Legislature(2007 - 2008)HOUSE FINANCE 519
05/12/2007 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB116 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 98 | TELECONFERENCED | |
| + | SB 53 | TELECONFERENCED | |
| + | SB 4 | TELECONFERENCED | |
| + | SB 72 | TELECONFERENCED | |
| + | SB 116 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
May 12, 2007
9:15 a.m.
CALL TO ORDER
Co-Chair Chenault called the House Finance Committee meeting
to order at 9:15:00 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Bill Thomas, Jr.
MEMBERS ABSENT
Representative Kevin Meyer, Co-Chair
Representative Mary Nelson
ALSO PRESENT
Senator Kim Elton; Jesse Kiehl, Staff, Senator Kim Elton
PRESENT VIA TELECONFERENCE
Grant Callow, Commissioner, National Conference of
Commissioners on Uniform State Laws; Roger Prince,
Securities Examiner, Department of Commerce, Community and
Economic Development
SUMMARY
CSSB 116(FIN) "An Act relating to the Uniform Money
Services Act, to money transmission services, and
to currency exchange services; and providing for
an effective date."
HCS CSSB 116 (FIN) was REPORTED out of Committee
with a "do pass" recommendation and with fiscal
note #1 by the Department of Commerce, Community
and Economic Development.
9:15:41 AM
CS FOR SENATE BILL NO. 116(FIN)
"An Act relating to the Uniform Money Services Act, to
money transmission services, and to currency exchange
services; and providing for an effective date."
SENATOR KIM ELTON, sponsor, explained that the bill is a
long, but simple, bill which ensures safety and soundness in
financial institutions. It addresses two industries that
pose a risk for money laundering and terrorism financing;
money transmission and currency exchange. The only
difference between this bill and the model act bill by the
National Conference of Commissioners on Uniform State Laws
is that the component that deals with check cashing has been
removed. The federal government encourages legislation such
as SB 116. He explained that the Federal Bank Secrecy Act,
which was updated after 911, makes it a federal felony to
transmit money without a license in states that require a
license. Forty-seven states require a license. The bill
ensures law enforcement coordination for the purpose of
regulation and also has elements of safety and soundness for
consumers through bonding and net worth requirements. The
bill is revenue neutral to the state and has support from
large money transmitters such as Western Union, small
transmitters, the Department of Commerce and Economic
Development, the Alaska Bankers' Association, consumer
advocates like AKPIRG, and Holland America Line.
9:18:27 AM
Vice-Chair Stoltz requested an explanation of the amendment.
JESSE KIEHL, STAFF, SENATOR KIM ELTON, explained that
Amendment #1 says that a business license under this act has
to keep social security numbers, credit card numbers, and
bank account numbers to itself, except where required by
federal law.
9:20:15 AM
GRANT CALLOW, COMMISSIONER, NATIONAL CONFERENCE OF
COMMISSIONERS ON UNIFORM STATE LAWS, offered to answer
questions.
ROGER PRINCE, SECURITIES EXAMANIER, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, offered to answer
questions.
9:21:36 AM
Co-Chair Chenault MOVED to ADOPT Amendment #1:
Page 16, following line 19:
Insert new subsections to read:
"(d) A money services licensee or an authorized
delegate may not disclose to another person financial
information provided to the money services licensee or
the authorized delegate by a customer except when, and
only to the extent that, the disclosure is
(1) authorized in writing by the customer;
(2) required by federal, state, or local
law;
(3) required by an order issued by a court
or an administrative agency; or
(4) part of the money services transaction
ordered by the customer.
(e) In (d) of this section, "financial
information" means an individual's social security
number, individual taxpayer identification number,
account number, credit card account number, debit card
account number, personal identification number, payment
instrument number, or access code."
Vice Chair Stoltze OBJECTED.
Mr. Kiehl explained that Amendment #1 prevents a money
services licensee or an authorized delegate from disclosing
personal financial information.
Vice Chair Stoltze WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
9:23:53 AM
Co-Chair Chenault asked about fiscal note #1. It states
that funding would cover half of a new position to carry out
regulatory duties mandated by the act such as licensing,
complaint investigations, and conducting on-site
examinations. Mr. Prince explained that it is an
Investigator II position that handles consumer complaints.
9:24:32 AM
Representative Foster MOVED to REPORT CSSB 166 (FIN) out of
committee, as amended, with individual recommendations and
the accompanying fiscal note.
HCS CSSB 116 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with fiscal note #1 by the
Department of Commerce, Community and Economic Development.
ADJOURNMENT
The meeting was adjourned at 9:26 AM.
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