MONEY TRANSMISSION; VIRTUAL CURRENCY

HB0099b -1- CSHB 99(L&C)
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CS FOR HOUSE BILL NO. 99(L&C)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY THE HOUSE LABOR AND COMMERCE COMMITTEE

Offered: 3/21/25
Referred: Finance

Sponsor(s): REPRESENTATIVE FIELDS
A BILL

FOR AN ACT ENTITLED

"An Act relating to the business of money transmission; relatin g to licenses for money 1
transmission, licensure requireme nts, and registration through a nationwide multistate 2
licensing system; relating to the use of virtual currency for m oney transmission; relating 3
to authorized delegates of a licensee; relating to acquisition of control of a license; 4
relating to record retention and reporting requirements; author izing the Department of 5
Commerce, Community, and Economic Development to cooperate with o t he r s t a t e s in 6
the regulation of money transmission; relating to permissible i nvestments; relating to 7
violations and enforcement of mo ney transmission laws; relating to exemptions to 8
money transmission licensure requirements; relating to payroll processing services; 9
relating to currency exchange licenses; amending Rules 79 and 8 2, Alaska Rules of Civil 10
Procedure; and providing for an effective date." 11
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12
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* Section 1. The uncodified law of the State o f Alaska is amended by adding a new section 1
to read: 2
PURPOSE. The purpose of this Act is to replace existing state m oney transmission 3
laws to modernize licensure requi rements, to add model language for the burgeoning virtual 4
currency industry, to allow the Department of Commerce, Communi ty, and Economic 5
Development to coordinate with other states in all areas of reg ulation, licensing, and 6
supervision of money transmission, to standardize the types of activities that are subject to 7
licensing, and to modernize safety and soundness requirements for money transmission. 8
* Sec. 2. AS 06.55.101 is amended to read: 9
Sec. 06.55.101. License required. (a) A person may not engage in the 10
business of money transmission or advertise, solicit, or hold itself [THE PERSON] out 11
as providing money transmission unless the person 12
(1) holds a [MONEY TRANSMISSION] license; [OR] 13
(2) is an authorized delegate of a licensee and is acting within the 14
scope of that authority under a written contract with the licensee; or 15
(3) is exempt under AS 06.55.802 and does not engage in money 16
t r a n s m i s s i o n o u t s i d e t h e s c o p e o f t h a t e x e m p t i o n [PERSON WHO HOLDS A 17
MONEY TRANSMISSION LICENSE]. 18
(b) A [MONEY TRANSMISSION] license is not transferable or assignable. 19
* Sec. 3. AS 06.55.102 is repealed and reenacted to read: 20
Sec. 06.55.102. Application for license. (a) An applicant for a license shall 21
submit 22
(1) an application in a form and in a medium prescribed by the 23
department; the application must contain information on the app licant's organization 24
and operations, financial res ponsibility, background, competenc e level, experience, 25
and activities; 26
( 2 ) a n y o t h e r i n f o r m a t i o n r e a sonably required by the departmen t or 27
registry with respect to the applicant; 28
(3) the application fee established by the department; 29
(4) the license fee established by the department; and 30
(5) a surety bond or other security as required by AS 06.55.505. 31
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(b) The department may waive a requirement of (a)(1) - (4) of this section or 1
permit an applicant to submit other information in lieu of the required information. 2
* Sec. 4. AS 06.55.105 is repealed and reenacted to read: 3
Sec. 06.55.105. Issuance of license. (a) When an application for an initial 4
license under this chapter appear s to include all required info rmation and address all 5
matters required by the department, the application is consider ed complete, and the 6
department shall notify the applic ant in a record of the date o n which the application 7
was determined to be complete. The department shall approve or deny the application 8
within 120 days after the date the application was determined t o be complete. If the 9
application is not approved or denied within 120 days after the completion date, 10
(1) the application is approved; and 11
(2) the license takes effect on the first business day after e xpiration of 12
the 120-day period. 13
(b) The department may for good cause extend the application period. 14
(c) A determination by the department that an application is c omplete and is 15
accepted for processing means only that the application, on its face, appears to include 16
all required items, including a criminal background check, and address all required 17
matters. The department's determination is not an assessment of the substance of the 18
application or of the sufficiency of the information provided. 19
(d) When an application is filed and considered to be complete under (c) of 20
this section, the department shall investigate the applicant's financial condition, 21
financial responsibility, financi al experience, business experi ence, competence level, 22
character, and general fitness. The department may conduct an o n-site investigation of 23
the applicant, and the applicant shall pay the reasonable cost of the on-site 24
investigation. The department s hall issue a license to an appli cant if the department 25
finds that 26
(1) the applicant has complied with AS 06.55.102, 06.55.109, a nd 27
applicable regulations; and 28
(2) the financial condition, fi nancial responsibility, financi al 29
experience, financial business experience, competence level, ch aracter, and general 30
fitness of the applicant, and th e experience, competence level, character, and general 31
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fitness of the key individuals a nd persons in control of the ap plicant indicate that it is 1
in the interest of the public to allow the applicant to engage in money transmission. 2
(e) If an applicant is subject to a multistate licensing proce ss, the department 3
may 4
(1) for the purposes of (d) of this section, accept the invest igation 5
results of a state that is the lead investigator in the multistate licensing process; or 6
(2) investigate the applicant in accordance with (d) of this s ection and 7
the time frames established by agreement through the multistate licensing process, if 8
those time frames comply with the application approval period s et out in (a) of this 9
section. 10
(f) The department shall issue a formal written notice of a de nial of a license 11
application within 30 days after the decision to deny the appli cation. The department 12
shall set out in the notice of denial the specific reasons for the denial. An applicant 13
may appeal a denial within 30 days after receiving the written notice of the denial and 14
may request a hearing. 15
(g) The initial license term begins on the day the application is approved. The 16
license expires on December 31 of the year in which the license is issued, unless 17
(1) the initial license is issued between November 1 and Decem ber 31, 18
in which case the initial license term runs through December 31 of the following year; 19
or 20
(2) the license is revoked, suspended, surrendered, or its ter m 21
otherwise adjusted in accordance with regulations adopted by the department. 22
(h) An applicant for a license shall demonstrate that the appl icant meets or 23
will meet the requirements of this chapter. 24
* Sec. 5. AS 06.55.106 is repealed and reenacted to read: 25
Sec. 06.55.106. Renewal of license. (a) A licensee shall renew a license 26
annually. A licensee shall pay an annual renewal fee by the ren ewal filing deadline 27
established by the department. The renewal term is for a period of one year and begins 28
on January 1 of each year after the initial license term and ex pires on December 31 of 29
the year the renewal term begins. 30
(b) A licensee shall submit a renewal report with the renewal fee in a form and 31
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in a medium prescribed by the department. The renewal report mu st describe each 1
material change in information submitted by the licensee in the licensee's initial 2
license application that the licensee has not reported to the department. 3
(c) The department may for good cause grant an extension of th e renewal 4
filing deadline. 5
(d) The department may use the registry to process license ren ewals if the use 6
is consistent with this section. 7
* Sec. 6. AS 06.55 is amended by adding new sections to article 1 to read: 8
Sec. 06.55.108. Maintenance of license. (a) A licensee shall at all times meet 9
the requirements of this chapter. 10
(b) If a licensee does not con tinue to meet the qualifications or satisfy the 11
requirements that apply to an applicant for a new license, the department may suspend 12
or revoke the licensee's license in accordance with this chapter or other applicable law. 13
Sec. 06.55.109. Information requirements for certain individual s. ( a ) A n 14
individual in control of a licensee or applicant, an individual who seeks to acquire 15
control of a licensee, and each key individual shall furnish to the department through 16
the registry the following items: 17
(1) the individual's fingerprint s for submission to the Federa l Bureau 18
of Investigation to obtain a national criminal history record check unless the individual 19
currently resides outside the U nited States and has resided out side the United States 20
for the past 10 years; and 21
(2) personal history and experience in a form and in a medium 22
prescribed by the department, including 23
(A) an independent credit report from a consumer reporting 24
agency, unless the individual does not have a social security number; 25
(B) information related to a criminal conviction or pending 26
charges; and 27
(C) information related to any regulatory or administrative 28
action and any civil litigation involving claims of fraud, misr epresentation, 29
conversion, mismanagement of funds , breach of fiduciary duty, o r breach of 30
contract. 31
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(b) If the individual has resided outside the United States at any time in the 10 1
years before the date of furnishing the information under (a) o f this section, the 2
individual shall also provide an investigative background repor t prepared by an 3
independent search firm. The inde pendent search firm may not be affiliated with or 4
have an interest in the individual the firm is researching. At a minimum, the 5
investigative background report must 6
(1) demonstrate that the indepe ndent search firm has sufficien t 7
knowledge, resources, and employs accepted and reasonable methodologies to conduct 8
the research of the background report; 9
(2) be written in English and contain the following: 10
(A) if available in the individual's current jurisdiction of 11
residency, a comprehensive credit report, or equivalent information obtained or 12
generated by the independent search firm to accomplish a compre hensive 13
credit report, including a search of the court data in the coun tries, provinces, 14
states, cities, towns, and contiguous areas where the individual has resided and 15
worked; 16
(B) criminal records information for the previous 10 years, 17
including felonies, misdemeanors, or similar convictions for vi olations of law 18
in the countries, provinces, stat es, cities, towns, and contigu ous areas where 19
the individual has resided and worked; 20
(C) employment history; 21
(D) media history, including an electronic search of national 22
and local publications, wire services, and business applications; and 23
(E) regulatory history related to financial services, includin g 24
money transmission, securities, banking, insurance, and mortgag e-related 25
industries. 26
Sec. 06.55.110. Consistent state licensing . (a) To establish consistent 27
licensing between this state and other states, the department may 28
(1) implement all licensing provisions of this chapter in a ma nner that 29
is consistent with other states that have adopted multistate licensing processes; and 30
(2) participate in nationwide protocols for licensing cooperat ion and 31
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coordination among state regulato rs if the nationwide protocols for licensing 1
cooperation and coordination are consistent with this chapter. 2
(b) To fulfill the purposes of this chapter, the department ma y establish 3
relationships or contracts with the registry or other entities designated by the registry 4
to enable the department to 5
(1) collect and maintain records; 6
(2) coordinate multistate licensing processes and supervision 7
processes; 8
(3) process fees; and 9
(4) facilitate communication between the department and licens ees or 10
other persons subject to this chapter. 11
( c ) T h e d e p a r t m e n t m a y u s e t h e r e g i s t r y f o r a l l a s p e c t s o f l i censing in 12
accordance with this chapter, including license applications, a pplications for 13
acquisitions of control, surety bonds, reporting, criminal back ground checks, credit 14
checks, fee processing, and examinations. 15
* Sec. 7. AS 06.55 is amended by adding new sections to read: 16
Article 1A. Virtual Currency Business Activity. 17
Sec. 06.55.150. Requirements for en gaging in virtual currency b usiness 18
activity. (a) A person may not engage in virtual currency business activi ty or hold 19
itself out as being able to engage in virtual currency business activity unless the person 20
is 21
(1) licensed under this chapter; or 22
(2) exempt from licensing under AS 06.55.802. 23
(b) A person that is licensed to engage in virtual currency bu siness activity is 24
engaged in the business of money transmission and is subject to the requirements of 25
this chapter. 26
Sec. 06.55.155. Required disclosures. (a) A licensee that engages in virtual 27
currency business activity shall provide to a person that uses the licensee's products or 28
service the disclosures required by (b) of this section and any additional disclosures 29
the department determines to be reasonably necessary for the pr otection of persons. 30
The department shall determine by regulation or order the time and form required for 31
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disclosure. A disclosure require d by this section must be made separately from any 1
other information provided by the licensee and in a clear and c onspicuous manner in a 2
record the person may keep. A licensee may propose for the depa rtment's approval 3
alternate disclosures as more appropriate for its virtual currency business activity. 4
(b) Before establishing a rela tionship with a person, a licens ee shall disclose, 5
to the extent applicable to the virtual currency business activ ity the licensee will 6
undertake with the person, 7
(1) a schedule of fees and charges the licensee may assess, th e manner 8
by which fees and charges will be calculated if not set in adva nce and disclosed, and 9
the timing of the fees and charges; 10
(2) whether the product or service provided by the licensee is covered 11
by 12
(A) a form of insurance or is otherwise guaranteed against los s 13
by an agency of the United States 14
(i) up to the dollar equivalent of virtual currency 15
purchased from the licensee or for control of virtual currency by the 16
licensee as of the date of the placement or purchase, including the 17
maximum amount provided by insurance under the Federal Deposit 18
Insurance Corporation or otherwise available from the Securitie s 19
Investor Protection Corporation; or 20
(ii) if not provided at the dollar equivalent of virtual 21
currency purchased from the licensee or for control of virtual currency 22
by the licensee, the maximum amount of coverage for each person 23
expressed in the dollar equivalent of the virtual currency; or 24
(B) private insurance against theft or loss, including cyber 25
theft; 26
(3) the irrevocability of a virtual currency transfer or virtu al currency 27
exchange and any exception to irrevocability; 28
(4) a description of 29
(A) liability for an unauthorized, mistaken, or accidental virtual 30
currency transfer or virtual currency exchange; 31
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(B) the person's responsibility to provide notice to the licen see 1
of a virtual currency transfer or virtual currency exchange; 2
(C) the basis for any recovery by the person from the licensee 3
or registrant; 4
(D) general error resolution rights applicable to a virtual 5
currency transfer or virtual currency exchange; and 6
(E) the method for the person to update the person's contact 7
information with the licensee; 8
(5) that the date or time when a virtual currency transfer or virtual 9
currency exchange is made and the person's account is debited m ay differ from the 10
date or time when the person initiates an instruction to make the transfer or exchange; 11
(6) whether the person has a right to stop a preauthorized pay ment or 12
revoke authorization for a virtual currency transfer and the procedure to initiate a stop-13
payment order or revoke authorization for a later virtual currency transfer; 14
(7) the person's right to receive a receipt, trade ticket, or other evidence 15
of a virtual currency transfer or virtual currency exchange; 16
(8) the person's right to at least 30 days' notice of a change i n t h e 17
licensee's fee schedule, other terms and conditions of operatin g the licensee's virtual 18
currency business activity with the person, and the policies ap plicable to the person's 19
account; and 20
(9) that other persons are not required to take payment in vir tual 21
currency, that the value of virtual currency can change, and th at virtual currency is not 22
backed by a governmental agency. 23
(c) Except as provided in (d) of this section, at the conclusi on of a virtual 24
currency transaction with or on behalf of a person, a licensee shall provide the person 25
a confirmation in a record that contains 26
(1) the name and contact informa tion of the licensee, includin g 27
information the person may need to ask a question or file a complaint; 28
(2) the type, value, date, precise time, and amount of the tra nsaction; 29
and 30
(3) the fee charged for the transaction, including any charge for 31
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conversion of virtual currency to money, bank credit, or another virtual currency. 1
(d) If a licensee discloses that the licensee will provide a d aily confirmation in 2
the initial disclosure under (c) of this section, the licensee may elect to provide a 3
single, daily confirmation for all transactions with or on beha lf of a person on that day 4
instead of a confirmation for each transaction. 5
Sec. 06.55.160. Property interests and entitlements to virtual currency. (a) 6
A licensee that has control of virtual currency for a person sh all maintain in the 7
licensee's control an amount of each type of virtual currency s ufficient to satisfy the 8
aggregate entitlements of the person to the type of virtual currency. 9
(b) If a licensee violates (a) of this section, the property i nterests of the person 10
in the virtual currency are pro rata property interests in the type of virtual currency to 11
which the person is entitled, wit hout regard to the time the pe rson became entitled to 12
the virtual currency or the licensee obtained control of the virtual currency. 13
(c) The virtual currency referred to in this section is 14
(1) held for the person entitled to the virtual currency; 15
(2) not property of the licensee; 16
(3) not subject to the claims of creditors of the licensee; and 17
(4) considered a permissible investment under this chapter. 18
Sec. 06.55.165. Additional requiremen ts and clarifications for virtual 19
currency business activities. (a) A licensee engaged in a virtual currency business 20
activity shall comply with all provisions of this chapter to th e extent applicable to the 21
licensee's activities. 22
(b) A licensee engaged in a virtual currency business activity may include 23
virtual currency in the licensee's calculation of tangible net worth, except virtual 24
currency controlled by a person entitled to the protections of AS 06.55.160. The 25
virtual currency is measured by the average value of the virtua l currency expressed in 26
the dollar equivalent over the previous six calendar months. 27
(c) For five years after the date of virtual currency business activity with or on 28
behalf of a person, a licensee shall maintain a record of 29
(1) each transaction of the licensee with or on behalf of the person or 30
for the licensee's account in this state, including 31
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(A) the identity of the person; 1
(B) the form of the transaction; 2
(C) the amount, date, and payment instructions given by the 3
person; and 4
(D) the account number, name, and mailing address of the 5
person, and, to the extent feasible, other parties to the transaction; 6
(2) the aggregate number of transactions and aggregate value o f 7
transactions by the licensee with or on behalf of the person an d for the licensee's 8
account in this state, expressed in the dollar equivalent of vi rtual currency for the 9
previous 12 calendar months; 10
(3) each transaction in which the licensee engaged in a virtual currency 11
exchange of one form of virtual currency for money or another f orm of virtual 12
currency with or on behalf of the person; 13
( 4 ) a g e n e r a l l e d g e r p o s t e d a t l e a s t m o n t h l y t h a t l i s t s a l l a ssets, 14
liabilities, capital, income, and expenses of the licensee; 15
(5) each report required to be submitted under AS 06.55.403; 16
(6) bank statements and bank reconciliation records for the li censee 17
and the name, account number, and mailing address of each bank the licensee uses in 18
the conduct of its virtual currency business activity with or on behalf of the person; 19
(7) a report of any dispute with the person; and 20
(8) a report of any virtual currency business activity transaction with or 21
on behalf of the person that the licensee was unable to complete. 22
(d) A licensee shall maintain the records required by (c) of t his section in a 23
form that enables the department to determine whether the licen see is in compliance 24
with a court order, this chapter, or other law of this state. 25
Sec. 06.55.170. Scope of application. (a) The provisions of AS 06.55.150 - 26
06.55.165 do not apply to a virtual currency exchange, a virtua l currency transfer, 27
virtual currency storage, or virtual currency administration to the extent the activity is 28
governed by 15 U.S.C. 1693 - 1693r (Electronic Fund Transfer Ac t of 1978), 15 29
U.S.C. 78a - 78qq (Securities Exchange Act of 1934), 7 U.S.C. 1 - 27f (Commodity 30
Exchange Act), or AS 45.56.100 - 45.56.995 (Alaska Securities Act). 31
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(b) The provisions of AS 06.55.150 - 06.55.165 do not apply to activity by 1
(1) a person that contributes only connectivity software or co mputing 2
power to a decentralized virtual currency or to a protocol gove rning virtual currency 3
transfer of the digital representation of value; 4
(2) a person that provides only data storage or security servi ces for a 5
business engaged in virtual cur rency business activity and does not otherwise engage 6
in virtual currency business activity on behalf of another person; 7
(3) a person that provides only to another person otherwise ex empt 8
f r o m t h i s c h a p t e r v i r t u a l c u r r e n c y a s o n e o r m o r e e n t e r p r i s e s olutions used solely 9
between each other and has no agreement or relationship with a person that is an end 10
user of virtual currency; 11
(4) a person using virtual curre ncy, including creating, inves ting, 12
buying, or selling, or obtaining virtual currency as payment fo r the purchase or sale of 13
goods or services, solely 14
(A) on the person's own behalf; 15
(B) for personal, family, or household purposes; or 16
(C) for academic purposes; 17
(5) a person that has virtual currency business activity with or on 18
behalf of a person reasonably expected to be valued, in the aggregate, at $5,000 or less 19
annually, measured by the dollar equivalent of virtual currency; 20
(6) an attorney providing escrow services to a person; 21
(7) a title insurance company providing escrow services to a person; 22
(8) a securities intermediary, as defined in AS 45.08.102, or a 23
commodity intermediary, as defined in AS 45.29.102, that 24
(A) does not engage in the or dinary course of business in 25
virtual currency business activity with or on behalf of a perso n in addition to 26
maintaining securities accounts or commodities accounts and is regulated as a 27
securities intermediary or commodity intermediary under federal law, the law 28
of this state other than this chapter, or the law of another state; and 29
(B) affords a person protections comparable to those set out i n 30
AS 06.55.160; 31
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(9) a secured creditor under AS 45.29 or creditor with a judic ial lien or 1
lien arising by operation of law on collateral that is virtual currency, if the virtual 2
currency business activity of the creditor is limited to enforc ement of the security 3
interest in compliance with AS 45.29 or the law applicable to the lien; 4
(10) a virtual currency control services vendor; 5
(11) a person that does not receive compensation from a person for 6
(A) providing virtual currency products or services; 7
(B) conducting virtual currency business activity; or 8
(C) engaging in testing products or services with the person's 9
own funds. 10
(c) The department may determine, based on facts particular to the person or 11
class of persons, that a person or class of persons is exempt from this chapter. 12
* Sec. 8. AS 06.55.301 is repealed and reenacted to read: 13
Sec. 06.55.301. Relationship between licensee and authorized de legate. (a) 14
Before a licensee is authorized to conduct business through an authorized delegate or 15
to allow a person to act as the licensee's authorized delegate, the licensee shall 16
(1) adopt, and update as necessa ry, written policies and proce dures 17
reasonably designed to ensure that the authorized delegate comp lies with applicable 18
state and federal law; 19
(2) enter into a written contract that complies with (c) of th is section; 20
and 21
(3) conduct a reasonable, risk-based background investigation 22
sufficient for the licensee to determine whether the authorized delegate has complied 23
and is likely to comply with applicable state and federal law. 24
(b) An authorized delegate shall operate in compliance with this chapter. 25
(c) The written contract required by (a)(2) of this section mu st be signed by 26
the licensee and the authorized delegate and, at a minimum, must 27
(1) appoint the person signing the contract as the licensee's authorized 28
delegate with the authority to conduct money transmission on behalf of the licensee; 29
(2) set out the nature and scope of the relationship between the licensee 30
and the authorized delegate and the respective rights and responsibilities of the parties; 31
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(3) require the authorized delegate to agree to comply with al l 1
applicable state and federal laws, rules, and regulations perta ining to money 2
transmission, including this chap ter and regulati ons implementi ng this chapter, 3
relevant provisions of the Bank Secrecy Act, and P.L. 107-56 (USA PATRIOT Act); 4
(4) require the authorized delegate to remit and handle money and 5
monetary value in accordance with the terms of the contract; 6
(5) establish a trust for the be nefit of the licensee on money and 7
monetary value after deducting fees received for money transmission; 8
(6) require the authorized deleg ate to prepare and maintain re cords as 9
required by this chapter or regul ations implementing this chapt er, or as reasonably 10
requested by the department; 11
(7) acknowledge that the authorized delegate consents to exami nation 12
or investigation by the department; 13
(8) state that the licensee is subject to regulation by the department and 14
that, as part of that regulati on, the department may suspend or revoke an authorized 15
delegate designation or require the licensee to terminate an au thorized delegate 16
designation; and 17
(9) acknowledge receipt of the written policies and procedures 18
required under (a)(1) of this section. 19
(d) If the licensee's license is suspended, revoked, surrender ed, or expired, the 20
licensee shall, within five business days, provide documentation to the department that 21
the licensee has notified all applicable authorized delegates o f the licensee whose 22
names are in a record filed with the department of the suspensi on, revocation, 23
