MONEY TRANSMISSION; VIRTUAL CURRENCY

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HOUSE CS FOR CS FOR SENATE BILL NO. 86(FIN)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE HOUSE FINANCE COMMITTEE

Offered: 5/6/26
Referred: Rules

Sponsor(s): SENATOR KIEHL
A BILL

FOR AN ACT ENTITLED

"An Act relating to the business of money transmission; relating to licenses for money 1
transmission, licensure requirements, and registration through a nationwide multistate 2
licensing system; relating to the use of virtual currency for money 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; authorizing the Department of 5
Commerce, Community, and Economic Development to cooperate with other states in 6
the regulation of money transmission; relating to permissible investments; relating to 7
violations and enforcement of money transmission laws; relating to exemptions to 8
money transmission licensure requirements; relating to payroll processing services; 9
relating to currency exchange licenses; relating to abandoned virtual currency; 10
amending Rules 79 and 82, Alaska Rules of Civil Procedure; and providing for an 11
effective date." 12
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 1
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 2
to read: 3
PURPOSE. The purpose of secs. 1 - 65 and 75 - 78 of this Act is to replace existing 4
state money transmission laws to modernize licensure requirements, to add model language 5
for the burgeoning virtual currency industry, to allow the Department of Commerce, 6
Community, and Economic Development to coordinate with other states in all areas of 7
regulation, licensing, and supervision of money transmission, to standardize the types of 8
activities that are subject to licensing, and to modernize safety and soundness requirements 9
for money transmission. 10
* Sec. 2. AS 06.55.101 is amended to read: 11
Sec. 06.55.101. License required. (a) A person may not engage in the 12
business of money transmission or advertise, solicit, or hold itself [THE PERSON] out 13
as providing money transmission unless the person 14
(1) holds a [MONEY TRANSMISSION] license; [OR] 15
(2) is an authorized delegate of a licensee and is acting within the 16
scope of that authority under a written contract with the licensee; or 17
(3) is exempt under AS 06.55.802 and does not engage in money 18
transmission outside the scope of that exemption [PERSON WHO HOLDS A 19
MONEY TRANSMISSION LICENSE]. 20
(b) A [MONEY TRANSMISSION] license is not transferable or assignable. 21
* Sec. 3. AS 06.55.102 is repealed and reenacted to read: 22
Sec. 06.55.102. Application for license. (a) An applicant for a license shall 23
submit 24
(1) an application in a form and in a medium prescribed by the 25
department; the application must contain information on the applicant's organization 26
and operations, financial responsibility, background, competence level, experience, 27
and activities; 28
(2) any other information reasonably required by the department or 29
registry with respect to the applicant; 30
(3) the application fee established by the department; 31
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(4) the license fee established by the department; and 1
(5) a surety bond or other security as required by AS 06.55.505. 2
(b) The department may waive a requirement of (a)(1) - (4) of this section or 3
permit an applicant to submit other information in lieu of the required information. 4
* Sec. 4. AS 06.55.105 is repealed and reenacted to read: 5
Sec. 06.55.105. Issuance of license. (a) When an application for an initial 6
license under this chapter appears to include all required information and address all 7
matters required by the department, the application is considered complete, and the 8
department shall notify the applicant in a record of the date on which the application 9
was determined to be complete. The department shall approve or deny the application 10
within 120 days after the date the application was determined to be complete. If the 11
application is not approved or denied within 120 days after the completion date, 12
(1) the application is approved; and 13
(2) the license takes effect on the first business day after expiration of 14
the 120-day period. 15
(b) The department may for good cause extend the application period. 16
(c) A determination by the department that an application is complete and is 17
accepted for processing means only that the application, on its face, appears to include 18
all required items, including a criminal background check, and address all required 19
matters. The department's determination is not an assessment of the substance of the 20
application or of the sufficiency of the information provided. 21
(d) When an application is filed and considered to be complete under (c) of 22
this section, the department shall investigate the applicant's financial condition, 23
financial responsibility, financial experience, business experience, competence level, 24
character, and general fitness. The department may conduct an on-site investigation of 25
the applicant, and the applicant shall pay the reasonable cost of the on-site 26
investigation. The department shall issue a license to an applicant if the department 27
finds that 28
(1) the applicant has complied with AS 06.55.102, 06.55.109, and 29
applicable regulations; and 30
(2) the financial condition, financial responsibility, financial 31
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experience, financial business experience, competence level, character, and general 1
fitness of the applicant, and the experience, competence level, character, and general 2
fitness of the key individuals and persons in control of the applicant indicate that it is 3
in the interest of the public to allow the applicant to engage in money transmission. 4
(e) If an applicant is subject to a multistate licensing process, the department 5
may 6
(1) for the purposes of (d) of this section, accept the investigation 7
results of a state that is the lead investigator in the multistate licensing process; or 8
(2) investigate the applicant in accordance with (d) of this section and 9
the time frames established by agreement through the multistate licensing process, if 10
those time frames comply with the application approval period set out in (a) of this 11
section. 12
(f) The department shall issue a formal written notice of a denial of a license 13
application within 30 days after the decision to deny the application. The department 14
shall set out in the notice of denial the specific reasons for the denial. An applicant 15
may appeal a denial within 30 days after receiving the written notice of the denial and 16
may request a hearing. 17
(g) The initial license term begins on the day the application is approved. The 18
license expires on December 31 of the year in which the license is issued, unless 19
(1) the initial license is issued between November 1 and December 31, 20
in which case the initial license term runs through December 31 of the following year; 21
or 22
(2) the license is revoked, suspended, surrendered, or its term 23
otherwise adjusted in accordance with regulations adopted by the department. 24
(h) An applicant for a license shall demonstrate that the applicant meets or 25
will meet the requirements of this chapter. 26
* Sec. 5. AS 06.55.106 is repealed and reenacted to read: 27
Sec. 06.55.106. Renewal of license. (a) A licensee shall renew a license 28
annually. A licensee shall pay an annual renewal fee by the renewal filing deadline 29
established by the department. The renewal term is for a period of one year and begins 30
on January 1 of each year after the initial license term and expires on December 31 of 31
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the year the renewal term begins. 1
(b) A licensee shall submit a renewal report with the renewal fee in a form and 2
in a medium prescribed by the department. The renewal report must describe each 3
material change in information submitted by the licensee in the licensee's initial 4
license application that the licensee has not reported to the department. 5
(c) The department may for good cause grant an extension of the renewal 6
filing deadline. 7
(d) The department may use the registry to process license renewals if the use 8
is consistent with this section. 9
* Sec. 6. AS 06.55 is amended by adding new sections to article 1 to read: 10
Sec. 06.55.108. Maintenance of license. (a) A licensee shall at all times meet 11
the requirements of this chapter. 12
(b) If a licensee does not continue to meet the qualifications or satisfy the 13
requirements that apply to an applicant for a new license, the department may suspend 14
or revoke the licensee's license in accordance with this chapter or other applicable law. 15
Sec. 06.55.109. Information requirements for certain individuals. (a) An 16
individual in control of a licensee or applicant, an individual who seeks to acquire 17
control of a licensee, and each key individual shall furnish to the department through 18
the registry the following items: 19
(1) the individual's fingerprints for submission to the Federal Bureau 20
of Investigation to obtain a national criminal history record check unless the individual 21
currently resides outside the United States and has resided outside the United States 22
for the past 10 years; and 23
(2) personal history and experience in a form and in a medium 24
prescribed by the department, including 25
(A) an independent credit report from a consumer reporting 26
agency, unless the individual does not have a social security number; 27
(B) information related to a criminal conviction or pending 28
charges; and 29
(C) information related to any regulatory or administrative 30
action and any civil litigation involving claims of fraud, misrepresentation, 31
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conversion, mismanagement of funds, breach of fiduciary duty, or breach of 1
contract. 2
(b) If the individual has resided outside the United States at any time in the 10 3
years before the date of furnishing the information under (a) of this section, the 4
individual shall also provide an investigative background report prepared by an 5
independent search firm. The independent search firm may not be affiliated with or 6
have an interest in the individual the firm is researching. At a minimum, the 7
investigative background report must 8
(1) demonstrate that the independent search firm has sufficient 9
knowledge, resources, and employs accepted and reasonable methodologies to conduct 10
the research of the background report; 11
(2) be written in English and contain the following: 12
(A) if available in the individual's current jurisdiction of 13
residency, a comprehensive credit report, or equivalent information obtained or 14
generated by the independent search firm to accomplish a comprehensive 15
credit report, including a search of the court data in the countries, provinces, 16
states, cities, towns, and contiguous areas where the individual has resided and 17
worked; 18
(B) criminal records information for the previous 10 years, 19
including felonies, misdemeanors, or similar convictions for violations of law 20
in the countries, provinces, states, cities, towns, and contiguous areas where 21
the individual has resided and worked; 22
(C) employment history; 23
(D) media history, including an electronic search of national 24
and local publications, wire services, and business applications; and 25
(E) regulatory history related to financial services, including 26
money transmission, securities, banking, insurance, and mortgage-related 27
industries. 28
Sec. 06.55.110. Consistent state licensing. (a) To establish consistent 29
licensing between this state and other states, the department may 30
(1) implement all licensing provisions of this chapter in a manner that 31
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is consistent with other states that have adopted multistate licensing processes; and 1
(2) participate in nationwide protocols for licensing cooperation and 2
coordination among state regulators if the nationwide protocols for licensing 3
cooperation and coordination are consistent with this chapter. 4
(b) To fulfill the purposes of this chapter, the department may establish 5
relationships or contracts with the registry or other entities designated by the registry 6
to enable the department to 7
(1) collect and maintain records; 8
(2) coordinate multistate licensing processes and supervision 9
processes; 10
(3) process fees; and 11
(4) facilitate communication between the department and licensees or 12
other persons subject to this chapter. 13
(c) The department may use the registry for all aspects of licensing in 14
accordance with this chapter, including license applications, applications for 15
acquisitions of control, surety bonds, reporting, criminal background checks, credit 16
checks, fee processing, and examinations. 17
* Sec. 7. AS 06.55 is amended by adding new sections to read: 18
Article 1A. Virtual Currency Business Activity. 19
Sec. 06.55.150. Requirements for engaging in virtual currency business 20
activity. (a) A person may not engage in virtual currency business activity or hold 21
itself out as being able to engage in virtual currency business activity unless the person 22
is 23
(1) licensed under this chapter; or 24
(2) exempt from licensing under AS 06.55.802. 25
(b) A person that is licensed to engage in virtual currency business activity is 26
engaged in the business of money transmission and is subject to the requirements of 27
this chapter. 28
Sec. 06.55.155. Required disclosures. (a) A licensee that engages in virtual 29
currency business activity shall provide to a person that uses the licensee's products or 30
service the disclosures required by (b) of this section and any additional disclosures 31
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the department determines to be reasonably necessary for the protection of persons. 1
The department shall determine by regulation or order the time and form required for 2
disclosure. A disclosure required by this section must be made separately from any 3
other information provided by the licensee and in a clear and conspicuous manner in a 4
record the person may keep. A licensee may propose for the department's approval 5
alternate disclosures as more appropriate for its virtual currency business activity. 6
(b) Before establishing a relationship with a person, a licensee shall disclose, 7
to the extent applicable to the virtual currency business activity the licensee will 8
undertake with the person, 9
