Legislature(2023 - 2024)

2023-02-24 Senate Journal

Full Journal pdf

2023-02-24                     Senate Journal                      Page 0338
SB 84                                                                                                                         
SENATE BILL NO. 84 BY THE SENATE 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 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                                                                     
was read the first time and referred to the Labor and Commerce,                                                                 
Judiciary and Finance Committees.                                                                                               
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Commerce, Community, and                                                                      
          Economic Development                                                                                                  

2023-02-24                     Senate Journal                      Page 0339
Governor's transmittal letter dated February 23:                                                                                
Dear President Stevens:                                                                                                         
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.                                                                                           
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