Legislature(2021 - 2022)
2022-04-04 House Journal
Full Journal pdf2022-04-04 House Journal Page 2272 HB 408 HOUSE BILL NO. 408 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the business of money transmission; relating to money transmission licenses, licensure requirements, and registration through the Nationwide Multistate Licensing System; relating to the use of virtual currency for money transmission; relating to authorized delegates of a licensee; relating to acquisition of control of a license; relating to record retention and reporting requirements; authorizing the Department of Commerce, Community, and Economic Development to cooperate with other states in the regulation of money transmission; relating to permissible investments; relating to violations and enforcement of money transmission laws; relating to money transmission license exemptions; relating to payroll processing services; repealing currency exchange licenses; and providing for an effective date." was read the first time and referred to the Labor & Commerce and Finance Committees. The following fiscal note(s) apply: 1. Fiscal, Dept. of Commerce, Community, & Economic Development The Governor's transmittal letter dated March 23 follows: "Dear Speaker Stutes: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to the modernization of state money transmittal laws. 2022-04-04 House Journal Page 2273 This bill would modernize Alaska's money transmission laws through adoption of pertinent sections of the Uniform Money Transmission Modernization Act (Model Law), which was developed by the Conference of State Bank Supervisors (CSBS) with input and participation from industry stakeholders. Among other changes, the proposed bill would amend the Uniform Money Services Act (AS 06.55) to allow regulation of transmission of virtual currency, eliminate currency exchange as a separate license type, and clarify regulation of payroll processing. Adoption of this bill would allow the Department of Commerce, Community, and Economic Development (DCCED) to protect Alaskan consumers through regulation of virtual currency transmission. The Uniform Money Services Act was adopted in 2008 before internet-based fintech business models, virtual currencies and mobile phone applications were regularly in use. Today, virtual currency transmission accounts for over $2.3 billion annually, nearly one-third of money transmission volume in Alaska. In 2021, it grew by 2,420 percent. Since 2019, it has grown 6,782 percent. Expanding the current law to include cryptocurrency will close a significant loophole, protect consumers, and ensure the safety and soundness of the businesses interacting with Alaskans. Recent and reasonably foreseeable geopolitical events make regulating virtual currency even more important. Adoption of key components of the Model Law will also allow DCCED to coordinate with other states while more effectively utilizing state resources. This change would benefit licensees by adopting a standardized nationwide multistate licensing process. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor"