Legislature(2023 - 2024)BUTROVICH 205
05/05/2023 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB84 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 84 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 84-MONEY TRANSMISSION; VIRTUAL CURRENCY
1:55:58 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."
He noted that this was the third hearing and there was a
committee substitute (CS) for the committee to consider.
1:56:16 PM
LIZZIE KUBITZ, Staff, Senator Matt Claman, Alaska State
Legislature, Juneau, Alaska described the changes between
version A and version B of SB 84.
Version 33-GS1312\B of Senate Bill 84 is based on
recommendations made by the Division of Banking &
Securities and changes offered by Senator Kiehl's
office. There are three changes.
The first change has to do with controlling interests.
It changes "25 percent" to "10 percent" to conform to
other controlling interest guidelines. This change is
seen on page 22, line 3, and page 47, lines 9 and 11.
The second change has to do with money transmission
coverage. On page 47, line 28 it changes "from a
person located in this state" to "to the state, from
the state, or within the state." This protects
consumers sending or receiving money as long as one
end of the transmission is in the state.
And finally, Legislative Legal asked to make
conforming changes to the bill. One notable change
made by Legislative Legal is an indirect court rule
amendment found on page 53, lines 23 through 27. This
relates to changing the award of court costs and
attorney fees in certain casesa conforming change
made on page 38 line 20 of the bill.
CHAIR CLAMAN listed the individuals available online to respond
to questions.
1:58:46 PM
SENATOR KIEHL moved to adopt the committee substitute (CS) for
SB 84, work order 33-GS1312\B, as the working document.
CHAIR CLAMAN found no objections version B was adopted.
1:59:20 PM
SENATOR KIEHL asked Chair Claman how to proceed with his
amendments.
CHAIR CLAMAN asked him to introduce each Conceptual Amendment
separately.
1:59:34 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 1 to CSSB 84.
CONCEPTUAL AMENDMENT 1
BY SENATOR KIEHL
Page 9, Line 20:
Following "is not money" insert ",that other persons
are not required to take payment in virtual currency,
that the value of virtual currency can change, and
that virtual currency may not be backed by a
governmental agency"
CHAIR CLAMAN objected for purposes of discussion.
SENATOR KIEHL stated that Conceptual Amendment 1 restores
language from the root bill. He noted that the amendment applied
to a section governing a customer relationship with a
cryptocurrency company including the initial policies that must
be established or disclosed. He noted that Conceptual Amendment
1 restores the specificity of cryptocurrencies in the bill
language.
CHAIR CLAMAN referred to the redline version of the bill. He
pointed out the bottom of page 9, paragraph (9). He said the
language Legislative Legal Services removed was reinstated.
SENATOR KIEHL concurred.
2:01:31 PM
CHAIR CLAMAN removed his objection; finding no further
objection, Conceptual Amendment 1 was adopted.
2:01:56 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 2 to CSSB 84.
CONCEPTUAL AMENDMENT 2
BY SENATOR KIEHL
Page 40, Line 6:
Following "United States;" insert "an institution
regulated by the Farm Credit Association; or a
subsidiary or affiliate of a financial institution, if
the subsidiary or affiliate is owned and controlled by
a depository institution and regulated by a federal
banking agency; in this paragraph, "federal banking
agency" means the Board of Governors of the Federal
Reserve System, the Comptroller of the Currency, the
director of the Office of Thrift Supervision, the
National Credit Union Administration, and the Federal
Deposit Insurance Corporation;"
CHAIR CLAMAN objected for purposes of discussion.
SENATOR KIEHL explained the Conceptual Amendment 2. He directed
attention to Section 43 that addresses the state and the money
services business. He referred to a long list of federal
agencies that are monitored by the federal government. The
institutions were removed from the bill without remaining
language to cover them. He opined that the legislation should be
specified as the original bill text does.
CHAIR CLAMAN commented that Conceptual Amendment 2 restores the
language deleted on the redline version, page 41, lines 12-19.
CHAIR CLAMAN removed his objection; finding no further
objection, Conceptual Amendment 2 was adopted.
2:03:22 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 3 to CSSB 84.
CONCEPTUAL AMENDMENT 3
BY SENATOR KIEHL
Page 45, Line 9:
Following "for transmission" insert "subject to 12
C.F.R. Part 1005, Subpart B;
(2) money received for transmission"
Page 45, Line 10:
Delete "; or"
Page 45, Line 11:
Delete "(2)"
Insert "(3)"
Page 45, Line 15:
Following "by the payee" insert ";
(4) an individual consumer transferring funds to
reload stored value to the consumer's account through
a point of sale transaction; or
(5) stored value transactions exempted by the
department by regulation or order"
CHAIR CLAMAN objected for purposes of discussion.
SENATOR KIEHL explained that Conceptual Amendment 3 addressed
Section 48 and reinstated language in the original bill version.
The amendment addressed receipt requirements for every
transaction. The amendment reinstates the reference to a code of
federal regulations in the Consumer Financial Protection Bureau
laws. The amendment also addresses language about reloading
stored value transactions. He stated that a stored value card is
used repeatedly and incurs different needs, receipts and
disclosures to the consumer.
CHAIR CLAMAN referred to the redline version pages 46-47. The
amendment restores the language that was deleted from the
original bill.
CHAIR CLAMAN removed his objection; finding no further
objection, Conceptual Amendment 3 was adopted.
2:05:26 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 4 to CSSB 84.
CONCEPTUAL AMENDMENT 4
BY SENATOR KIEHL
Page 47, Line 2:
Insert *Sec. 52. AS 06.55.850 is amended by adding a
new subsection to read:
(f) An annual renewal fee must be based on a
licensee's total volume of money transmission in this
state, calculated in dollars or dollar equivalents."
2:06:01 PM
CHAIR CLAMAN informed the committee and the public that the
redline version would be included in the record and could be
found on BASIS.
SENATOR KIEHL re-introduced Conceptual Amendment 4.
CHAIR CLAMAN objected for purposes of discussion.
SENATOR KIEHL stated that Conceptual Amendment 4 reinstates a
section deleted by Legislative Legal Services. He stated that
the language provided broad authority to determine fees to cover
regulatory costs. He noted that the Conceptual Amendment
reinstates the requirement that annual renewal fees be based on
the total volume of money transmission in the state. He stated
that the Department of Commerce, Community and Economic
Development communicated the desire to charge varying rates
based on money transmission volume.
CHAIR CLAMAN referred to the redline copy, subsection (f), page
49 that deletes an annual renewal fee shall be determined by
the department by regulation order.
SENATOR KIEHL stated that the sentence was not required because
earlier sections of the bill require fee setting by order.
CHAIR CLAMAN removed his objection; finding further objection,
Conceptual Amendment 4 was adopted.
2:08:20 PM
SENATOR KIEHL moved to report CSSB 84, work order 33-GS1312\B,
as amended, from committee with individual recommendations and
attached fiscal note(s).
CHAIR CLAMAN found no objection and CSSB 84(JUD) was reported
from the Senate Judiciary Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 84 Work Draft Committee Substitute version B 5.4.2023.pdf |
SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Comparison of 33-GS1312_A and 33-GS1312_B 5.5.2023.pdf |
SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 version A 2.24.2023.PDF |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Transmittal Letter 2.27.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Sectional Analysis version A 2.24.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Letters of Support - Received as of 3.23.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Additional Document - DBS Response to Senate Judiciary 4.25.2023.pdf |
SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 PowerPoint Presentation 4.21.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Fiscal Note DCCED-DBS 2.16.2023.pdf |
SJUD 4/21/2023 1:30:00 PM SJUD 5/1/2023 1:30:00 PM SJUD 5/5/2023 1:30:00 PM |
SB 84 |
| SB 84 Additional Document - Kiehl Conceptual Amendments to version B 5.5.2023.pdf |
SJUD 5/5/2023 1:30:00 PM |
SB 84 |