03/07/2025 01:30 PM Senate LABOR & COMMERCE

          SB  86-MONEY TRANSMISSION; VIRTUAL CURRENCY                                                                       
                                                                                                                                
2:00:34 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of SENATE  BILL NO.  86  "An Act  relating to  the                                                               
business of  money transmission;  relating to licenses  for money                                                               
transmission, licensure requirements,  and registration through a                                                               
nationwide multistate  licensing system;  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 exemptions to  money transmission                                                               
licensure requirements; relating  to payroll processing services;                                                               
relating  to currency  exchange licenses;  amending Rules  79 and                                                               
82,  Alaska  Rules  of  Civil Procedure;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
2:01:24 PM                                                                                                                    
SENATOR  JESSE  KIEHL,  District  B,  Alaska  State  Legislature,                                                               
Juneau, Alaska, sponsor  of SB 86, provided a  summary and stated                                                               
that  SB 86  updates Alaska's  money transmission  laws to  cover                                                               
broader  money services,  including crypto.  He said  SB 86  is a                                                               
model developed  by regulators and  industry for  basic oversight                                                               
of  non-bank entities.  SB 86  supports multi-state  coordination                                                               
and offers  lower tiered fees  so Alaskan companies  entering the                                                               
business do not have to pay  as much as multi-nationals. The bill                                                               
previously introduced by  the governor. He stated  that the state                                                               
is aware  of $1.5 billion  in unreported  cryptocurrency activity                                                               
in Alaska last year, suggesting the actual amount may be higher.                                                                
                                                                                                                                
2:03:20 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 86.                                                                                
                                                                                                                                
2:03:44 PM                                                                                                                    
KATHY  TOMASOFSKY, Executive  Director,  Money Services  Business                                                               
Association, Miami,  Florida, testified in  support of SB  86 and                                                               
stated that  the act was  developed with regulators  and industry                                                               
to  offer clear,  consistent protection  for  customers. The  act                                                               
encourages  new  services  and helps  reach  unbanked  and  rural                                                               
communities. The  uniform rules make  it easier for  companies to                                                               
do  business.   She  said  the   act  also   improves  regulatory                                                               
efficiency  through technology  and multi-state  cooperation. She                                                               
said  the  act  is  already  adopted  by  26  states  and  allows                                                               
flexibility to address local needs.                                                                                             
                                                                                                                                
2:05:51 PM                                                                                                                    
CHAIR BJORKMAN closed public testimony on SB 86.                                                                                
                                                                                                                                
2:06:05 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
2:06:07 PM                                                                                                                    
SENATOR DUNBAR  moved to  report SB  86, work  order 34-LS0305\I,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
2:06:24 PM                                                                                                                    
CHAIR BJORKMAN  found no  objection and SB  86 was  reported from                                                               
the Senate Labor and Commerce Standing Committee.