(1) a schedule of fees and charges the licensee may assess, the manner 10
by which fees and charges will be calculated if not set in advance and disclosed, and 11
the timing of the fees and charges; 12
(2) whether the product or service provided by the licensee is covered 13
by 14
(A) a form of insurance or is otherwise guaranteed against loss 15
by an agency of the United States 16
(i) up to the dollar equivalent of virtual currency 17
purchased from the licensee or for control of virtual currency by the 18
licensee as of the date of the placement or purchase, including the 19
maximum amount provided by insurance under the Federal Deposit 20
Insurance Corporation or otherwise available from the Securities 21
Investor Protection Corporation; or 22
(ii) if not provided at the dollar equivalent of virtual 23
currency purchased from the licensee or for control of virtual currency 24
by the licensee, the maximum amount of coverage for each person 25
expressed in the dollar equivalent of the virtual currency; or 26
(B) private insurance against theft or loss, including cyber 27
theft; 28
(3) the irrevocability of a virtual currency transfer or virtual currency 29
exchange and any exception to irrevocability; 30
(4) a description of 31
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(A) liability for an unauthorized, mistaken, or accidental virtual 1
currency transfer or virtual currency exchange; 2
(B) the person's responsibility to provide notice to the licensee 3
of a virtual currency transfer or virtual currency exchange; 4
(C) the basis for any recovery by the person from the licensee 5
or registrant; 6
(D) general error resolution rights applicable to a virtual 7
currency transfer or virtual currency exchange; and 8
(E) the method for the person to update the person's contact 9
information with the licensee; 10
(5) that the date or time when a virtual currency transfer or virtual 11
currency exchange is made and the person's account is debited may differ from the 12
date or time when the person initiates an instruction to make the transfer or exchange; 13
(6) whether the person has a right to stop a preauthorized payment or 14
revoke authorization for a virtual currency transfer and the procedure to initiate a stop-15
payment order or revoke authorization for a later virtual currency transfer; 16
(7) the person's right to receive a receipt, trade ticket, or other evidence 17
of a virtual currency transfer or virtual currency exchange; 18
(8) the person's right to at least 30 days' notice of a change in the 19
licensee's fee schedule, other terms and conditions of operating the licensee's virtual 20
currency business activity with the person, and the policies applicable to the person's 21
account; and 22
(9) that other persons are not required to take payment in virtual 23
currency, that the value of virtual currency can change, and that virtual currency is not 24
backed by a governmental agency. 25
(c) Except as provided in (d) of this section, at the conclusion of a virtual 26
currency transaction with or on behalf of a person, a licensee shall provide the person 27
a confirmation in a record that contains 28
(1) the name and contact information of the licensee, including 29
information the person may need to ask a question or file a complaint; 30
(2) the type, value, date, precise time, and amount of the transaction; 31
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and 1
(3) the fee charged for the transaction, including any charge for 2
conversion of virtual currency to money, bank credit, or another virtual currency. 3
(d) If a licensee discloses that the licensee will provide a daily confirmation in 4
the initial disclosure under (c) of this section, the licensee may elect to provide a 5
single, daily confirmation for all transactions with or on behalf of a person on that day 6
instead of a confirmation for each transaction. 7
Sec. 06.55.160. Property interests and entitlements to virtual currency. (a) 8
A licensee that has control of virtual currency for a person shall maintain in the 9
licensee's control an amount of each type of virtual currency sufficient to satisfy the 10
aggregate entitlements of the person to the type of virtual currency. 11
(b) If a licensee violates (a) of this section, the property interests of the person 12
in the virtual currency are pro rata property interests in the type of virtual currency to 13
which the person is entitled, without regard to the time the person became entitled to 14
the virtual currency or the licensee obtained control of the virtual currency. 15
(c) The virtual currency referred to in this section is 16
(1) held for the person entitled to the virtual currency; 17
(2) not property of the licensee; 18
(3) not subject to the claims of creditors of the licensee; and 19
(4) considered a permissible investment to the extent specified under 20
AS 06.55.502(b)(4). 21
Sec. 06.55.165. Additional requirements and clarifications for virtual 22
currency business activities. (a) A licensee engaged in a virtual currency business 23
activity shall comply with all provisions of this chapter to the extent applicable to the 24
licensee's activities. 25
(b) A licensee engaged in a virtual currency business activity may include 26
virtual currency in the licensee's calculation of tangible net worth, except virtual 27
currency controlled by a person entitled to the protections of AS 06.55.160. The 28
virtual currency is measured by the average value of the virtual currency expressed in 29
the dollar equivalent over the previous six calendar months. 30
(c) For five years after the date of virtual currency business activity with or on 31
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behalf of a person, a licensee shall maintain a record of 1
(1) each transaction of the licensee with or on behalf of the person or 2
for the licensee's account in this state, including 3
(A) the identity of the person; 4
(B) the form of the transaction; 5
(C) the amount, date, and payment instructions given by the 6
person; and 7
(D) the account number, name, and mailing address of the 8
person, and, to the extent feasible, other parties to the transaction; 9
(2) the aggregate number of transactions and aggregate value of 10
transactions by the licensee with or on behalf of the person and for the licensee's 11
account in this state, expressed in the dollar equivalent of virtual currency for the 12
previous 12 calendar months; 13
(3) each transaction in which the licensee engaged in a virtual currency 14
exchange of one form of virtual currency for money or another form of virtual 15
currency with or on behalf of the person; 16
(4) a general ledger posted at least monthly that lists all assets, 17
liabilities, capital, income, and expenses of the licensee; 18
(5) each report required to be submitted under AS 06.55.403; 19
(6) bank statements and bank reconciliation records for the licensee 20
and the name, account number, and mailing address of each bank the licensee uses in 21
the conduct of its virtual currency business activity with or on behalf of the person; 22
(7) a report of any dispute with the person; and 23
(8) a report of any virtual currency business activity transaction with or 24
on behalf of the person that the licensee was unable to complete. 25
(d) A licensee shall maintain the records required by (c) of this section in a 26
form that enables the department to determine whether the licensee is in compliance 27
with a court order, this chapter, or other law of this state. 28
Sec. 06.55.170. Scope of application. (a) The provisions of AS 06.55.150 - 29
06.55.165 do not apply to activity by 30
(1) a person that contributes only connectivity software or computing 31
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power to a decentralized virtual currency or to a protocol governing virtual currency 1
transfer of the digital representation of value; 2
(2) a person that provides only data storage or security services for a 3
business engaged in virtual currency business activity and does not otherwise engage 4
in virtual currency business activity on behalf of another person; 5
(3) a person that provides only to another person otherwise exempt 6
from this chapter virtual currency as one or more enterprise solutions used solely 7
between each other and has no agreement or relationship with a person that is an end 8
user of virtual currency; 9
(4) a person using virtual currency, including creating, investing, 10
buying, or selling, or obtaining virtual currency as payment for the purchase or sale of 11
goods or services, solely 12
(A) on the person's own behalf; 13
(B) for personal, family, or household purposes; or 14
(C) for academic purposes; 15
(5) a person that has virtual currency business activity with or on 16
behalf of a person reasonably expected to be valued, in the aggregate, at $5,000 or less 17
annually, measured by the dollar equivalent of virtual currency; 18
(6) an attorney providing escrow services to a person; 19
(7) a title insurance company providing escrow services to a person; 20
(8) a securities intermediary, as defined in AS 45.08.102, or a 21
commodity intermediary, as defined in AS 45.29.102, that 22
(A) does not engage in the ordinary course of business in 23
virtual currency business activity with or on behalf of a person in addition to 24
maintaining securities accounts or commodities accounts and is regulated as a 25
securities intermediary or commodity intermediary under federal law, the law 26
of this state other than this chapter, or the law of another state; and 27
(B) affords a person protections comparable to those set out in 28
AS 06.55.160; 29
(9) a secured creditor under AS 45.29 or creditor with a judicial lien or 30
lien arising by operation of law on collateral that is virtual currency, if the virtual 31
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currency business activity of the creditor is limited to enforcement of the security 1
interest in compliance with AS 45.29 or the law applicable to the lien; 2
(10) a virtual currency control services vendor; 3
(11) a person that does not receive compensation from a person for 4
(A) providing virtual currency products or services; 5
(B) conducting virtual currency business activity; or 6
(C) engaging in testing products or services with the person's 7
own funds. 8
(b) The department may determine, based on facts particular to the person or 9
class of persons, that a person or class of persons is exempt from this chapter. 10
* Sec. 8. AS 06.55.301 is repealed and reenacted to read: 11
Sec. 06.55.301. Relationship between licensee and authorized delegate. (a) 12
Before a licensee is authorized to conduct business through an authorized delegate or 13
to allow a person to act as the licensee's authorized delegate, the licensee shall 14
(1) adopt, and update as necessary, written policies and procedures 15
reasonably designed to ensure that the authorized delegate complies with applicable 16
state and federal law; 17
(2) enter into a written contract that complies with (c) of this section; 18
and 19
(3) conduct a reasonable, risk-based background investigation 20
sufficient for the licensee to determine whether the authorized delegate has complied 21
and is likely to comply with applicable state and federal law. 22
(b) An authorized delegate shall operate in compliance with this chapter. 23
(c) The written contract required by (a)(2) of this section must be signed by 24
the licensee and the authorized delegate and, at a minimum, must 25
(1) appoint the person signing the contract as the licensee's authorized 26
delegate with the authority to conduct money transmission on behalf of the licensee; 27
(2) set out the nature and scope of the relationship between the licensee 28
and the authorized delegate and the respective rights and responsibilities of the parties; 29
(3) require the authorized delegate to agree to comply with all 30
applicable state and federal laws, rules, and regulations pertaining to money 31
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transmission, including this chapter and regulations implementing this chapter, 1
relevant provisions of the Bank Secrecy Act, and P.L. 107-56 (USA PATRIOT Act); 2
(4) require the authorized delegate to remit and handle money and 3
monetary value in accordance with the terms of the contract; 4
(5) establish a trust for the benefit of the licensee on money and 5
monetary value after deducting fees received for money transmission; 6
(6) require the authorized delegate to prepare and maintain records as 7
required by this chapter or regulations implementing this chapter, or as reasonably 8
requested by the department; 9
(7) acknowledge that the authorized delegate consents to examination 10
or investigation by the department; 11
(8) state that the licensee is subject to regulation by the department and 12
that, as part of that regulation, the department may suspend or revoke an authorized 13
delegate designation or require the licensee to terminate an authorized delegate 14
designation; and 15
(9) acknowledge receipt of the written policies and procedures 16
required under (a)(1) of this section. 17
(d) If the licensee's license is suspended, revoked, surrendered, or expired, the 18
licensee shall, within five business days, provide documentation to the department that 19
the licensee has notified all applicable authorized delegates of the licensee whose 20
names are in a record filed with the department of the suspension, revocation, 21
surrender, or expiration of the license. Upon suspension, revocation, surrender, or 22
expiration of a license, applicable authorized delegates shall immediately stop 23
providing money transmission as an authorized delegate of the licensee. 24
(e) An authorized delegate of a licensee holds in trust for the benefit of the 25
licensee all money after deducting fees received from money transmission. If an 26
authorized delegate commingles any funds received from money transmission with 27
any other funds or property owned or controlled by the authorized delegate, all 28
commingled funds and other property shall be considered held in trust in favor of the 29
licensee in an amount equal to the amount of money net of fees received from money 30
transmission. 31
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(f) In this section, "remit" means to make direct payments of money to a 1
licensee or its representative authorized to receive money or to deposit money in a 2
bank account specified by the licensee. 3
* Sec. 9. AS 06.55.302 is amended to read: 4
Sec. 06.55.302. Unauthorized activities. A person may not engage in the 5
business of money transmission on behalf of a person that is not licensed or 6
exempt [ACT AS AN AUTHORIZED DELEGATE FOR, OR OTHERWISE 7
PROVIDE MONEY SERVICES ON BEHALF OF, A PERSON WHO DOES NOT 8
HOLD A MONEY SERVICES LICENSE] under this chapter. A person that engages 9
in the business of money transmission on behalf of a person not licensed or 10
exempt under this chapter provides money transmission to the same extent as if 11
the person were a licensee and is jointly and severally liable with the unlicensed 12
or nonexempt person. 13
* Sec. 10. AS 06.55.401 is repealed and reenacted to read: 14
Sec. 06.55.401. Supervision; examination; investigation. (a) The department 15
may conduct an examination or investigation of a licensee or authorized delegate or 16
otherwise take independent action authorized by this chapter, regulations 17
implementing this chapter, and other applicable law, including the Bank Secrecy Act, 18
15 U.S.C. 1693 - 1693r (Electronic Fund Transfer Act), P.L. 106-102 (Gramm-Leach-19
Bliley Act), and P.L. 107-56 (USA PATRIOT Act). The department may 20
(1) conduct an on-site or off-site examination as the department 21
reasonably requires; 22
(2) conduct an examination in conjunction with an examination 23
conducted by representatives of other agencies of this state, another state, or the 24
federal government; 25
(3) accept the examination report of another agency of this state, 26
another state, or the federal government, or a report prepared by an independent 27
accounting firm; a report accepted under this paragraph is considered for all purposes 28
to be an official report of the department; and 29
(4) summon and examine under oath a key individual or employee of a 30
licensee or authorized delegate and require the key individual or employee to produce 31
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records regarding any matter related to the condition and business of the licensee or 1
authorized delegate. 2
(b) A licensee or authorized delegate shall provide, and the department shall 3
have complete access to, records necessary for the department to conduct a complete 4
examination. The licensee or authorized delegate shall provide the records at the 5
location and in the format specified by the department. The department may use 6
multistate record production standards and examination procedures when the 7
multistate record production standards and examination procedures will reasonably 8
achieve the requirements of this section. 9
(c) Unless otherwise directed by the department, a licensee shall pay all costs 10
reasonably incurred in connection with an examination of a licensee or a licensee's 11
authorized delegate. 12
(d) Information obtained during an examination under this chapter may be 13
disclosed only as provided in AS 06.55.407. 14
* Sec. 11. AS 06.55.403(a) is repealed and reenacted to read: 15
(a) A licensee shall submit a report of the licensee's financial condition within 16
45 days after the end of each quarter of the calendar year or within an extended period 17
that the department establishes. The report of condition must include 18
(1) financial information at the licensee's level; 19
(2) nationwide and state-specific money transmission transaction 20
information in every jurisdiction in the United States where the licensee is licensed to 21
engage in money transmission; 22
(3) a permissible investments report; 23
(4) transaction destination country reporting for money received for 24
transmission, if applicable; and 25
(5) any other information the department reasonably requires with 26
respect to the licensee. 27
* Sec. 12. AS 06.55.403(b) is repealed and reenacted to read: 28
(b) A licensee shall submit a report of the licensee's authorized delegates 29
within 45 days after the end of each quarter of the calendar year. The report of 30
authorized delegates must include the following information about each authorized 31
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delegate: 1
(1) if the authorized delegate is an entity, the legal name of the entity; 2
if the authorized delegate is an individual, the legal name of the individual; 3
(2) taxpayer employer identification number; 4
(3) principal provider identifier; 5
(4) physical address; 6
(5) mailing address; 7
(6) business conducted in other states, if any; 8
(7) a trade name or other name used by the individual that is not 9
individual's legal name; 10
(8) contact person name, telephone number, and electronic mail 11
address; 12
(9) the date the authorized delegate began acting as the licensee's 13
authorized delegate; 14
(10) the date the authorized delegate stopped acting as the licensee's 15
authorized delegate, if applicable; and 16
(11) any other information the department reasonably requires with 17
respect to the authorized delegate. 18
* Sec. 13. AS 06.55.403(c) is amended to read: 19
(c) A [MONEY SERVICES] licensee shall file a report with the department 20
within one business day after the [MONEY SERVICES] licensee has reason to know 21
of the occurrence of any of the following events: 22
(1) the filing of a petition by or against the [MONEY SERVICES] 23
licensee under 11 U.S.C. 101 - 112 [11 U.S.C. 101 - 110] (Bankruptcy Code) for 24
bankruptcy or reorganization; 25
(2) the filing of a petition by or against the [MONEY SERVICES] 26
licensee for receivership, the commencement of any other judicial or administrative 27
proceeding for its dissolution or reorganization, or the making of a general assignment 28
for the benefit of its creditors; 29
(3) the commencement of a proceeding to revoke or suspend its 30
[MONEY SERVICES] license in a state or country in which the [MONEY 31
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SERVICES] licensee engages in business or is licensed; 1
(4) the cancellation or other impairment of the [MONEY SERVICES] 2
licensee's bond or other security; 3
(5) a charge against or conviction of the [MONEY SERVICES] 4
licensee or of a key individual [AN EXECUTIVE OFFICER, MANAGER, 5
DIRECTOR,] or person in control of the [MONEY SERVICES] licensee for a felony; 6
or 7
(6) a charge against or conviction of an authorized delegate for a 8
felony. 9
* Sec. 14. AS 06.55.403 is amended by adding a new subsection to read: 10
(d) The department may use the registry for the submission of reports required 11
by this section. 12
* Sec. 15. AS 06.55.404 is repealed and reenacted to read: 13
Sec. 06.55.404. Control; acquisition; passive investor. (a) A person or group 14
of persons acting in concert seeking to acquire control of a licensee shall obtain the 15
written approval of the department before acquiring control. An individual is not 16
considered to acquire control of a licensee when the individual becomes a key 17
individual in the ordinary course of business. 18
(b) A person, or group of persons acting in concert, seeking to acquire control 19
of a licensee shall, in cooperation with the licensee, 20
(1) submit an application in a form and in a medium prescribed by the 21
department that includes the information required by AS 06.55.412, as applicable; and 22
(2) submit a nonrefundable fee with the request for approval. 23
(c) The department may permit a licensee or the person, or group of persons 24
acting in concert, to submit some or all information required by the department under 25
(b)(1) of this section without using the registry. 26
(d) When an application for acquisition of control appears to include all 27
required information and to address all matters required by the department, the 28
application is considered complete, and the department shall notify the applicant in a 29
record of the date on which the department determines the application is complete. 30
The department shall approve or deny the application within 120 days after the date 31
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the application was determined to be complete. If the application is not approved or 1
denied within 120 days after the completion date, 2
(1) the application is approved; and 3
(2) the person or group of persons acting in concert is not prohibited 4
from acquiring control. 5
(e) The department may for good cause extend the period for approving or 6
denying an application under (d) of this section. 7
(f) A determination by the department that an application is complete and is 8
accepted for processing means only that the application, on its face, appears to include 9
all required items, including a criminal background check, and address all required 10
matters. The department's determination is not an assessment of the substance of the 11
application or of the sufficiency of the information provided. 12
(g) When an application is filed and considered to be complete under (d) of 13
this section, the department shall investigate the financial condition, financial 14
responsibility, financial experience, business experience, competence level, character, 15
and general fitness of the person or group of persons acting in concert seeking to 16
acquire control. The department shall approve a request for acquisition of control if 17
the department finds that 18
(1) the requirements of (b) of this section have been met, as applicable; 19
and 20
(2) the financial condition, financial responsibility, financial 21
experience, business experience, competence level, character, and general fitness of 22
the person, or group of persons acting in concert, seeking to acquire control, and the 23
experience, competence level, character, and general fitness of the key individuals and 24
persons that would be in control of the licensee after the acquisition of control indicate 25
that it is in the public interest to permit the person, or group of persons acting in 26
concert, to control the licensee. 27
(h) If an applicant for approval to acquire control is subject to a multistate 28
licensing process, the department may 29
(1) accept the investigation results of a lead investigative state for the 30
purposes of (g) of this section; or 31
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(2) investigate the applicant in accordance with (g) of this section and 1
the time frames established by agreement through the multistate licensing process. 2
(i) The department shall issue a formal written notice of a denial of an 3
application for approval to acquire control within 30 days after the decision to deny 4
the application. The department shall set out in the notice of denial the specific reasons 5
for the denial. An applicant may appeal a denial within 30 days after receiving the 6
written notice of the denial. 7
(j) The requirements of (a) and (b) of this section do not apply to 8
(1) a person that acts as a proxy for the sole purpose of voting at a 9
designated meeting of the shareholders or holders of voting shares or voting interests 10
of a licensee or a person in control of a licensee; 11
(2) a person that acquires control of a licensee by devise or descent; 12
(3) a person that acquires control of a licensee as a personal 13
representative, custodian, guardian, conservator, or trustee, or as an officer appointed 14
by a court of competent jurisdiction or by operation of law; 15
(4) a person that is exempt under AS 06.55.802(a)(4); 16
(5) a person that the department, by regulation or order, determines to 17
be exempt from the requirements of (a) and (b) of this section because that exemption 18
is in the public interest; 19
(6) a public offering of securities of a licensee or a person in control of 20
a licensee; or 21
(7) an internal reorganization of a person in control of a licensee where 22
the ultimate person in control of the licensee remains the same. 23
(k) A person exempt from the requirements of (a) and (b) of this section, in 24
cooperation with the licensee, shall notify the department within 15 days after the 25
acquisition of control. 26
(l) Before filing an application for approval to acquire control of a licensee, a 27
person may request in writing a determination from the department as to whether the 28
person would be considered a person in control of a licensee upon consummation of a 29
proposed transaction. If the department determines that the person would not be a 30
person in control of a licensee, the proposed person and transaction are not subject to 31
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the requirements of (a) and (b) of this section. 1
(m) If a multistate licensing process includes a determination made under (l) 2
of this section and an applicant is subject to the multistate licensing process, the 3
department may 4
(1) accept the control determination of a lead investigative state; or 5
(2) investigate the applicant in accordance with this section and the 6
time frames established by agreement through the multistate licensing process. 7
(n) The requirements of (a) and (b) of this section do not apply to a person that 8
has complied with and received approval to engage in money transmission under this 9
chapter or who has identified as a person in control in a previous application filed with 10
and approved by the department or by an accredited state in accordance with a 11
multistate licensing process, if 12
(1) in the previous five years, the person has not had a license revoked 13
or suspended or controlled a licensee that has had a license revoked or suspended 14
while the person was in control of the licensee; 15
(2) the person is a licensee, the person is well managed and has 16
received at least a satisfactory rating for compliance at the person's most recent 17
examination by an accredited state if a rating was given; 18
(3) the licensee to be acquired is projected to meet the requirements of 19
this chapter, including AS 06.55.501, 06.55.505, and 06.55.510 after the acquisition of 20
control is completed, and if the person acquiring control is a licensee, the licensee is 21
also projected to meet the requirements of this chapter, including AS 06.55.501, 22
06.55.505, and 06.55.510, after the acquisition of control is completed; 23
(4) the licensee to be acquired will not implement any material 24
changes to the licensee's business plan as a result of the acquisition of control, and if 25
the person acquiring control is a licensee, the licensee also will not implement any 26
material changes to the licensee's business plan as a result of the acquisition of control; 27
and 28
(5) the person provides notice of the acquisition in cooperation with 29
the licensee and attests to (1) - (4) of this subsection in a form and in a medium 30
prescribed by the department. 31
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(o) If the notice required under (n)(5) of this section is not disapproved within 1
30 days after the date on which the notice was determined to be complete, the notice is 2
considered to be approved. 3
(p) A person is presumed to exercise a controlling influence when the person 4
holds the power to vote, directly or indirectly, at least 10 percent of the outstanding 5
voting shares or voting interests of a licensee or person in control of a licensee. To 6
determine the percentage of a person controlled by any other person, the interest of the 7
person presumed to have a controlling interest shall be aggregated with the interest of 8
any other immediate family member, including the person's spouse, parents, children, 9
siblings, relative by marriage, and any other person who shares the home of the person 10
presumed to have a controlling interest. 11
(q) A passive investor is not considered to have control under this chapter. To 12
be a passive investor, a person 13
(1) may not have the power to elect a majority of key individuals or 14
executive officers, managers, directors, trustees, or other persons exercising 15
managerial authority of a person in control of a licensee; 16
(2) may not be employed by or have managerial duties of the licensee 17
or person in control of a licensee; 18
(3) may not have the power to exercise, directly or indirectly, a 19
controlling influence over the management or policies of a licensee or person in 20
control of a licensee; and 21
(4) shall attest to (1) - (3) of this subsection on a form and in a medium 22
prescribed by the department, or commit to the requirements of (1) - (3) of this 23
subsection in a written document. 24
* Sec. 16. AS 06.55.405(a) is amended to read: 25
(a) A [MONEY SERVICES] licensee shall maintain the following records for 26
determining its compliance with this chapter for at least five [THREE] years: 27
(1) a record of each outstanding money transmission [PAYMENT 28
INSTRUMENT OR STORED-VALUE] obligation sold; 29
(2) a general ledger posted at least monthly containing all asset, 30
liability, capital, income, and expense accounts; 31
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(3) bank statements and bank reconciliation records; 1
(4) records of outstanding money transmission [PAYMENT 2
INSTRUMENTS AND STORED-VALUE] obligations; 3
(5) records of each outstanding money transmission [PAYMENT 4
INSTRUMENT AND STORED-VALUE] obligation paid within the five-year 5
[THREE-YEAR] period; 6
(6) a list of the last known names and addresses of all of the [MONEY 7
SERVICES] licensee's authorized delegates; and 8
(7) any other records the department reasonably requires by regulation. 9
* Sec. 17. AS 06.55.405(d) is amended to read: 10
(d) Records [ALL RECORDS] maintained by the [MONEY SERVICES] 11
licensee as required in (a) - (c) of this section are open to inspection by the department 12
only as permitted under AS 06.55.401. 13
* Sec. 18. AS 06.55.406(a) is amended to read: 14
(a) A [MONEY SERVICES] licensee and an authorized delegate shall file 15
with the appropriate federal agency [ATTORNEY GENERAL] all reports required 16
by federal currency reporting, record keeping, and suspicious transaction reporting 17
requirements as set out in the Bank Secrecy Act [31 U.S.C. 5311] and other federal 18
and state laws pertaining to money laundering. The timely filing of a complete and 19
accurate report required under this section with the appropriate federal agency 20
is considered to be in compliance with the requirements of this section. 21
* Sec. 19. AS 06.55.407(a) is amended to read: 22
(a) Except as [OTHERWISE] provided in (b) of this section, all information 23
or reports obtained by the department from an applicant, [A] licensee, or [AN] 24
authorized delegate, all information contained in or related to an examination, 25
investigation, operating report, or condition report prepared by, on behalf of, or 26
for the use of the department, and financial statements, balance sheets, or 27
authorized delegate information, are confidential and not subject to disclosure under 28
AS 40.25.100 - 40.25.295 [, INCLUDING 29
(1) ALL INFORMATION CONTAINED IN OR RELATED TO 30
EXAMINATION, INVESTIGATION, OPERATING, OR CONDITION REPORTS 31
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PREPARED BY, ON BEHALF OF, OR FOR THE USE OF THE DEPARTMENT; 1
AND 2
(2) FINANCIAL STATEMENTS, BALANCE SHEETS, AND 3
AUTHORIZED DELEGATE INFORMATION]. 4
* Sec. 20. AS 06.55.407(b) is amended to read: 5
(b) The department may disclose information that is not otherwise subject to 6
disclosure under (a) of this section to representatives of state or federal agencies who 7
promise in a record that they will maintain the confidentiality of the information or if 8
the department finds that the release is reasonably necessary for the protection of the 9
public and in the interests of justice [, AND THE MONEY SERVICES LICENSEE 10
HAS BEEN GIVEN PREVIOUS NOTICE BY THE DEPARTMENT OF ITS 11
INTENT TO RELEASE THE INFORMATION]. 12
* Sec. 21. AS 06.55.407(c) is amended to read: 13
(c) This section does not prohibit the department from disclosing to the public 14
a list of [MONEY SERVICES] licensees or the aggregated financial or transactional 15
data concerning those [MONEY SERVICES] licensees. 16
* Sec. 22. AS 06.55.407(d) is amended to read: 17
(d) A [MONEY SERVICES] licensee or an authorized delegate may not 18
disclose to another person financial information provided to the [MONEY 19
SERVICES] licensee or the authorized delegate by a customer except when, and only 20
to the extent that, the disclosure is 21
(1) authorized in writing by the customer; 22
(2) required by federal, state, or local law; 23
(3) required by an order issued by a court or an administrative agency; 24
or 25
(4) part of the money transmission [SERVICES] transaction ordered 26
by the customer. 27
* Sec. 23. AS 06.55.407 is amended by adding a new subsection to read: 28
(f) Information contained in the records of the department that is not 29
confidential and may, upon request, be made available to the public on the 30
department's Internet website includes 31
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(1) the name, business address, telephone number, and unique registry 1
identifier of a licensee; 2
(2) the business address of a licensee's registered agent for service; 3
(3) the name, business address, and telephone number of all authorized 4
delegates; 5
(4) the terms or a copy of any bond filed by a licensee, if that 6
confidential information, including the prices and fees for the bond, is redacted; 7
(5) copies of any nonconfidential final orders of the department 8
relating to any violation of this chapter or regulations implementing this chapter; and 9
(6) imposition of an administrative fine or penalty under this chapter. 10
* Sec. 24. AS 06.55 is amended by adding new sections to article 4 to read: 11
Sec. 06.55.408. Audited financial statements. (a) A licensee shall, within 90 12
days after the end of the licensee's fiscal year or within any extended period that the 13
department establishes, file with the department 14
(1) an audited financial statement of the licensee for the fiscal year 15
prepared in accordance with generally accepted accounting principles; and 16
(2) other information the department reasonably requires. 17
(b) The audited financial statements must be prepared by an independent 18
certified public accountant or independent public accountant who is satisfactory to the 19
department. 20
(c) The audited financial statements must include a certificate of opinion of 21
the independent certified public accountant or independent public accountant that is 22
satisfactory in form and content to the department. If the certificate or opinion is 23
qualified, the department may order the licensee to take any action that the department 24
finds necessary to enable the independent certified public accountant or independent 25
public accountant to remove the qualification. 26
Sec. 06.55.409. Implementation. (a) To carry out the purposes of this chapter, 27
subject to AS 06.55.407, the department may 28
(1) enter into an agreement or relationship with a government official 29
or federal or state regulatory agency or regulatory association to improve efficiency 30
and reduce regulatory burden by standardizing methods or procedures, and sharing 31
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resources, records, or related information obtained under this chapter; 1
(2) use, hire, contract, or employ analytical systems, methods, or 2
software to examine or investigate a person subject to this chapter; 3
(3) accept from a state or federal government agency or official 4
licensing, examination, or investigation reports made by the agency or official; and 5
(4) accept an audit report made by an independent certified public 6
accountant or independent public accountant that is satisfactory to the department for 7
an applicant or licensee and incorporate the audit reports into a report of examination 8
or investigation. 9
(b) The department has broad administrative authority to administer, interpret 10
and enforce this chapter, to adopt regulations implementing this chapter, and to 11
recover the cost of administering and enforcing this chapter by imposing and 12
collecting proportionate and equitable fees and costs associated with applications, 13
examinations, investigations, and other actions required to achieve the purposes of this 14
chapter. 15
Sec. 06.55.410. Networked supervision. (a) The department may participate 16
in multistate supervisory processes established between and among states and 17
coordinated through an organization determined by the department to be a nationally 18
recognized organization in supervisory processes establishment and coordination 19
between and among states for all licensees that hold licenses in this state and other 20
states. As a participant in multistate supervision, subject to AS 06.55.407, the 21
department may 22
(1) cooperate, coordinate, and share information with other state and 23
federal regulators; and 24
(2) enter into written contracts or agreements with other state and 25
federal regulators for the purposes of cooperating, coordinating, and sharing 26
information with state and federal regulators. 27
(b) Nothing in this section constitutes a waiver of the department's authority to 28
conduct an examination or investigation or otherwise take independent action to 29
enforce compliance with applicable state or federal law. 30
(c) A joint examination or investigation, or acceptance of an examination or 31
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investigation report, does not waive an examination assessment provided for in this 1
chapter. 2
Sec. 06.55.411. Relationship to federal law. (a) If state money transmission 3
jurisdiction is conditioned on a federal law, any inconsistency between a provision of 4
this chapter and the federal law governing money transmission is governed by the 5
applicable federal law to the extent of the inconsistency. 6
(b) If an inconsistency between this chapter and a federal law that governs in 7
accordance with (a) of this section, the department may provide interpretive guidance 8
that 9
(1) identifies the inconsistency; and 10
(2) identifies the appropriate means of compliance with federal law. 11
Sec. 06.55.412. Notice and information requirements for a change of key 12
individual. (a) A licensee adding or replacing a key individual shall 13
(1) provide notice in a manner prescribed by the department within 15 14
days after the effective date of the key individual's appointment; and 15
(2) provide the information required under AS 06.55.109 within 45 16
days after the effective date of the key individual's appointment. 17
(b) The department may issue a notice of disapproval of a key individual if the 18
department finds that the experience, competence level, character, or integrity of the 19
individual would not be in the best interest of the public or the customers of the 20
licensee to permit the individual to be a key individual. The department shall issue a 21
notice of disapproval within 90 days after the department determines the notice 22
provided under (a) of this section to be complete. 23
(c) A notice of disapproval shall contain a statement of the basis for the 24
disapproval and be sent to the licensee and the disapproved individual. A licensee may 25
appeal a notice of disapproval within 30 days after receipt of the notice. 26
(d) If the notice provided under (a) of this section is not disapproved within 90 27
days after the date the notice was determined to be complete, the key individual is 28
considered to be approved. 29
(e) If a multistate licensing process includes a key individual notice review 30
and disapproval process, and the licensee is subject to the multistate licensing process, 31
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the department may 1
(1) accept the key individual notice review determination of another 2
state; or 3
(2) investigate the applicant in accordance with (b) of this section and 4
the time frames established by agreement through the multistate licensing process. 5
* Sec. 25. AS 06.55.501 is amended to read: 6
Sec. 06.55.501. Maintenance of permissible investments. (a) A [MONEY 7
SERVICES] licensee shall maintain at all times permissible investments that have a 8
market value computed under generally accepted accounting principles of not less than 9
the aggregate amount of all of its outstanding money transmission [PAYMENT 10
INSTRUMENTS AND STORED VALUE] obligations [ISSUED OR SOLD IN ALL 11
STATES AND MONEY TRANSMITTED FROM ALL STATES BY THE MONEY 12
SERVICES LICENSEE]. 13
(b) Except for permissible investments listed in AS 06.55.502(a), the 14
[THE] department, with respect to any licensee [MONEY SERVICES LICENSEES], 15
may by regulation or order limit the extent to which a specific [TYPE OF] 16
investment maintained by a licensee within a class of permissible investments may 17
be considered a permissible investment [, EXCEPT FOR MONEY AND 18
CERTIFICATES OF DEPOSIT ISSUED BY A BANK. THE DEPARTMENT BY 19
REGULATION MAY PRESCRIBE OR BY ORDER ALLOW OTHER TYPES OF 20
INVESTMENTS THAT THE DEPARTMENT DETERMINES TO HAVE A 21
SAFETY SUBSTANTIALLY EQUIVALENT TO OTHER PERMISSIBLE 22
INVESTMENTS]. 23
(c) Permissible investments, even if commingled with other assets of the 24
[MONEY SERVICES] licensee, are held in trust for the benefit of the purchasers and 25
holders of the [MONEY SERVICES] licensee's outstanding money transmission 26
[PAYMENT INSTRUMENTS AND STORED VALUE] obligations in the event of 27
the licensee's insolvency, bankruptcy, [OR] receivership, commencement of other 28
