04/25/2024 01:30 PM Senate FINANCE

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."                                                                                                           
                                                                                                                                
1:42:50 PM                                                                                                                    
                                                                                                                                
Senator Kiehl MOVED to ADOPT the committee substitute for                                                                       
SB 84, Work Draft 33-GS1312\U (Klein\Gunther, 4/24/24).                                                                         
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
1:43:36 PM                                                                                                                    
                                                                                                                                
KEN ALPER, STAFF, SENATOR DONNY OLSON, explained the CS. He                                                                     
addressed the Summary of Changes (copy on file):                                                                                
                                                                                                                                
     Change 1 In  Secs. 6 and 63, changes  the submission of                                                                    
     an  applicant's  fingerprints  from the  Department  of                                                                    
     Public  Safety  to  the Nationwide  Mortgage  Licensing                                                                    
     System and Registry, (which  queries the Federal Bureau                                                                    
     of  Investigation),  unless  the individual  has  lived                                                                    
     outside the United States for the past 10 years.                                                                           
                                                                                                                                
     Change 2  In Secs. 12  and 24, changes  the requirement                                                                    
     for a licensee to  submit certain reports and financial                                                                    
     statements  to the  end  of each  quarter,  and to  the                                                                    
    licensee's fiscal year rather than a calendar year.                                                                         
                                                                                                                                
     Change 3  In Secs. 26  and 27, corrects a  reference to                                                                    
     letters of credit to the proper statute.                                                                                   
                                                                                                                                
     Change  4  In  Sec.   54,  reverts  the  definition  of                                                                    
     "control" from 10 percent of  a company's shares to the                                                                    
     current  statutory standard  of 25%,  and corrects  the                                                                    
    statutory reference to the term "passive investor."                                                                         
                                                                                                                                
     Change 5 In  Sec. 71, amends the effective  date of the                                                                    
     bill from January 1, 2024 to January 1, 2025.                                                                              
                                                                                                                                
1:45:49 PM                                                                                                                    
                                                                                                                                
ROBERT   SCHMIDT,   DIRECTOR,   DIVISION  OF   BANKING   AND                                                                    
SECURITIES, DEPARTMENT OF  COMMERCE, COMMUNITY, AND ECONOMIC                                                                    
DEVELOPMENT, ANCHORAGE  (via teleconference),  explained the                                                                    
bill.                                                                                                                           
                                                                                                                                
1:47:03 PM                                                                                                                    
                                                                                                                                
TRACY RENO,  CHIEF OF EXAMINATIONS, DIVISION  OF BANKING AND                                                                    
SECURITIES, DEPARTMENT OF  COMMERCE, COMMUNITY, AND ECONOMIC                                                                    
DEVELOPMENT,  ANCHORAGE  (via teleconference),  stated  that                                                                    
division supported the committee substitute.                                                                                    
                                                                                                                                
1:47:29 PM                                                                                                                    
                                                                                                                                
DEAN  FLEER, FINANCIAL  EXAMINER,  DIVISION  OF BANKING  AND                                                                    
SECURITIES, DEPARTMENT OF  COMMERCE, COMMUNITY, AND ECONOMIC                                                                    
DEVELOPMENT, ANCHORAGE (via  teleconference), stated that he                                                                    
had no additional comments.                                                                                                     
                                                                                                                                
Co-Chair Olson  wondered whether Mr.  Fleer was in  favor of                                                                    
the committee substitute.                                                                                                       
                                                                                                                                
Mr. Fleer replied in the affirmative.                                                                                           
                                                                                                                                
Co-Chair Olson OPENED public testimony.                                                                                         
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
Senator  Kiehl MOVED  to REPORT  SB 84  from committee  with                                                                    
individual recommendations, and  attached fiscal note. There                                                                    
being NO OBJECTION it was so ordered.                                                                                           
                                                                                                                                
SB 84  was REPORTED  OUT of committee  with three  "do pass"                                                                    
recommendation, one  "do not  pass" recommendation,  and one                                                                    
"no  recommendation";  and  one  new fiscal  note  from  the                                                                    
Department of Commerce, Community and Economic Development.