surrender, or expiration of the license. Upon suspension, revoc ation, surrender, or 24
expiration of a license, applicable authorized delegates shall immediately stop 25
providing money transmission as an authorized delegate of the licensee. 26
(e) An authorized delegate of a licensee holds in trust for th e benefit of the 27
licensee all money after deducting fees received from money tra nsmission. If an 28
authorized delegate commingles any funds received from money tr ansmission with 29
any other funds or property owned or controlled by the authoriz ed delegate, all 30
commingled funds and other property shall be considered held in trust in favor of the 31
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licensee in an amount equal to the amount of money net of fees received from money 1
transmission. 2
(f) In this section, "remit" means to make direct payments of money to a 3
licensee or its representative authorized to receive money or t o deposit money in a 4
bank account specified by the licensee. 5
* Sec. 9. AS 06.55.302 is amended to read: 6
Sec. 06.55.302. Unauthori zed activities. A person may not engage in the 7
business of money transmission on behalf of a person that is no t licensed or 8
exempt [ACT AS AN AUTHORIZED DELEGATE FOR, OR OTHERWISE 9
PROVIDE MONEY SERVICES ON BEHALF OF, A PERSON WHO DOES NOT 10
HOLD A MONEY SERVICES LICENSE] under this chapter. A person that engages 11
in the business of money transmission on behalf of a person not licensed or 12
exempt under this chapter provides money transmission to the sa me extent as if 13
the person were a licensee and is jointly and severally liable with the unlicensed 14
or nonexempt person. 15
* Sec. 10. AS 06.55.401 is repealed and reenacted to read: 16
Sec. 06.55.401. Supervision; examination; investigation. (a) The department 17
may conduct an examination or inve stigation of a licensee or au thorized delegate or 18
otherwise take independent action authorized by this chapter, r egulations 19
implementing this chapter, and other applicable law, including the Bank Secrecy Act, 20
15 U.S.C. 1693 - 1693r (Electronic Fund Transfer Act), P.L. 106 -102 (Gramm-Leach-21
Bliley Act), and P.L. 107-56 (USA PATRIOT Act). The department may 22
(1) conduct an on-site or off-s ite examination as the departme nt 23
reasonably requires; 24
(2) conduct an examination in c onjunction with an examination 25
conducted by representatives of ot her agencies of this state, a nother state, or the 26
federal government; 27
(3) accept the examination report of another agency of this st ate, 28
another state, or the federal g overnment, or a report prepared by an independent 29
accounting firm; a report accepted under this paragraph is cons idered for all purposes 30
to be an official report of the department; and 31
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(4) summon and examine under oath a key individual or employee of a 1
licensee or authorized delegate and require the key individual or employee to produce 2
records regarding any matter related to the condition and busin ess of the licensee or 3
authorized delegate. 4
(b) A licensee or authorized delegate shall provide, and the d epartment shall 5
have complete access to, records necessary for the department t o conduct a complete 6
examination. The licensee or aut horized delegate shall provide the records at the 7
location and in the format specifi ed by the department. The dep a r t m e n t m a y u s e 8
multistate record production standards and examination procedur es when the 9
multistate record production standards and examination procedur es will reasonably 10
achieve the requirements of this section. 11
(c) Unless otherwise directed by the department, a licensee sh all pay all costs 12
reasonably incurred in connection with an examination of a lice nsee or a licensee's 13
authorized delegate. 14
(d) Information obtained during an examination under this chap ter may be 15
disclosed only as provided in AS 06.55.407. 16
* Sec. 11. AS 06.55.403(a) is repealed and reenacted to read: 17
(a) A licensee shall submit a report of the licensee's financi al condition within 18
45 days after the end of each quarter of the calendar year or w ithin an extended period 19
that the department establishes. The report of condition must include 20
(1) financial information at the licensee's level; 21
(2) nationwide and state-specific money transmission transacti on 22
information in every jurisdicti on in the United States where th e licensee is licensed to 23
engage in money transmission; 24
(3) a permissible investments report; 25
(4) transaction destination country reporting for money receiv ed for 26
transmission, if applicable; and 27
(5) any other information the department reasonably requires w ith 28
respect to the licensee. 29
* Sec. 12. AS 06.55.403(b) is repealed and reenacted to read: 30
(b) A licensee shall submit a report of the licensee's authori zed delegates 31
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w i t h i n 4 5 d a y s a f t e r t h e e n d o f e a c h q u a r t e r o f t h e c a l e n d a r y ear. The report of 1
authorized delegates must include the following information abo ut each authorized 2
delegate: 3
(1) if the authorized delegate is an entity, the legal name of the entity; 4
if the authorized delegate is an individual, the legal name of the individual; 5
(2) taxpayer employer identification number; 6
(3) principal provider identifier; 7
(4) physical address; 8
(5) mailing address; 9
(6) business conducted in other states, if any; 10
( 7 ) a t r a d e n a m e o r o t h e r n a m e u s e d b y t h e i n d i v i d u a l t h a t i s not 11
individual's legal name; 12
(8) contact person name, tele phone number, and electronic mail 13
address; 14
(9) the date the authorized delegate began acting as the licen see's 15
authorized delegate; 16
(10) the date the authorized delegate stopped acting as the li censee's 17
authorized delegate, if applicable; and 18
(11) any other information the department reasonably requires with 19
respect to the authorized delegate. 20
* Sec. 13. AS 06.55.403(c) is amended to read: 21
(c) A [MONEY SERVICES] licensee shall file a report with the d epartment 22
within one business day after the [MONEY SERVICES] licensee has reason to know 23
of the occurrence of any of the following events: 24
(1) the filing of a petition by or against the [MONEY SERVICES ] 25
licensee under 11 U.S.C. 101 - 112 [11 U.S.C. 101 - 110] (Bankruptcy Code) for 26
bankruptcy or reorganization; 27
(2) the filing of a petition by or against the [MONEY SERVICES ] 28
licensee for receivership, the commencement of any other judici al or administrative 29
proceeding for its dissolution or reorganization, or the making of a general assignment 30
for the benefit of its creditors; 31
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(3) the commencement of a proceeding to revoke or suspend its 1
[MONEY SERVICES] license in a state or country in which the [MO NEY 2
SERVICES] licensee engages in business or is licensed; 3
(4) the cancellation or other impairment of the [MONEY SERVICE S] 4
licensee's bond or other security; 5
(5) a charge against or conviction of the [MONEY SERVICES] 6
licensee or of a key individual [AN EXECUTIVE OFFICER, MANAGER, 7
DIRECTOR,] or person in control of the [MONEY SERVICES] license e for a felony; 8
or 9
(6) a charge against or conviction of an authorized delegate f or a 10
felony. 11
* Sec. 14. AS 06.55.403 is amended by adding a new subsection to read: 12
(d) The department may use the registry for the submission of reports required 13
by this section. 14
* Sec. 15. AS 06.55.404 is repealed and reenacted to read: 15
Sec. 06.55.404. Control; acquisition; passive investor. (a) A person or group 16
of persons acting in concert seek ing to acquire control of a li censee shall obtain the 17
written approval of the department before acquiring control. An individual is not 18
considered to acquire control of a licensee when the individual b e c o m e s a k e y 19
individual in the ordinary course of business. 20
(b) A person, or group of persons acting in concert, seeking t o acquire control 21
of a licensee shall, in cooperation with the licensee, 22
(1) submit an application in a form and in a medium prescribed by the 23
department that includes the information required by AS 06.55.412, as applicable; and 24
(2) submit a nonrefundable fee with the request for approval. 25
(c) The department may permit a licensee or the person, or gro up of persons 26
acting in concert, to submit some or all information required b y the department under 27
(b)(1) of this section without using the registry. 28
(d) When an application for acquisition of control appears to include all 29
required information and to addr ess all matters required by the department, the 30
application is considered complete, and the department shall no tify the applicant in a 31
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record of the date on which the department determines the appli cation is complete. 1
The department shall approve or deny the application within 120 days after the date 2
the application was determined t o be complete. If the applicati on is not approved or 3
denied within 120 days after the completion date, 4
(1) the application is approved; and 5
(2) the person or group of persons acting in concert is not pr ohibited 6
from acquiring control. 7
(e) The department may for good cause extend the period for ap proving or 8
denying an application under (d) of this section. 9
(f) A determination by the department that an application is c omplete and is 10
accepted for processing means only that the application, on its face, appears to include 11
all required items, including a criminal background check, and address all required 12
matters. The department's determination is not an assessment of the substance of the 13
application or of the sufficiency of the information provided. 14
(g) When an application is filed and considered to be complete under (d) of 15
this section, the department sha ll investigate the financial co ndition, financial 16
responsibility, financial experience, business experience, comp etence level, character, 17
and general fitness of the person or group of persons acting in concert seeking to 18
acquire control. The department s hall approve a request for acq uisition of control if 19
the department finds that 20
(1) the requirements of (b) of this section have been met, as applicable; 21
and 22
(2) the financial condition, fi nancial responsibility, financi al 23
experience, business experience, competence level, character, a nd general fitness of 24
the person, or group of persons acting in concert, seeking to a cquire control, and the 25
experience, competence level, character, and general fitness of the key individuals and 26
persons that would be in control of the licensee after the acquisition of control indicate 27
that it is in the public interest to permit the person, or grou p of persons acting in 28
concert, to control the licensee. 29
(h) If an applicant for approval to acquire control is subject to a multistate 30
licensing process, the department may 31
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(1) accept the investigation results of a lead investigative s tate for the 1
purposes of (g) of this section; or 2
(2) investigate the applicant in accordance with (g) of this s ection and 3
the time frames established by agreement through the multistate licensing process. 4
( i ) T h e d e p a r t m e n t s h a l l i s s u e a f o r m a l w r i t t e n n o t i c e o f a d enial of an 5
application for approval to acqui re control within 30 days afte r the decision to deny 6
the application. The department shall set out in the notice of denial the specific reasons 7
for the denial. An applicant may appeal a denial within 30 days a f t e r r e c e i v i n g t h e 8
written notice of the denial. 9
(j) The requirements of (a) and (b) of this section do not apply to 10
(1) a person that acts as a proxy for the sole purpose of voti ng at a 11
designated meeting of the shareholders or holders of voting sha res or voting interests 12
of a licensee or a person in control of a licensee; 13
(2) a person that acquires control of a licensee by devise or descent; 14
(3) a person that acquires control of a licensee as a personal 15
representative, custodian, guardi an, conservator, or trustee, o r as an officer appointed 16
by a court of competent jurisdiction or by operation of law; 17
(4) a person that is exempt under AS 06.55.802(4); 18
(5) a person that the department, by regulation or order, dete rmines to 19
be exempt from the requirements of (a) and (b) of this section because that exemption 20
is in the public interest; 21
(6) a public offering of securities of a licensee or a person in control of 22
a licensee; or 23
(7) an internal reorganization of a person in control of a licensee where 24
the ultimate person in control of the licensee remains the same. 25
(k) A person exempt from the requirements of (a) and (b) of th is section, in 26
cooperation with the licensee, s hall notify the department with in 15 days after the 27
acquisition of control. 28
(l) Before filing an application for approval to acquire control of a licensee, a 29
person may request in writing a determination from the departme nt as to whether the 30
person would be considered a person in control of a licensee up on consummation of a 31
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proposed transaction. If the depar tment determines that the per son would not be a 1
person in control of a licensee, the proposed person and transa ction are not subject to 2
the requirements of (a) and (b) of this section. 3
(m) If a multistate licensing process includes a determination made under ( l) 4
of this section and an applicant is subject to the multistate l icensing process, the 5
department may 6
(1) accept the control determination of a lead investigative state; or 7
(2) investigate the applicant in accordance with this section and the 8
time frames established by agreement through the multistate licensing process. 9
(n) The requirements of (a) and (b) of this section do not apply to a person that 10
has complied with and received approval to engage in money tran smission under this 11
chapter or who has identified as a person in control in a previous application filed with 12
and approved by the department or by an accredited state in acc ordance with a 13
multistate licensing process, if 14
(1) in the previous five years, the person has not had a licen se revoked 15
or suspended or controlled a licen see that has had a license re voked or suspended 16
while the person was in control of the licensee; 17
( 2 ) t h e p e r s o n i s a l i c e n s e e , the person is well managed and h as 18
received at least a satisfactory rating for compliance at the p erson's most recent 19
examination by an accredited state if a rating was given; 20
(3) the licensee to be acquired is projected to meet the requi rements of 21
this chapter, including AS 06.55.501, 06.55.505, and 06.55.510 after the acquisition of 22
control is completed, and if the person acquiring control is a licensee, the licensee is 23
also projected to meet the requi rements of this chapter, includ ing AS 06.55.501, 24
06.55.505, and 06.55.510, after the acquisition of control is completed; 25
(4) the licensee to be acquired will not implement any materia l 26
changes to the licensee's business plan as a result of the acqu isition of control, and if 27
the person acquiring control is a licensee, the licensee also w ill not implement any 28
material changes to the licensee's business plan as a result of the acquisition of control; 29
and 30
(5) the person provides notice of the acquisition in cooperati on with 31
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the licensee and attests to (1) - (4) of this subsection in a f orm and in a medium 1
prescribed by the department. 2
(o) If the notice required under (n)(5) of this section is not disapproved within 3
30 days after the date on which the notice was determined to be complete, the notice is 4
considered to be approved. 5
(p) A person is presumed to exercise a controlling influence w hen the person 6
holds the power to vote, directly or indirectly, at least 10 pe rcent of the outstanding 7
voting shares or voting interests of a licensee or person in co ntrol of a licensee. To 8
determine the percentage of a person controlled by any other person, the interest of the 9
person presumed to have a controlling interest shall be aggrega ted with the interest of 10
any other immediate family membe r, including the person's spous e, parents, children, 11
siblings, relative by marriage, and any other person who shares the home of the person 12
presumed to have a controlling interest. 13
(q) A passive investor is not c onsidered to have control under this chapter. To 14
be a passive investor, a person 15
(1) may not have the power to el ect a majority of key individu als or 16
executive officers, managers, directors, trustees, or other per sons exercising 17
managerial authority of a person in control of a licensee; 18
(2) may not be employed by or have managerial duties of the li censee 19
or person in control of a licensee; 20
(3) may not have the power to exercise, directly or indirectly , a 21
controlling influence over the management or policies of a lice nsee or person in 22
control of a licensee; and 23
(4) shall attest to (1) - (3) of this subsection on a form and in a medium 24
prescribed by the department, or commit to the requirements of (1) - (3) of this 25
subsection in a written document. 26
* Sec. 16. AS 06.55.405(a) is amended to read: 27
(a) A [MONEY SERVICES] licensee shall maintain the following r ecords for 28
determining its compliance with this chapter for at least five [THREE] years: 29
( 1 ) a r e c o r d o f e a c h outstanding money transmission [PAYMENT 30
INSTRUMENT OR STORED-VALUE] obligation sold; 31
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(2) a general ledger posted at least monthly containing all as set, 1
liability, capital, income, and expense accounts; 2
(3) bank statements and bank reconciliation records; 3
(4) records of outstanding money transmission [PAYMENT 4
INSTRUMENTS AND STORED-VALUE] obligations; 5
( 5 ) r e c o r d s o f e a c h outstanding money transmission [PAYMENT 6
INSTRUMENT AND STORED-VALUE] obligation paid within the five-year 7
[THREE-YEAR] period; 8
(6) a list of the last known n ames and addresses of all of the [MONEY 9
SERVICES] licensee's authorized delegates; and 10
(7) any other records the department reasonably requires by regulation. 11
* Sec. 17. AS 06.55.405(d) is amended to read: 12
(d) Records [ALL RECORDS] maintained by the [MONEY SERVICES] 13
licensee as required in (a) - (c) of this section are open to i nspection by the department 14
only as permitted under AS 06.55.401. 15
* Sec. 18. AS 06.55.406(a) is amended to read: 16
(a) A [MONEY SERVICES] licensee and an authorized delegate sha ll file 17
with the appropriate federal agency [ATTORNEY GENERAL] all reports required 18
by federal currency reporting, record keeping, and suspicious t ransaction reporting 19
requirements as set out in the Bank Secrecy Act [31 U.S.C. 5311] and other federal 20
and state laws pertaining to money laundering. The timely filing of a complete and 21
accurate report required under this section with the appropriat e federal agency 22
is considered to be in compliance with the requirements of this section. 23
* Sec. 19. AS 06.55.407(a) is amended to read: 24
(a) Except as [OTHERWISE] provided in (b) of this section, all information 25
or reports obtained by the department from an applicant, [A] li censee, or [AN] 26
authorized delegate , all information contained in or related to an examination, 27
investigation, operating report, or condition report prepared b y, on behalf of, or 28
for the use of the department, and financial statements, balanc e sheets, or 29
authorized delegate information, are confidential and not subject to disclosure under 30
AS 40.25.100 - 40.25.295 [, INCLUDING 31
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(1) ALL INFORMATION CONTAINED IN OR RELATED TO 1
EXAMINATION, INVESTIGATION, OPERATING, OR CONDITION REPORTS 2
PREPARED BY, ON BEHALF OF, OR FO R THE USE OF THE DEPARTMENT; 3
AND 4
(2) FINANCIAL STATEMENTS, BALANCE SHEETS, AND 5
AUTHORIZED DELEGATE INFORMATION]. 6
* Sec. 20. AS 06.55.407(b) is amended to read: 7
(b) The department may disclose information that is not otherw ise subject to 8
disclosure under (a) of this sec tion to representatives of stat e or federal agencies who 9
promise in a record that they will maintain the confidentiality of the information or if 10
the department finds that the release is reasonably necessary f or the protection of the 11
public and in the interests of justice [, AND THE MONEY SERVICE S LICENSEE 12
HAS BEEN GIVEN PREVIOUS NOTICE BY THE DEPARTMENT OF ITS 13
INTENT TO RELEASE THE INFORMATION]. 14
* Sec. 21. AS 06.55.407(c) is amended to read: 15
(c) This section does not prohib it the department from disclosing to the public 16
a list of [MONEY SERVICES] licensees or the aggregated financia l or transactional 17
data concerning those [MONEY SERVICES] licensees. 18
* Sec. 22. AS 06.55.407(d) is amended to read: 19
(d) A [MONEY SERVICES] licensee or an authorized delegate may not 20
disclose to another person financ ial information provided to th e [MONEY 21
SERVICES] licensee or the authorized delegate by a customer exc ept when, and only 22
to the extent that, the disclosure is 23
(1) authorized in writing by the customer; 24
(2) required by federal, state, or local law; 25
(3) required by an order issued by a court or an administrativ e agency; 26
or 27
(4) part of the money transmission [SERVICES] transaction ordered 28
by the customer. 29
* Sec. 23. AS 06.55.407 is amended by adding a new subsection to read: 30
(f) Information contained in the records of the department tha t is not 31
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confidential and may, upon request , be made available to the pu blic on the 1
department's Internet website includes 2
(1) the name, business address, telephone number, and unique r egistry 3
identifier of a licensee; 4
(2) the business address of a licensee's registered agent for service; 5
(3) the name, business address, and telephone number of all authorized 6
delegates; 7
(4) the terms or a copy of any bond filed by a licensee, if th at 8
confidential information, including the prices and fees for the bond, is redacted; 9
(5) copies of any nonconfidential final orders of the departme nt 10
relating to any violation of this chapter or regulations implementing this chapter; and 11
(6) imposition of an administrative fine or penalty under this chapter. 12
* Sec. 24. AS 06.55 is amended by adding new sections to article 4 to read: 13
Sec. 06.55.408. Audited financial statements. (a) A licensee shall, within 90 14
days after the end of the licensee's fiscal year or within any extended period that the 15
department establishes, file with the department 16
(1) an audited financial statement of the licensee for the fis cal year 17
prepared in accordance with generally accepted accounting principles; and 18
(2) other information the department reasonably requires. 19
(b) The audited financial statem ents must be prepared by an in dependent 20
certified public accountant or i ndependent public accountant who is satisfactory to the 21
department. 22
(c) The audited financial statements must include a certificat e of opinion of 23
the independent certified public accountant or independent publ ic accountant that is 24
satisfactory in form and content to the department. If the cert ificate or opinion is 25
qualified, the department may order the licensee to take any ac tion that the department 26
finds necessary to enable the independent certified public acco untant or independent 27
public accountant to remove the qualification. 28
Sec. 06.55.409. Implementation. (a) To carry out the purposes of this chapter, 29
subject to AS 06.55.407, the department may 30
(1) enter into an agreement or relationship with a government official 31
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or federal or state regulatory agency or regulatory association to improve efficiency 1
and reduce regulatory burden by standardizing methods or proced ures, and sharing 2
resources, records, or related information obtained under this chapter; 3
(2) use, hire, contract, or emp loy analytical systems, methods , or 4
software to examine or investigate a person subject to this chapter; 5
(3) accept from a state or federal government agency or offici al 6
licensing, examination, or investigation reports made by the agency or official; and 7
(4) accept an audit report made by an independent certified pu blic 8
accountant or independent public accountant that is satisfactor y to the department for 9
an applicant or licensee and incorporate the audit reports into a report of examination 10
or investigation. 11
(b) The department has broad administrative authority to admin ister, interpret 12
and enforce this chapter, to adopt regulations implementing thi s chapter, and to 13
recover the cost of administering and enforcing this chapter by imposing and 14
collecting proportionate and equitable fees and costs associate d with applications, 15
examinations, investigations, and other actions required to achieve the purposes of this 16
chapter. 17
Sec. 06.55.410. Networked supervision. (a) The department may participate 18
in multistate supervisory processes established between and amo ng states and 19
coordinated through an organiza tion determined by the departmen t to be a nationally 20
recognized organization in supervisory processes establishment and coordination 21
between and among states for all licensees that hold licenses i n this state and other 22
states. As a participant in multistate supervision, subject to AS 06.55.407, the 23
department may 24
(1) cooperate, coordinate, and share information with other st ate and 25
federal regulators; and 26
(2) enter into written contracts or agreements with other stat e and 27
federal regulators for the pur poses of cooperating, coordinatin g, and sharing 28
information with state and federal regulators. 29
(b) Nothing in this section constitutes a waiver of the department's authority to 30
conduct an examination or investig ation or otherwise take indep endent action to 31
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enforce compliance with applicable state or federal law. 1
(c) A joint examination or inve stigation, or acceptance of an examination or 2
investigation report, does not w aive an examination assessment provided for in this 3
chapter. 4
Sec. 06.55.411. Relationship to federal law. (a) If state money transmission 5
jurisdiction is conditioned on a fe deral law, any inconsistency between a provision of 6
this chapter and the federal law governing money transmission i s governed by the 7
applicable federal law to the extent of the inconsistency. 8
(b) If an inconsistency between this chapter and a federal law that governs in 9
accordance with (a) of this section, the department may provide interpretive guidance 10
that 11
(1) identifies the inconsistency; and 12
(2) identifies the appropriate means of compliance with federal law. 13
Sec. 06.55.412. Notice and information requirements for a chang e of key 14
individual. (a) A licensee adding or replacing a key individual shall 15
(1) provide notice in a manner prescribed by the department wi thin 15 16
days after the effective date of the key individual's appointment; and 17
(2) provide the informati on required under AS 06.55.109 within 4 5 18
days after the effective date of the key individual's appointment. 19
(b) The department may issue a notice of disapproval of a key individual if the 20
department finds that the experi ence, competence level, charact er, or integrity of the 21
individual would not be in the best interest of the public or t he customers of the 22
licensee to permit the individual to be a key individual. The d epartment shall issue a 23
notice of disapproval within 90 days after the department deter mines the notice 24
provided under (a) of this section to be complete. 25
(c) A notice of disapproval shall contain a statement of the b a s i s f o r t h e 26
disapproval and be sent to the licensee and the disapproved individual. A licensee may 27
appeal a notice of disapproval within 30 days after receipt of the notice. 28
(d) If the notice provided under (a) of this section is not disapproved within 90 29
days after the date the notice was determined to be complete, t he key individual is 30
considered to be approved. 31
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(e) If a multistate licensing process includes a key individua l notice review 1
and disapproval process, and the licensee is subject to the mul tistate licensing process, 2
the department may 3
(1) accept the key individual notice review determination of a nother 4
state; or 5
(2) investigate the applicant in accordance with (b) of this s ection and 6
the time frames established by agreement through the multistate licensing process. 7
* Sec. 25. AS 06.55.501 is amended to read: 8
Sec. 06.55.501. Maintenance of permissible investments. (a) A [MONEY 9
SERVICES] licensee shall maintain at all times permissible inve stments that have a 10
market value computed under generally accepted accounting principles of not less than 11
the aggregate amount of all of its outstanding money transmission [PAYMENT 12
INSTRUMENTS AND STORED VALUE] obligations [ISSUED OR SOLD IN AL L 13
STATES AND MONEY TRANSMITTED FROM ALL STATES BY THE MONEY 14
SERVICES LICENSEE]. 15
(b) Except for permissible inves tments listed in AS 06.55.502(a), t he 16
[THE] department, with respect to any licensee [MONEY SERVICES LICENSEES], 17
may by regulation or order limit the extent to which a specific [ T Y P E O F ] 18
investment maintained by a licensee within a class of permissible investments may 19
b e c o n s i d e r e d a p e r m i s s i b l e i n v e s t m e n t [ , E X C E P T F O R M O N E Y A N D 20
CERTIFICATES OF DEPOSIT ISSUED BY A BANK. THE DEPARTMENT BY 21
REGULATION MAY PRESCRIBE OR BY ORDER ALLOW OTHER TYPES OF 22
INVESTMENTS THAT THE DEPARTMENT DETERMINES TO HAVE A 23
SAFETY SUBSTANTIALLY EQUIVALENT TO OTHER PERMISSIBLE 24
INVESTMENTS]. 25
(c) Permissible investments, even if commingled with other ass ets of the 26
[MONEY SERVICES] licensee, are held in trust for the benefit of the purchasers and 27
holders of the [MONEY SERVICES] licensee's outstanding money transmission 28
[PAYMENT INSTRUMENTS AND STORED VALUE] obligations in the event o f 29
the licensee's insolvency, bankruptcy , [OR] receivership , commencement of other 30
judicial or administrative proceedings for its dissolution or r eorganization, or in 31
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the event of an action by a creditor against the licensee who is not a beneficiary of 1
the statutory trust. A permissible investment impressed with a trust in 2
accordance with this subsection is not subject to attachment, l evy of execution, or 3
sequestration by a court, unless the attachment, levy of execut ion, or 4
sequestration is for a beneficiary of the statutory trust [OF THE MONEY 5
SERVICES LICENSEE]. 6
* Sec. 26. AS 06.55.501 is amended by adding new subsections to read: 7
(d) Upon the establishment of a statutory trust under (c) of t his section, or 8
when funds are drawn on a letter of credit under AS 06.55.502(a )(4) and 06.55.503, 9
the department shall notify the applicable regulator of each st ate in which the licensee 10
is licensed to engage in money transmission, if any, of the establishment of the trust or 11
the funds drawn on the letter of credit, as applicable. Notice may be provided in 12
accordance with a multistate agreement or through the registry. Funds drawn on a 13
letter of credit and any other permissible investments held in trust for the benefit of the 14
purchasers and holders of the li censee's outstanding money tran smission obligations 15
are considered to be held in trust for the benefit of the purch asers and holders of the 16
licensee's outstanding money transmission obligations on a pro rata and equitable 17
basis in accordance with state law and the law of other states, as applicable. A 18
statutory trust established unde r this section shall be termina ted upon extinguishment 19
of all of the licensee's outstanding money transmission obligations. 20
(e) The department may by regulation or order allow other type s of 21
investments that the department determines are of sufficient li quidity and quality to be 22
a permissible investment. The de partment may participate in eff orts with other state 23
regulators to identify permissible investments. 24
* Sec. 27. AS 06.55.502(a) is amended to read: 25
(a) The [EXCEPT TO THE EXTENT OTHERWISE LIMITED BY THE 26
DEPARTMENT UNDER AS 06.55.501, THE] following investments are p ermissible 27
under AS 06.55.501: 28
(1) cash, demand deposits, savings deposits, funds in accounts held 29
for the benefit of a licensee's customers in a federally insured depository financial 30
institution, money market mutual funds rated AAA by an eligible rating service, 31
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certificates [ A C E R T I F I C A T E ] o f d e p o s i t , [ O R A ] s e n i o r d e b t obligations 1
[OBLIGATION] of a federally [AN] insured depository financial institution , and 2
cash equivalents, including automated clearing house items in t ransit to the 3
licensee and automated clearing house items or international wi res in transit to a 4
payee, cash in transit by armored car, cash in smart safes, cas h in licensee-owned 5
locations, and transmission receivables owed by a bank and fund ed by a debit 6
card or credit card; 7
(2) [; IN THIS PARAGRAPH, "INSURED DEPOSITORY 8
INSTITUTION" HAS THE MEANING GIVEN IN 12 U.S.C. 1813 (FEDERAL 9
DEPOSIT INSURANCE ACT); 10
(2) BANKER'S ACCEPTANCE OR BILL OF EXCHANGE THAT IS 11
ELIGIBLE FOR PURCHASE ON ENDORSEMENT BY A MEMBER BANK OF 12
THE FEDERAL RESERVE SYSTEM AND IS ELIGIBLE FOR PURCHASE BY A 13
FEDERAL RESERVE BANK; 14
(3)] an investment bearing a rating of one of the three highest grades as 15
defined by a nationally recognized organization that rates securities; 16
(3) [(4) AN INVESTMENT SECURITY THAT IS] an obligation of 17
the United States or a commission [DEPARTMENT], agency, or instrumentality of 18
the United States, [AN INVESTMENT IN] an obligation that is gua ranteed fully as to 19
principal and interest by the United States, or [AN INVESTMENT IN] an obligation 20
of a state or a governmental subdivision, agency, or instrumentality of a state; 21
(4) the full drawable amount that can be drawn on an irrevocab le 22
standby letter of credit that complies with AS 06.55.503; 23
(5) 100 percent of the surety bond provided for under 24
AS 06.55.505 that exceeds the average daily money transmission liability in this 25
state 26
[ ( 5 ) R E C E I V A B L E S T H A T A R E P A Y A B L E T O A M O N E Y 27
SERVICES LICENSEE FROM ITS AUTHORIZED DELEGATES, IN THE 28
ORDINARY COURSE OF BUSINESS, UNDER CONTRACTS THAT ARE NOT 29
PAST DUE OR DOUBTFUL OF COLLECTION IF THE AGGREGATE AMOUNT 30
OF RECEIVABLES UNDER THIS PARAGRAPH DOES NOT EXCEED 20 31
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PERCENT OF THE TOTAL PERMISSIBLE INVESTMENTS OF A MONEY 1
SERVICES LICENSEE AND THE MONEY SERVICES LICENSEE DOES NOT 2
HOLD AT ONE TIME RECEIVABLES UNDER THIS PARAGRAPH IN ANY 3
ONE PERSON AGGREGATING MORE THAN 10 PERCENT OF THE MONEY 4
SERVICES LICENSEE'S TOTAL PERMISSIBLE INVESTMENTS; AND 5
(6) A SHARE OR A CERTIFICATE ISSUED BY AN OPEN-END 6
MANAGEMENT INVESTMENT COMPANY THAT IS REGISTERED WITH THE 7
UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER 15 8
U.S.C. 80a-1 - 80a-64 (INVESTMENT COMPANY ACT OF 1940), AND WHO SE 9
PORTFOLIO IS RESTRICTED BY THE MANAGEMENT COMPANY'S 10
INVESTMENT POLICY TO INVESTMENTS SPECIFIED IN (1) - (4) OF THIS 11
SUBSECTION]. 12
* Sec. 28. AS 06.55.502(b) is repealed and reenacted to read: 13
(b) In addition to the investme nts permissible under (a) of th is section, the 14
following investments are permissible under (a) of this section, to the extent specified: 15
(1) receivables that are payable to a licensee from the licens ee's 16
authorized delegates in the ordinary course of business that ar e less than seven days 17
old and do not exceed 50 percent of the aggregate value of the licensee's total 18
permissible investments; receiva bles under this paragraph that are payable to a 19
licensee from a single authorized delegate in the ordinary cour se of business may not 20
exceed 10 percent of the aggregate value of the licensee's tota l permissible 21
investments; 22
(2) the following investments, not to exceed 20 percent for ea ch 23
category and a combined total of 50 percent of the aggregate va lue of the licensee's 24
total permissible investments: 25
(A) a short-term investment of not more than six months' 26
duration bearing an eligible rating; 27
(B) commercial paper bearing an eligible rating; 28
(C) a bill, note, bond, or debenture bearing an eligible rating; 29
(D) United States tri-party repurchase agreements collateralized 30
at 100 percent or more by federal government or agency securiti es, municipal 31
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bonds, or other securities bearing an eligible rating; 1
(E) money market mutual funds rated equal to or higher than 2
A- and less than AAA by an eligible rating service; and 3
(F) a mutual fund or other investment fund composed solely 4
and exclusively of one or more p ermissible investments listed in (a)(1) - (3) of 5
this section; and 6
(3) cash held in accounts for the benefit of the licensee's cu stomers at 7
foreign depository financial institutions, not to exceed 10 per cent of the aggregate 8
value of the licensee's total permissible investments, if the l icensee has received a 9
satisfactory rating in the licensee's most recent examination a nd the foreign depository 10
financial institution 11
(A) has an eligible rating; 12
(B) is registered under 26 U.S.C. 1471-1474 (Foreign Account 13
Tax Compliance Act); 14
(C) is not located in any country subject to sanctions from th e 15
United States Department of the Treasury Office of Foreign Asse ts Control; 16
and 17
(D) is not located in a high-risk or noncooperative jurisdicti on 18
as designated by the Financial Action Task Force. 19
* Sec. 29. AS 06.55 is amended by adding new sections to article 5 to read: 20
Sec. 06.55.503. Letter of credit. (a) The letter of c redit permitted under 21
AS 06.55.502(a)(4) 22
(1) must list the department as the beneficiary; 23
(2) must stipulate that the beneficiary is only required to dr aw a sight 24
draft under the letter of credit and present it to obtain funds up to the letter of credit 25
amount within seven days after presenting the items required by (7) of this subsection; 26
(3) must be issued by a federally insured depository financial 27
institution or a foreign bank that bears an eligible rating and is regulated, supervised, 28
and examined by federal or state regulatory authorities having regulatory authority 29
over banks, credit unions, and trust companies; 30
(4) must be irrevocable, uncond itional, and indicate that the letter of 31
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credit is not subject to any condition or qualifications outside of the letter of credit; 1
(5) may not contain reference to any other agreements, documen ts or 2
entities, or otherwise provide for any security interest in the licensee; 3
(6) must contain an issue date and expiration date, and expres sly 4
provide for automatic extension, without a written amendment, f or an additional 5
period of one year from the present or each future expiration d ate, unless the issuer of 6
the letter of credit notifies the department in writing by cert ified or registered mail, 7
courier mail, or other means of notice that provides a receipt, at least 60 days before 8
an expiration date, that the irrevocable letter of credit will not be extended; and 9
(7) must provide that the issuer of the letter of credit will honor, at 10
sight, a presentation made by the beneficiary to the issuer of the following documents 11
on or before the expiration date of the letter of credit: 12
(A) the original letter of credit, including any amendments; and 13
(B) a written statement from the beneficiary stating whether 14
one or more of the following events have occurred: 15
(i) the filing of a petition by or against the licensee 16
under 11 U.S.C. Section 101 - 112 (B ankruptcy Code), for bankru ptcy 17
or reorganization; 18
(ii) the filing of a petition by or against the licensee for 19
receivership, or the commencement of any other judicial or 20
administrative proceeding for the licensee's dissolution or 21
reorganization; 22
(iii) the seizure of assets of a licensee by the department 23
under an emergency order issued in accordance with applicable l aw, 24
based on an action, violation, or condition that has caused or is likely to 25
cause the insolvency of the licensee; or 26
(iv) the beneficiary received notice of expiration or non-27
extension of a letter of credit and the licensee failed to demo nstrate to 28
the satisfaction of the beneficiary that the licensee will main tain 29
permissible investments in a ccordance with AS 06.55.501 or this 30
section upon the expiration or non-extension of the letter of credit. 31
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(b) In the event of any notice of expiration or non-extension of a letter of 1
credit issued under (a) of this section, the licensee shall be required to demonstrate to 2
the satisfaction of the departme nt, 15 days before expiration, that the licensee 3
maintains and will maintain permissible investments in accordance with AS 06.55.501 4
upon expiration of the letter of credit. If the licensee is not able to do so, the 5
department may draw on the lette r of credit in an amount up to the amount necessary 6
to meet the licensee's requirements to maintain permissible inv estments in accordance 7
with AS 06.55.501. A draw must be offset against the licensee's outstanding money 8
transmission obligations. The drawn funds must be held in trust by the department or 9
the department's designated agent, to the extent authorized by law, as agent for the 10
benefit of the purchasers and holders of the licensee's outstan ding money transmission 11
obligations. 12
(c) The department may designate an agent to serve on the department's behalf 13
as beneficiary to a letter of credit if the agent and letter of credit meet the requirements 14
established by the department. The department's agent may serve as agent for multiple 15
licensing authorities for a single irrevocable letter of credit if the proceeds of the 16
drawable amount for the purposes of AS 06.55.502(a)(4) are assi gned to the 17
department. 18
(d) The department may participate in multistate processes des igned to 19
facilitate the issuance and administration of letters of credit , including services 20
provided by the registry. 21
Sec. 06.55.505. Security. (a) An applicant for a license shall provide, and a 22
licensee at all times shall maintain, security consisting of a surety bond in a form 23
satisfactory to the department o r, with the department's approv al, a deposit in 24
accordance with this section. 25
(b) The department shall deter mine the amount of the required security by 26
regulation or order. The amount o f the required security must b e proportional to the 27
licensee's average daily money transmission liability in this s tate up to a maximum of 28
$1,000,000. 29
(c) A licensee that maintains a bond in the maximum amount pro vided for 30
under (b) of this section is not r equired to calculate its aver age daily money 31
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transmission liability in this state for purposes of this section. 1
(d) A licensee may exceed the maximum required bond amount. 2
(e) The aggregate liability on a surety bond may not exceed th e principal sum 3
of the bond. A claimant against a licensee may maintain an acti on on the bond, or the 4
department may maintain an action on behalf of the claimant. 5
(f) A surety bond must cover claims for as long as the departm ent specifies, 6
but at least for the five years after the date the licensee sto ps providing money 7
transmission in this state. The department may permit the amoun t of security to be 8
reduced or eliminated before the expiration of that time to the extent the amount of the 9
licensee's outstanding money transmission obligations in this s tate is reduced. The 10
department may permit a licensee to substitute another form of security acceptable to 11
the department for the security effective at the time the licen see stops providing 12
money transmission in this state. 13
(g) An applicant for a license or a licensee shall obtain the surety bond 14
required under this section from a surety company authorized to do business in this 15
state. 16
Sec. 06.55.510. Net worth. (a) A licensee shall maintain at all times a tangible 17
net worth of 18
(1) the greater of $35,000 or three percent of total assets fo r the first 19
$100,000,000; 20
(2) two percent of additional assets for $100,000,001 to 21
$1,000,000,000; and 22
(3) 0.5 percent of additional assets for over $1,000,000,001. 23
(b) Tangible net worth must be demonstrated at initial applica tion by the 24
applicant's most recent audited or unaudited financial statements. 25
(c) The department may exempt an applicant or licensee, in par t or in whole, 26
from the requirements of this section. 27
* Sec. 30. AS 06.55.601 is amended to read: 28
Sec. 06.55.601. Suspension and revocation; receivership. (a) The 29
department may suspend or revoke a [MONEY SERVICES] license, pl ace a 30
[MONEY SERVICES] licensee in receivership, or order a [MONEY SE RVICES] 31
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licensee to revoke the designation of an authorized delegate if 1
(1) the [MONEY SERVICES] licensee violates this chapter or a 2
regulation adopted or an order issued under this chapter; 3
(2) the [MONEY SERVICES] licen see does not cooperate with an 4
examination or investigation by the department; 5
(3) the [MONEY SERVICES] licensee engages in fraud, intentiona l 6
misrepresentation, or gross negligence; 7
(4) an authorized delegate is c onvicted of a violation of a st ate or 8
federal anti-money laundering statute, or violates a regulation adopted or an order 9
issued under this chapter, as a result of the [MONEY SERVICES] licensee's wilful 10
misconduct or wilful blindness; 11
(5) the competence level, experience, character, or general fitness of 12
the [MONEY SERVICES] licensee, authorized delegate, person in c ontrol of a 13
[MONEY SERVICES] licensee, key individual, or responsible person of the 14
[MONEY SERVICES] licensee or authorized delegate indicates that it is not in the 15
public interest to permit the person to provide money transmission [SERVICES]; 16
(6) the [MONEY SERVICES] licensee engages in an unsafe or 17
unsound practice; 18
(7) the [MONEY SERVICES] licensee is insolvent, suspends payme nt 19
of its obligations, or makes a general assignment for the benefit of its creditors; or 20
(8) the [MONEY SERVICES] licensee does not remove an authorize d 21
delegate after the department issues and serves on [UPON] the [MONEY SERVICES] 22
licensee a final order that includes [INCLUDING] a finding that the authorized 23
delegate has violated this chapter. 24
(b) In determining whether a [MONEY SERVICES] licensee is enga ging in 25
an unsafe or unsound practice, the department may consider the size and condition of 26
the [MONEY SERVICES] licensee's money transmission, the magnitu de of the loss, 27
the gravity of the violation of this chapter, and the previous conduct of the person 28
involved. 29
* Sec. 31. AS 06.55.601 is amended by adding a new subsection to read: 30
(c) A licensee may apply for relief from a suspension or revoc ation of the 31
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licensee's license according to procedures prescribed by the department. 1
* Sec. 32. AS 06.55.602 is amended to read: 2
Sec. 06.55.602. Suspension and revoc ation of authorized delegat es. (a) The 3
department may issue an order suspending or revoking the design ation of an 4
authorized delegate if the department finds that 5
(1) the authorized delegate violated this chapter or a regulation adopted 6
or an order issued under this chapter; 7
(2) the authorized delegate did not cooperate with an examinat ion or 8
investigation by the department; 9
(3) the authorized delegate engaged in fraud, intentional 10
misrepresentation, or gross negligence; 11
(4) the authorized delegate is convicted of a violation of a s tate or 12
federal anti-money laundering statute; 13
(5) the competence level, experience, character, or general fitness of 14
the authorized delegate or a person in control of the authorize d delegate indicates that 15
it is not in the public interest to permit the authorized deleg ate to provide money 16
transmission [SERVICES]; or 17
(6) the authorized delegate is engaging in an unsafe or unsoun d 18
practice. 19
(b) In determining whether an authorized delegate is engaging in an unsafe or 20
unsound practice, the department m ay consider the size and cond ition of the 21
authorized delegate's provision of money transmission [SERVICES], the magnitude 22
of the loss, the gravity of the violation of this chapter or a regulation adopted or order 23
issued under this chapter, and the previous conduct of the authorized delegate. 24
* Sec. 33. AS 06.55.602 is amended by adding a new subsection to read: 25
(c) An authorized delegate may apply for relief from a suspens ion or 26
revocation of designation as an authorized delegate according to procedures prescribed 27
by the department. 28
* Sec. 34. AS 06.55.603(a) is amended to read: 29
(a) If the department determines that a violation of this chap ter or of a 30
regulation adopted or an order issued under this chapter by a [ MONEY SERVICES] 31
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licensee or authorized delegate is likely to cause immediate an d irreparable harm to 1
the [MONEY SERVICES] licensee, its customers, or the public as a result of the 2
violation, or cause insolvency or significant dissipation of as sets of the [MONEY 3
SERVICES] licensee, the department may issue an order requiring the [MONEY 4
SERVICES] licensee or authorized delegate to cease and desist f rom the violation. 5
The order becomes effective on service of it on the [MONEY SERV ICES] licensee or 6
authorized delegate. 7
* Sec. 35. AS 06.55.603(b) is amended to read: 8
( b ) T h e d e p a r t m e n t m a y i s s u e a n o r d e r a g a i n s t a [ M O N E Y S E R V I C ES] 9
licensee to cease and desist from providing money transmission [ S E R V I C E S ] 10
through an authorized delegate who is the subject of a separate o r d e r b y t h e 11
department. 12
* Sec. 36. AS 06.55.603(d) is amended to read: 13
(d) A [MONEY SERVICES] licensee or an authorized delegate who is served 14
with an order to cease and desist may petition the superior cou rt for a judicial order 15
setting aside, limiting, or suspending the enforcement, operati on, or effectiveness of 16
the order pending the completion of an administrative proceeding under AS 06.55.601 17
or 06.55.602. 18
* Sec. 37. AS 06.55.605 is amended to read: 19
Sec. 06.55.605. Civil penalties. The department may assess a civil penalty 20
against a person that [WHO] violates this chapter or a regulation adopted or an orde r 21
issued under this chapter in an amount not to exceed $10,000 a [$1,000 EACH] day 22
for each day the violation is outstanding , plus the department's costs and expenses 23
for the investigation and prosecution of the matter, including reasonable attorney 24
fees. 25
* Sec. 38. AS 06.55.606(b) is amended to read: 26
(b) A person who knowingly engages in an activity for which a [MONEY 27
SERVICES] license is required under this chapter without being licensed [AS A 28
MONEY SERVICES LICENSEE] and who receives more than $500 in com pensation 29
within a 30-day period from this activity is guilty of a class C felony. 30
* Sec. 39. AS 06.55.606(c) is amended to read: 31
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(c) A person who knowingly engages in an activity for which a [MONEY 1
SERVICES] license is required under this chapter without being [LICENSED AS] a 2
[MONEY SERVICES] licensee and who receives not [NO] more than $500 in 3
compensation within a 30-day period from this activity is guilt y of a class A 4
misdemeanor. 5
* Sec. 40. AS 06.55.607(a) is amended to read: 6
(a) If the department has reas on to believe that a person has violated or is 7
violating AS 06.55.101 [OR 06.55.201], the department may issue an order to show 8
cause why an order to cease and desist should not issue requiri ng that the person cease 9
and desist from the violation of AS 06.55.101 [OR 06.55.201]. 10
* Sec. 41. AS 06.55.607(e) is amended to read: 11
( e ) A p e r s o n that [ W H O ] i s s e r v e d w i t h a n o r d e r t o c e a s e a n d d e s i s t f o r 12
violating AS 06.55.101 [OR 06.55.201] may petition the superior court for a judicial 13
order setting aside, limiting, or suspending the enforcement, o peration, or 14
effectiveness of the order pendi ng the completion of an adminis trative proceeding 15
under AS 06.55.701 and 06.55.702. 16
* Sec. 42. AS 06.55.702(a) is amended to read: 17
(a) Except as otherwise provided in AS 06.55.603 and 06.55.607 [AND IN (b) 18
OF THIS SECTION], the department may not suspend or revoke a [M ONEY 19
SERVICES] license, place a [MONEY SERVICES] licensee in receive rship, issue an 20
order to cease and desist, susp end or revoke the designation of an authorized delegate, 21
or assess a civil penalty without notice and an opportunity to be heard. The department 22
shall also hold a hearing when requested to hold a hearing by a n applicant whose 23
application for a [MONEY SERVICES] license is denied. 24
* Sec. 43. AS 06.55.802 is amended to read: 25
Sec. 06.55.802. Exemptions [EXCLUSIONS]. This chapter does not apply to 26
(1) the United States or a department, [AN] agency, [OR AN] 27
instrumentality, or agent of the United States; 28
(2) money transmission by the Un ited States Postal Service or by an 29
agent [A CONTRACTOR ON BEHALF] of the United States Postal Service; 30
(3) a state, a municipality, a county, or another governmental agency 31
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or governmental subdivision of a state, or its agent; 1
(4) a federally insured depository financial institution, a bank, a 2
bank holding company, an office of an international banking corporation, a branch of a 3
foreign bank, a corporation organized under 12 U.S.C. 1861 - 18 67 (Bank Service 4
Company Act), or a corporation organized under 12 U.S.C. 611 - 633 (Edge Act) 5
under the laws of a state or the United States, if it does not issue, sell, or provide 6
payment instruments or stored value through an authorized delegate who is not a bank, 7
a bank holding company, an office of an international banking corporation, a branch of 8
a foreign bank, a corporation organized under 12 U.S.C. 1861 - 1867 (Bank Service 9
Company Act), [OR] a corporati on organized under 12 U.S.C. 611 - 633 (Edge Act) 10
under the laws of a state or the United States , an institution reg ulated by the Farm 11
Credit Association, or a subsidiary or affiliate of a financial institution if the 12
subsidiary or affiliate is owned and controlled by a depository institution and 13
regulated by a federal banking agency; in this p aragraph, "fede ral banking 14
agency" means the Board of Govern ors of the Federal Reserve Sys tem, the 15
United States Comptroller of the Currency, the director of the Office of Thrift 16
Supervision, the National Credit Union Administration, and the Federal Deposit 17
Insurance Corporation; 18
(5) electronic funds transfer of governmental benefits for a f ederal, 19
state, or municipal agency or a state political subdivision by a contractor on behalf of 20
( A ) t h e U n i t e d S t a t e s o r a d epartment, an agency, or an 21
instrumentality of the United States; or 22
(B) a state, or a department, an agency, or an instrumentality of 23
a state; 24
(6) a board of trade or a person that [WHO], in the ordinary course of 25
business, provides clearance and settlement services for a boar d of trade, to the extent 26
of the operation of the person for a board of trade; in this pa ragraph, "board of trade" 27
means a board of trade designated as a contract market under 7 U . S . C . 1 - 2 7 f 28
(Commodity Exchange Act); 29
(7) a registered futures commi ssion merchant under the federal 30
commodities laws, to the extent of the merchant's operation as a registered futures 31
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commission merchant under the federal commodities laws; 1
( 8 ) a p e r s o n that [WHO] provides clearance or settlement services 2
under a registration as a clearing agency or an exemption from the registration granted 3
under the federal securities laws , to the extent of the person' s operation as a provider 4
of clearance or settlement services under a registration as a c learing agency or an 5
exemption from the registration granted under the federal securities laws; 6
( 9 ) a n o p e r a t o r o f a p a y m e n t s y s t e m t o t h e e x t e n t t h a t t h e o p erator 7
provides processing, clearing, or settlement services, between or among persons 8
exempted [EXCLUDED] by this section, in connection with wire transfers, c r e d i t 9
card transactions, debit card tran sactions, stored-value transa ctions, automated 10
clearinghouse transfers, or similar funds transfers; [OR] 11
(10) a person registered as a securities broker-dealer under f ederal or 12
state securities laws, to the extent of the person's operation as a securities broker-13
dealer; 14
(11) an individual employed by a licensee, authorized delegate , or 15
a person exempt from the licensi ng requirements of this chapter when the 16
individual is acting within the scope of employment and under t he supervision of 17
the licensee, authorized delegate, or exempt person and not as an independent 18
contractor; 19
(12) a person expressly appointed as a third-party service pro vider 20
to or agent of an entity exempt under (4) of this section, solely to the extent that 21
(A) the service provider or agent is engaging in money 22
transmission on behalf of and in accordance with a written agre ement 23
with the exempt entity that sets out the specific functions tha t the service 24
provider or agent is to perform; and 25
(B) the exem pt entity assum es all risk of loss and all legal 26
responsibility for satisfying the outstanding money transmissio n 27
obligations owed to purchasers and holders of the outstanding m oney 28
transmission obligations upon receiving the purchaser's or holder's money 29
or monetary value by the service provider or agent; 30
(13) a person appointed as an age n t o f a p a y e e t o c o l l e c t a n d 31
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process a payment from a payor t o the payee for goods or servic es, other than 1
money transmission services, provided to the payor by the payee, if 2
(A) the payee and the agent have a written agreement 3
directing the agent to collect and process payments from payors o n t h e 4
payee's behalf; 5
(B) the payee holds the agent o ut to the public as accepting 6
payments for goods or services on the payee's behalf; and 7
(C) payment for the goods an d services is treated as 8
received by the payee upon receipt by the agent and the payor's obligation 9
is extinguished, and there is no risk of loss to the payor if t he agent fails to 10
remit the funds to the payee; 11
(14) a person that acts as an i ntermediary by processing payments 12
between an entity that has directly incurred an outstanding mon ey transmission 13
obligation to a sender and the sender's designated recipient, i f the person acting 14
as an intermediary 15
(A) is a licensee or exempt from the licensing requirements 16
under this chapter; 17
(B) provides a receipt, electronic record, or other written 18
confirmation to the sender identifying the entity as the provid er of money 19
transmission in the transaction; and 20
(C) bears sole responsibility to satisfy the outstanding 21
money transmission obligation to the sender, including the obli gation to 22
remedy a failure to transmit the funds to the sender's designat ed 23
recipient; 24
(15) an entity that is an insurance company, title insurance 25
company, or escrow agent, to the extent that the entity is lawf ully authorized to 26
conduct business in this state as an insurance company, title i nsurance company, 27
or escrow agent and to the exten t that the entity engages in mo ney transmission 28
as an ancillary service when conducting insurance, title insura nce, or escrow 29
activity; 30
(16) an attorney, to the extent that the attorney is lawfully 31
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authorized to practice law in this state and engages in money t ransmission as an 1
ancillary service to the practice of law; or 2
(17) a person exempt by regulat ion or order of the department if 3
the department finds that the exemption is in the public intere st and that the 4
regulation of the person is not necessary for the purposes of this chapter; 5
(18) a person providing payroll processing services; in this 6
paragraph, 7
(A) "payroll processing services" means receiving money 8
for transmission under a contract with a person to deliver wage s or 9
salaries, make payment of payroll taxes to state and federal ag encies, 10
make payments relating to employee benefit plans, or make distr ibutions 11
of other authorized deductions from wages or salaries; 12
(B) "receiving money for transmission" means receiving 13
money or monetary value in the Un ited States for transmission w ithin or 14
outside the United States by electronic or other means [UNDER FEDERAL 15
OR STATE SECURITIES LAWS]. 16
* Sec. 44. AS 06.55 is amended by adding a new section to read: 17
Sec. 06.55.803. Authority to require demonstration of exemption . The 18
department may require a person that claims to be exempt from l icensing under 19
AS 06.55.802 to provide information a nd documentation to the de partment 20
demonstrating the claimed exemption. 21
* Sec. 45. AS 06.55.810 is amended to read: 22
Sec. 06.55.810. Notices required. (a) A [MONEY SERVICES] licensee shall 23
provide customers with notice of how to file a complaint. A lic ensee shall provide 24
notice [DISPLAY A SIGN] at each location where the [MONEY SERVICES] 25
licensee 26
(1) provides money transmission [SERVICES] under this chapter; 27
and 28
(2) has not designated an authorized delegate to provide money 29
transmission [SERVICES] on behalf of the [MONEY SERVICES] licensee at the 30
location. 31
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(b) An authorized delegate shall provide customers with notice of how to 1
file a complaint. An authorized delegate shall provide notice [DISPLAY A SIGN] 2
at each location where the authorized delegate provides money transmission 3
[SERVICES] under this chapter. 4
(c) The notice [ S I G N ] r e q u i r e d b y ( a ) o r ( b ) o f t h i s s e c t i o n m u s t b e i n a 5
format and contain information required by the department [SHALL BE 6
DISPLAYED AT ALL TIMES IN FULL VIEW OF PERSONS VISITING THE 7
LOCATION AND SHALL GIVE THE DEPARTMENT'S ADDRESS AND THE 8
DEPARTMENT'S TELEPHONE NUMBER FOR RECEIVING CALLS 9
REGARDING COMPLAINTS AND OTHER CONCERNS ABOUT MONEY 10
SERVICES LICENSEES, AUTHORIZED DELEGATES, AND THE MONEY 11
SERVICES PROVIDED BY MONEY SERVICES LICENSEES AND 12
AUTHORIZED DELEGATES]. 13
* Sec. 46. AS 06.55.810 is amended by adding a new subsection to read: 14
(d) A licensee or authorized delegate shall include on a recei pt or disclose on 15
the licensee's Internet website or mobile application the name and telephone number 16
of the department and a statement that the licensee's customers can contact the 17
department with questions or co mplaints about the licensee's mo ney transmission. In 18
this subsection, "mobile application" means a software application developed 19
specifically for use on small, wireless computing devices. 20
* Sec. 47. AS 06.55 is amended by adding a new section to read: 21
Sec. 06.55.815. In-state determination. For a transaction requested 22
electronically or by telephone, the provider of money transmiss ion may determine 23
whether the person requesting the transaction is in this state by relying on other 24
information provided by the pers on regarding the location of th e person's residential 25
address or principal place of bus iness or other physical addres s, and any records 26
associated with the person that the provider of money transmiss ion may have that 27
indicate the location, including an address associated with an account. 28
* Sec. 48. AS 06.55.830 is repealed and reenacted to read: 29
Sec. 06.55.830. Receipt. ( a ) E x c e p t a s p r o v i d e d i n ( d ) o f t h i s s e c t i o n , a 30
licensee or a licensee's authorized delegate shall provide the sender a receipt for 31
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money received for transmission. The receipt must be in English and in any other 1
language principally used by the licensee or authorized delegate to advertise, solicit, or 2
negotiate, either orally or in writing, for the transaction con ducted. The receipt must 3
contain the following information, as applicable: 4
(1) the name of the sender; 5
(2) the name of the designated recipient; 6
(3) the date of the transaction; 7
(4) the unique transaction or identification number; 8
(5) the name of the licensee, unique registry identifier, the licensee's 9
business address, and the licensee's customer service telephone number; 10
(6) the dollar amount of the transaction; 11
(7) any fee charged by the licensee to the sender for the transaction; 12
(8) any taxes collected by the licensee from the sender for th e 13
transaction; and 14
(9) the exchange rate, if any, used by the provider for the transaction. 15
(b) For a transaction conducted in person, the receipt may be provided 16
electronically if the sender requests or agrees to receive an e lectronic receipt. For a 17
transaction conducted electroni cally or by telephone, a receipt may be provided 18
electronically. All electronic receipts must be provided in a retainable form. 19
(c) This section does not apply to 20
(1) money received for transmission that is subject to 12 C.F. R. Part 21
1005, Subpart B; 22
(2) money received for transmission that is not primarily for personal, 23
family, or household purposes; 24
(3) money received for transmission in accordance with a writt en 25
agreement between the licensee and payee to process payments fo r goods or services 26
provided by the payee; 27
(4) an individual consumer transferring funds to reload stored value on 28
the consumer's account through a point of sale transaction; or 29
(5) a stored-value transaction exempted by the department by 30
regulation or order. 31
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(d) In this section, "receipt" means a paper receipt, electron ic record, or other 1
written confirmation. 2
* Sec. 49. AS 06.55 is amended by adding a new section to read: 3
Sec. 06.55.835. Timely transmission . (a) A licensee shall forward all money 4
received for transmission in accordance with the terms of the a greement between the 5
licensee and the sender unless the licensee has a reasonable ca use to believe that the 6
sender may be a victim of fraud or that a crime or violation of law, rule, or regulation 7
has occurred, is occurring, or may occur. 8
(b) If a licensee fails to forward money received for transmis sion in 9
accordance with this section, the licensee must respond to inqu iries by the sender with 10
the reason for the failure unless providing a response would vi olate a state or federal 11
law, rule, or regulation. 12
* Sec. 50. AS 06.55.840 is repealed and reenacted to read: 13
Sec. 06.55.840. Refunds. ( a ) E x c e p t a s p r o v i d e d i n ( b ) o f t h i s s e c t i o n , a 14
licensee shall refund to the sender, within 10 days after recei pt of the sender's written 15
request for a refund, all money received for transmission unless 16
( 1 ) t h e m o n e y h a s b e e n f o r w a r d e d w i t h i n 1 0 d a y s a f t e r t h e d a t e o n 17
which the money was received for transmission; 18
(2) within 10 days after the date on which the money was recei ved for 19
transmission, instructions have been given committing an equivalent amount of money 20
to the person designated by the sender; 21
(3) the agreement between the licensee and the sender instruct s the 22
licensee to forward the money at a time that is beyond 10 days after the date on which 23
the money was received for tra nsmission; if money has not yet b een forwarded in 24
accordance with the terms of the agreement between the licensee and the sender, the 25
licensee shall issue a refund in accordance with this section; 26
(4) the refund is requested for a transaction that the license e has not 27
completed based on a reasonable belief that a crime or violatio n of law, rule, or 28
regulation has occurred, is occurring, or may occur; or 29
(5) the refund request does not 30
(A) identify the sender's name and 31
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(i) address; or 1
(ii) telephone number; or 2
(B) identify the particular transaction to be refunded in the 3
event the sender has multiple transactions outstanding. 4
(b) This section does not apply to: 5
(1) money received for transmission subject to 12 C.F.R. Part 1005, 6
Subpart B; or 7
(2) money received for transmission in accordance with a writt en 8
agreement between the licensee and payee to process payments fo r goods or services 9
provided by the payee. 10
* Sec. 51. AS 06.55.850(b) is amended to read: 11
(b) The department shall establish fee levels under (a) of thi s section so that 12
the total amount of fees collect ed for [BOTH MONEY TRANSMISSION ] licenses 13
[AND CURRENCY EXCHANGE LICENSES] under this chapter approximate ly 14
equals the department's actual total regulatory costs for [BOTH MONEY 15
TRANSMISSION] licenses [AND CURRENCY EXCHANGE LICENSES. THE 16
DEPARTMENT SHALL SET THE FEE LEVELS SO THAT THE FEE LEVELS 17
FOR BOTH MONEY TRANSMISSION LICENSES AND CURRENCY 18
EXCHANGE LICENSES ARE THE SAME]. 19
* Sec. 52. AS 06.55.850 is amended by adding a new subsection to read: 20
(f) The department shall set an annual renewal fee based on a licensee's total 21
volume of money transmission in the state, calculated in dollars or dollar equivalents. 22
* Sec. 53. AS 06.55.990(1) is amended to read: 23
(1) "authorized delegate" means a person that [WHOM] a [MONEY 24
SERVICES] licensee designates to engage in [PROVIDE] money transmission 25
[SERVICES] on behalf of the [MONEY SERVICES] licensee; 26
* Sec. 54. AS 06.55.990(3) is amended to read: 27
(3) "control" means 28
(A) the ownership of, or the power to vote, directly or 29
indirectly, at least 10 [25] percent of the outstanding [A CLASS OF] voting 30
shares [SECURITIES] or voting interests of a [MONEY SERVICES] license e 31
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or of a person that owns or has the power to vote, directly or indirectly, at 1
least 10 percent of the voting shares or voting interests [IN CONTROL] of 2
a [MONEY SERVICES] licensee unless the person with the power to vote is 3
a passive investor as described in AS 06.55.404(q); 4
(B) the power to elect or appoint a m a j o r i t y o f e x e c u t i v e 5
officers, managers, directors, trustees, or other persons exerc ising managerial 6
authority of a [MONEY SERVICES] licensee or person in control o f a 7
[MONEY SERVICES] licensee; or 8
(C) the power to exercise directly or indirectly, a controllin g 9
influence over the management or policies of a [MONEY SERVICES] 10
licensee or person in control of a [MONEY SERVICES] licensee; 11
* Sec. 55. AS 06.55.990(15) is amended to read: 12
(15) "money transmission" 13
(A) means 14
(i) selling or issuing payment instruments or stored 15
value to a person located in this state; 16
(ii) [, OR] receiving money or monetary value for 17
transmission to the state, from the state, or within the state; 18
(iii) engaging in virtual currency exchange; or 19
(iv) engaging in virtual currency business activity; 20
(B) [, BUT] does not mean [INCLUDE] the provision solely of 21
[DELIVERY,] online services, telecommunications services, or ne twork 22
access; 23
* Sec. 56. AS 06.55.990(19) is amended to read: 24
(19) "payment instrument" means a written or electronic check, [A] 25
draft, [A] money order, [A] traveler's check, or other written or electronic 26
[ANOTHER] instrument for the transmission or payment of money or monetary value, 27
whether or not negotiable, but does not mean stored value, [INCLUDE] a credit card 28
voucher, a letter of credit, [OR] an instrument that is redeema ble by the issuer in 29
goods or services , or other instrument not sold to the public but issued and 30
distributed as part of a loyalty, rewards, or promotional program; 31
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* Sec. 57. AS 06.55.990(20) is amended to read: 1
(20) "person" means an individual, general partnership, limited 2
partnership, [A] corporation, [A BUSINESS] trust, [AN ESTATE, A TRUST, A 3
PARTNERSHIP, A] limited liability company, [AN] association, [A ] joint stock 4
corporation [VENTURE, A GOVERNMENT, A GOVERNMENTAL 5
SUBDIVISION, AN AGENCY, OR AN INSTRUMENTALITY, A PUBLIC 6
CORPORATION], or any other legal or corporate [COMMERCIAL] entity 7
identified by the department; 8
* Sec. 58. AS 06.55.990(22) is amended to read: 9
( 2 2 ) " s t a t e " m e a n s a s t a t e o f t h e U n i t e d S t a t e s , t h e D i s t r i c t of 10
Columbia, Puerto Rico, the United States Virgin Islands, a United States military 11
installation that is located in a foreign country, or a territory or insular possession 12
subject to the jurisdiction of the United States; 13
* Sec. 59. AS 06.55.990(23) is amended to read: 14
(23) "stored value" 15
(A) means 16
(i) monetary value representing a claim against the 17
issuer that is evidenced by an electronic or digital record and that is 18
intended and accepted as a means of redemption for money or 19
monetary value, or payment for goods or services; 20
(ii) prepaid access as defined in 31 C.F.R. 1010.100; 21
( B) do e s no t m e a n a pa y m e nt instrument or a closed-loop 22
stored value, or a stored value n ot sold to the public but issu ed and 23
distributed as part of a loyalty, rewards, or promotional program; 24
* Sec. 60. AS 06.55.990(24) is amended to read: 25
(24) "unsafe or unsound practice" means a practice or conduct by a 26
[MONEY TRANSMISSION] licensee or an authorized delegate that [ O F T H E 27
MONEY TRANSMISSION LICENSEE IF THE PRACTICE] creates the likeli hood 28
of material loss, insolvency, or dissipation of the [MONEY TRAN SMISSION] 29
licensee's assets, or otherwise materially prejudices the inter ests of the [MONEY 30
TRANSMISSION] licensee's customers. 31
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* Sec. 61. AS 06.55.990 is amended by adding new paragraphs to read: 1
(25) "accredited state" means a state agency that is accredite d by an 2
organization that the department determines is a nationally rec ognized association of 3
state bank supervisors and money transmitter regulators for mon ey transmission 4
licensing and supervision; 5
(26) "acting in concert" means persons knowingly acting togeth er with 6
a common goal of jointly acquiring control of a licensee whethe r or not under an 7
express agreement; 8
(27) "average daily money transmission liability" means the am ount of 9
the licensee's outstanding money transmission obligations in th is state at the end of 10
each day in a given period, added together and divided by the t otal number of days in 11
the given period; in this paragraph, "given period" means a cal endar year quarter 12
ending March 31, June 30, September 30, or December 31; 13
(28) "Bank Secrecy Act" means 31 U.S.C. 5311 - 5336 and its 14
implementing regulations; 15
(29) "closed-loop stored value" means stored value that is red eemable 16
by the issuer only for goods or services provided by the issuer or its affiliate, or 17
franchisees of the issuer or its affiliate, except to the exten t required by applicable law 18
to be redeemable in cash for its cash value; 19
(30) "control of virtual currency," when used in reference to a 20
transaction or relationship invol ving virtual currency, means t he power to execute 21
unilaterally or prevent indefinitely a virtual currency transaction; 22
(31) "dollar equivalent" means the equivalent value of a parti cular 23
virtual currency in United States dollars shown on a virtual cu rrency exchange based 24
in the United States for a particular date or period specified in this chapter; in this 25
paragraph, "virtual currency exchange" means an organization th at provides a market 26
for the exchange of virtual currency; 27
(32) "eligible rating" means a short-term or long-term credit rating 28
determined by the department that is based on any of the three highest rating 29
categories provided by an eligible rating service; 30
(33) "eligible rating service" means a nationally recognized s tatistical 31
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rating organization, as determined by the United States Securit ies and Exchange 1
Commission, and any other nationally recognized statistical rat ing organization 2
designated by the department by regulation; 3
(34) "federally insured depository financial institution" mean s a bank, 4
credit union, savings and loan association, trust company, savi ngs association, savings 5
bank, industrial bank, or industria l loan company organized und er the laws of the 6
United States or any state that has federally insured deposits; 7
(35) "individual" means a natural person; 8
(36) "in this state" means at a physical location within this state for a 9
transaction requested in person; 10
(37) "key individual" means an individual ultimately responsib le for 11
establishing or directing policies and procedures of the licens ee, including an 12
executive officer, manager, director, or trustee; 13
(38) "license" means a license issued under AS 06.55.105; 14
(39) "licensee" means a person licensed under AS 06.55.105; 15
(40) "money received for transmission" means money or monetary 16
value received in the United States for transmission within or outside the United States 17
by electronic or other means; 18
(41) "multistate licensing process" means an agreement entered into by 19
and among state regulators relating to coordinated processing o f applications for 20
licenses, applications for the acquisition of control of a lice nsee, control 21
determinations, or notice and in formation requirements for a ch ange of key 22
individuals; 23
(42) "outstanding money transmission obligation" means 24
(A) a pay ment instrument or stored value issued or sold by a 25
licensee to a person located in t he United States, or reported as sold by an 26
authorized delegate of the licensee to a person that is located in the United 27
States, that has not yet been paid or refunded by or for the li censee, or 28
escheated in accordance with applicable abandoned property laws; or 29
( B ) m o n e y r e c e i v e d f o r t r a n s m i s s i o n b y t h e l i c e n s e e o r a n 30
authorized delegate in the United States from a person located in the United 31
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States that has not been received by the payee or refunded to t he sender, or 1
escheated in accordance with applicable abandoned property laws ; in this 2
paragraph, "in the United States" means, to the extent applicab le, a person in a 3
state, territory, or possession of the United States, the District of Columbia, the 4
Commonwealth of Puerto Rico, or a United States military instal lation that is 5
located in a foreign country; 6
(43) "registry" means a nationwide organization that the depar tment 7
determines is a nationally recognized multistate licensing syst em to use as a multistate 8
licensing process; 9
(44) "tangible net worth" means the aggregate assets of a lice nsee 10
excluding all intangible assets, less liabilities, as determine d in accordance with 11
generally accepted accounting principles; 12
(45) "virtual currency" 13
(A) means a digital representation of value that 14
(i) is used as a medium of exchange, unit of account, or 15
store of value; and 16
(ii) is not money, whether or not denominated in 17
money; 18
(B) does not mean 19
(i) a transaction in which a merchant grants, as part of 20
an affinity or rewards program, value that cannot be taken from o r 21
exchanged with the merchant for money, bank credit, or virtual 22
currency; or 23
(ii) a digital representation of value issued by or on 24
behalf of a publisher and used solely within an online game, ga me 25
platform, or family of games sold by the same publisher or offe red on 26
the same game platform; 27
(46) "virtual currency administration" means issuing virtual c urrency 28
with the authority to redeem the currency for money, bank credi t, or other virtual 29
currency; 30
(47) "virtual currency business activity" means 31
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(A) exchanging, transferring, or storing virtual currency or 1
engaging in virtual currency administration, whether directly o r through an 2
agreement with a virtual currency control services vendor; 3
(B) holding electronic precious metals or electronic certifica tes 4
representing interests in precious metals on behalf of another person or issuing 5
shares or electronic certificates representing interests in precious metals; or 6
(C) exchanging one or more digital representations of value 7
used within one or more online games, game platforms, or family of games for 8
(i) virtual currency offered by or on behalf of the same 9
publisher from which the original digital representation of val ue was 10
received; or 11
(ii) money or bank credit outside the online game, game 12
p l a t f o r m , o r f a m i l y o f g a m e s o f f e r e d b y o r o n b e h a l f o f t h e s a me 13
publisher from which the original digital representation of val ue was 14
received; 15
(48) "virtual currency control services vendor" means a person that has 16
control of virtual currency sole ly under an agreement with a pe rson that, on behalf of 17
another person, assumes control of virtual currency; 18
(49) "virtual currency exchange" means to 19
(A) assume control of virtual c urrency from or on behalf of a 20
person, at least momentarily; 21
(B) sell, trade, or convert 22
(i) virtual currency for money, bank credit, or one or 23
more forms of virtual currency or money; or 24
(ii) bank credit for one or more forms of virtual 25
currency; 26
(50) "virtual currency transfer" means to assume control of vi rtual 27
currency from or on behalf of a person and to 28
(A) credit the virtual currency to the account of another person; 29
(B) move the virtual currency from one account of a person to 30
another account of the same person; or 31
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(C) relinquish control of virtual currency to another person. 1
* Sec. 62. AS 06.55.995 is amended to read: 2
Sec. 06.55.995. Short title. This chapter may be cited as the Alaska Uniform 3
Money Transmission Modernization [SERVICES] Act. 4
* Sec. 63. AS 12.62.400(b) is amended to read: 5
(b) Notwithstanding (a) of this section, an applicant for a li cense under 6
AS 06.60 or a person controlling a licensee or an applicant for a licens e under 7
AS 06.55, seeking to acquire control of a licensee under AS 06. 55, or acting as a 8
key individual under AS 06.55 may submit the applicant's fingerprints to the 9
Nationwide Mortgage Licensing System and Registry. In this subs ection, "Nationwide 10
Mortgage Licensing System and Registry" has the meaning given in 12 U.S.C. 5102. 11
* Sec. 64. AS 06.55.103, 06.55.104, 06.55.107, 06.55.201, 06.55.202, 06.55.203, 06.55.204, 12
06.55.402, 06.55.406(b), 06.55.502(c), 06.55.702(b), 06.55.820, 06.55.850(e), 06.55.890, 13
06.55.990(5), 06.55.990(6), 06.55.990( 8), 06.55.990(9), 06.55.9 90(12), 06.55.990(13), 14
06.55.990(14), 06.55.990(16), 06.55.990(17), and 06.55.990(18) are repealed. 15
* Sec. 65. The uncodified law of the State of Alaska is amended by adding a new section to 16
read: 17
INDIRECT COURT RULE AMENDMENT. AS 06.55.605, as amended by sec. 37 of 18
this Act, has the effect of chan ging Rules 79 and 82, Alaska Ru les of Civil Procedure, by 19
changing the award of court costs and attorney fees in certain cases. 20
* Sec. 66. The uncodified law of the State of Alaska is amended by adding a new section to 21
read: 22
TRANSITION: EXISTING CONTRACTS, RIGHTS, LIABILITIES, AND 23
OBLIGATIONS. Contracts, rights, liabilities, and obligations cr eated by or under a law 24
repealed or amended by this Act, and in effect on the day befor e the effective date of the 25
repeal or amendment, remain in effect notwithstanding this Act taking effect. 26
* Sec. 67. The uncodified law of the State of Alaska is amended by adding a new section to 27
read: 28
TRANSITION: CURRENT MONEY SERVICES LICENSEES. A person that has a 29
valid money services license o r approval on December 31, 2025, may continue to operate 30
under that license or approval until the licensee renews the li cense under AS 06.55.106, 31
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enacted by sec. 5 of this Act, or through July 1, 2027, whichever is later. In this section, 1
(1) "approval" means approval under AS 06.55.103, as that sect ion read on 2
December 31, 2025; 3
(2) "money services licensee" has the meaning given in AS 06.5 5.990, as that 4
section read on December 31, 2025. 5
* Sec. 68. The uncodified law of the State of Alaska is amended by adding a new section to 6
read: 7
TRANSITION: REGULATIONS. The Department of Commerce, Community, and 8
Economic Development may adopt r egulations necessary to impleme nt the changes made by 9
this Act. The regulations take effect under AS 44.62 (Administr ative Procedure Act), but not 10
before the effective date of the law implemented by the regulation. 11
* Sec. 69. The uncodified law of the State of Alaska is amended by adding a new section to 12
read: 13
CONDITIONAL EFFECT. AS 06.55.605, as amended by sec. 37 of this Act, takes 14
effect only if sec. 65 of this Act receives the two-thirds majo rity vote of each house required 15
by art. IV, sec. 15, Constitution of the State of Alaska. 16
* Sec. 70. Section 68 of this Act takes effect immediately under AS 01.10.070(c). 17
* Sec. 71. Except as provided in sec. 70 of this Act, this Act takes effect July 1, 2026. 18