judicial or administrative proceedings for its dissolution or reorganization, or in 29
the event of an action by a creditor against the licensee who is not a beneficiary of 30
the statutory trust. A permissible investment impressed with a trust in 31
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accordance with this subsection is not subject to attachment, levy of execution, or 1
sequestration by a court, unless the attachment, levy of execution, or 2
sequestration is for a beneficiary of the statutory trust [OF THE MONEY 3
SERVICES LICENSEE]. 4
* Sec. 26. AS 06.55.501 is amended by adding new subsections to read: 5
(d) Upon the establishment of a statutory trust under (c) of this section, or 6
when funds are drawn on a letter of credit under AS 06.55.502(a)(4) and 06.55.503, 7
the department shall notify the applicable regulator of each state in which the licensee 8
is licensed to engage in money transmission, if any, of the establishment of the trust or 9
the funds drawn on the letter of credit, as applicable. Notice may be provided in 10
accordance with a multistate agreement or through the registry. Funds drawn on a 11
letter of credit and any other permissible investments held in trust for the benefit of the 12
purchasers and holders of the licensee's outstanding money transmission obligations 13
are considered to be held in trust for the benefit of the purchasers and holders of the 14
licensee's outstanding money transmission obligations on a pro rata and equitable 15
basis in accordance with state law and the law of other states, as applicable. A 16
statutory trust established under this section shall be terminated upon extinguishment 17
of all of the licensee's outstanding money transmission obligations. 18
(e) The department may by regulation or order allow other types of 19
investments that the department determines are of sufficient liquidity and quality to be 20
a permissible investment. The department may participate in efforts with other state 21
regulators to identify permissible investments. 22
* Sec. 27. AS 06.55.502(a) is amended to read: 23
(a) The [EXCEPT TO THE EXTENT OTHERWISE LIMITED BY THE 24
DEPARTMENT UNDER AS 06.55.501, THE] following investments are permissible 25
under AS 06.55.501: 26
(1) cash, demand deposits, savings deposits, funds in accounts held 27
for the benefit of a licensee's customers in a federally insured depository financial 28
institution, money market mutual funds rated AAA by an eligible rating service, 29
certificates [A CERTIFICATE] of deposit, [OR A] senior debt obligations 30
[OBLIGATION] of a federally [AN] insured depository financial institution, and 31
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cash equivalents, including automated clearing house items in transit to the 1
licensee and automated clearing house items or international wires in transit to a 2
payee, cash in transit by armored car, cash in smart safes, cash in licensee-owned 3
locations, and transmission receivables owed by a bank and funded by a debit 4
card or credit card; 5
(2) [; IN THIS PARAGRAPH, "INSURED DEPOSITORY 6
INSTITUTION" HAS THE MEANING GIVEN IN 12 U.S.C. 1813 (FEDERAL 7
DEPOSIT INSURANCE ACT); 8
(2) BANKER'S ACCEPTANCE OR BILL OF EXCHANGE THAT IS 9
ELIGIBLE FOR PURCHASE ON ENDORSEMENT BY A MEMBER BANK OF 10
THE FEDERAL RESERVE SYSTEM AND IS ELIGIBLE FOR PURCHASE BY A 11
FEDERAL RESERVE BANK; 12
(3)] an investment bearing a rating of one of the three highest grades as 13
defined by a nationally recognized organization that rates securities; 14
(3) [(4) AN INVESTMENT SECURITY THAT IS] an obligation of 15
the United States or a commission [DEPARTMENT], agency, or instrumentality of 16
the United States, [AN INVESTMENT IN] an obligation that is guaranteed fully as to 17
principal and interest by the United States, or [AN INVESTMENT IN] an obligation 18
of a state or a governmental subdivision, agency, or instrumentality of a state; 19
(4) the full drawable amount that can be drawn on an irrevocable 20
standby letter of credit that complies with AS 06.55.503; 21
(5) 100 percent of the surety bond provided for under 22
AS 06.55.505 that exceeds the average daily money transmission liability in this 23
state 24
[(5) RECEIVABLES THAT ARE PAYABLE TO A MONEY 25
SERVICES LICENSEE FROM ITS AUTHORIZED DELEGATES, IN THE 26
ORDINARY COURSE OF BUSINESS, UNDER CONTRACTS THAT ARE NOT 27
PAST DUE OR DOUBTFUL OF COLLECTION IF THE AGGREGATE AMOUNT 28
OF RECEIVABLES UNDER THIS PARAGRAPH DOES NOT EXCEED 20 29
PERCENT OF THE TOTAL PERMISSIBLE INVESTMENTS OF A MONEY 30
SERVICES LICENSEE AND THE MONEY SERVICES LICENSEE DOES NOT 31
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HOLD AT ONE TIME RECEIVABLES UNDER THIS PARAGRAPH IN ANY 1
ONE PERSON AGGREGATING MORE THAN 10 PERCENT OF THE MONEY 2
SERVICES LICENSEE'S TOTAL PERMISSIBLE INVESTMENTS; AND 3
(6) A SHARE OR A CERTIFICATE ISSUED BY AN OPEN-END 4
MANAGEMENT INVESTMENT COMPANY THAT IS REGISTERED WITH THE 5
UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER 15 6
U.S.C. 80a-1 - 80a-64 (INVESTMENT COMPANY ACT OF 1940), AND WHOSE 7
PORTFOLIO IS RESTRICTED BY THE MANAGEMENT COMPANY'S 8
INVESTMENT POLICY TO INVESTMENTS SPECIFIED IN (1) - (4) OF THIS 9
SUBSECTION]. 10
* Sec. 28. AS 06.55.502(b) is repealed and reenacted to read: 11
(b) In addition to the investments permissible under (a) of this section, the 12
following investments are permissible under (a) of this section, to the extent specified: 13
(1) receivables that are payable to a licensee from the licensee's 14
authorized delegates in the ordinary course of business that are less than seven days 15
old and do not exceed 50 percent of the aggregate value of the licensee's total 16
permissible investments; receivables under this paragraph that are payable to a 17
licensee from a single authorized delegate in the ordinary course of business may not 18
exceed 10 percent of the aggregate value of the licensee's total permissible 19
investments; 20
(2) the following investments, not to exceed 20 percent for each 21
category and a combined total of 50 percent of the aggregate value of the licensee's 22
total permissible investments: 23
(A) a short-term investment of not more than six months' 24
duration bearing an eligible rating; 25
(B) commercial paper bearing an eligible rating; 26
(C) a bill, note, bond, or debenture bearing an eligible rating; 27
(D) United States tri-party repurchase agreements collateralized 28
at 100 percent or more by federal government or agency securities, municipal 29
bonds, or other securities bearing an eligible rating; 30
(E) money market mutual funds rated equal to or higher than 31
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A- and less than AAA by an eligible rating service; and 1
(F) a mutual fund or other investment fund composed solely 2
and exclusively of one or more permissible investments listed in (a)(1) - (3) of 3
this section; 4
(3) cash held in accounts for the benefit of the licensee's customers at 5
foreign depository financial institutions, not to exceed 10 percent of the aggregate 6
value of the licensee's total permissible investments, if the licensee has received a 7
satisfactory rating in the licensee's most recent examination and the foreign depository 8
financial institution 9
(A) has an eligible rating; 10
(B) is registered under 26 U.S.C. 1471-1474 (Foreign Account 11
Tax Compliance Act); 12
(C) is not located in any country subject to sanctions from the 13
United States Department of the Treasury Office of Foreign Assets Control; 14
and 15
(D) is not located in a high-risk or noncooperative jurisdiction 16
as designated by the Financial Action Task Force; and 17
(4) virtual currency is only a permissible investment for outstanding 18
money transmission obligations of virtual currency. 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 credit 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 draw 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, unconditional, 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, documents or 2
entities, or otherwise provide for any security interest in the licensee; 3
(6) must contain an issue date and expiration date, and expressly 4
provide for automatic extension, without a written amendment, for an additional 5
period of one year from the present or each future expiration date, unless the issuer of 6
the letter of credit notifies the department in writing by certified 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 (Bankruptcy Code), for bankruptcy 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 law, 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 demonstrate to 28
the satisfaction of the beneficiary that the licensee will maintain 29
permissible investments in accordance 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 department, 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 letter of credit in an amount up to the amount necessary 6
to meet the licensee's requirements to maintain permissible investments 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 outstanding 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 assigned to the 17
department. 18
(d) The department may participate in multistate processes designed 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 or, with the department's approval, a deposit in 24
accordance with this section. 25
(b) The department shall determine the amount of the required security by 26
regulation or order. The amount of the required security must be proportional to the 27
licensee's average daily money transmission liability in this state up to a maximum of 28
$1,000,000. 29
(c) A licensee that maintains a bond in the maximum amount provided for 30
under (b) of this section is not required to calculate its average 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 the principal sum 3
of the bond. A claimant against a licensee may maintain an action 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 department specifies, 6
but at least for the five years after the date the licensee stops providing money 7
transmission in this state. The department may permit the amount 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 state 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 licensee 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 for 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 application by the 24
applicant's most recent audited or unaudited financial statements. 25
(c) The department may exempt an applicant or licensee, in part 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, place a 30
[MONEY SERVICES] licensee in receivership, or order a [MONEY SERVICES] 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] licensee does not cooperate with an 4
examination or investigation by the department; 5
(3) the [MONEY SERVICES] licensee engages in fraud, intentional 6
misrepresentation, or gross negligence; 7
(4) an authorized delegate is convicted of a violation of a state 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 control 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 payment 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 authorized 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 engaging 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 magnitude 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 revocation 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 revocation of authorized delegates. (a) The 3
department may issue an order suspending or revoking the designation 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 examination 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 state 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 authorized delegate indicates that 15
it is not in the public interest to permit the authorized delegate to provide money 16
transmission [SERVICES]; or 17
(6) the authorized delegate is engaging in an unsafe or unsound 18
practice. 19
(b) In determining whether an authorized delegate is engaging in an unsafe or 20
unsound practice, the department may consider the size and condition 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 suspension 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 chapter 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 and 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 assets 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 from the violation. 5
The order becomes effective on service of it on the [MONEY SERVICES] licensee or 6
authorized delegate. 7
* Sec. 35. AS 06.55.603(b) is amended to read: 8
(b) The department may issue an order against a [MONEY SERVICES] 9
licensee to cease and desist from providing money transmission [SERVICES] 10
through an authorized delegate who is the subject of a separate order by the 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 court for a judicial order 15
setting aside, limiting, or suspending the enforcement, operation, 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 order 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. 23
* Sec. 38. AS 06.55.605 is amended by adding a new subsection to read: 24
(b) A person that is found liable for a civil penalty under (a) of this section 25
shall also be liable to the department for the department's costs and expenses for 26
investigating and prosecuting the matter, including reasonable attorney fees. 27
* Sec. 39. AS 06.55.606(b) is amended to read: 28
(b) A person who knowingly engages in an activity for which a [MONEY 29
SERVICES] license is required under this chapter without being licensed [AS A 30
MONEY SERVICES LICENSEE] and who receives more than $500 in compensation 31
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within a 30-day period from this activity is guilty of a class C felony. 1
* Sec. 40. AS 06.55.606(c) is amended to read: 2
(c) A person who knowingly engages in an activity for which a [MONEY 3
SERVICES] license is required under this chapter without being [LICENSED AS] a 4
[MONEY SERVICES] licensee and who receives not [NO] more than $500 in 5
compensation within a 30-day period from this activity is guilty of a class A 6
misdemeanor. 7
* Sec. 41. AS 06.55.607(a) is amended to read: 8
(a) If the department has reason to believe that a person has violated or is 9
violating AS 06.55.101 [OR 06.55.201], the department may issue an order to show 10
cause why an order to cease and desist should not issue requiring that the person cease 11
and desist from the violation of AS 06.55.101 [OR 06.55.201]. 12
* Sec. 42. AS 06.55.607(e) is amended to read: 13
(e) A person that [WHO] is served with an order to cease and desist for 14
violating AS 06.55.101 [OR 06.55.201] may petition the superior court for a judicial 15
order setting aside, limiting, or suspending the enforcement, operation, or 16
effectiveness of the order pending the completion of an administrative proceeding 17
under AS 06.55.701 and 06.55.702. 18
* Sec. 43. AS 06.55.702(a) is amended to read: 19
(a) Except as otherwise provided in AS 06.55.603 and 06.55.607 [AND IN (b) 20
OF THIS SECTION], the department may not suspend or revoke a [MONEY 21
SERVICES] license, place a [MONEY SERVICES] licensee in receivership, issue an 22
order to cease and desist, suspend or revoke the designation of an authorized delegate, 23
or assess a civil penalty without notice and an opportunity to be heard. The department 24
shall also hold a hearing when requested to hold a hearing by an applicant whose 25
application for a [MONEY SERVICES] license is denied. 26
* Sec. 44. AS 06.55.802 is amended to read: 27
Sec. 06.55.802. Exemptions [EXCLUSIONS]. This chapter does not apply to 28
(1) the United States or a department, [AN] agency, [OR AN] 29
instrumentality, or agent of the United States; 30
(2) money transmission by the United States Postal Service or by an 31
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agent [A CONTRACTOR ON BEHALF] of the United States Postal Service; 1
(3) a state, a municipality, a county, or another governmental agency 2
or governmental subdivision of a state, or its agent; 3
(4) a federally insured depository financial institution, a bank, a 4
bank holding company, an office of an international banking corporation, a branch of a 5
foreign bank, a corporation organized under 12 U.S.C. 1861 - 1867 (Bank Service 6
Company Act), or a corporation organized under 12 U.S.C. 611 - 633 (Edge Act) 7
under the laws of a state or the United States, if it does not issue, sell, or provide 8
payment instruments or stored value through an authorized delegate who is not a bank, 9
a bank holding company, an office of an international banking corporation, a branch of 10
a foreign bank, a corporation organized under 12 U.S.C. 1861 - 1867 (Bank Service 11
Company Act), [OR] a corporation organized under 12 U.S.C. 611 - 633 (Edge Act) 12
under the laws of a state or the United States, an institution regulated by the Farm 13
Credit Association, or a subsidiary or affiliate of a financial institution if the 14
subsidiary or affiliate is owned and controlled by a depository institution and 15
regulated by a federal banking agency; in this paragraph, "federal banking 16
agency" means the Board of Governors of the Federal Reserve System, the 17
United States Comptroller of the Currency, the director of the Office of Thrift 18
Supervision, the National Credit Union Administration, and the Federal Deposit 19
Insurance Corporation; 20
(5) electronic funds transfer of governmental benefits for a federal, 21
state, or municipal agency or a state political subdivision by a contractor on behalf of 22
(A) the United States or a department, an agency, or an 23
instrumentality of the United States; or 24
(B) a state, or a department, an agency, or an instrumentality of 25
a state; 26
(6) a board of trade or a person that [WHO], in the ordinary course of 27
business, provides clearance and settlement services for a board of trade, to the extent 28
of the operation of the person for a board of trade; in this paragraph, "board of trade" 29
means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f 30
(Commodity Exchange Act); 31
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(7) a registered futures commission merchant under the federal 1
commodities laws, to the extent of the merchant's operation as a registered futures 2
commission merchant under the federal commodities laws; 3
(8) a person that [WHO] provides clearance or settlement services 4
under a registration as a clearing agency or an exemption from the registration granted 5
under the federal securities laws, to the extent of the person's operation as a provider 6
of clearance or settlement services under a registration as a clearing agency or an 7
exemption from the registration granted under the federal securities laws; 8
(9) an operator of a payment system to the extent that the operator 9
provides processing, clearing, or settlement services, between or among persons 10
exempted [EXCLUDED] by this section, in connection with wire transfers, credit 11
card transactions, debit card transactions, stored-value transactions, automated 12
clearinghouse transfers, or similar funds transfers; [OR] 13
(10) a person registered as a securities broker-dealer under federal or 14
state securities laws, to the extent of the person's operation as a securities broker-15
dealer; 16
(11) an individual employed by a licensee, authorized delegate, or 17
a person exempt from the licensing requirements of this chapter when the 18
individual is acting within the scope of employment and under the supervision of 19
the licensee, authorized delegate, or exempt person and not as an independent 20
contractor; 21
(12) a person expressly appointed as a third-party service provider 22
to or agent of an entity exempt under (4) of this subsection, solely to the extent 23
that 24
(A) the service provider or agent is engaging in money 25
transmission on behalf of and in accordance with a written agreement 26
with the exempt entity that sets out the specific functions that the service 27
provider or agent is to perform; and 28
(B) the exempt entity assumes all risk of loss and all legal 29
responsibility for satisfying the outstanding money transmission 30
obligations owed to purchasers and holders of the outstanding money 31
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transmission obligations upon receiving the purchaser's or holder's money 1
or monetary value by the service provider or agent; 2
(13) a person appointed as an agent of a payee to collect and 3
process a payment from a payor to the payee for goods or services, other than 4
money transmission services, provided to the payor by the payee, if 5
(A) the payee and the agent have a written agreement 6
directing the agent to collect and process payments from payors on the 7
payee's behalf; 8
(B) the payee holds the agent out to the public as accepting 9
payments for goods or services on the payee's behalf; and 10
(C) payment for the goods and services is treated as 11
received by the payee upon receipt by the agent and the payor's obligation 12
is extinguished, and there is no risk of loss to the payor if the agent fails to 13
remit the funds to the payee; 14
(14) a person that acts as an intermediary by processing payments 15
between an entity that has directly incurred an outstanding money transmission 16
obligation to a sender and the sender's designated recipient, if the person acting 17
as an intermediary 18
(A) is a licensee or exempt from the licensing requirements 19
under this chapter; 20
(B) provides a receipt, electronic record, or other written 21
confirmation to the sender identifying the entity as the provider of money 22
transmission in the transaction; and 23
(C) bears sole responsibility to satisfy the outstanding 24
money transmission obligation to the sender, including the obligation to 25
remedy a failure to transmit the funds to the sender's designated 26
recipient; 27
(15) an entity that is an insurance company, title insurance 28
company, or escrow agent, to the extent that the entity is lawfully authorized to 29
conduct business in this state as an insurance company, title insurance company, 30
or escrow agent and to the extent that the entity engages in money transmission 31
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as an ancillary service when conducting insurance, title insurance, or escrow 1
activity; 2
(16) an attorney, to the extent that the attorney is lawfully 3
authorized to practice law in this state and engages in money transmission as an 4
ancillary service to the practice of law; or 5
(17) a person exempt by regulation or order of the department if 6
the department finds that the exemption is in the public interest and that the 7
regulation of the person is not necessary for the purposes of this chapter [UNDER 8
FEDERAL OR STATE SECURITIES LAWS]. 9
* Sec. 45. AS 06.55.802 is amended by adding a new subsection to read: 10
(b) The department may adopt regulations that exempt a person providing 11
payroll processing services from all or some of the provisions of this chapter when the 12
volume of the money transmissions received by the person are minor compared to the 13
volume of money transmissions generally received by a person licensed under this 14
chapter. In this subsection, 15
(1) "money transmission" means receiving money or monetary value 16
in the United States for transmission within or outside the United States; 17
(2) "payroll processing services" means money transmissions received 18
under a contract with a person for the purpose of delivering wages or salaries, making 19
payments of payroll taxes to state and federal agencies, making payments relating to 20
employee benefit plans, or making distributions of other authorized deductions from 21
wages or salaries. 22
* Sec. 46. AS 06.55 is amended by adding a new section to read: 23
Sec. 06.55.803. Authority to require demonstration of exemption. The 24
department may require a person that claims to be exempt from licensing under 25
AS 06.55.802 to provide information and documentation to the department 26
demonstrating the claimed exemption. 27
* Sec. 47. AS 06.55.810 is amended to read: 28
Sec. 06.55.810. Notices required. (a) A [MONEY SERVICES] licensee shall 29
provide customers with notice of how to file a complaint. A licensee shall provide 30
notice [DISPLAY A SIGN] at each location where the [MONEY SERVICES] 31
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licensee 1
(1) provides money transmission [SERVICES] under this chapter; 2
and 3
(2) has not designated an authorized delegate to provide money 4
transmission [SERVICES] on behalf of the [MONEY SERVICES] licensee at the 5
location. 6
(b) An authorized delegate shall provide customers with notice of how to 7
file a complaint. An authorized delegate shall provide notice [DISPLAY A SIGN] 8
at each location where the authorized delegate provides money transmission 9
[SERVICES] under this chapter. 10
(c) The notice [SIGN] required by (a) or (b) of this section must be in a 11
format and contain information required by the department [SHALL BE 12
DISPLAYED AT ALL TIMES IN FULL VIEW OF PERSONS VISITING THE 13
LOCATION AND SHALL GIVE THE DEPARTMENT'S ADDRESS AND THE 14
DEPARTMENT'S TELEPHONE NUMBER FOR RECEIVING CALLS 15
REGARDING COMPLAINTS AND OTHER CONCERNS ABOUT MONEY 16
SERVICES LICENSEES, AUTHORIZED DELEGATES, AND THE MONEY 17
SERVICES PROVIDED BY MONEY SERVICES LICENSEES AND 18
AUTHORIZED DELEGATES]. 19
* Sec. 48. AS 06.55.810 is amended by adding a new subsection to read: 20
(d) A licensee or authorized delegate shall include on a receipt or disclose on 21
the licensee's Internet website or mobile application the name and telephone number 22
of the department and a statement that the licensee's customers can contact the 23
department with questions or complaints about the licensee's money transmission. In 24
this subsection, "mobile application" means a software application developed 25
specifically for use on small, wireless computing devices. 26
* Sec. 49. AS 06.55 is amended by adding a new section to read: 27
Sec. 06.55.815. In-state determination. For a transaction requested 28
electronically or by telephone, the provider of money transmission may determine 29
whether the person requesting the transaction is in this state by relying on other 30
information provided by the person regarding the location of the person's residential 31
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address or principal place of business or other physical address, and any records 1
associated with the person that the provider of money transmission may have that 2
indicate the location, including an address associated with an account. 3
* Sec. 50. AS 06.55.830 is repealed and reenacted to read: 4
Sec. 06.55.830. Receipt. (a) Except as provided in (d) of this section, a 5
licensee or a licensee's authorized delegate shall provide the sender a receipt for 6
money received for transmission. The receipt must be in English and in any other 7
language principally used by the licensee or authorized delegate to advertise, solicit, or 8
negotiate, either orally or in writing, for the transaction conducted. The receipt must 9
contain the following information, as applicable: 10
(1) the name of the sender; 11
(2) the name of the designated recipient; 12
(3) the date of the transaction; 13
(4) the unique transaction or identification number; 14
(5) the name of the licensee, unique registry identifier, the licensee's 15
business address, and the licensee's customer service telephone number; 16
(6) the dollar amount of the transaction; 17
(7) any fee charged by the licensee to the sender for the transaction; 18
(8) any taxes collected by the licensee from the sender for the 19
transaction; and 20
(9) the exchange rate, if any, used by the provider for the transaction. 21
(b) For a transaction conducted in person, the receipt may be provided 22
electronically if the sender requests or agrees to receive an electronic receipt. For a 23
transaction conducted electronically or by telephone, a receipt may be provided 24
electronically. All electronic receipts must be provided in a retainable form. 25
(c) This section does not apply to 26
(1) money received for transmission that is subject to 12 C.F.R. Part 27
1005, Subpart B; 28
(2) money received for transmission that is not primarily for personal, 29
family, or household purposes; 30
(3) money received for transmission in accordance with a written 31
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agreement between the licensee and payee to process payments for goods or services 1
provided by the payee; 2
(4) an individual consumer transferring funds to reload stored value on 3
the consumer's account through a point of sale transaction; or 4
(5) a stored-value transaction exempted by the department by 5
regulation or order. 6
(d) In this section, "receipt" means a paper receipt, electronic record, or other 7
written confirmation. 8
* Sec. 51. AS 06.55 is amended by adding a new section to read: 9
Sec. 06.55.835. Timely transmission. (a) A licensee shall forward all money 10
received for transmission in accordance with the terms of the agreement between the 11
licensee and the sender unless the licensee has a reasonable cause to believe that the 12
sender may be a victim of fraud or that a crime or violation of law, rule, or regulation 13
has occurred, is occurring, or may occur. 14
(b) If a licensee fails to forward money received for transmission in 15
accordance with this section, the licensee must respond to inquiries by the sender with 16
the reason for the failure unless providing a response would violate a state or federal 17
law, rule, or regulation. 18
* Sec. 52. AS 06.55.840 is repealed and reenacted to read: 19
Sec. 06.55.840. Refunds. (a) Except as provided in (b) of this section, a 20
licensee shall refund to the sender, within 10 days after receipt of the sender's written 21
request for a refund, all money received for transmission unless 22
(1) the money has been forwarded within 10 days after the date on 23
which the money was received for transmission; 24
(2) within 10 days after the date on which the money was received for 25
transmission, instructions have been given committing an equivalent amount of money 26
to the person designated by the sender; 27
(3) the agreement between the licensee and the sender instructs the 28
licensee to forward the money at a time that is beyond 10 days after the date on which 29
the money was received for transmission; if money has not yet been forwarded in 30
accordance with the terms of the agreement between the licensee and the sender, the 31
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licensee shall issue a refund in accordance with this section; 1
(4) the refund is requested for a transaction that the licensee has not 2
completed based on a reasonable belief that a crime or violation of law, rule, or 3
regulation has occurred, is occurring, or may occur; or 4
(5) the refund request does not 5
(A) identify the sender's name and 6
(i) address; or 7
(ii) telephone number; or 8
(B) identify the particular transaction to be refunded in the 9
event the sender has multiple transactions outstanding. 10
(b) This section does not apply to: 11
(1) money received for transmission subject to 12 C.F.R. Part 1005, 12
Subpart B; or 13
(2) money received for transmission in accordance with a written 14
agreement between the licensee and payee to process payments for goods or services 15
provided by the payee. 16
* Sec. 53. AS 06.55.850(b) is amended to read: 17
(b) The department shall establish fee levels under (a) of this section so that 18
the total amount of fees collected for [BOTH MONEY TRANSMISSION] licenses 19
[AND CURRENCY EXCHANGE LICENSES] under this chapter approximately 20
equals the department's actual total regulatory costs for [BOTH MONEY 21
TRANSMISSION] licenses [AND CURRENCY EXCHANGE LICENSES. THE 22
DEPARTMENT SHALL SET THE FEE LEVELS SO THAT THE FEE LEVELS 23
FOR BOTH MONEY TRANSMISSION LICENSES AND CURRENCY 24
EXCHANGE LICENSES ARE THE SAME]. 25
* Sec. 54. AS 06.55.850 is amended by adding a new subsection to read: 26
(f) The department shall set an annual renewal fee based on a licensee's total 27
volume of money transmission in the state, calculated in dollars or dollar equivalents. 28
* Sec. 55. AS 06.55.990(1) is amended to read: 29
(1) "authorized delegate" means a person that [WHOM] a [MONEY 30
SERVICES] licensee designates to engage in [PROVIDE] money transmission 31
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[SERVICES] on behalf of the [MONEY SERVICES] licensee; 1
* Sec. 56. AS 06.55.990(3) is amended to read: 2
(3) "control" means 3
(A) the ownership of, or the power to vote, directly or 4
indirectly, at least 10 [25] percent of the outstanding [A CLASS OF] voting 5
shares [SECURITIES] or voting interests of a [MONEY SERVICES] licensee 6
or of a person that owns or has the power to vote, directly or indirectly, at 7
least 10 percent of the voting shares or voting interests [IN CONTROL] of 8
a [MONEY SERVICES] licensee unless the person with the power to vote is 9
a passive investor as described in AS 06.55.404(q); 10
(B) the power to elect or appoint a majority of executive 11
officers, managers, directors, trustees, or other persons exercising managerial 12
authority of a [MONEY SERVICES] licensee or person in control of a 13
[MONEY SERVICES] licensee; or 14
(C) the power to exercise directly or indirectly, a controlling 15
influence over the management or policies of a [MONEY SERVICES] 16
licensee or person in control of a [MONEY SERVICES] licensee; 17
* Sec. 57. AS 06.55.990(15) is amended to read: 18
(15) "money transmission" 19
(A) means 20
(i) selling or issuing payment instruments or stored 21
value to a person located in this state; 22
(ii) [, OR] receiving money or monetary value for 23
transmission to the state, from the state, or within the state; 24
(iii) engaging in virtual currency exchange; or 25
(iv) engaging in virtual currency business activity; 26
(B) [, BUT] does not mean [INCLUDE] the provision solely of 27
[DELIVERY,] online services, telecommunications services, or network 28
access; 29
* Sec. 58. AS 06.55.990(19) is amended to read: 30
(19) "payment instrument" means a written or electronic check, [A] 31
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draft, [A] money order, [A] traveler's check, or other written or electronic 1
[ANOTHER] instrument for the transmission or payment of money or monetary value, 2
whether or not negotiable, but does not mean stored value, [INCLUDE] a credit card 3
voucher, a letter of credit, [OR] an instrument that is redeemable by the issuer in 4
goods or services, or other instrument not sold to the public but issued and 5
distributed as part of a loyalty, rewards, or promotional program; 6
* Sec. 59. AS 06.55.990(20) is amended to read: 7
(20) "person" means an individual, general partnership, limited 8
partnership, [A] corporation, [A BUSINESS] trust, [AN ESTATE, A TRUST, A 9
PARTNERSHIP, A] limited liability company, [AN] association, [A] joint stock 10
corporation [VENTURE, A GOVERNMENT, A GOVERNMENTAL 11
SUBDIVISION, AN AGENCY, OR AN INSTRUMENTALITY, A PUBLIC 12
CORPORATION], or any other legal or corporate [COMMERCIAL] entity 13
identified by the department; 14
* Sec. 60. AS 06.55.990(22) is amended to read: 15
(22) "state" means a state of the United States, the District of 16
Columbia, Puerto Rico, the United States Virgin Islands, a United States military 17
installation that is located in a foreign country, or a territory or insular possession 18
subject to the jurisdiction of the United States; 19
* Sec. 61. AS 06.55.990(23) is amended to read: 20
(23) "stored value" 21
(A) means 22
(i) monetary value representing a claim against the 23
issuer that is evidenced by an electronic or digital record and that is 24
intended and accepted as a means of redemption for money or 25
monetary value, or payment for goods or services; 26
(ii) prepaid access as defined in 31 C.F.R. 1010.100; 27
(B) does not mean a payment instrument or a closed-loop 28
stored value, or a stored value not sold to the public but issued and 29
distributed as part of a loyalty, rewards, or promotional program; 30
* Sec. 62. AS 06.55.990(24) is amended to read: 31
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(24) "unsafe or unsound practice" means a practice or conduct by a 1
[MONEY TRANSMISSION] licensee or an authorized delegate that [OF THE 2
MONEY TRANSMISSION LICENSEE IF THE PRACTICE] creates the likelihood 3
of material loss, insolvency, or dissipation of the [MONEY TRANSMISSION] 4
licensee's assets, or otherwise materially prejudices the interests of the [MONEY 5
TRANSMISSION] licensee's customers. 6
* Sec. 63. AS 06.55.990 is amended by adding new paragraphs to read: 7
(25) "accredited state" means a state agency that is accredited by an 8
organization that the department determines is a nationally recognized association of 9
state bank supervisors and money transmitter regulators for money transmission 10
licensing and supervision; 11
(26) "acting in concert" means persons knowingly acting together with 12
a common goal of jointly acquiring control of a licensee whether or not under an 13
express agreement; 14
(27) "average daily money transmission liability" means the amount of 15
the licensee's outstanding money transmission obligations in this state at the end of 16
each day in a given period, added together and divided by the total number of days in 17
the given period; in this paragraph, "given period" means a calendar year quarter 18
ending March 31, June 30, September 30, or December 31; 19
(28) "Bank Secrecy Act" means 31 U.S.C. 5311 - 5336 and its 20
implementing regulations; 21
(29) "closed-loop stored value" means stored value that is redeemable 22
by the issuer only for goods or services provided by the issuer or its affiliate, or 23
franchisees of the issuer or its affiliate, except to the extent required by applicable law 24
to be redeemable in cash for its cash value; 25
(30) "control of virtual currency," when used in reference to a 26
transaction or relationship involving virtual currency, means the power to execute 27
unilaterally or prevent indefinitely a virtual currency transaction; 28
(31) "dollar equivalent" means the equivalent value of a particular 29
virtual currency in United States dollars shown on a virtual currency exchange based 30
in the United States for a particular date or period specified in this chapter; in this 31
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paragraph, "virtual currency exchange" means an organization that provides a market 1
for the exchange of virtual currency; 2
(32) "eligible rating" means a short-term or long-term credit rating 3
determined by the department that is based on any of the three highest rating 4
categories provided by an eligible rating service; 5
(33) "eligible rating service" means a nationally recognized statistical 6
rating organization, as determined by the United States Securities and Exchange 7
Commission, and any other nationally recognized statistical rating organization 8
designated by the department by regulation; 9
(34) "federally insured depository financial institution" means a bank, 10
credit union, savings and loan association, trust company, savings association, savings 11
bank, industrial bank, or industrial loan company organized under the laws of the 12
United States or any state that has federally insured deposits; 13
(35) "individual" means a natural person; 14
(36) "in this state" means at a physical location within this state for a 15
transaction requested in person; 16
(37) "key individual" means an individual ultimately responsible for 17
establishing or directing policies and procedures of the licensee, including an 18
executive officer, manager, director, or trustee; 19
(38) "license" means a license issued under AS 06.55.105; 20
(39) "licensee" means a person licensed under AS 06.55.105; 21
(40) "money received for transmission" means money or monetary 22
value received in the United States for transmission within or outside the United States 23
by electronic or other means; 24
(41) "multistate licensing process" means an agreement entered into by 25
and among state regulators relating to coordinated processing of applications for 26
licenses, applications for the acquisition of control of a licensee, control 27
determinations, or notice and information requirements for a change of key 28
individuals; 29
(42) "outstanding money transmission obligation" means 30
(A) a payment instrument or stored value issued or sold by a 31
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licensee to a person located in the United States, or reported as sold by an 1
authorized delegate of the licensee to a person that is located in the United 2
States, that has not yet been paid or refunded by or for the licensee, or 3
escheated in accordance with applicable abandoned property laws; or 4
(B) money received for transmission by the licensee or an 5
authorized delegate in the United States from a person located in the United 6
States that has not been received by the payee or refunded to the sender, or 7
escheated in accordance with applicable abandoned property laws; in this 8
paragraph, "in the United States" means, to the extent applicable, a person in a 9
state, territory, or possession of the United States, the District of Columbia, the 10
Commonwealth of Puerto Rico, or a United States military installation that is 11
located in a foreign country; 12
(43) "registry" means a nationwide organization that the department 13
determines is a nationally recognized multistate licensing system to use as a multistate 14
licensing process; 15
(44) "tangible net worth" means the aggregate assets of a licensee 16
excluding all intangible assets, less liabilities, as determined in accordance with 17
generally accepted accounting principles; 18
(45) "virtual currency" 19
(A) means a digital representation of value that 20
(i) is used as a medium of exchange, unit of account, or 21
store of value; and 22
(ii) is not money, whether or not denominated in 23
money; 24
(B) does not mean 25
(i) a transaction in which a merchant grants, as part of 26
an affinity or rewards program, value that cannot be taken from or 27
exchanged with the merchant for money, bank credit, or virtual 28
currency; or 29
(ii) a digital representation of value issued by or on 30
behalf of a publisher and used solely within an online game, game 31
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platform, or family of games sold by the same publisher or offered on 1
the same game platform; 2
(46) "virtual currency administration" means issuing virtual currency 3
with the authority to redeem the currency for money, bank credit, or other virtual 4
currency; 5
(47) "virtual currency business activity" means 6
(A) exchanging, transferring, or storing virtual currency or 7
engaging in virtual currency administration, whether directly or through an 8
agreement with a virtual currency control services vendor; 9
(B) holding electronic precious metals or electronic certificates 10
representing interests in precious metals on behalf of another person or issuing 11
shares or electronic certificates representing interests in precious metals; or 12
(C) exchanging one or more digital representations of value 13
used within one or more online games, game platforms, or family of games for 14
(i) virtual currency offered by or on behalf of the same 15
publisher from which the original digital representation of value was 16
received; or 17
(ii) money or bank credit outside the online game, game 18
platform, or family of games offered by or on behalf of the same 19
publisher from which the original digital representation of value was 20
received; 21
(48) "virtual currency control services vendor" means a person that has 22
control of virtual currency solely under an agreement with a person that, on behalf of 23
another person, assumes control of virtual currency; 24
(49) "virtual currency exchange" means to 25
(A) assume control of virtual currency from or on behalf of a 26
person, at least momentarily; 27
(B) sell, trade, or convert 28
(i) virtual currency for money, bank credit, or one or 29
more forms of virtual currency or money; or 30
(ii) bank credit for one or more forms of virtual 31
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currency; 1
(50) "virtual currency transfer" means to assume control of virtual 2
currency from or on behalf of a person and to 3
(A) credit the virtual currency to the account of another person; 4
(B) move the virtual currency from one account of a person to 5
another account of the same person; or 6
(C) relinquish control of virtual currency to another person. 7
* Sec. 64. AS 06.55.995 is amended to read: 8
Sec. 06.55.995. Short title. This chapter may be cited as the Alaska Uniform 9
Money Transmission Modernization [SERVICES] Act. 10
* Sec. 65. AS 12.62.400(b) is amended to read: 11
(b) Notwithstanding (a) of this section, an applicant for a license under 12
AS 06.60 or a person controlling a licensee or an applicant for a license under 13
AS 06.55, seeking to acquire control of a licensee under AS 06.55, or acting as a 14
key individual under AS 06.55 may submit the applicant's fingerprints to the 15
Nationwide Mortgage Licensing System and Registry. In this subsection, "Nationwide 16
Mortgage Licensing System and Registry" has the meaning given in 12 U.S.C. 5102. 17
* Sec. 66. AS 34.45 is amended by adding a new section to read: 18
Sec. 34.45.165. Virtual currency. (a) Virtual currency is presumed abandoned 19
five years after the later of the following: 20
(1) the date on which the holder of the virtual currency last sends a 21
written or electronic communication to the apparent owner that is returned as 22
undeliverable; or 23
(2) the date on which the apparent owner last exercises an act of 24
ownership in the virtual currency. 25
(b) The presumption in (a) of this section does not apply if the apparent owner 26
sends a written or electronic communication to the holder of the virtual currency in the 27
preceding five years. 28
(c) In this section, "an act of ownership in the virtual currency" includes 29
(1) performing a transaction using the virtual currency or account in 30
which the virtual currency is held, including buying or selling the virtual currency or 31
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making deposits into or withdrawals from the account; 1
(2) electronically accessing the virtual currency or account in which 2
the virtual currency is held; 3
(3) performing an activity using another virtual currency or account in 4
which the virtual currency is held that is owned by the apparent owner if the holder of 5
the virtual currency or account is also the holder of the other virtual currency or 6
account; or 7
(4) taking another action that reasonably demonstrates to the holder of 8
the virtual currency or account in which the virtual currency is held that the apparent 9
owner knows the property exists. 10
* Sec. 67. AS 34.45.280(b) is amended to read: 11
(b) The report must be made on a form bearing a notice that statements are 12
made under penalty of unsworn falsification and must include 13
(1) except with respect to traveler's checks and money orders, the 14
name, if known, and last known address, if any, of each person appearing from the 15
records of the holder to be the owner of property, the value of which is $100 or more, 16
presumed abandoned under AS 34.45.110 - 34.45.430 and other statutes specifically 17
made subject to this reporting requirement; 18
(2) in the case of unclaimed money amounting to $100 or more, held 19
or owing under a life or endowment insurance policy or annuity contract, the full name 20
and last known address of the insured or annuitant and of the beneficiary or other 21
person who is entitled to the proceeds according to the records of the insurance 22
company holding or owing the funds; 23
(3) in the case of the contents of a safe deposit box or other 24
safekeeping repository or of other tangible personal property, a description of the 25
property and the place where it is held and may be inspected by the department and 26
any amounts owing to the holder; 27
(4) in the case of virtual currency, the type of virtual currency, 28
quantity of virtual currency, valuation of the virtual currency in dollars on the 29
date that the virtual currency was presumed abandoned, and whether the holder 30
of the virtual currency has full control of the necessary private keys required to 31
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transfer the virtual currency; 1
(5) [(4)] the nature and identifying number, if any, or description of the 2
property and the amount appearing from the records to be due; items of value under 3
$100 each may be reported in the aggregate; 4
(6) [(5)] the date the property became payable, demandable, or 5
returnable, and the date of the last transaction with the apparent owner with respect to 6
the property; and 7
(7) [(6)] other information that the department prescribes by regulation 8
as necessary for the administration of this chapter. 9
* Sec. 68. AS 34.45.320(a) is amended to read: 10
(a) Except as otherwise provided in (b) or (e) of this section, a person who is 11
required to file a report under AS 34.45.280, shall, at the time of filing the report 12
under that section, pay or deliver to the administrator all of the property shown on the 13
report and remaining unclaimed by the apparent owner. Upon written request showing 14
good cause, the administrator may postpone the payment or delivery upon the terms or 15
conditions the administrator considers necessary and appropriate. The property paid or 16
delivered to the administrator must include all interest, dividends, increments, and 17
accretions due, payable, or distributable on the property at the time of filing the report. 18
If payment or delivery is postponed, the property paid or delivered to the administrator 19
must include all interest, dividends, increments, and accretions due, payable, or 20
distributable on the day that the property is paid or delivered to the administrator. 21
* Sec. 69. AS 34.45.320 is amended by adding a new subsection to read: 22
(e) The holder of a virtual currency shall pay or deliver the virtual currency to 23
the administrator in the native form of the virtual currency. If the holder is unable to 24
pay or deliver the virtual currency to the administrator, the holder shall maintain 25
possession of the virtual currency until the holder is able to pay or deliver the virtual 26
currency, the requirements under (b) of this section are met, or an election not to 27
receive custody of the virtual currency is made by the department under 28
AS 34.45.410(a). If payment or delivery of the virtual currency to the administrator is 29
not practical or the administrator holding the virtual currency is uneconomical despite 30
the best efforts of the administrator, the administrator may postpone delivery of the 31
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virtual currency upon the terms or conditions the administrator considers necessary 1
and appropriate. 2
* Sec. 70. AS 34.45.380 is amended by adding a new subsection to read: 3
(g) If a holder is in possession of virtual currency because payment or delivery 4
was postponed under AS 34.45.320(a) or (e), a person, excluding another state, 5
claiming an interest in the virtual currency may file a claim in the form and bearing 6
the notice required under (a) of this section. If the claim is allowed and the holder is 7
able to pay or deliver the virtual currency, the holder shall pay or deliver the virtual 8
currency to the claimant upon receiving notice from the department. If the holder pays 9
or delivers the virtual currency to the claimant in good faith under this subsection and 10
another person subsequently claims the virtual currency from the holder or another 11
state claims the virtual currency under the laws of the other state relating to escheat or 12
unclaimed property, the department shall defend the holder against the claim and 13
indemnify the holder against liability on the claim upon receiving written notice of the 14
claim. 15
* Sec. 71. AS 34.45.390(c) is amended to read: 16
(c) The department shall require a state, before recovering property under this 17
section, to agree to indemnify this state, this state's [AND ITS] officers and 18
employees, and, if applicable, a holder paying or delivering possession of virtual 19
currency under (d) of this section against liability on a claim for the property. 20
* Sec. 72. AS 34.45.390 is amended by adding a new subsection to read: 21
(d) If a holder is in possession of virtual currency because payment or delivery 22
was postponed under AS 34.45.320(a) or (e), another state may make a claim to 23
recover abandoned virtual currency in the form required under (b) of this section. The 24
department shall allow the claim if the department determines that the other state is 25
entitled to the abandoned virtual currency under (a) of this section. If the claim is 26
allowed and the holder is able to pay or deliver the virtual currency, the holder shall 27
pay or deliver possession of the virtual currency to the other state upon receiving 28
notice from the department. 29
* Sec. 73. AS 34.45.760(11) is amended to read: 30
(11) "intangible property" 31
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(A) includes 1
(i) money, checks, drafts, warrants, deposits, interest, 2
dividends, [AND] income, and virtual currency; 3
(ii) credit balances, customer overpayments, gift 4
certificates, security deposits, refunds, credit memos, unpaid wages, 5
and unidentified remittances; 6
(iii) stocks and other intangible equity interests in 7
business associations; 8
(iv) money deposited to redeem stocks, bonds, coupons, 9
and other securities, or to make distributions; 10
(v) amounts due and payable under the terms of 11
insurance policies; 12
(vi) amounts distributable from a trust or custodial fund 13
established under a plan to provide health, welfare, pension, vacation, 14
severance, retirement, death, stock purchase, profit-sharing, employee 15
savings, supplemental unemployment insurance, or similar benefits; 16
and 17
(vii) amounts due and payable as mineral proceeds; 18
(B) does not include 19
(i) unused airline tickets; 20
(ii) shares of stock issued by a corporation organized 21
under 43 U.S.C. 1601 et seq. (Alaska Native Claims Settlement Act) or 22
unclaimed dividends payable on the shares of stock; or 23
(iii) overpaid contributions by employers to the 24
unemployment compensation fund under AS 23.20.130; 25
* Sec. 74. AS 34.45.760 is amended by adding new paragraphs to read: 26
(20) "blockchain" includes data that is 27
(A) shared across a peer-to-peer network to create a ledger of 28
verified transactions or information among network participants that is 29
linked together using cryptography to maintain the integrity of the 30
ledger and execute other functions; or 31
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(B) distributed among network participants automatically to 1
concurrently update the network participants on the state of a ledger 2
and other functions; 3
(21) "private key" means a unique element of cryptographic data used 4
for signing transactions on a blockchain and that is known to the owner of the element; 5
(22) "virtual currency" has the meaning given in AS 06.55.990. 6
* Sec. 75. AS 06.55.103, 06.55.104, 06.55.107, 06.55.201, 06.55.202, 06.55.203, 06.55.204, 7
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, 8
06.55.990(5), 06.55.990(6), 06.55.990(8), 06.55.990(9), 06.55.990(12), 06.55.990(13), 9
06.55.990(14), 06.55.990(16), 06.55.990(17), and 06.55.990(18) are repealed. 10
* Sec. 76. The uncodified law of the State of Alaska is amended by adding a new section to 11
read: 12
INDIRECT COURT RULE AMENDMENT. AS 06.55.605(b), enacted by sec. 38 of 13
this Act, has the effect of changing Rules 79 and 82, Alaska Rules of Civil Procedure, by 14
changing the award of court costs and attorney fees in certain cases. 15
* Sec. 77. The uncodified law of the State of Alaska is amended by adding a new section to 16
read: 17
TRANSITION: EXISTING CONTRACTS, RIGHTS, LIABILITIES, AND 18
OBLIGATIONS. Contracts, rights, liabilities, and obligations created by or under a law 19
repealed or amended by secs. 1 - 65 and 75 - 78 of this Act, and in effect on the day before the 20
effective date of the repeal or amendment, remain in effect notwithstanding secs. 1 - 65 and 21
75 - 78 of this Act taking effect. 22
* Sec. 78. The uncodified law of the State of Alaska is amended by adding a new section to 23
read: 24
TRANSITION: CURRENT MONEY SERVICES LICENSEES. A person that has a 25
valid money services license or approval on June 30, 2027, may continue to operate under that 26
license or approval until the licensee renews the license under AS 06.55.106, enacted by sec. 27
5 of this Act, or through July 1, 2028, whichever is later. In this section, 28
(1) "approval" means approval under AS 06.55.103, as that section read on 29
June 30, 2027; 30
(2) "money services licensee" has the meaning given in AS 06.55.990, as that 31
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section read on June 30, 2027. 1
* Sec. 79. The uncodified law of the State of Alaska is amended by adding a new section to 2
read: 3
TRANSITION: REGULATIONS. (a) The Department of Commerce, Community, 4
and Economic Development may adopt regulations necessary to implement the changes made 5
secs. 1 - 65 and 75 - 78 of this Act. The regulations take effect under AS 44.62 6
(Administrative Procedure Act), but not before the effective date of the law implemented by 7
the regulation. 8
(b) The Department of Revenue may adopt regulations necessary to implement the 9
changes made by secs. 66 - 74 of this Act. The regulations take effect under AS 44.62 10
(Administrative Procedure Act), but not before the effective date of the law implemented by 11
the regulation. 12
* Sec. 80. The uncodified law of the State of Alaska is amended by adding a new section to 13
read: 14
CONDITIONAL EFFECT. AS 06.55.605(b), enacted by sec. 38 of this Act, takes 15
effect only if sec. 76 of this Act receives the two-thirds majority vote of each house required 16
by art. IV, sec. 15, Constitution of the State of Alaska. 17
* Sec. 81. Section 79 of this Act takes effect immediately under AS 01.10.070(c). 18
* Sec. 82. Sections 1 - 65 and 75 - 78 of this Act take effect July 1, 2027. 19