      (C)  conducting the following types of activity in this state or                                   
16            involving a resident of this state:                                                                          
17                           (i)  receiving virtual currency for transmission;                                             
18                           (ii)  transmitting virtual currency;                                                          
19                           (iii)  securing, storing, holding, or maintaining custody                                     
20                 or control of virtual currency on behalf of others;                                                     
21                           (iv)  buying and selling virtual currency as or through a                                     
22                 third party;                                                                                            
23                           (v)  performing retail conversion services, including the                                     
24                 conversion or exchange of fiat currency or other value into virtual                                     
25                 currency, the conversion or exchange of virtual currency into fiat                                      
26                 currency or other value, or the conversion or exchange of one form of                                   
27                 virtual currency into another form of virtual currency; or                                              
28                           (vi)  controlling, administering, or issuing virtual                                          
29                 currency;                                                                                               
30    * Sec. 59. AS 06.55.990(16) is amended to read:                                                                    
31                 (16)  "money transmission license" means a license under                                                
01       AS 06.55.101 - 06.55.108 [AS 06.55.101 - 06.55.107 OR AN APPROVAL UNDER                                       
02       AS 06.55.103];                                                                                                    
03    * Sec. 60. AS 06.55.990(18) is repealed and reenacted to read:                                                     
04                 (18)  "outstanding" means                                                                               
05                      (A)  with respect to a payment instrument, a payment                                               
06            instrument that has been issued and sold in the United States directly by a                                  
07            money services licensee, or sold by an authorized delegate or subdelegate of                                 
08            the money services licensee in the United States and reported to the money                                   
09            services licensee, that has not yet been paid by or for the money services                                   
10            licensee;                                                                                                    
11                      (B)  with respect to a stored value, a stored value that has been                                  
12            issued and sold in the United States directly by a money services licensee, or                               
13            sold by an authorized delegate or subdelegate of the money services licensee in                              
14            the United States and reported to the money services licensee, until the funds                               
15            are deposited into the stored value program's issuing bank account; or                                       
16                      (C)  with respect to money transmission, a money transmission                                      
17            for which the money transmission licensee, directly or through an authorized                                 
18            delegate of the money transmission licensee, has received money or monetary                                  
19            value from the customer for transmission, but has not yet completed the money                                
20            transmission by delivering the money or monetary value to the person                                         
21            designated by the customer or refunded the money or monetary value to the                                    
22            customer;                                                                                                    
23    * Sec. 61. AS 06.55.990(19) is amended to read:                                                                    
24                 (19)  "payment instrument"                                                                              
25                      (A)  means an electronic or written [A] check, a draft, a                                  
26            money order, a traveler's check, or another electronic or written instrument                             
27            order for the transmission or payment of money or monetary value, whether or                             
28            not the instrument is negotiable;                                                                    
29                      (B)  [, BUT] does not include a credit card voucher, a letter of                               
30            credit, or any other [AN] instrument that is redeemable by the issuer in goods                           
31            or services;                                                                                                 
01    * Sec. 62. AS 06.55.990(20) is amended to read:                                                                    
02                 (20)  "person" means an individual, a corporation, a business trust, an                                 
03       estate, a trust, a partnership, a limited liability company, an association, a joint                              
04       venture, a government, a governmental subdivision, a governmental [AN] agency, a                          
05       governmental [OR AN] instrumentality, a public corporation, or any other legal or                             
06       commercial entity;                                                                                                
07    * Sec. 63. AS 06.55.990(23) is amended to read:                                                                    
08                 (23)  "stored value"                                                                                    
09                      (A)  means                                                                                     
10                           (i)  monetary value that is evidenced by an electronic                                    
11                 record that is prefunded and for which value is reduced on each                                     
12                 use;                                                                                                
13                           (ii)  access to funds or the value of funds that have                                     
14                 been paid in advance and can be retrieved or transferred at some                                    
15                 point in the future through an electronic device or vehicle; in this                                
