05/01/2023 01:30 PM Senate JUDICIARY

          SB  84-MONEY TRANSMISSION; VIRTUAL CURRENCY                                                                       
                                                                                                                                
2:01:33 PM                                                                                                                    
CHAIR CLAMAN  announced the consideration  of 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."                                                                                               
                                                                                                                                
2:02:09 PM                                                                                                                    
CHAIR CLAMAN moved to invited testimony.                                                                                        
                                                                                                                                
2:02:45 PM                                                                                                                    
LAHKA  PEACOCK, Managing  Partner, Alaska  Prepaid Card  LLC, DBA                                                               
QuyanaCARD, Nome,  Alaska, testified by invitation  in support of                                                               
SB  84. He  stated  he  is part-owner  of  QuyanaCARD, an  Alaska                                                               
Native-owned  business  based  in  Nome.  His  business  provides                                                               
reloadable,  prepaid  debit  cards  for  rural  Alaskan  citizens                                                               
lacking  access  to  traditional  banking services.  As  a  small                                                               
business, he is  required to pay the same fees  and is subject to                                                               
the  same regulations  as larger  companies like  Google Pay  and                                                               
Venmo. He shared a story about  his first business audit with the                                                               
Division  of  Banking; he  was  financially  responsible for  the                                                               
auditor's  airfare,  lodging, car  rental,  and  hourly fees.  He                                                               
hoped  that   SB  84  would  provide   separation  between  small                                                               
businesses and billion-dollar companies like Google Pay.                                                                        
                                                                                                                                
2:04:44 PM                                                                                                                    
SENATOR  TOBIN commented  that she  was  happy to  hear from  Mr.                                                               
Peacock.                                                                                                                        
                                                                                                                                
2:04:52 PM                                                                                                                    
CHAIR CLAMAN opened public testimony on SB 84.                                                                                  
                                                                                                                                
2:05:10 PM                                                                                                                    
KEN GRIFFIN,  representing self, Wasilla, Alaska,  testified with                                                               
comments  about SB  84. He  stated that  he was  an avid  user of                                                               
cryptocurrency.  He  cautioned  that   the  banking  industry  is                                                               
heavily regulated  with the highest  fraud and failure  rates. He                                                               
opined  that cryptocurrency  is safe  and poorly  defined in  the                                                               
bill.  He added  that  cryptocurrency originated  because of  the                                                               
overburdensome government  regulation of  money and  currency. He                                                               
recommended further analysis of the proposed legislation.                                                                       
                                                                                                                                
2:08:05 PM                                                                                                                    
CHAIR CLAMAN closed public testimony on SB 84.                                                                                  
                                                                                                                                
2:08:22 PM                                                                                                                    
CHAIR CLAMAN returned to invited testimony.                                                                                     
                                                                                                                                
2:08:31 PM                                                                                                                    
KATHY  TOMASOFSKY, Executive  Director,  Money Services  Business                                                               
Association,  Montvale,   New  Jersey,  stated  that   the  Money                                                               
Services  Business Association  is a  national trade  association                                                               
that  serves the  money service  business industry.  She informed                                                               
the committee that many of  the association's members do business                                                               
in Alaska. She stated that  SB 84 was carefully crafted following                                                               
18 months of  work. The proposed legislation is based  on a model                                                               
law put forth by a group  of regulators and industry members. She                                                               
stated that her association was  supportive of the bill and hoped                                                               
it  would move  forward. She  opined that  the legislation  would                                                               
help  consumers by  ensuring  their  protection. The  legislation                                                               
guarantees that  companies have adequate capitalization  based on                                                               
the  size of  the  business.  She added  that  the industry  will                                                               
benefit from clear and transparent regulation requirements.                                                                     
                                                                                                                                
2:09:51 PM                                                                                                                    
CHAIR CLAMAN held  SB 84 in committee  for further consideration.                                                               
He set an amendment deadline.