Legislature(2023 - 2024)
2023-02-27 House JournalFull 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 Development 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. Sincerely, /s/ Mike Dunleavy Governor"