16                 sub-subparagraph, "electronic device or vehicle" means a card                                       
17                 code, electronic serial number, mobile identification number,                                       
18                 personal identification number, or other electronic device or                                       
19                 vehicle;                                                                                            
20                      (B)  does not include an electronic record that is primarily                                   
21            intended to be redeemable only for goods or services from a specified                                    
22            merchant or set of affiliated merchants, or others involved in transactions                              
23            functionally related to the issuer or the issuer's affiliates;                                           
24    * Sec. 64. AS 06.55.990(24) is amended to read:                                                                    
25                 (24)  "unsafe or unsound practice" means a practice or conduct by a                                     
26       money services [TRANSMISSION] licensee or an authorized delegate or                                       
27       subdelegate of the money services [TRANSMISSION] licensee if the practice creates                         
28       the likelihood of material loss, insolvency, or dissipation of the money services                             
29       [TRANSMISSION] licensee's assets, or otherwise materially prejudices the interests                                
30       of the money services [TRANSMISSION] licensee's customers.                                                    
31    * Sec. 65. AS 06.55.990 is amended by adding new paragraphs to read:                                               
01                 (25)  "applicant" means a person filing an application to receive a                                     
02       money services license, whether the filing is done by the owner, a control person, an                             
03       officer, a director, or a manager of the person to receive the money services license;                            
04                 (26)  "currency" means the coin and paper money of the United States                                    
05       or a foreign government that is                                                                                   
06                      (A)  designated as legal tender and circulates; and                                                
07                      (B)  customarily used and accepted as a medium of exchange in                                      
08            the country of issuance;                                                                                     
09                 (27)  "fiat currency" means government-issued currency that is                                          
10       designated as legal tender in its country of issuance through government decree,                                  
11       regulation, or law;                                                                                               
12                 (28)  "funds" means money or other value that may be accepted for                                       
13       money;                                                                                                            
14                 (29)  "medium of exchange" means something commonly accepted in                                         
15       exchange for goods and services and recognized as representing a standard of value;                               
16                 (30)  "money laundering" means an activity criminalized by 18 U.S.C.                                    
17       1956 or 1957, or an activity that would be criminalized by 18 U.S.C. 1956 or 1957 if                              
18       the activity occurred in the United States;                                                                       
19                 (31)  "officer" means a president, a chair of the executive committee, a                                
20       chief financial officer, a chief compliance officer, a responsible individual, or another                         
21       individual who performs similar functions; in this paragraph, "responsible individual"                            
22       means an individual who is employed by a money services licensee and has principal                                
23       managerial authority over the provision of money services by the money services                                   
24       licensee in this state;                                                                                           
25                 (32)  "open-loop stored value" means stored value redeemable at                                         
26                      (A)  multiple, unaffiliated merchants or service providers; or                                     
27                      (B)  automated teller machines;                                                                    
28                 (33)  "payment system" means a system enabling the transfer of funds                                    
29       between parties;                                                                                                  
30                 (34)  "registry" means the Nationwide Multistate Licensing System and                                   
31       Registry; in this paragraph, "Nationwide Multistate Licensing System and Registry"                                
01       means a licensing system developed by the Conference of State Bank Supervisors and                                
02       the American Association of Residential Mortgage Regulators and owned and                                         
03       operated by the State Regulatory Registry, LLC, or a successor or an affiliated entity,                           
04       for the licensing and registration of persons in the mortgage and other financial                                 
05       services industries;                                                                                              
06                 (35)  "subdelegate" means an authorized delegate that provides limited                                  
07       money services on behalf of a money services licensee without having a direct                                     
08       contractual relationship with the money services licensee;                                                        
09                 (36)  "virtual currency"                                                                                
10                      (A)  means a digital representation of value that does not have                                    
11            legal tender status in the United States but                                                                 
12                           (i)  can be digitally traded and functions as a medium of                                     
13                 exchange, a unit of account, a store of value; or                                                       
14                           (ii)  is incorporated into payment system technology;                                         
15                      (B)  does not include digital units that are used                                                  
