Legislature(2007 - 2008)HOUSE FINANCE 519

05/12/2007 09:00 AM FINANCE


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Audio Topic
09:15:00 AM Start
09:15:41 AM SB116
09:24:32 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 98 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
<Bill Hearing Postponed>
-- Testimony <Invitation Only> --
+ SB 53 BUDGET: CAPITAL, SUPP. & OTHER APPROPS TELECONFERENCED
<Bill Hearing Postponed>
+ SB 4 SENIOR CARE/MED.AID FOR KIDS& PREG. WOMEN TELECONFERENCED
<Bill Hearing Postponed>
+ SB 72 COMMUNITY REVENUE SHARING TELECONFERENCED
<Bill Hearing Postponed to 1:30 Meeting>
+ SB 116 UNIFORM MONEY SERVICES ACT TELECONFERENCED
Moved HCS CSSB 116(FIN) Out of Committee
Bills Previously Heard/Scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 12, 2007                                                                                            
                         9:15 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Chenault called the House Finance Committee meeting                                                                    
to order at 9:15:00 AM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Mary Nelson                                                                                                      
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Kim Elton; Jesse Kiehl, Staff, Senator Kim Elton                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Grant   Callow,   Commissioner,    National   Conference   of                                                                   
Commissioners   on   Uniform   State  Laws;   Roger   Prince,                                                                   
Securities  Examiner, Department  of Commerce, Community  and                                                                   
Economic Development                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 116(FIN) "An Act relating to the Uniform Money                                                                             
          Services Act, to money transmission services, and                                                                     
          to currency exchange services; and providing for                                                                      
          an effective date."                                                                                                   
                                                                                                                                
          HCS CSSB  116 (FIN)  was REPORTED out  of Committee                                                                   
          with  a "do  pass" recommendation  and with  fiscal                                                                   
          note  #1 by the  Department of Commerce,  Community                                                                   
          and Economic Development.                                                                                             
                                                                                                                                
9:15:41 AM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 116(FIN)                                                                                               
                                                                                                                                
     "An Act relating to the Uniform Money Services Act, to                                                                     
     money transmission services, and to currency exchange                                                                      
     services; and providing for an effective date."                                                                            
                                                                                                                                
SENATOR  KIM ELTON,  sponsor, explained  that the  bill is  a                                                                   
long, but simple, bill which ensures  safety and soundness in                                                                   
financial  institutions.   It addresses  two industries  that                                                                   
pose a  risk for  money laundering  and terrorism  financing;                                                                   
money  transmission   and  currency   exchange.     The  only                                                                   
difference between  this bill and  the model act bill  by the                                                                   
National Conference  of Commissioners  on Uniform  State Laws                                                                   
is that the component that deals  with check cashing has been                                                                   
removed.  The federal government  encourages legislation such                                                                   
as SB 116.   He explained that the Federal  Bank Secrecy Act,                                                                   
which was  updated after  911, makes it  a federal  felony to                                                                   
transmit money  without a  license in  states that  require a                                                                   
license.   Forty-seven states  require a  license.   The bill                                                                   
ensures  law  enforcement  coordination  for the  purpose  of                                                                   
regulation and also has elements  of safety and soundness for                                                                   
consumers through  bonding and  net worth requirements.   The                                                                   
bill is  revenue neutral  to the state  and has support  from                                                                   
large  money  transmitters  such   as  Western  Union,  small                                                                   
transmitters,  the   Department  of  Commerce   and  Economic                                                                   
Development,  the   Alaska  Bankers'  Association,   consumer                                                                   
advocates like AKPIRG, and Holland America Line.                                                                                
                                                                                                                                
9:18:27 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
Vice-Chair Stoltz requested an  explanation of the amendment.                                                                   
                                                                                                                                
JESSE  KIEHL,  STAFF,  SENATOR   KIM  ELTON,  explained  that                                                                   
Amendment #1 says that a business  license under this act has                                                                   
to keep  social security  numbers, credit  card numbers,  and                                                                   
bank  account numbers  to itself,  except  where required  by                                                                   
federal law.                                                                                                                    
                                                                                                                                
9:20:15 AM                                                                                                                    
                                                                                                                                
GRANT   CALLOW,   COMMISSIONER,    NATIONAL   CONFERENCE   OF                                                                   
COMMISSIONERS  ON  UNIFORM  STATE  LAWS,  offered  to  answer                                                                   
questions.                                                                                                                      
                                                                                                                                
ROGER PRINCE,  SECURITIES EXAMANIER, DEPARTMENT  OF COMMERCE,                                                                   
COMMUNITY  AND   ECONOMIC  DEVELOPMENT,  offered   to  answer                                                                   
questions.                                                                                                                      
                                                                                                                                
9:21:36 AM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment #1:                                                                                  
                                                                                                                                
     Page 16, following line 19:                                                                                                
     Insert new subsections to read:                                                                                            
          "(d)  A money services licensee or an authorized                                                                      
     delegate  may not disclose  to another person  financial                                                                   
     information provided  to the money services  licensee or                                                                   
     the authorized  delegate by a customer except  when, and                                                                   
     only to the extent that, the disclosure is                                                                                 
               (1)  authorized in writing by the customer;                                                                      
               (2)  required by federal, state, or local                                                                        
     law;                                                                                                                       
               (3)  required by an order issued by a court                                                                      
     or an administrative agency; or                                                                                            
               (4)  part of the money services transaction                                                                      
     ordered by the customer.                                                                                                   
          (e)  In (d) of this section, "financial                                                                               
     information"  means  an   individual's  social  security                                                                   
     number,  individual   taxpayer  identification   number,                                                                   
     account number,  credit card account number,  debit card                                                                   
     account number, personal  identification number, payment                                                                   
     instrument number, or access code."                                                                                        
                                                                                                                                
Vice Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Mr.  Kiehl  explained  that Amendment  #1  prevents  a  money                                                                   
services licensee  or an authorized delegate  from disclosing                                                                   
personal financial information.                                                                                                 
                                                                                                                                
Vice Chair  Stoltze WITHDREW his  objection.  There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:23:53 AM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault asked  about fiscal  note #1.   It  states                                                                   
that funding would cover half  of a new position to carry out                                                                   
regulatory  duties mandated  by  the act  such as  licensing,                                                                   
complaint    investigations,     and    conducting    on-site                                                                   
examinations.       Mr.  Prince  explained  that   it  is  an                                                                   
Investigator II position that handles consumer complaints.                                                                      
                                                                                                                                
9:24:32 AM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT CSSB 166  (FIN) out of                                                                   
committee,  as amended, with  individual recommendations  and                                                                   
the accompanying fiscal note.                                                                                                   
                                                                                                                                
HCS CSSB 116 (FIN)  was REPORTED out of Committee  with a "do                                                                   
pass"  recommendation   and  with  fiscal  note   #1  by  the                                                                   
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 9:26 AM.                                                                                           
                                                                                                                                

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