Legislature(2023 - 2024)

2023-02-27 House Journal

Full Journal pdf

2023-02-27                     House Journal                      Page 0276
HB 86                                                                                                                         
HOUSE BILL NO. 86 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                                                            
     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                                                        

2023-02-27                     House Journal                      Page 0277
     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                                                                             
The Governor's transmittal letter dated February 23 follows:                                                                    
"Dear Speaker Tilton:                                                                                                           
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill to modernize the Alaska Uniform                                                          
Money Services Act.                                                                                                             
This bill would amend the Alaska Uniform Money Services Act (AS                                                                 
06.55) through selective adoption of the Uniform Money Transmission                                                             
Modernization Act ("Model Law"), which was developed by industry                                                                
stakeholders and the Conference of State Bank Supervisors to                                                                    
recognize significant changes in the operation and regulatory                                                                   
supervision of money services businesses. The Alaska Uniform                                                                    
Money Services Act was adopted in 2008 before internet-based                                                                    
business models, virtual currencies, and mobile phone applications                                                              
were regularly in use. Today, virtual currency transmission and online                                                          
transactions account for nearly one-third of money transmission                                                                 
volume in Alaska. The Model Law sections incorporated in the bill                                                               
clarify application of state law to virtual currency transmitters, which                                                        
will protect consumers and ensure the safety and soundness of the                                                               
businesses interacting with Alaskans.                                                                                           

2023-02-27                     House Journal                      Page 0278
Adoption of key components of the Model Law will also allow the                                                                 
Department of Commerce, Community, and Economic Development                                                                     
to coordinate with other states while more effectively utilizing state                                                          
resources. This change benefits licensees by adopting a standardized                                                            
nationwide multistate licensing process.                                                                                        
The bill streamlines the regulatory process by eliminating the separate                                                         
currency exchange license type and clarifying activities that are                                                               
exempt from the requirement of obtaining a license, such as payroll                                                             
processing services. The bill also provides for criminal and civil                                                              
background checks designed to provide better consumer protection.                                                               
I urge your prompt and favorable action on this measure.                                                                        
Mike Dunleavy