16                           (i)  solely within online gaming platforms with no                                            
17                 market or application outside of those gaming platforms; or                                             
18                           (ii)  exclusively as part of a customer affinity or rewards                                   
19                 program, and can be applied solely as payment for purchases with the                                    
20                 issuer or other designated merchants, and that cannot be converted into,                                
21                 or redeemed for, fiat currency.                                                                         
22    * Sec. 66. AS 06.55.995 is amended to read:                                                                        
23            Sec. 06.55.995. Short title. This chapter may be cited as the Alaska                                       
24       [UNIFORM] Money Services Act.                                                                                     
25    * Sec. 67. AS 12.62.400(a) is amended to read:                                                                     
26            (a)  To obtain a national criminal history record check for determining a                                    
27       person's qualifications for a license, permit, registration, employment, or position, a                           
28       person shall submit the person's fingerprints to the department with the fee established                          
29       by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau                                 
30       of Investigation to obtain a national criminal history record check of the person for the                         
31       purpose of evaluating a person's qualifications for                                                               
01                 (1)  a license or conditional contractor's permit to manufacture, sell,                                 
02       offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage                           
03       under AS 04.11;                                                                                                   
04                 (2)  licensure as a mortgage lender, a mortgage broker, or a mortgage                                   
05       loan originator under AS 06.60;                                                                                   
06                 (3)  admission to the Alaska Bar Association under AS 08.08;                                            
07                 (4)  licensure as a collection agency operator under AS 08.24;                                          
08                 (5)  a certificate of fitness to handle explosives under AS 08.52;                                      
09                 (6)  licensure as a massage therapist under AS 08.61;                                                   
10                 (7)  licensure to practice nursing or certification as a nurse aide under                               
11       AS 08.68;                                                                                                         
12                 (8)  certification as a real estate appraiser under AS 08.87;                                           
13                 (9)  a position involving supervisory or disciplinary power over a minor                                
14       or dependent adult for which criminal justice information may be released under                                   
15       AS 12.62.160(b)(9);                                                                                               
16                 (10)  a teacher certificate under AS 14.20;                                                             
17                 (11)  licensure as a security guard under AS 18.65.400 - 18.65.490;                                     
18                 (12)  a concealed handgun permit under AS 18.65.700 - 18.65.790;                                        
19                 (13)  licensure as an insurance producer, managing general agent,                                       
20       reinsurance intermediary broker, reinsurance intermediary manager, surplus lines                                  
21       broker, or independent adjuster under AS 21.27;                                                                   
22                 (14)  serving and executing process issued by a court by a person                                       
23       designated under AS 22.20.130;                                                                                    
24                 (15)  a school bus driver license under AS 28.15.046;                                                   
25                 (16)  licensure as an operator or an instructor for a commercial driver                                 
26       training school under AS 28.17;                                                                                   
27                 (17)  registration as a broker-dealer, agent, investment adviser                                        
28       representative, or state investment adviser under AS 45.55.030 - 45.55.060;                                   
29                 (18)  licensure as a money transmission licensee or a currency                                      
30       exchange licensee under AS 06.55.                                                                             
31    * Sec. 68. AS 12.62.400 is amended 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. In this subsection, "Nationwide Multistate Licensing                               
04       System and Registry" has the meaning given to "registry" in AS 06.55.990.                                         
05    * Sec. 69. AS 06.55.103, 06.55.104(e), 06.55.104(f), 06.55.105(e), 06.55.107, 06.55.404(g),                        
06 06.55.406(b), 06.55.607(f), 06.55.702(b), 06.55.801, 06.55.830, 06.55.840, 06.55.850(b),                                
07 06.55.850(c), 06.55.850(d), 06.55.850(e), 06.55.890, 06.55.990(8), and 06.55.990(9) are                                 
08 repealed.                                                                                                               
09    * Sec. 70. The uncodified law of the State of Alaska is amended by adding a new section to                         
10 read:                                                                                                                   
11       TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                               
12 Economic Development may adopt regulations to implement this Act. The regulations take                                  
13 effect under AS 44.62 (Administrative Procedure Act), but not before July 1, 2016.                                      
14    * Sec. 71. The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16       REVISOR'S INSTRUCTIONS. The revisor of statutes is requested to change the                                        
17 chapter heading of AS 06.55 from "Alaska Uniform Money Services Act" to "Alaska Money                                   
18 Services Act."                                                                                                          
19    * Sec. 72. Section 70 of this Act takes effect immediately under AS 01.10.070(c).                                
20    * Sec. 73. Except as provided in sec. 72 of this Act, this Act takes effect July 1, 2016.