Legislature(2023 - 2024)BUTROVICH 205
05/01/2023 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB84 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 84 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE JUDICIARY STANDING COMMITTEE
May 1, 2023
2:01 p.m.
MEMBERS PRESENT
Senator Matt Claman, Chair
Senator James Kaufman
Senator Löki Tobin
MEMBERS ABSENT
Senator Cathy Giessel
Senator Jesse Kiehl, Vice Chair
COMMITTEE CALENDAR
SENATE BILL NO. 84
"An Act relating to the business of money transmission; relating
to money transmission licenses, licensure requirements, and
registration through the Nationwide Multistate Licensing System
and Registry; 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."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 84
SHORT TITLE: MONEY TRANSMISSION; VIRTUAL CURRENCY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/24/23 (S) READ THE FIRST TIME - REFERRALS
02/24/23 (S) L&C, JUD, FIN
03/06/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/06/23 (S) Heard & Held
03/06/23 (S) MINUTE(L&C)
03/27/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/27/23 (S) Heard & Held
03/27/23 (S) MINUTE(L&C)
03/31/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/31/23 (S) Moved SB 84 Out of Committee
03/31/23 (S) MINUTE(L&C)
04/03/23 (S) L&C RPT 4DP 1NR
04/03/23 (S) DP: BJORKMAN, DUNBAR, BISHOP, GRAY-
JACKSON
04/03/23 (S) NR: MERRICK
04/21/23 (S) JUD AT 1:30 PM BUTROVICH 205
04/21/23 (S) Heard & Held
04/21/23 (S) MINUTE(JUD)
05/01/23 (S) JUD AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
LAHKA PEACOCK, Managing Partner
Alaska Prepaid Card, LLC ;
DBA QuyanaCARD
Nome, Alaska
POSITION STATEMENT: Provided invited testimony in support of SB
84.
KEN GRIFFIN, representing self
Wasilla, Alaska
POSITION STATEMENT: Recommended further analysis of SB 84.
KATHY TOMASOFSKY, Executive Director
Money Services Business Association
Montvale, New Jersey
POSITION STATEMENT: Provided invited testimony in support of SB
84.
ACTION NARRATIVE
2:01:01 PM
CHAIR MATT CLAMAN called the Senate Judiciary Standing Committee
meeting to order at 2:01 p.m. Present at the call to order were
Senators Kaufman, Tobin, and Chair Claman.
SB 84-MONEY TRANSMISSION; VIRTUAL CURRENCY
2:01:33 PM
CHAIR CLAMAN announced the consideration of SENATE BILL NO. 84
"An Act relating to the business of money transmission; relating
to money transmission licenses, licensure requirements, and
registration through the Nationwide Multistate Licensing System
and Registry; 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."
2:02:09 PM
CHAIR CLAMAN moved to invited testimony.
2:02:45 PM
LAHKA PEACOCK, Managing Partner, Alaska Prepaid Card LLC, DBA
QuyanaCARD, Nome, Alaska, testified by invitation in support of
SB 84. He stated he is part-owner of QuyanaCARD, an Alaska
Native-owned business based in Nome. His business provides
reloadable, prepaid debit cards for rural Alaskan citizens
lacking access to traditional banking services. As a small
business, he is required to pay the same fees and is subject to
the same regulations as larger companies like Google Pay and
Venmo. He shared a story about his first business audit with the
Division of Banking; he was financially responsible for the
auditor's airfare, lodging, car rental, and hourly fees. He
hoped that SB 84 would provide separation between small
businesses and billion-dollar companies like Google Pay.
2:04:44 PM
SENATOR TOBIN commented that she was happy to hear from Mr.
Peacock.
2:04:52 PM
CHAIR CLAMAN opened public testimony on SB 84.
2:05:10 PM
KEN GRIFFIN, representing self, Wasilla, Alaska, testified with
comments about SB 84. He stated that he was an avid user of
cryptocurrency. He cautioned that the banking industry is
heavily regulated with the highest fraud and failure rates. He
opined that cryptocurrency is safe and poorly defined in the
bill. He added that cryptocurrency originated because of the
overburdensome government regulation of money and currency. He
recommended further analysis of the proposed legislation.
2:08:05 PM
CHAIR CLAMAN closed public testimony on SB 84.
2:08:22 PM
CHAIR CLAMAN returned to invited testimony.
2:08:31 PM
KATHY TOMASOFSKY, Executive Director, Money Services Business
Association, Montvale, New Jersey, stated that the Money
Services Business Association is a national trade association
that serves the money service business industry. She informed
the committee that many of the association's members do business
in Alaska. She stated that SB 84 was carefully crafted following
18 months of work. The proposed legislation is based on a model
law put forth by a group of regulators and industry members. She
stated that her association was supportive of the bill and hoped
it would move forward. She opined that the legislation would
help consumers by ensuring their protection. The legislation
guarantees that companies have adequate capitalization based on
the size of the business. She added that the industry will
benefit from clear and transparent regulation requirements.
2:09:51 PM
CHAIR CLAMAN held SB 84 in committee for further consideration.
He set an amendment deadline.
2:10:31 PM
There being no further business to come before the committee,
Chair Claman adjourned the Senate Judiciary Standing Committee
meeting at 2:10 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 84 version A 2.24.2023.PDF |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Transmittal Letter 2.27.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Sectional Analysis version A 2.24.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Letters of Support - Received as of 3.23.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Additional Document - DBS Response to Senate Judiciary 4.25.2023.pdf |
SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 PowerPoint Presentation 4.21.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Fiscal Note DCCED-DBS 2.16.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |