MONEY TRANSMISSION; VIRTUAL CURRENCY, the official text

Enrolled SB 86 
 Relating to the business of money transmission; relating to licenses for money transmission, 
 licensure requirements, and registration through a nationwide multistate licensing system; 
 relating to the use of virtual currency for money transmission; relating to authorized delegates 
 of a licensee; relating to acquisition of control of a license; relating to record retention and 
 reporting requirements; authorizing the Department of Commerce, Community, and 
 Economic Development to cooperate with other states in the regulation of money 
 transmission; relating to permissible investments; relating to violations and enforcement of 
 money transmission laws; relating to exemptions to money transmission licensure 
 requirements; relating to payroll processing services; relating to currency exchange licenses; 
 relating to abandoned virtual currency; amending Rules 79 and 82, Alaska Rules of Civil 
 Procedure; and providing for an effective date.

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 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 
 to read: 
 PURPOSE. The purpose of secs. 1 - 65 and 75 - 78 of this Act is to replace existing 
 state money transmission laws to modernize licensure requirements, to add model language 
 for the burgeoning virtual currency industry, to allow the Department of Commerce, 
 Community, and Economic Development to coordinate with other states in all areas of 
 regulation, licensing, and supervision of money transmission, to standardize the types of 
 activities that are subject to licensing, and to modernize safety and soundness requirements 
 for money transmission. 
 * Sec. 2. AS 06.55.101 is amended to read: 
 Sec. 06.55.101. License required. (a) A person may not engage in the 
 business of money transmission or advertise, solicit, or hold itself [THE PERSON] out 
 as providing money transmission unless the person 
 (1) holds a [MONEY TRANSMISSION] license; [OR] 
 (2) is an authorized delegate of a licensee and is acting within the 
 scope of that authority under a written contract with the licensee; or 
 (3) is exempt under AS 06.55.802 and does not engage in money 
 transmission outside the scope of that exemption [PERSON WHO HOLDS A 
 MONEY TRANSMISSION LICENSE]. 
 (b) A [MONEY TRANSMISSION] license is not transferable or assignable. 
 * Sec. 3. AS 06.55.102 is repealed and reenacted to read: 
 Sec. 06.55.102. Application for license. (a) An applicant for a license shall 
 submit 
 (1) an application in a form and in a medium prescribed by the 
 department; the application must contain information on the applicant's organization 
 and operations, financial responsibility, background, competence level, experience, 
 and activities; 
 (2) any other information reasonably required by the department or 
 registry with respect to the applicant; 
 (3) the application fee established by the department;

(4) the license fee established by the department; and 
 (5) a surety bond or other security as required by AS 06.55.505. 
 (b) The department may waive a requirement of (a)(1) - (4) of this section or 
 permit an applicant to submit other information in lieu of the required information. 
 * Sec. 4. AS 06.55.105 is repealed and reenacted to read: 
 Sec. 06.55.105. Issuance of license. (a) When an application for an initial 
 license under this chapter appears to include all required information and address all 
 matters required by the department, the application is considered complete, and the 
 department shall notify the applicant in a record of the date on which the application 
 was determined to be complete. The department shall approve or deny the application 
 within 120 days after the date the application was determined to be complete. If the 
 application is not approved or denied within 120 days after the completion date, 
 (1) the application is approved; and 
 (2) the license takes effect on the first business day after expiration of 
 the 120-day period. 
 (b) The department may for good cause extend the application period. 
 (c) A determination by the department that an application is complete and is 
 accepted for processing means only that the application, on its face, appears to include 
 all required items, including a criminal background check, and address all required 
 matters. The department's determination is not an assessment of the substance of the 
 application or of the sufficiency of the information provided. 
 (d) When an application is filed and considered to be complete under (c) of 
 this section, the department shall investigate the applicant's financial condition, 
 financial responsibility, financial experience, business experience, competence level, 
 character, and general fitness. The department may conduct an on-site investigation of 
 the applicant, and the applicant shall pay the reasonable cost of the on-site 
 investigation. The department shall issue a license to an applicant if the department 
 finds that 
 (1) the applicant has complied with AS 06.55.102, 06.55.109, and 
 applicable regulations; and 
 (2) the financial condition, financial responsibility, financial

experience, financial business experience, competence level, character, and general 
 fitness of the applicant, and the experience, competence level, character, and general 
 fitness of the key individuals and persons in control of the applicant, indicate that it is 
 in the interest of the public to allow the applicant to engage in money transmission. 
 (e) If an applicant is subject to a multistate licensing process, the department 
 may 
 (1) for the purposes of (d) of this section, accept the investigation 
 results of a state that is the lead investigator in the multistate licensing process; or 
 (2) investigate the applicant in accordance with (d) of this section and 
 the time frames established by agreement through the multistate licensing process, if 
 those time frames comply with the application approval period set out in (a) of this 
 section. 
 (f) The department shall issue a formal written notice of a denial of a license 
 application within 30 days after the decision to deny the application. The department 
 shall set out in the notice of denial the specific reasons for the denial. An applicant 
 may appeal a denial within 30 days after receiving the written notice of the denial and 
 may request a hearing. 
 (g) The initial license term begins on the day the application is approved. The 
 license expires on December 31 of the year in which the license is issued, unless 
 (1) the initial license is issued between November 1 and December 31, 
 in which case the initial license term runs through December 31 of the following year; 
 or 
 (2) the license is revoked, suspended, surrendered, or its term 
 otherwise adjusted in accordance with regulations adopted by the department. 
 (h) An applicant for a license shall demonstrate that the applicant meets or 
 will meet the requirements of this chapter. 
 * Sec. 5. AS 06.55.106 is repealed and reenacted to read: 
 Sec. 06.55.106. Renewal of license. (a) A licensee shall renew a license 
 annually. A licensee shall pay an annual renewal fee by the renewal filing deadline 
 established by the department. The renewal term is for a period of one year and begins 
 on January 1 of each year after the initial license term and expires on December 31 of

the year the renewal term begins. 
 (b) A licensee shall submit a renewal report with the renewal fee in a form and 
 in a medium prescribed by the department. The renewal report must describe each 
 material change in information submitted by the licensee in the licensee's initial 
 license application that the licensee has not reported to the department. 
 (c) The department may for good cause grant an extension of the renewal 
 filing deadline. 
 (d) The department may use the registry to process license renewals if the use 
 is consistent with this section. 
 * Sec. 6. AS 06.55 is amended by adding new sections to article 1 to read: 
 Sec. 06.55.108. Maintenance of license. (a) A licensee shall at all times meet 
 the requirements of this chapter. 
 (b) If a licensee does not continue to meet the qualifications or satisfy the 
 requirements that apply to an applicant for a new license, the department may suspend 
 or revoke the licensee's license in accordance with this chapter or other applicable law. 
 Sec. 06.55.109. Information requirements for certain individuals. (a) An 
 individual in control of a licensee or applicant, an individual who seeks to acquire 
 control of a licensee, and each key individual shall furnish to the department through 
 the registry the following items: 
 (1) the individual's fingerprints for submission to the Federal Bureau 
 of Investigation to obtain a national criminal history record check unless the individual 
 currently resides outside the United States and has resided outside the United States 
 for the past 10 years; and 
 (2) personal history and experience in a form and in a medium 
 prescribed by the department, including 
 (A) an independent credit report from a consumer reporting 
 agency, unless the individual does not have a social security number; 
 (B) information related to a criminal conviction or pending 
 charges; and 
 (C) information related to any regulatory or administrative 
 action and any civil litigation involving claims of fraud, misrepresentation,

conversion, mismanagement of funds, breach of fiduciary duty, or breach of 
 contract. 
 (b) If the individual has resided outside the United States at any time in the 10 
 years before the date of furnishing the information under (a) of this section, the 
 individual shall also provide an investigative background report prepared by an 
 independent search firm. The independent search firm may not be affiliated with or 
 have an interest in the individual the firm is researching. At a minimum, the 
 investigative background report must 
 (1) demonstrate that the independent search firm has sufficient 
 knowledge and resources and employs accepted and reasonable methodologies to 
 conduct the research of the background report; 
 (2) be written in English and contain the following: 
 (A) if available in the individual's current jurisdiction of 
 residency, a comprehensive credit report, or equivalent information obtained or 
 generated by the independent search firm to accomplish a comprehensive 
 credit report, including a search of the court data in the countries, provinces, 
 states, cities, towns, and contiguous areas where the individual has resided and 
 worked; 
 (B) criminal records information for the previous 10 years, 
 including felonies, misdemeanors, or similar convictions for violations of law 
 in the countries, provinces, states, cities, towns, and contiguous areas where 
 the individual has resided and worked; 
 (C) employment history; 
 (D) media history, including an electronic search of national 
 and local publications, wire services, and business applications; and 
 (E) regulatory history related to financial services, including 
 money transmission, securities, banking, insurance, and mortgage-related 
 industries. 
 Sec. 06.55.110. Consistent state licensing. (a) To establish consistent 
 licensing between this state and other states, the department may 
 (1) implement all licensing provisions of this chapter in a manner that

is consistent with other states that have adopted multistate licensing processes; and 
 (2) participate in nationwide protocols for licensing cooperation and 
 coordination among state regulators if the nationwide protocols for licensing 
 cooperation and coordination are consistent with this chapter. 
 (b) To fulfill the purposes of this chapter, the department may establish 
 relationships or contracts with the registry or other entities designated by the registry 
 to enable the department to 
 (1) collect and maintain records; 
 (2) coordinate multistate licensing processes and supervision 
 processes; 
 (3) process fees; and 
 (4) facilitate communication between the department and licensees or 
 other persons subject to this chapter. 
 (c) The department may use the registry for all aspects of licensing in 
 accordance with this chapter, including license applications, applications for 
 acquisitions of control, surety bonds, reporting, criminal background checks, credit 
 checks, fee processing, and examinations. 
 * Sec. 7. AS 06.55 is amended by adding new sections to read: 
 Article 1A. Virtual Currency Business Activity. 
 Sec. 06.55.150. Requirements for engaging in virtual currency business 
 activity. (a) A person may not engage in virtual currency business activity or hold 
 itself out as being able to engage in virtual currency business activity unless the person 
 is 
 (1) licensed under this chapter; or 
 (2) exempt from licensing under AS 06.55.802. 
 (b) A person that is licensed to engage in virtual currency business activity is 
 engaged in the business of money transmission and is subject to the requirements of 
 this chapter. 
 Sec. 06.55.155. Required disclosures. (a) A licensee that engages in virtual 
 currency business activity shall provide to a person that uses the licensee's products or 
 service the disclosures required by (b) of this section and any additional disclosures

the department determines to be reasonably necessary for the protection of persons. 
 The department shall determine by regulation or order the time and form required for 
 disclosure. A disclosure required by this section must be made separately from any 
 other information provided by the licensee and in a clear and conspicuous manner in a 
 record the person may keep. A licensee may propose for the department's approval 
 alternate disclosures as more appropriate for its virtual currency business activity. 
 (b) Before establishing a relationship with a person, a licensee shall disclose, 
 to the extent applicable to the virtual currency business activity the licensee will 
 undertake with the person, 
 (1) a schedule of fees and charges the licensee may assess, the manner 
 by which fees and charges will be calculated if not set in advance and disclosed, and 
 the timing of the fees and charges; 
 (2) whether the product or service provided by the licensee is covered 
 by 
 (A) a form of insurance or is otherwise guaranteed against loss 
 by an agency of the United States 
 (i) up to the dollar equivalent of virtual currency 
 purchased from the licensee or for control of virtual currency by the 
 licensee as of the date of the placement or purchase, including the 
 maximum amount provided by insurance under the Federal Deposit 
 Insurance Corporation or otherwise available from the Securities 
 Investor Protection Corporation; or 
 (ii) if not provided at the dollar equivalent of virtual 
 currency purchased from the licensee or for control of virtual currency 
 by the licensee, the maximum amount of coverage for each person 
 expressed in the dollar equivalent of the virtual currency; or 
 (B) private insurance against theft or loss, including cyber 
 theft; 
 (3) the irrevocability of a virtual currency transfer or virtual currency 
 exchange and any exception to irrevocability; 
 (4) a description of

(A) liability for an unauthorized, mistaken, or accidental virtual 
 currency transfer or virtual currency exchange; 
 (B) the person's responsibility to provide notice to the licensee 
 of a virtual currency transfer or virtual currency exchange; 
 (C) the basis for any recovery by the person from the licensee 
 or registrant; 
 (D) general error resolution rights applicable to a virtual 
 currency transfer or virtual currency exchange; and 
 (E) the method for the person to update the person's contact 
 information with the licensee; 
 (5) that the date or time when a virtual currency transfer or virtual 
 currency exchange is made and the person's account is debited may differ from the 
 date or time when the person initiates an instruction to make the transfer or exchange; 
 (6) whether the person has a right to stop a preauthorized payment or 
 revoke authorization for a virtual currency transfer and the procedure to initiate a stop- 
 payment order or revoke authorization for a later virtual currency transfer; 
 (7) the person's right to receive a receipt, trade ticket, or other evidence 
 of a virtual currency transfer or virtual currency exchange; 
 (8) the person's right to at least 30 days' notice of a change in the 
 licensee's fee schedule, other terms and conditions of operating the licensee's virtual 
 currency business activity with the person, and the policies applicable to the person's 
 account; and 
 (9) that other persons are not required to take payment in virtual 
 currency, that the value of virtual currency can change, and that virtual currency is not 
 backed by a governmental agency. 
 (c) Except as provided in (d) of this section, at the conclusion of a virtual 
 currency transaction with or on behalf of a person, a licensee shall provide to the 
 person a confirmation in a record that contains 
 (1) the name and contact information of the licensee, including 
 information the person may need to ask a question or file a complaint; 
 (2) the type, value, date, precise time, and amount of the transaction;

and 
 (3) the fee charged for the transaction, including any charge for 
 conversion of virtual currency to money, bank credit, or another virtual currency. 
 (d) If a licensee discloses that the licensee will provide a daily confirmation in 
 the initial disclosure under (c) of this section, the licensee may elect to provide a 
 single, daily confirmation for all transactions with or on behalf of a person on that day 
 instead of a confirmation for each transaction. 
 Sec. 06.55.160. Property interests and entitlements to virtual currency. (a) 
 A licensee that has control of virtual currency for a person shall maintain in the 
 licensee's control an amount of each type of virtual currency sufficient to satisfy the 
 aggregate entitlements of the person to the type of virtual currency. 
 (b) If a licensee violates (a) of this section, the property interests of the person 
 in the virtual currency are pro rata property interests in the type of virtual currency to 
 which the person is entitled, without regard to the time the person became entitled to 
 the virtual currency or the licensee obtained control of the virtual currency. 
 (c) The virtual currency referred to in this section is 
 (1) held for the person entitled to the virtual currency; 
 (2) not property of the licensee; 
 (3) not subject to the claims of creditors of the licensee; and 
 (4) considered a permissible investment to the extent specified under 
 AS 06.55.502(b)(4). 
 Sec. 06.55.165. Additional requirements and clarifications for virtual 
 currency business activities. (a) A licensee engaged in a virtual currency business 
 activity shall comply with all provisions of this chapter to the extent applicable to the 
 licensee's activities. 
 (b) A licensee engaged in a virtual currency business activity may include 
 virtual currency in the licensee's calculation of tangible net worth, except virtual 
 currency controlled by a person entitled to the protections of AS 06.55.160. The 
 virtual currency is measured by the average value of the virtual currency expressed in 
 the dollar equivalent over the previous six calendar months. 
 (c) For five years after the date of virtual currency business activity with or on

behalf of a person, a licensee shall maintain a record of 
 (1) each transaction of the licensee with or on behalf of the person or 
 for the licensee's account in this state, including 
 (A) the identity of the person; 
 (B) the form of the transaction; 
 (C) the amount, date, and payment instructions given by the 
 person; and 
 (D) the account number, name, and mailing address of the 
 person and, to the extent feasible, other parties to the transaction; 
 (2) the aggregate number of transactions and aggregate value of 
 transactions by the licensee with or on behalf of the person and for the licensee's 
 account in this state, expressed in the dollar equivalent of virtual currency for the 
 previous 12 calendar months; 
 (3) each transaction in which the licensee engaged in a virtual currency 
 exchange of one form of virtual currency for money or another form of virtual 
 currency with or on behalf of the person; 
 (4) a general ledger posted at least monthly that lists all assets, 
 liabilities, capital, income, and expenses of the licensee; 
 (5) each report required to be submitted under AS 06.55.403; 
 (6) bank statements and bank reconciliation records for the licensee 
 and the name, account number, and mailing address of each bank the licensee uses in 
 the conduct of its virtual currency business activity with or on behalf of the person; 
 (7) a report of any dispute with the person; and 
 (8) a report of any virtual currency business activity transaction with or 
 on behalf of the person that the licensee was unable to complete. 
 (d) A licensee shall maintain the records required by (c) of this section in a 
 form that enables the department to determine whether the licensee is in compliance 
 with a court order, this chapter, or other law of this state. 
 Sec. 06.55.170. Scope of application. (a) The provisions of AS 06.55.150 - 
 06.55.165 do not apply to activity by 
 (1) a person that contributes only connectivity software or computing

power to a decentralized virtual currency or to a protocol governing virtual currency 
 transfer of the digital representation of value; 
 (2) a person that provides only data storage or security services for a 
 business engaged in virtual currency business activity and does not otherwise engage 
 in virtual currency business activity on behalf of another person; 
 (3) a person that provides only to another person otherwise exempt 
 from this chapter virtual currency as one or more enterprise solutions used solely 
 between each other and has no agreement or relationship with a person that is an end 
 user of virtual currency; 
 (4) a person using virtual currency, including creating, investing, 
 buying, or selling, or obtaining virtual currency as payment for the purchase or sale of 
 goods or services, solely 
 (A) on the person's own behalf; 
 (B) for personal, family, or household purposes; or 
 (C) for academic purposes; 
 (5) a person that has virtual currency business activity with or on 
 behalf of a person reasonably expected to be valued, in the aggregate, at $5,000 or less 
 annually, measured by the dollar equivalent of virtual currency; 
 (6) an attorney providing escrow services to a person; 
 (7) a title insurance company providing escrow services to a person; 
 (8) a securities intermediary, as defined in AS 45.08.102, or a 
 commodity intermediary, as defined in AS 45.29.102, that 
 (A) does not engage in the ordinary course of business in 
 virtual currency business activity with or on behalf of a person in addition to 
 maintaining securities accounts or commodities accounts and is regulated as a 
 securities intermediary or commodity intermediary under federal law, the law 
 of this state other than this chapter, or the law of another state; and 
 (B) affords a person protections comparable to those set out in 
 AS 06.55.160; 
 (9) a secured creditor under AS 45.29 or creditor with a judicial lien or 
 lien arising by operation of law on collateral that is virtual currency, if the virtual

currency business activity of the creditor is limited to enforcement of the security 
 interest in compliance with AS 45.29 or the law applicable to the lien; 
 (10) a virtual currency control services vendor; 
 (11) a person that does not receive compensation from a person for 
 (A) providing virtual currency products or services; 
 (B) conducting virtual currency business activity; or 
 (C) engaging in testing products or services with the person's 
 own funds. 
 (b) The department may determine, based on facts particular to the person or 
 class of persons, that a person or class of persons is exempt from this chapter. 
 * Sec. 8. AS 06.55.301 is repealed and reenacted to read: 
 Sec. 06.55.301. Relationship between licensee and authorized delegate. (a) 
 Before a licensee is authorized to conduct business through an authorized delegate or 
 to allow a person to act as the licensee's authorized delegate, the licensee shall 
 (1) adopt, and update as necessary, written policies and procedures 
 reasonably designed to ensure that the authorized delegate complies with applicable 
 state and federal law; 
 (2) enter into a written contract that complies with (c) of this section; 
 and 
 (3) conduct a reasonable, risk-based background investigation 
 sufficient for the licensee to determine whether the authorized delegate has complied 
 and is likely to comply with applicable state and federal law. 
 (b) An authorized delegate shall operate in compliance with this chapter. 
 (c) The written contract required by (a)(2) of this section must be signed by 
 the licensee and the authorized delegate and, at a minimum, must 
 (1) appoint the person signing the contract as the licensee's authorized 
 delegate with the authority to conduct money transmission on behalf of the licensee; 
 (2) set out the nature and scope of the relationship between the licensee 
 and the authorized delegate and the respective rights and responsibilities of the parties; 
 (3) require the authorized delegate to agree to comply with all 
 applicable state and federal laws, rules, and regulations pertaining to money

transmission, including this chapter and regulations implementing this chapter, 
 relevant provisions of the Bank Secrecy Act, and P.L. 107-56 (USA PATRIOT Act); 
 (4) require the authorized delegate to remit and handle money and 
 monetary value in accordance with the terms of the contract; 
 (5) establish a trust for the benefit of the licensee on money and 
 monetary value after deducting fees received for money transmission; 
 (6) require the authorized delegate to prepare and maintain records as 
 required by this chapter or regulations implementing this chapter, or as reasonably 
 requested by the department; 
 (7) acknowledge that the authorized delegate consents to examination 
 or investigation by the department; 
 (8) state that the licensee is subject to regulation by the department and 
 that, as part of that regulation, the department may suspend or revoke an authorized 
 delegate designation or require the licensee to terminate an authorized delegate 
 designation; and 
 (9) acknowledge receipt of the written policies and procedures 
 required under (a)(1) of this section. 
 (d) If the licensee's license is suspended, revoked, surrendered, or expired, the 
 licensee shall, within five business days, provide documentation to the department that 
 the licensee has notified all applicable authorized delegates of the licensee whose 
 names are in a record filed with the department of the suspension, revocation, 
 surrender, or expiration of the license. Upon suspension, revocation, surrender, or 
 expiration of a license, applicable authorized delegates shall immediately stop 
 providing money transmission as an authorized delegate of the licensee. 
 (e) An authorized delegate of a licensee holds in trust for the benefit of the 
 licensee all money after deducting fees received from money transmission. If an 
 authorized delegate commingles any funds received from money transmission with 
 any other funds or property owned or controlled by the authorized delegate, all 
 commingled funds and other property shall be considered held in trust in favor of the 
 licensee in an amount equal to the amount of money net of fees received from money 
 transmission.

(f) In this section, "remit" means to make direct payments of money to a 
 licensee or its representative authorized to receive money or to deposit money in a 
 bank account specified by the licensee. 
 * Sec. 9. AS 06.55.302 is amended to read: 
 Sec. 06.55.302. Unauthorized activities. A person may not engage in the 
 business of money transmission on behalf of a person that is not licensed or 
 exempt [ACT AS AN AUTHORIZED DELEGATE FOR, OR OTHERWISE 
 PROVIDE MONEY SERVICES ON BEHALF OF, A PERSON WHO DOES NOT 
 HOLD A MONEY SERVICES LICENSE] under this chapter. A person that engages 
 in the business of money transmission on behalf of a person not licensed or 
 exempt under this chapter provides money transmission to the same extent as if 
 the person were a licensee and is jointly and severally liable with the unlicensed 
 or nonexempt person. 
 * Sec. 10. AS 06.55.401 is repealed and reenacted to read: 
 Sec. 06.55.401. Supervision; examination; investigation. (a) The department 
 may conduct an examination or investigation of a licensee or authorized delegate or 
 otherwise take independent action authorized by this chapter, regulations 
 implementing this chapter, and other applicable law, including the Bank Secrecy Act, 
 15 U.S.C. 1693 - 1693r (Electronic Fund Transfer Act), P.L. 106-102 (Gramm-Leach- 
 Bliley Act), and P.L. 107-56 (USA PATRIOT Act). The department may 
 (1) conduct an on-site or off-site examination as the department 
 reasonably requires; 
 (2) conduct an examination in conjunction with an examination 
 conducted by representatives of other agencies of this state, another state, or the 
 federal government; 
 (3) accept the examination report of another agency of this state, 
 another state, or the federal government or a report prepared by an independent 
 accounting firm; a report accepted under this paragraph is considered for all purposes 
 to be an official report of the department; and 
 (4) summon and examine under oath a key individual or employee of a 
 licensee or authorized delegate and require the key individual or employee to produce

records regarding any matter related to the condition and business of the licensee or 
 authorized delegate. 
 (b) A licensee or authorized delegate shall provide, and the department shall 
 have complete access to, records necessary for the department to conduct a complete 
 examination. The licensee or authorized delegate shall provide the records at the 
 location and in the format specified by the department. The department may use 
 multistate record production standards and examination procedures when the 
 multistate record production standards and examination procedures will reasonably 
 achieve the requirements of this section. 
 (c) Unless otherwise directed by the department, a licensee shall pay all costs 
 reasonably incurred in connection with an examination of the licensee or the licensee's 
 authorized delegate. 
 (d) Information obtained during an examination under this chapter may be 
 disclosed only as provided in AS 06.55.407. 
 * Sec. 11. AS 06.55.403(a) is repealed and reenacted to read: 
 (a) A licensee shall submit a report of the licensee's financial condition within 
 45 days after the end of each quarter of the calendar year or within an extended period 
 that the department establishes. The report of condition must include 
 (1) financial information at the licensee's level; 
 (2) nationwide and state-specific money transmission transaction 
 information in every jurisdiction in the United States where the licensee is licensed to 
 engage in money transmission; 
 (3) a permissible investments report; 
 (4) transaction destination country reporting for money received for 
 transmission, if applicable; and 
 (5) any other information the department reasonably requires with 
 respect to the licensee. 
 * Sec. 12. AS 06.55.403(b) is repealed and reenacted to read: 
 (b) A licensee shall submit a report of the licensee's authorized delegates 
 within 45 days after the end of each quarter of the calendar year. The report of 
 authorized delegates must include the following information about each authorized

delegate: 
 (1) if the authorized delegate is an entity, the legal name of the entity; 
 if the authorized delegate is an individual, the legal name of the individual; 
 (2) taxpayer employer identification number; 
 (3) principal provider identifier; 
 (4) physical address; 
 (5) mailing address; 
 (6) business conducted in other states, if any; 
 (7) a trade name or other name used by the individual that is not the 
 individual's legal name; 
 (8) contact person name, telephone number, and electronic mail 
 address; 
 (9) the date the authorized delegate began acting as the licensee's 
 authorized delegate; 
 (10) the date the authorized delegate stopped acting as the licensee's 
 authorized delegate, if applicable; and 
 (11) any other information the department reasonably requires with 
 respect to the authorized delegate. 
 * Sec. 13. AS 06.55.403(c) is amended to read: 
 (c) A [MONEY SERVICES] licensee shall file a report with the department 
 within one business day after the [MONEY SERVICES] licensee has reason to know 
 of the occurrence of any of the following events: 
 (1) the filing of a petition by or against the [MONEY SERVICES] 
 licensee under 11 U.S.C. 101 - 112 [11 U.S.C. 101 - 110] (Bankruptcy Code) for 
 bankruptcy or reorganization; 
 (2) the filing of a petition by or against the [MONEY SERVICES] 
 licensee for receivership, the commencement of any other judicial or administrative 
 proceeding for its dissolution or reorganization, or the making of a general assignment 
 for the benefit of its creditors; 
 (3) the commencement of a proceeding to revoke or suspend its 
 [MONEY SERVICES] license in a state or country in which the [MONEY

SERVICES] licensee engages in business or is licensed; 
 (4) the cancellation or other impairment of the [MONEY SERVICES] 
 licensee's bond or other security; 
 (5) a charge against or conviction of the [MONEY SERVICES] 
 licensee or of a key individual [AN EXECUTIVE OFFICER, MANAGER, 
 DIRECTOR,] or person in control of the [MONEY SERVICES] licensee for a felony; 
 or 
 (6) a charge against or conviction of an authorized delegate for a 
 felony. 
 * Sec. 14. AS 06.55.403 is amended by adding a new subsection to read: 
 (d) The department may use the registry for the submission of reports required 
 by this section. 
 * Sec. 15. AS 06.55.404 is repealed and reenacted to read: 
 Sec. 06.55.404. Control; acquisition; passive investor. (a) A person, or group 
 of persons acting in concert, seeking to acquire control of a licensee shall obtain the 
 written approval of the department before acquiring control. An individual is not 
 considered to acquire control of a licensee when the individual becomes a key 
 individual in the ordinary course of business. 
 (b) A person, or group of persons acting in concert, seeking to acquire control 
 of a licensee shall, in cooperation with the licensee, 
 (1) submit an application in a form and in a medium prescribed by the 
 department that includes the information required by AS 06.55.412, as applicable; and 
 (2) submit a nonrefundable fee with the request for approval. 
 (c) The department may permit a licensee or the person, or group of persons 
 acting in concert, to submit some or all information required by the department under 
 (b)(1) of this section without using the registry. 
 (d) When an application for acquisition of control appears to include all 
 required information and to address all matters required by the department, the 
 application is considered complete, and the department shall notify the applicant in a 
 record of the date on which the department determines the application is complete. 
 The department shall approve or deny the application within 120 days after the date

the application was determined to be complete. If the application is not approved or 
 denied within 120 days after the completion date, 
 (1) the application is approved; and 
 (2) the person, or group of persons acting in concert, is not prohibited 
 from acquiring control. 
 (e) The department may for good cause extend the period for approving or 
 denying an application under (d) of this section. 
 (f) A determination by the department that an application is complete and is 
 accepted for processing means only that the application, on its face, appears to include 
 all required items, including a criminal background check, and address all required 
 matters. The department's determination is not an assessment of the substance of the 
 application or of the sufficiency of the information provided. 
 (g) When an application is filed and considered to be complete under (d) of 
 this section, the department shall investigate the financial condition, financial 
 responsibility, financial experience, business experience, competence level, character, 
 and general fitness of the person, or group of persons acting in concert, seeking to 
 acquire control. The department shall approve a request for acquisition of control if 
 the department finds that 
 (1) the requirements of (b) of this section have been met, as applicable; 
 and 
 (2) the financial condition, financial responsibility, financial 
 experience, business experience, competence level, character, and general fitness of 
 the person, or group of persons acting in concert, seeking to acquire control, and the 
 experience, competence level, character, and general fitness of the key individuals and 
 persons that would be in control of the licensee after the acquisition of control, 
 indicate that it is in the public interest to permit the person, or group of persons acting 
 in concert, to control the licensee. 
 (h) If an applicant for approval to acquire control is subject to a multistate 
 licensing process, the department may 
 (1) accept the investigation results of a lead investigative state for the 
 purposes of (g) of this section; or

(2) investigate the applicant in accordance with (g) of this section and 
 the time frames established by agreement through the multistate licensing process. 
 (i) The department shall issue a formal written notice of a denial of an 
 application for approval to acquire control within 30 days after the decision to deny 
 the application. The department shall set out in the notice of denial the specific reasons 
 for the denial. An applicant may appeal a denial within 30 days after receiving the 
 written notice of the denial. 
 (j) The requirements of (a) and (b) of this section do not apply to 
 (1) a person that acts as a proxy for the sole purpose of voting at a 
 designated meeting of the shareholders or holders of voting shares or voting interests 
 of a licensee or a person in control of a licensee; 
 (2) a person that acquires control of a licensee by devise or descent; 
 (3) a person that acquires control of a licensee as a personal 
 representative, custodian, guardian, conservator, or trustee, or as an officer appointed 
 by a court of competent jurisdiction or by operation of law; 
 (4) a person that is exempt under AS 06.55.802(a)(4); 
 (5) a person that the department, by regulation or order, determines to 
 be exempt from the requirements of (a) and (b) of this section because that exemption 
 is in the public interest; 
 (6) a public offering of securities of a licensee or a person in control of 
 a licensee; or 
 (7) an internal reorganization of a person in control of a licensee where 
 the ultimate person in control of the licensee remains the same. 
 (k) A person exempt from the requirements of (a) and (b) of this section, in 
 cooperation with the licensee, shall notify the department within 15 days after the 
 acquisition of control. 
 (l) Before filing an application for approval to acquire control of a licensee, a 
 person may request in writing a determination from the department as to whether the 
 person would be considered a person in control of a licensee upon consummation of a 
 proposed transaction. If the department determines that the person would not be a 
 person in control of a licensee, the proposed person and transaction are not subject to

the requirements of (a) and (b) of this section. 
 (m) If a multistate licensing process includes a determination made under (l) 
 of this section and an applicant is subject to the multistate licensing process, the 
 department may 
 (1) accept the control determination of a lead investigative state; or 
 (2) investigate the applicant in accordance with this section and the 
 time frames established by agreement through the multistate licensing process. 
 (n) The requirements of (a) and (b) of this section do not apply to a person that 
 has complied with and received approval to engage in money transmission under this 
 chapter or that has identified as a person in control in a previous application filed with 
 and approved by the department or by an accredited state in accordance with a 
 multistate licensing process, if 
 (1) in the previous five years, the person has not had a license revoked 
 or suspended or controlled a licensee that has had a license revoked or suspended 
 while the person was in control of the licensee; 
 (2) the person is a licensee, the person is well managed and has 
 received at least a satisfactory rating for compliance at the person's most recent 
 examination by an accredited state if a rating was given; 
 (3) the licensee to be acquired is projected to meet the requirements of 
 this chapter, including AS 06.55.501, 06.55.505, and 06.55.510, after the acquisition 
 of control is completed and, if the person acquiring control is a licensee, the licensee is 
 also projected to meet the requirements of this chapter, including AS 06.55.501, 
 06.55.505, and 06.55.510, after the acquisition of control is completed; 
 (4) the licensee to be acquired will not implement any material 
 changes to the licensee's business plan as a result of the acquisition of control and, if 
 the person acquiring control is a licensee, the licensee also will not implement any 
 material changes to the licensee's business plan as a result of the acquisition of control; 
 and 
 (5) the person provides notice of the acquisition in cooperation with 
 the licensee and attests to (1) - (4) of this subsection in a form and in a medium 
 prescribed by the department.

(o) If the notice required under (n)(5) of this section is not disapproved within 
 30 days after the date on which the notice was determined to be complete, the notice is 
 considered to be approved. 
 (p) A person is presumed to exercise a controlling influence when the person 
 holds the power to vote, directly or indirectly, at least 10 percent of the outstanding 
 voting shares or voting interests of a licensee or person in control of a licensee. To 
 determine the percentage of a person controlled by any other person, the interest of the 
 person presumed to have a controlling interest shall be aggregated with the interest of 
 any other immediate family member, including the person's spouse, parents, children, 
 siblings, relative by marriage, and any other person who shares the home of the person 
 presumed to have a controlling interest. 
 (q) A passive investor is not considered to have control under this chapter. To 
 be a passive investor, a person 
 (1) may not have the power to elect a majority of key individuals or 
 executive officers, managers, directors, trustees, or other persons exercising 
 managerial authority of a person in control of a licensee; 
 (2) may not be employed by or have managerial duties of the licensee 
 or person in control of a licensee; 
 (3) may not have the power to exercise, directly or indirectly, a 
 controlling influence over the management or policies of a licensee or person in 
 control of a licensee; and 
 (4) shall attest to (1) - (3) of this subsection on a form and in a medium 
 prescribed by the department or commit to the requirements of (1) - (3) of this 
 subsection in a written document. 
 * Sec. 16. AS 06.55.405(a) is amended to read: 
 (a) A [MONEY SERVICES] licensee shall maintain the following records for 
 determining its compliance with this chapter for at least five [THREE] years: 
 (1) a record of each outstanding money transmission [PAYMENT 
 INSTRUMENT OR STORED-VALUE] obligation sold; 
 (2) a general ledger posted at least monthly containing all asset, 
 liability, capital, income, and expense accounts;

(3) bank statements and bank reconciliation records; 
 (4) records of outstanding money transmission [PAYMENT 
 INSTRUMENTS AND STORED-VALUE] obligations; 
 (5) records of each outstanding money transmission [PAYMENT 
 INSTRUMENT AND STORED-VALUE] obligation paid within the five-year 
 [THREE-YEAR] period; 
 (6) a list of the last known names and addresses of all of the [MONEY 
 SERVICES] licensee's authorized delegates; and 
 (7) any other records the department reasonably requires by regulation. 
 * Sec. 17. AS 06.55.405(d) is amended to read: 
 (d) Records [ALL RECORDS] maintained by the [MONEY SERVICES] 
 licensee as required in (a) - (c) of this section are open to inspection by the department 
 only as permitted under AS 06.55.401. 
 * Sec. 18. AS 06.55.406(a) is amended to read: 
 (a) A [MONEY SERVICES] licensee and an authorized delegate shall file 
 with the appropriate federal agency [ATTORNEY GENERAL] all reports required 
 by federal currency reporting, record keeping, and suspicious transaction reporting 
 requirements as set out in the Bank Secrecy Act [31 U.S.C. 5311] and other federal 
 and state laws pertaining to money laundering. The timely filing of a complete and 
 accurate report required under this section with the appropriate federal agency 
 is considered to be in compliance with the requirements of this section. 
 * Sec. 19. AS 06.55.407(a) is amended to read: 
 (a) Except as [OTHERWISE] provided in (b) of this section, all information 
 or reports obtained by the department from an applicant, [A] licensee, or [AN] 
 authorized delegate, all information contained in or related to an examination, 
 investigation, operating report, or condition report prepared by, on behalf of, or 
 for the use of the department, and financial statements, balance sheets, or 
 authorized delegate information are confidential and not subject to disclosure under 
 AS 40.25.100 - 40.25.295 [, INCLUDING 
 (1) ALL INFORMATION CONTAINED IN OR RELATED TO 
 EXAMINATION, INVESTIGATION, OPERATING, OR CONDITION REPORTS

PREPARED BY, ON BEHALF OF, OR FOR THE USE OF THE DEPARTMENT; 
 AND 
 (2) FINANCIAL STATEMENTS, BALANCE SHEETS, AND 
 AUTHORIZED DELEGATE INFORMATION]. 
 * Sec. 20. AS 06.55.407(b) is amended to read: 
 (b) The department may disclose information that is not otherwise subject to 
 disclosure under (a) of this section to representatives of state or federal agencies who 
 promise in a record that they will maintain the confidentiality of the information or if 
 the department finds that the release is reasonably necessary for the protection of the 
 public and in the interests of justice [, AND THE MONEY SERVICES LICENSEE 
 HAS BEEN GIVEN PREVIOUS NOTICE BY THE DEPARTMENT OF ITS 
 INTENT TO RELEASE THE INFORMATION]. 
 * Sec. 21. AS 06.55.407(c) is amended to read: 
 (c) This section does not prohibit the department from disclosing to the public 
 a list of [MONEY SERVICES] licensees or the aggregated financial or transactional 
 data concerning those [MONEY SERVICES] licensees. 
 * Sec. 22. AS 06.55.407(d) is amended to read: 
 (d) A [MONEY SERVICES] licensee or an authorized delegate may not 
 disclose to another person financial information provided to the [MONEY 
 SERVICES] licensee or the authorized delegate by a customer except when, and only 
 to the extent that, the disclosure is 
 (1) authorized in writing by the customer; 
 (2) required by federal, state, or local law; 
 (3) required by an order issued by a court or an administrative agency; 
 or 
 (4) part of the money transmission [SERVICES] transaction ordered 
 by the customer. 
 * Sec. 23. AS 06.55.407 is amended by adding a new subsection to read: 
 (f) Information contained in the records of the department that is not 
 confidential and may, upon request, be made available to the public on the 
 department's Internet website includes

(1) the name, business address, telephone number, and unique registry 
 identifier of a licensee; 
 (2) the business address of a licensee's registered agent for service; 
 (3) the name, business address, and telephone number of all authorized 
 delegates; 
 (4) the terms or a copy of any bond filed by a licensee, if that 
 confidential information, including the prices and fees for the bond, is redacted; 
 (5) copies of any nonconfidential final orders of the department 
 relating to any violation of this chapter or regulations implementing this chapter; and 
 (6) imposition of an administrative fine or penalty under this chapter. 
 * Sec. 24. AS 06.55 is amended by adding new sections to article 4 to read: 
 Sec. 06.55.408. Audited financial statements. (a) A licensee shall, within 90 
 days after the end of the licensee's fiscal year or within any extended period that the 
 department establishes, file with the department 
 (1) an audited financial statement of the licensee for the fiscal year 
 prepared in accordance with generally accepted accounting principles; and 
 (2) other information the department reasonably requires. 
 (b) The audited financial statement must be prepared by an independent 
 certified public accountant or independent public accountant who is satisfactory to the 
 department. 
 (c) The audited financial statement must include a certificate of opinion of the 
 independent certified public accountant or independent public accountant that is 
 satisfactory in form and content to the department. If the certificate or opinion is 
 qualified, the department may order the licensee to take any action that the department 
 finds necessary to enable the independent certified public accountant or independent 
 public accountant to remove the qualification. 
 Sec. 06.55.409. Implementation. (a) To carry out the purposes of this chapter, 
 subject to AS 06.55.407, the department may 
 (1) enter into an agreement or relationship with a government official 
 or federal or state regulatory agency or regulatory association to improve efficiency 
 and reduce regulatory burden by standardizing methods or procedures and sharing

resources, records, or related information obtained under this chapter; 
 (2) use, hire, contract, or employ analytical systems, methods, or 
 software to examine or investigate a person subject to this chapter; 
 (3) accept from a state or federal government agency or official 
 licensing, examination, or investigation reports made by the agency or official; and 
 (4) accept an audit report made by an independent certified public 
 accountant or independent public accountant that is satisfactory to the department for 
 an applicant or licensee and incorporate the audit reports into a report of examination 
 or investigation. 
 (b) The department has broad administrative authority to administer, interpret, 
 and enforce this chapter, to adopt regulations implementing this chapter, and to 
 recover the cost of administering and enforcing this chapter by imposing and 
 collecting proportionate and equitable fees and costs associated with applications, 
 examinations, investigations, and other actions required to achieve the purposes of this 
 chapter. 
 Sec. 06.55.410. Networked supervision. (a) The department may participate 
 in multistate supervisory processes established between and among states and 
 coordinated through an organization determined by the department to be a nationally 
 recognized organization in supervisory processes establishment and coordination 
 between and among states for all licensees that hold licenses in this state and other 
 states. As a participant in multistate supervision, subject to AS 06.55.407, the 
 department may 
 (1) cooperate, coordinate, and share information with other state and 
 federal regulators; and 
 (2) enter into written contracts or agreements with other state and 
 federal regulators for the purposes of cooperating, coordinating, and sharing 
 information with state and federal regulators. 
 (b) Nothing in this section constitutes a waiver of the department's authority to 
 conduct an examination or investigation or otherwise take independent action to 
 enforce compliance with applicable state or federal law. 
 (c) A joint examination or investigation, or acceptance of an examination or

investigation report, does not waive an examination assessment provided for in this 
 chapter. 
 Sec. 06.55.411. Relationship to federal law. (a) If state money transmission 
 jurisdiction is conditioned on a federal law, any inconsistency between a provision of 
 this chapter and the federal law governing money transmission is governed by the 
 applicable federal law to the extent of the inconsistency. 
 (b) If there is an inconsistency between this chapter and a federal law that 
 governs in accordance with (a) of this section, the department may provide interpretive 
 guidance that 
 (1) identifies the inconsistency; and 
 (2) identifies the appropriate means of compliance with federal law. 
 Sec. 06.55.412. Notice and information requirements for a change of key 
 individual. (a) A licensee adding or replacing a key individual shall 
 (1) provide notice in a manner prescribed by the department within 15 
 days after the effective date of the key individual's appointment; and 
 (2) provide the information required under AS 06.55.109 within 45 
 days after the effective date of the key individual's appointment. 
 (b) The department may issue a notice of disapproval of a key individual if the 
 department finds that, based on the experience, competence level, character, or 
 integrity of the individual, it would not be in the best interest of the public or the 
 customers of the licensee to permit the individual to be a key individual. The 
 department shall issue a notice of disapproval within 90 days after the department 
 determines the notice provided under (a) of this section to be complete. 
 (c) A notice of disapproval shall contain a statement of the basis for the 
 disapproval and be sent to the licensee and the disapproved individual. A licensee may 
 appeal a notice of disapproval within 30 days after receipt of the notice. 
 (d) If the notice provided under (a) of this section is not disapproved within 90 
 days after the date the notice was determined to be complete, the key individual is 
 considered to be approved. 
 (e) If a multistate licensing process includes a key individual notice review 
 and disapproval process, and the licensee is subject to the multistate licensing process,

the department may 
 (1) accept the key individual notice review determination of another 
 state; or 
 (2) investigate the applicant in accordance with (b) of this section and 
 the time frames established by agreement through the multistate licensing process. 
 * Sec. 25. AS 06.55.501 is amended to read: 
 Sec. 06.55.501. Maintenance of permissible investments. (a) A [MONEY 
 SERVICES] licensee shall maintain at all times permissible investments that have a 
 market value computed under generally accepted accounting principles of not less than 
 the aggregate amount of all of its outstanding money transmission [PAYMENT 
 INSTRUMENTS AND STORED VALUE] obligations [ISSUED OR SOLD IN ALL 
 STATES AND MONEY TRANSMITTED FROM ALL STATES BY THE MONEY 
 SERVICES LICENSEE]. 
 (b) Except for permissible investments listed in AS 06.55.502(a), the 
 [THE] department, with respect to any licensee [MONEY SERVICES LICENSEES], 
 may by regulation or order limit the extent to which a specific [TYPE OF] 
 investment maintained by a licensee within a class of permissible investments may 
 be considered a permissible investment [, EXCEPT FOR MONEY AND 
 CERTIFICATES OF DEPOSIT ISSUED BY A BANK. THE DEPARTMENT BY 
 REGULATION MAY PRESCRIBE OR BY ORDER ALLOW OTHER TYPES OF 
 INVESTMENTS THAT THE DEPARTMENT DETERMINES TO HAVE A 
 SAFETY SUBSTANTIALLY EQUIVALENT TO OTHER PERMISSIBLE 
 INVESTMENTS]. 
 (c) Permissible investments, even if commingled with other assets of the 
 [MONEY SERVICES] licensee, are held in trust for the benefit of the purchasers and 
 holders of the [MONEY SERVICES] licensee's outstanding money transmission 
 [PAYMENT INSTRUMENTS AND STORED VALUE] obligations in the event of 
 the licensee's insolvency, bankruptcy, [OR] receivership, or commencement of 
 other judicial or administrative proceedings for its dissolution or reorganization, 
 or in the event of an action by a creditor against the licensee that is not a 
 beneficiary of the statutory trust. A permissible investment impressed with a

trust in accordance with this subsection is not subject to attachment, levy of 
 execution, or sequestration by a court, unless the attachment, levy of execution, 
 or sequestration is for a beneficiary of the statutory trust [OF THE MONEY 
 SERVICES LICENSEE]. 
 * Sec. 26. AS 06.55.501 is amended by adding new subsections to read: 
 (d) Upon the establishment of a statutory trust under (c) of this section, or 
 when funds are drawn on a letter of credit under AS 06.55.502(a)(4) and 06.55.503, 
 the department shall notify the applicable regulator of each state in which the licensee 
 is licensed to engage in money transmission, if any, of the establishment of the trust or 
 the funds drawn on the letter of credit, as applicable. Notice may be provided in 
 accordance with a multistate agreement or through the registry. Funds drawn on a 
 letter of credit and any other permissible investments held in trust for the benefit of the 
 purchasers and holders of the licensee's outstanding money transmission obligations 
 are considered to be held in trust for the benefit of the purchasers and holders of the 
 licensee's outstanding money transmission obligations on a pro rata and equitable 
 basis in accordance with state law and the law of other states, as applicable. A 
 statutory trust established under this section shall be terminated upon extinguishment 
 of all of the licensee's outstanding money transmission obligations. 
 (e) The department may by regulation or order allow other types of 
 investments that the department determines are of sufficient liquidity and quality to be 
 a permissible investment. The department may participate in efforts with other state 
 regulators to identify permissible investments. 
 * Sec. 27. AS 06.55.502(a) is amended to read: 
 (a) The [EXCEPT TO THE EXTENT OTHERWISE LIMITED BY THE 
 DEPARTMENT UNDER AS 06.55.501, THE] following investments are permissible 
 under AS 06.55.501: 
 (1) cash, demand deposits, savings deposits, funds in accounts held 
 for the benefit of a licensee's customers in a federally insured depository financial 
 institution, money market mutual funds rated AAA by an eligible rating service, 
 certificates [A CERTIFICATE] of deposit, [OR A] senior debt obligations 
 [OBLIGATION] of a federally [AN] insured depository financial institution, and

cash equivalents, including automated clearing house items in transit to the 
 licensee and automated clearing house items or international wires in transit to a 
 payee, cash in transit by armored car, cash in smart safes, cash in licensee-owned 
 locations, and transmission receivables owed by a bank and funded by a debit 
 card or credit card; 
 (2) [; IN THIS PARAGRAPH, "INSURED DEPOSITORY 
 INSTITUTION" HAS THE MEANING GIVEN IN 12 U.S.C. 1813 (FEDERAL 
 DEPOSIT INSURANCE ACT); 
 (2) BANKER'S ACCEPTANCE OR BILL OF EXCHANGE THAT IS 
 ELIGIBLE FOR PURCHASE ON ENDORSEMENT BY A MEMBER BANK OF 
 THE FEDERAL RESERVE SYSTEM AND IS ELIGIBLE FOR PURCHASE BY A 
 FEDERAL RESERVE BANK; 
 (3)] an investment bearing a rating of one of the three highest grades as 
 defined by a nationally recognized organization that rates securities; 
 (3) [(4) AN INVESTMENT SECURITY THAT IS] an obligation of 
 the United States or a commission [DEPARTMENT], agency, or instrumentality of 
 the United States, [AN INVESTMENT IN] an obligation that is guaranteed fully as to 
 principal and interest by the United States, or [AN INVESTMENT IN] an obligation 
 of a state or a governmental subdivision, agency, or instrumentality of a state; 
 (4) the full drawable amount that can be drawn on an irrevocable 
 standby letter of credit that complies with AS 06.55.503; 
 (5) 100 percent of the surety bond provided for under 
 AS 06.55.505 that exceeds the average daily money transmission liability in this 
 state 
 [(5) RECEIVABLES THAT ARE PAYABLE TO A MONEY 
 SERVICES LICENSEE FROM ITS AUTHORIZED DELEGATES, IN THE 
 ORDINARY COURSE OF BUSINESS, UNDER CONTRACTS THAT ARE NOT 
 PAST DUE OR DOUBTFUL OF COLLECTION IF THE AGGREGATE AMOUNT 
 OF RECEIVABLES UNDER THIS PARAGRAPH DOES NOT EXCEED 20 
 PERCENT OF THE TOTAL PERMISSIBLE INVESTMENTS OF A MONEY 
 SERVICES LICENSEE AND THE MONEY SERVICES LICENSEE DOES NOT

HOLD AT ONE TIME RECEIVABLES UNDER THIS PARAGRAPH IN ANY 
 ONE PERSON AGGREGATING MORE THAN 10 PERCENT OF THE MONEY 
 SERVICES LICENSEE'S TOTAL PERMISSIBLE INVESTMENTS; AND 
 (6) A SHARE OR A CERTIFICATE ISSUED BY AN OPEN-END 
 MANAGEMENT INVESTMENT COMPANY THAT IS REGISTERED WITH THE 
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER 15 
 U.S.C. 80a-1 - 80a-64 (INVESTMENT COMPANY ACT OF 1940), AND WHOSE 
 PORTFOLIO IS RESTRICTED BY THE MANAGEMENT COMPANY'S 
 INVESTMENT POLICY TO INVESTMENTS SPECIFIED IN (1) - (4) OF THIS 
 SUBSECTION]. 
 * Sec. 28. AS 06.55.502(b) is repealed and reenacted to read: 
 (b) In addition to the investments permissible under (a) of this section, the 
 following investments are permissible under (a) of this section, to the extent specified: 
 (1) receivables that are payable to a licensee from the licensee's 
 authorized delegates in the ordinary course of business that are less than seven days 
 old and do not exceed 50 percent of the aggregate value of the licensee's total 
 permissible investments; receivables under this paragraph that are payable to a 
 licensee from a single authorized delegate in the ordinary course of business may not 
 exceed 10 percent of the aggregate value of the licensee's total permissible 
 investments; 
 (2) the following investments, not to exceed 20 percent for each 
 category and a combined total of 50 percent of the aggregate value of the licensee's 
 total permissible investments: 
 (A) a short-term investment of not more than six months' 
 duration bearing an eligible rating; 
 (B) commercial paper bearing an eligible rating; 
 (C) a bill, note, bond, or debenture bearing an eligible rating; 
 (D) United States tri-party repurchase agreements collateralized 
 at 100 percent or more by federal government or agency securities, municipal 
 bonds, or other securities bearing an eligible rating; 
 (E) money market mutual funds rated equal to or higher than

A- and less than AAA by an eligible rating service; and 
 (F) a mutual fund or other investment fund composed solely 
 and exclusively of one or more permissible investments listed in (a)(1) - (3) of 
 this section; 
 (3) cash held in accounts for the benefit of the licensee's customers at 
 foreign depository financial institutions, not to exceed 10 percent of the aggregate 
 value of the licensee's total permissible investments, if the licensee has received a 
 satisfactory rating in the licensee's most recent examination and the foreign depository 
 financial institution 
 (A) has an eligible rating; 
 (B) is registered under 26 U.S.C. 1471 - 1474 (Foreign 
 Account Tax Compliance Act); 
 (C) is not located in any country subject to sanctions from the 
 United States Department of the Treasury, Office of Foreign Assets Control; 
 and 
 (D) is not located in a high-risk or noncooperative jurisdiction 
 as designated by the Financial Action Task Force; and 
 (4) virtual currency is a permissible investment only for outstanding 
 money transmission obligations of virtual currency. 
 * Sec. 29. AS 06.55 is amended by adding new sections to article 5 to read: 
 Sec. 06.55.503. Letter of credit. (a) The letter of credit permitted under 
 AS 06.55.502(a)(4) 
 (1) must list the department as the beneficiary; 
 (2) must stipulate that the beneficiary is only required to draw a sight 
 draft under the letter of credit and present it to obtain funds up to the letter of credit 
 amount within seven days after presenting the items required by (7) of this subsection; 
 (3) must be issued by a federally insured depository financial 
 institution or a foreign bank that bears an eligible rating and is regulated, supervised, 
 and examined by federal or state regulatory authorities having regulatory authority 
 over banks, credit unions, and trust companies; 
 (4) must be irrevocable, unconditional, and indicate that the letter of

credit is not subject to any condition or qualifications outside of the letter of credit; 
 (5) may not contain reference to any other agreements, documents, or 
 entities or otherwise provide for any security interest in the licensee; 
 (6) must contain an issue date and expiration date and expressly 
 provide for automatic extension, without a written amendment, for an additional 
 period of one year from the present or each future expiration date, unless the issuer of 
 the letter of credit notifies the department in writing by certified or registered mail, 
 courier mail, or other means of notice that provides a receipt, at least 60 days before 
 an expiration date, that the irrevocable letter of credit will not be extended; and 
 (7) must provide that the issuer of the letter of credit will honor, at 
 sight, a presentation made by the beneficiary to the issuer of the following documents 
 on or before the expiration date of the letter of credit: 
 (A) the original letter of credit, including any amendments; and 
 (B) a written statement from the beneficiary stating whether 
 one or more of the following events have occurred: 
 (i) the filing of a petition by or against the licensee 
 under 11 U.S.C. Section 101 - 112 (Bankruptcy Code) for bankruptcy 
 or reorganization; 
 (ii) the filing of a petition by or against the licensee for 
 receivership, or the commencement of any other judicial or 
 administrative proceeding for the licensee's dissolution or 
 reorganization; 
 (iii) the seizure of assets of a licensee by the department 
 under an emergency order issued in accordance with applicable law, 
 based on an action, violation, or condition that has caused or is likely to 
 cause the insolvency of the licensee; or 
 (iv) the beneficiary received notice of expiration or non- 
 extension of a letter of credit and the licensee failed to demonstrate to 
 the satisfaction of the beneficiary that the licensee will maintain 
 permissible investments in accordance with AS 06.55.501 or this 
 section upon the expiration or non-extension of the letter of credit.

(b) In the event of any notice of expiration or non-extension of a letter of 
 credit issued under (a) of this section, the licensee shall be required to demonstrate to 
 the satisfaction of the department, 15 days before expiration, that the licensee 
 maintains and will maintain permissible investments in accordance with AS 06.55.501 
 upon expiration of the letter of credit. If the licensee is not able to do so, the 
 department may draw on the letter of credit in an amount up to the amount necessary 
 to meet the licensee's requirements to maintain permissible investments in accordance 
 with AS 06.55.501. A draw must be offset against the licensee's outstanding money 
 transmission obligations. The drawn funds must be held in trust by the department or 
 the department's designated agent, to the extent authorized by law, as agent for the 
 benefit of the purchasers and holders of the licensee's outstanding money transmission 
 obligations. 
 (c) The department may designate an agent to serve on the department's behalf 
 as beneficiary to a letter of credit if the agent and letter of credit meet the requirements 
 established by the department. The department's agent may serve as agent for multiple 
 licensing authorities for a single irrevocable letter of credit if the proceeds of the 
 drawable amount for the purposes of AS 06.55.502(a)(4) are assigned to the 
 department. 
 (d) The department may participate in multistate processes designed to 
 facilitate the issuance and administration of letters of credit, including services 
 provided by the registry. 
 Sec. 06.55.505. Security. (a) An applicant for a license shall provide, and a 
 licensee at all times shall maintain, security consisting of a surety bond in a form 
 satisfactory to the department or, with the department's approval, a deposit in 
 accordance with this section. 
 (b) The department shall determine the amount of the required security by 
 regulation or order. The amount of the required security must be proportional to the 
 licensee's average daily money transmission liability in this state up to a maximum of 
 $1,000,000. 
 (c) A licensee that maintains a bond in the maximum amount provided for 
 under (b) of this section is not required to calculate its average daily money

transmission liability in this state for purposes of this section. 
 (d) A licensee may exceed the maximum required bond amount. 
 (e) The aggregate liability on a surety bond may not exceed the principal sum 
 of the bond. A claimant against a licensee may maintain an action on the bond, or the 
 department may maintain an action on behalf of the claimant. 
 (f) A surety bond must cover claims for as long as the department specifies, 
 but at least for the five years after the date the licensee stops providing money 
 transmission in this state. The department may permit the amount of security to be 
 reduced or eliminated before the expiration of that time to the extent the amount of the 
 licensee's outstanding money transmission obligations in this state is reduced. The 
 department may permit a licensee to substitute another form of security acceptable to 
 the department for the security effective at the time the licensee stops providing 
 money transmission in this state. 
 (g) An applicant for a license or a licensee shall obtain the surety bond 
 required under this section from a surety company authorized to do business in this 
 state. 
 Sec. 06.55.510. Net worth. (a) A licensee shall maintain at all times a tangible 
 net worth of 
 (1) the greater of $35,000 or three percent of total assets for the first 
 $100,000,000; 
 (2) two percent of additional assets for $100,000,001 to 
 $1,000,000,000; and 
 (3) 0.5 percent of additional assets for over $1,000,000,001. 
 (b) Tangible net worth must be demonstrated at initial application by the 
 applicant's most recent audited or unaudited financial statements. 
 (c) The department may exempt an applicant or licensee, in part or in whole, 
 from the requirements of this section. 
 * Sec. 30. AS 06.55.601 is amended to read: 
 Sec. 06.55.601. Suspension and revocation; receivership. (a) The 
 department may suspend or revoke a [MONEY SERVICES] license, place a 
 [MONEY SERVICES] licensee in receivership, or order a [MONEY SERVICES]

licensee to revoke the designation of an authorized delegate if 
 (1) the [MONEY SERVICES] licensee violates this chapter or a 
 regulation adopted or an order issued under this chapter; 
 (2) the [MONEY SERVICES] licensee does not cooperate with an 
 examination or investigation by the department; 
 (3) the [MONEY SERVICES] licensee engages in fraud, intentional 
 misrepresentation, or gross negligence; 
 (4) an authorized delegate is convicted of a violation of a state or 
 federal anti-money laundering statute, or violates a regulation adopted or an order 
 issued under this chapter, as a result of the [MONEY SERVICES] licensee's wilful 
 misconduct or wilful blindness; 
 (5) the competence level, experience, character, or general fitness of 
 the [MONEY SERVICES] licensee, authorized delegate, person in control of a 
 [MONEY SERVICES] licensee, key individual, or responsible person of the 
 [MONEY SERVICES] licensee or authorized delegate indicates that it is not in the 
 public interest to permit the person to provide money transmission [SERVICES]; 
 (6) the [MONEY SERVICES] licensee engages in an unsafe or 
 unsound practice; 
 (7) the [MONEY SERVICES] licensee is insolvent, suspends payment 
 of its obligations, or makes a general assignment for the benefit of its creditors; or 
 (8) the [MONEY SERVICES] licensee does not remove an authorized 
 delegate after the department issues and serves on [UPON] the [MONEY SERVICES] 
 licensee a final order that includes [INCLUDING] a finding that the authorized 
 delegate has violated this chapter. 
 (b) In determining whether a [MONEY SERVICES] licensee is engaging in 
 an unsafe or unsound practice, the department may consider the size and condition of 
 the [MONEY SERVICES] licensee's money transmission, the magnitude of the loss, 
 the gravity of the violation of this chapter, and the previous conduct of the person 
 involved. 
 * Sec. 31. AS 06.55.601 is amended by adding a new subsection to read: 
 (c) A licensee may apply for relief from a suspension or revocation of the

licensee's license according to procedures prescribed by the department. 
 * Sec. 32. AS 06.55.602 is amended to read: 
 Sec. 06.55.602. Suspension and revocation of authorized delegates. (a) The 
 department may issue an order suspending or revoking the designation of an 
 authorized delegate if the department finds that 
 (1) the authorized delegate violated this chapter or a regulation adopted 
 or an order issued under this chapter; 
 (2) the authorized delegate did not cooperate with an examination or 
 investigation by the department; 
 (3) the authorized delegate engaged in fraud, intentional 
 misrepresentation, or gross negligence; 
 (4) the authorized delegate is convicted of a violation of a state or 
 federal anti-money laundering statute; 
 (5) the competence level, experience, character, or general fitness of 
 the authorized delegate or a person in control of the authorized delegate indicates that 
 it is not in the public interest to permit the authorized delegate to provide money 
 transmission [SERVICES]; or 
 (6) the authorized delegate is engaging in an unsafe or unsound 
 practice. 
 (b) In determining whether an authorized delegate is engaging in an unsafe or 
 unsound practice, the department may consider the size and condition of the 
 authorized delegate's provision of money transmission [SERVICES], the magnitude 
 of the loss, the gravity of the violation of this chapter or a regulation adopted or order 
 issued under this chapter, and the previous conduct of the authorized delegate. 
 * Sec. 33. AS 06.55.602 is amended by adding a new subsection to read: 
 (c) An authorized delegate may apply for relief from a suspension or 
 revocation of designation as an authorized delegate according to procedures prescribed 
 by the department. 
 * Sec. 34. AS 06.55.603(a) is amended to read: 
 (a) If the department determines that a violation of this chapter or of a 
 regulation adopted or an order issued under this chapter by a [MONEY SERVICES]

licensee or authorized delegate is likely to cause immediate and irreparable harm to 
 the [MONEY SERVICES] licensee, its customers, or the public as a result of the 
 violation, or cause insolvency or significant dissipation of assets of the [MONEY 
 SERVICES] licensee, the department may issue an order requiring the [MONEY 
 SERVICES] licensee or authorized delegate to cease and desist from the violation. 
 The order becomes effective on service of it on the [MONEY SERVICES] licensee or 
 authorized delegate. 
 * Sec. 35. AS 06.55.603(b) is amended to read: 
 (b) The department may issue an order against a [MONEY SERVICES] 
 licensee to cease and desist from providing money transmission [SERVICES] 
 through an authorized delegate who is the subject of a separate order by the 
 department. 
 * Sec. 36. AS 06.55.603(d) is amended to read: 
 (d) A [MONEY SERVICES] licensee or an authorized delegate who is served 
 with an order to cease and desist may petition the superior court for a judicial order 
 setting aside, limiting, or suspending the enforcement, operation, or effectiveness of 
 the order pending the completion of an administrative proceeding under AS 06.55.601 
 or 06.55.602. 
 * Sec. 37. AS 06.55.605 is amended to read: 
 Sec. 06.55.605. Civil penalties. The department may assess a civil penalty 
 against a person that [WHO] violates this chapter or a regulation adopted or an order 
 issued under this chapter in an amount not to exceed $10,000 a [$1,000 EACH] day 
 for each day the violation is outstanding. 
 * Sec. 38. AS 06.55.605 is amended by adding a new subsection to read: 
 (b) A person that is found liable for a civil penalty under (a) of this section 
 shall also be liable to the department for the department's costs and expenses for 
 investigating and prosecuting the matter, including reasonable attorney fees. 
 * Sec. 39. AS 06.55.606(b) is amended to read: 
 (b) A person who knowingly engages in an activity for which a [MONEY 
 SERVICES] license is required under this chapter without being licensed [AS A 
 MONEY SERVICES LICENSEE] and who receives more than $500 in compensation

within a 30-day period from this activity is guilty of a class C felony. 
 * Sec. 40. AS 06.55.606(c) is amended to read: 
 (c) A person who knowingly engages in an activity for which a [MONEY 
 SERVICES] license is required under this chapter without being [LICENSED AS] a 
 [MONEY SERVICES] licensee and who receives not [NO] more than $500 in 
 compensation within a 30-day period from this activity is guilty of a class A 
 misdemeanor. 
 * Sec. 41. AS 06.55.607(a) is amended to read: 
 (a) If the department has reason to believe that a person has violated or is 
 violating AS 06.55.101 [OR 06.55.201], the department may issue an order to show 
 cause why an order to cease and desist should not issue requiring that the person cease 
 and desist from the violation of AS 06.55.101 [OR 06.55.201]. 
 * Sec. 42. AS 06.55.607(e) is amended to read: 
 (e) A person that [WHO] is served with an order to cease and desist for 
 violating AS 06.55.101 [OR 06.55.201] may petition the superior court for a judicial 
 order setting aside, limiting, or suspending the enforcement, operation, or 
 effectiveness of the order pending the completion of an administrative proceeding 
 under AS 06.55.701 and 06.55.702. 
 * Sec. 43. AS 06.55.702(a) is amended to read: 
 (a) Except as otherwise provided in AS 06.55.603 and 06.55.607 [AND IN (b) 
 OF THIS SECTION], the department may not suspend or revoke a [MONEY 
 SERVICES] license, place a [MONEY SERVICES] licensee in receivership, issue an 
 order to cease and desist, suspend or revoke the designation of an authorized delegate, 
 or assess a civil penalty without notice and an opportunity to be heard. The department 
 shall also hold a hearing when requested to hold a hearing by an applicant whose 
 application for a [MONEY SERVICES] license is denied. 
 * Sec. 44. AS 06.55.802 is amended to read: 
 Sec. 06.55.802. Exemptions [EXCLUSIONS]. This chapter does not apply to 
 (1) the United States or a department, [AN] agency, [OR AN] 
 instrumentality, or agent of the United States; 
 (2) money transmission by the United States Postal Service or by an

agent [A CONTRACTOR ON BEHALF] of the United States Postal Service; 
 (3) a state, a municipality, a county, or another governmental agency 
 or governmental subdivision of a state, or its agent; 
 (4) a federally insured depository financial institution, a bank, a 
 bank holding company, an office of an international banking corporation, a branch of a 
 foreign bank, a corporation organized under 12 U.S.C. 1861 - 1867 (Bank Service 
 Company Act), or a corporation organized under 12 U.S.C. 611 - 633 (Edge Act) 
 under the laws of a state or the United States, if it does not issue, sell, or provide 
 payment instruments or stored value through an authorized delegate who is not a bank, 
 a bank holding company, an office of an international banking corporation, a branch of 
 a foreign bank, a corporation organized under 12 U.S.C. 1861 - 1867 (Bank Service 
 Company Act), [OR] a corporation organized under 12 U.S.C. 611 - 633 (Edge Act) 
 under the laws of a state or the United States, an institution regulated by the Farm 
 Credit Administration, or a subsidiary or affiliate of a financial institution if the 
 subsidiary or affiliate is owned and controlled by a depository institution and 
 regulated by a federal banking agency; in this paragraph, "federal banking 
 agency" means the Board of Governors of the Federal Reserve System, the 
 United States Comptroller of the Currency, the director of the Office of Thrift 
 Supervision, the National Credit Union Administration, and the Federal Deposit 
 Insurance Corporation; 
 (5) electronic funds transfer of governmental benefits for a federal, 
 state, or municipal agency or a state political subdivision by a contractor on behalf of 
 (A) the United States or a department, an agency, or an 
 instrumentality of the United States; or 
 (B) a state, or a department, an agency, or an instrumentality of 
 a state; 
 (6) a board of trade or a person that [WHO], in the ordinary course of 
 business, provides clearance and settlement services for a board of trade, to the extent 
 of the operation of the person for a board of trade; in this paragraph, "board of trade" 
 means a board of trade designated as a contract market under 7 U.S.C. 1 - 27f 
 (Commodity Exchange Act);

(7) a registered futures commission merchant under the federal 
 commodities laws, to the extent of the merchant's operation as a registered futures 
 commission merchant under the federal commodities laws; 
 (8) a person that [WHO] provides clearance or settlement services 
 under a registration as a clearing agency or an exemption from the registration granted 
 under the federal securities laws, to the extent of the person's operation as a provider 
 of clearance or settlement services under a registration as a clearing agency or an 
 exemption from the registration granted under the federal securities laws; 
 (9) an operator of a payment system to the extent that the operator 
 provides processing, clearing, or settlement services, between or among persons 
 exempted [EXCLUDED] by this section, in connection with wire transfers, credit 
 card transactions, debit card transactions, stored-value transactions, automated 
 clearinghouse transfers, or similar funds transfers; [OR] 
 (10) a person registered as a securities broker-dealer under federal or 
 state securities laws, to the extent of the person's operation as a securities broker- 
 dealer; 
 (11) an individual employed by a licensee, authorized delegate, or 
 a person exempt from the licensing requirements of this chapter when the 
 individual is acting within the scope of employment and under the supervision of 
 the licensee, authorized delegate, or exempt person and not as an independent 
 contractor; 
 (12) a person expressly appointed as a third-party service provider 
 to or agent of an entity exempt under (4) of this subsection, solely to the extent 
 that 
 (A) the service provider or agent is engaging in money 
 transmission on behalf of and in accordance with a written agreement 
 with the exempt entity that sets out the specific functions that the service 
 provider or agent is to perform; and 
 (B) the exempt entity assumes all risk of loss and all legal 
 responsibility for satisfying the outstanding money transmission 
 obligations owed to purchasers and holders of the outstanding money

transmission obligations upon receiving the purchaser's or holder's money 
 or monetary value by the service provider or agent; 
 (13) a person appointed as an agent of a payee to collect and 
 process a payment from a payor to the payee for goods or services, other than 
 money transmission services, provided to the payor by the payee, if 
 (A) the payee and the agent have a written agreement 
 directing the agent to collect and process payments from payors on the 
 payee's behalf; 
 (B) the payee holds the agent out to the public as accepting 
 payments for goods or services on the payee's behalf; and 
 (C) payment for the goods and services is treated as 
 received by the payee upon receipt by the agent and the payor's obligation 
 is extinguished, and there is no risk of loss to the payor if the agent fails to 
 remit the funds to the payee; 
 (14) a person that acts as an intermediary by processing payments 
 between an entity that has directly incurred an outstanding money transmission 
 obligation to a sender and the sender's designated recipient, if the person acting 
 as an intermediary 
 (A) is a licensee or exempt from the licensing requirements 
 under this chapter; 
 (B) provides a receipt, electronic record, or other written 
 confirmation to the sender identifying the entity as the provider of money 
 transmission in the transaction; and 
 (C) bears sole responsibility to satisfy the outstanding 
 money transmission obligation to the sender, including the obligation to 
 remedy a failure to transmit the funds to the sender's designated 
 recipient; 
 (15) an entity that is an insurance company, title insurance 
 company, or escrow agent, to the extent that the entity is lawfully authorized to 
 conduct business in this state as an insurance company, title insurance company, 
 or escrow agent and to the extent that the entity engages in money transmission

as an ancillary service when conducting insurance, title insurance, or escrow 
 activity; 
 (16) an attorney, to the extent that the attorney is lawfully 
 authorized to practice law in this state and engages in money transmission as an 
 ancillary service to the practice of law; or 
 (17) a person exempt by regulation or order of the department if 
 the department finds that the exemption is in the public interest and that the 
 regulation of the person is not necessary for the purposes of this chapter [UNDER 
 FEDERAL OR STATE SECURITIES LAWS]. 
 * Sec. 45. AS 06.55.802 is amended by adding a new subsection to read: 
 (b) The department may adopt regulations that exempt a person providing 
 payroll processing services from all or some of the provisions of this chapter when the 
 volume of the money transmissions received by the person are minor compared to the 
 volume of money transmissions generally received by a person licensed under this 
 chapter. In this subsection, 
 (1) "money transmission" means receiving money or monetary value 
 in the United States for transmission within or outside the United States; 
 (2) "payroll processing services" means money transmissions received 
 under a contract with a person for the purpose of delivering wages or salaries, making 
 payments of payroll taxes to state and federal agencies, making payments relating to 
 employee benefit plans, or making distributions of other authorized deductions from 
 wages or salaries. 
 * Sec. 46. AS 06.55 is amended by adding a new section to read: 
 Sec. 06.55.803. Authority to require demonstration of exemption. The 
 department may require a person that claims to be exempt from licensing under 
 AS 06.55.802 to provide information and documentation to the department 
 demonstrating the claimed exemption. 
 * Sec. 47. AS 06.55.810 is amended to read: 
 Sec. 06.55.810. Notices required. (a) A [MONEY SERVICES] licensee shall 
 provide customers with notice of how to file a complaint. A licensee shall provide 
 notice [DISPLAY A SIGN] at each location where the [MONEY SERVICES]

licensee 
 (1) provides money transmission [SERVICES] under this chapter; 
 and 
 (2) has not designated an authorized delegate to provide money 
 transmission [SERVICES] on behalf of the [MONEY SERVICES] licensee at the 
 location. 
 (b) An authorized delegate shall provide customers with notice of how to 
 file a complaint. An authorized delegate shall provide notice [DISPLAY A SIGN] 
 at each location where the authorized delegate provides money transmission 
 [SERVICES] under this chapter. 
 (c) The notice [SIGN] required by (a) or (b) of this section must be in a 
 format and contain information required by the department [SHALL BE 
 DISPLAYED AT ALL TIMES IN FULL VIEW OF PERSONS VISITING THE 
 LOCATION AND SHALL GIVE THE DEPARTMENT'S ADDRESS AND THE 
 DEPARTMENT'S TELEPHONE NUMBER FOR RECEIVING CALLS 
 REGARDING COMPLAINTS AND OTHER CONCERNS ABOUT MONEY 
 SERVICES LICENSEES, AUTHORIZED DELEGATES, AND THE MONEY 
 SERVICES PROVIDED BY MONEY SERVICES LICENSEES AND 
 AUTHORIZED DELEGATES]. 
 * Sec. 48. AS 06.55.810 is amended by adding a new subsection to read: 
 (d) A licensee or authorized delegate shall include on a receipt or disclose on 
 the licensee's Internet website or mobile application the name and telephone number 
 of the department and a statement that the licensee's customers can contact the 
 department with questions or complaints about the licensee's money transmission. In 
 this subsection, "mobile application" means a software application developed 
 specifically for use on small, wireless computing devices. 
 * Sec. 49. AS 06.55 is amended by adding a new section to read: 
 Sec. 06.55.815. In-state determination. For a transaction requested 
 electronically or by telephone, the provider of money transmission may determine 
 whether the person requesting the transaction is in this state by relying on other 
 information provided by the person regarding the location of the person's residential

address or principal place of business or other physical address and any records 
 associated with the person that the provider of money transmission may have that 
 indicate the location, including an address associated with an account. 
 * Sec. 50. AS 06.55.830 is repealed and reenacted to read: 
 Sec. 06.55.830. Receipt. (a) Except as provided in (c) of this section, a 
 licensee or a licensee's authorized delegate shall provide to the sender a receipt for 
 money received for transmission. The receipt must be in English and in any other 
 language principally used by the licensee or authorized delegate to advertise, solicit, or 
 negotiate, either orally or in writing, for the transaction conducted. The receipt must 
 contain the following information, as applicable: 
 (1) the name of the sender; 
 (2) the name of the designated recipient; 
 (3) the date of the transaction; 
 (4) the unique transaction or identification number; 
 (5) the name of the licensee, unique registry identifier, the licensee's 
 business address, and the licensee's customer service telephone number; 
 (6) the dollar amount of the transaction; 
 (7) any fee charged by the licensee to the sender for the transaction; 
 (8) any taxes collected by the licensee from the sender for the 
 transaction; and 
 (9) the exchange rate, if any, used by the provider for the transaction. 
 (b) For a transaction conducted in person, the receipt may be provided 
 electronically if the sender requests or agrees to receive an electronic receipt. For a 
 transaction conducted electronically or by telephone, a receipt may be provided 
 electronically. All electronic receipts must be provided in a retainable form. 
 (c) This section does not apply to 
 (1) money received for transmission that is subject to 12 C.F.R. Part 
 1005, Subpart B; 
 (2) money received for transmission that is not primarily for personal, 
 family, or household purposes; 
 (3) money received for transmission in accordance with a written

agreement between the licensee and payee to process payments for goods or services 
 provided by the payee; 
 (4) an individual consumer transferring funds to reload stored value on 
 the consumer's account through a point of sale transaction; or 
 (5) a stored-value transaction exempted by the department by 
 regulation or order. 
 (d) In this section, "receipt" means a paper receipt, electronic record, or other 
 written confirmation. 
 * Sec. 51. AS 06.55 is amended by adding a new section to read: 
 Sec. 06.55.835. Timely transmission. (a) A licensee shall forward all money 
 received for transmission in accordance with the terms of the agreement between the 
 licensee and the sender unless the licensee has a reasonable cause to believe that the 
 sender may be a victim of fraud or that a crime or violation of law, rule, or regulation 
 has occurred, is occurring, or may occur. 
 (b) If a licensee fails to forward money received for transmission in 
 accordance with this section, the licensee shall respond to inquiries by the sender with 
 the reason for the failure unless providing a response would violate a state or federal 
 law, rule, or regulation. 
 * Sec. 52. AS 06.55.840 is repealed and reenacted to read: 
 Sec. 06.55.840. Refunds. (a) Except as provided in (b) of this section, a 
 licensee shall refund to the sender, within 10 days after receipt of the sender's written 
 request for a refund, all money received for transmission unless 
 (1) the money has been forwarded within 10 days after the date on 
 which the money was received for transmission; 
 (2) within 10 days after the date on which the money was received for 
 transmission, instructions have been given committing an equivalent amount of money 
 to the person designated by the sender; 
 (3) the agreement between the licensee and the sender instructs the 
 licensee to forward the money at a time that is beyond 10 days after the date on which 
 the money was received for transmission; if money has not yet been forwarded in 
 accordance with the terms of the agreement between the licensee and the sender, the

licensee shall issue a refund in accordance with this section; 
 (4) the refund is requested for a transaction that the licensee has not 
 completed based on a reasonable belief that a crime or violation of law, rule, or 
 regulation has occurred, is occurring, or may occur; or 
 (5) the refund request does not 
 (A) identify the sender's name and 
 (i) address; or 
 (ii) telephone number; or 
 (B) identify the particular transaction to be refunded in the 
 event the sender has multiple transactions outstanding. 
 (b) This section does not apply to: 
 (1) money received for transmission subject to 12 C.F.R. Part 1005, 
 Subpart B; or 
 (2) money received for transmission in accordance with a written 
 agreement between the licensee and payee to process payments for goods or services 
 provided by the payee. 
 * Sec. 53. AS 06.55.850(b) is amended to read: 
 (b) The department shall establish fee levels under (a) of this section so that 
 the total amount of fees collected for [BOTH MONEY TRANSMISSION] licenses 
 [AND CURRENCY EXCHANGE LICENSES] under this chapter approximately 
 equals the department's actual total regulatory costs for [BOTH MONEY 
 TRANSMISSION] licenses [AND CURRENCY EXCHANGE LICENSES. THE 
 DEPARTMENT SHALL SET THE FEE LEVELS SO THAT THE FEE LEVELS 
 FOR BOTH MONEY TRANSMISSION LICENSES AND CURRENCY 
 EXCHANGE LICENSES ARE THE SAME]. 
 * Sec. 54. AS 06.55.850 is amended by adding a new subsection to read: 
 (f) The department shall set an annual renewal fee based on a licensee's total 
 volume of money transmission in the state, calculated in dollars or dollar equivalents. 
 * Sec. 55. AS 06.55.990(1) is amended to read: 
 (1) "authorized delegate" means a person that [WHOM] a [MONEY 
 SERVICES] licensee designates to engage in [PROVIDE] money transmission

[SERVICES] on behalf of the [MONEY SERVICES] licensee; 
 * Sec. 56. AS 06.55.990(3) is amended to read: 
 (3) "control" means 
 (A) the ownership of, or the power to vote, directly or 
 indirectly, at least 10 [25] percent of the outstanding [A CLASS OF] voting 
 shares [SECURITIES] or voting interests of a [MONEY SERVICES] licensee 
 or of a person that owns or has the power to vote, directly or indirectly, at 
 least 10 percent of the voting shares or voting interests [IN CONTROL] of 
 a [MONEY SERVICES] licensee unless the person with the power to vote is 
 a passive investor as described in AS 06.55.404(q); 
 (B) the power to elect or appoint a majority of executive 
 officers, managers, directors, trustees, or other persons exercising managerial 
 authority of a [MONEY SERVICES] licensee or person in control of a 
 [MONEY SERVICES] licensee; or 
 (C) the power to exercise, directly or indirectly, a controlling 
 influence over the management or policies of a [MONEY SERVICES] 
 licensee or person in control of a [MONEY SERVICES] licensee; 
 * Sec. 57. AS 06.55.990(15) is amended to read: 
 (15) "money transmission" 
 (A) means 
 (i) selling or issuing payment instruments or stored 
 value to a person located in this state; 
 (ii) [, OR] receiving money or monetary value for 
 transmission to the state, from the state, or within the state; 
 (iii) engaging in virtual currency exchange; or 
 (iv) engaging in virtual currency business activity; 
 (B) [, BUT] does not mean [INCLUDE] the provision solely of 
 [DELIVERY,] online services, telecommunications services, or network 
 access; 
 * Sec. 58. AS 06.55.990(19) is amended to read: 
 (19) "payment instrument" means a written or electronic check, [A]

draft, [A] money order, [A] traveler's check, or other written or electronic 
 [ANOTHER] instrument for the transmission or payment of money or monetary value, 
 whether or not negotiable, but does not mean stored value, [INCLUDE] a credit card 
 voucher, a letter of credit, [OR] an instrument that is redeemable by the issuer in 
 goods or services, or other instrument not sold to the public but issued and 
 distributed as part of a loyalty, rewards, or promotional program; 
 * Sec. 59. AS 06.55.990(20) is amended to read: 
 (20) "person" means an individual, general partnership, limited 
 partnership, [A] corporation, [A BUSINESS] trust, [AN ESTATE, A TRUST, A 
 PARTNERSHIP, A] limited liability company, [AN] association, [A] joint stock 
 corporation [VENTURE, A GOVERNMENT, A GOVERNMENTAL 
 SUBDIVISION, AN AGENCY, OR AN INSTRUMENTALITY, A PUBLIC 
 CORPORATION], or any other legal or corporate [COMMERCIAL] entity 
 identified by the department; 
 * Sec. 60. AS 06.55.990(22) is amended to read: 
 (22) "state" means a state of the United States, the District of 
 Columbia, Puerto Rico, the United States Virgin Islands, a United States military 
 installation that is located in a foreign country, or a territory or insular possession 
 subject to the jurisdiction of the United States; 
 * Sec. 61. AS 06.55.990(23) is amended to read: 
 (23) "stored value" 
 (A) means 
 (i) monetary value representing a claim against the 
 issuer that is evidenced by an electronic or digital record and that is 
 intended and accepted as a means of redemption for money or 
 monetary value or payment for goods or services; 
 (ii) prepaid access as defined in 31 C.F.R. 1010.100; 
 (B) does not mean a payment instrument or a closed-loop 
 stored value or a stored value not sold to the public but issued and 
 distributed as part of a loyalty, rewards, or promotional program; 
 * Sec. 62. AS 06.55.990(24) is amended to read:

(24) "unsafe or unsound practice" means a practice or conduct by a 
 [MONEY TRANSMISSION] licensee or an authorized delegate that [OF THE 
 MONEY TRANSMISSION LICENSEE IF THE PRACTICE] creates the likelihood 
 of material loss, insolvency, or dissipation of the [MONEY TRANSMISSION] 
 licensee's assets, or otherwise materially prejudices the interests of the [MONEY 
 TRANSMISSION] licensee's customers. 
 * Sec. 63. AS 06.55.990 is amended by adding new paragraphs to read: 
 (25) "accredited state" means a state agency that is accredited by an 
 organization that the department determines is a nationally recognized association of 
 state bank supervisors and money transmitter regulators for money transmission 
 licensing and supervision; 
 (26) "acting in concert" means persons knowingly acting together with 
 a common goal of jointly acquiring control of a licensee whether or not under an 
 express agreement; 
 (27) "average daily money transmission liability" means the amount of 
 the licensee's outstanding money transmission obligations in this state at the end of 
 each day in a given period, added together and divided by the total number of days in 
 the given period; in this paragraph, "given period" means a calendar year quarter 
 ending March 31, June 30, September 30, or December 31; 
 (28) "Bank Secrecy Act" means 31 U.S.C. 5311 - 5336 and its 
 implementing regulations; 
 (29) "closed-loop stored value" means stored value that is redeemable 
 by the issuer only for goods or services provided by the issuer or its affiliate, or 
 franchisees of the issuer or its affiliate, except to the extent required by applicable law 
 to be redeemable in cash for its cash value; 
 (30) "control of virtual currency," when used in reference to a 
 transaction or relationship involving virtual currency, means the power to execute 
 unilaterally or prevent indefinitely a virtual currency transaction; 
 (31) "dollar equivalent" means the equivalent value of a particular 
 virtual currency in United States dollars shown on a virtual currency exchange based 
 in the United States for a particular date or period specified in this chapter; in this

paragraph, "virtual currency exchange" means an organization that provides a market 
 for the exchange of virtual currency; 
 (32) "eligible rating" means a short-term or long-term credit rating 
 determined by the department that is based on any of the three highest rating 
 categories provided by an eligible rating service; 
 (33) "eligible rating service" means a nationally recognized statistical 
 rating organization, as determined by the United States Securities and Exchange 
 Commission, and any other nationally recognized statistical rating organization 
 designated by the department by regulation; 
 (34) "federally insured depository financial institution" means a bank, 
 credit union, savings and loan association, trust company, savings association, savings 
 bank, industrial bank, or industrial loan company organized under the laws of the 
 United States or any state that has federally insured deposits; 
 (35) "individual" means a natural person; 
 (36) "in this state" means at a physical location within this state for a 
 transaction requested in person; 
 (37) "key individual" means an individual ultimately responsible for 
 establishing or directing policies and procedures of the licensee, including an 
 executive officer, manager, director, or trustee; 
 (38) "license" means a license issued under AS 06.55.105; 
 (39) "licensee" means a person licensed under AS 06.55.105; 
 (40) "money received for transmission" means money or monetary 
 value received in the United States for transmission within or outside the United States 
 by electronic or other means; 
 (41) "multistate licensing process" means an agreement entered into by 
 and among state regulators relating to coordinated processing of applications for 
 licenses, applications for the acquisition of control of a licensee, control 
 determinations, or notice and information requirements for a change of key 
 individuals; 
 (42) "outstanding money transmission obligation" means 
 (A) a payment instrument or stored value issued or sold by a

licensee to a person located in the United States, or reported as sold by an 
 authorized delegate of the licensee to a person that is located in the United 
 States, that has not yet been paid or refunded by or for the licensee or 
 escheated in accordance with applicable abandoned property laws; or 
 (B) money received for transmission by the licensee or an 
 authorized delegate in the United States from a person located in the United 
 States that has not been received by the payee or refunded to the sender or 
 escheated in accordance with applicable abandoned property laws; in this 
 paragraph, "in the United States" means, to the extent applicable, a person in a 
 state, territory, or possession of the United States, the District of Columbia, the 
 Commonwealth of Puerto Rico, or a United States military installation that is 
 located in a foreign country; 
 (43) "registry" means a nationwide organization that the department 
 determines is a nationally recognized multistate licensing system to use as a multistate 
 licensing process; 
 (44) "tangible net worth" means the aggregate assets of a licensee 
 excluding all intangible assets, less liabilities, as determined in accordance with 
 generally accepted accounting principles; 
 (45) "virtual currency" 
 (A) means a digital representation of value that 
 (i) is used as a medium of exchange, unit of account, or 
 store of value; and 
 (ii) is not money, whether or not denominated in 
 money; 
 (B) does not mean 
 (i) a transaction in which a merchant grants, as part of 
 an affinity or rewards program, value that cannot be taken from or 
 exchanged with the merchant for money, bank credit, or virtual 
 currency; or 
 (ii) a digital representation of value issued by or on 
 behalf of a publisher and used solely within an online game, game

platform, or family of games sold by the same publisher or offered on 
 the same game platform; 
 (46) "virtual currency administration" means issuing virtual currency 
 with the authority to redeem the currency for money, bank credit, or other virtual 
 currency; 
 (47) "virtual currency business activity" means 
 (A) exchanging, transferring, or storing virtual currency or 
 engaging in virtual currency administration, whether directly or through an 
 agreement with a virtual currency control services vendor; 
 (B) holding electronic precious metals or electronic certificates 
 representing interests in precious metals on behalf of another person or issuing 
 shares or electronic certificates representing interests in precious metals; or 
 (C) exchanging one or more digital representations of value 
 used within one or more online games, game platforms, or family of games for 
 (i) virtual currency offered by or on behalf of the same 
 publisher from which the original digital representation of value was 
 received; or 
 (ii) money or bank credit outside the online game, game 
 platform, or family of games offered by or on behalf of the same 
 publisher from which the original digital representation of value was 
 received; 
 (48) "virtual currency control services vendor" means a person that has 
 control of virtual currency solely under an agreement with a person that, on behalf of 
 another person, assumes control of virtual currency; 
 (49) "virtual currency exchange" means to 
 (A) assume control of virtual currency from or on behalf of a 
 person, at least momentarily; 
 (B) sell, trade, or convert 
 (i) virtual currency for money, bank credit, or one or 
 more forms of virtual currency or money; or 
 (ii) bank credit for one or more forms of virtual

currency; 
 (50) "virtual currency transfer" means to assume control of virtual 
 currency from or on behalf of a person and to 
 (A) credit the virtual currency to the account of another person; 
 (B) move the virtual currency from one account of a person to 
 another account of the same person; or 
 (C) relinquish control of virtual currency to another person. 
 * Sec. 64. AS 06.55.995 is amended to read: 
 Sec. 06.55.995. Short title. This chapter may be cited as the Alaska Uniform 
 Money Transmission Modernization [SERVICES] Act. 
 * Sec. 65. AS 12.62.400(b) is amended to read: 
 (b) Notwithstanding (a) of this section, an applicant for a license under 
 AS 06.60 or a person controlling a licensee or an applicant for a license under 
 AS 06.55, seeking to acquire control of a licensee under AS 06.55, or acting as a 
 key individual under AS 06.55 may submit the applicant's fingerprints to the 
 Nationwide Mortgage Licensing System and Registry. In this subsection, "Nationwide 
 Mortgage Licensing System and Registry" has the meaning given in 12 U.S.C. 5102. 
 * Sec. 66. AS 34.45 is amended by adding a new section to read: 
 Sec. 34.45.165. Virtual currency. (a) Virtual currency is presumed abandoned 
 five years after the later of the following: 
 (1) the date on which the holder of the virtual currency last sends a 
 written or electronic communication to the apparent owner that is returned as 
 undeliverable; or 
 (2) the date on which the apparent owner last exercises an act of 
 ownership in the virtual currency. 
 (b) The presumption in (a) of this section does not apply if the apparent owner 
 sends a written or electronic communication to the holder of the virtual currency in the 
 preceding five years. 
 (c) In this section, "an act of ownership in the virtual currency" includes 
 (1) performing a transaction using the virtual currency or account in 
 which the virtual currency is held, including buying or selling the virtual currency or

making deposits into or withdrawals from the account; 
 (2) electronically accessing the virtual currency or account in which 
 the virtual currency is held; 
 (3) performing an activity using another virtual currency or account in 
 which the virtual currency is held that is owned by the apparent owner if the holder of 
 the virtual currency or account is also the holder of the other virtual currency or 
 account; or 
 (4) taking another action that reasonably demonstrates to the holder of 
 the virtual currency or account in which the virtual currency is held that the apparent 
 owner knows the property exists. 
 * Sec. 67. AS 34.45.280(b) is amended to read: 
 (b) The report must be made on a form bearing a notice that statements are 
 made under penalty of unsworn falsification and must include 
 (1) except with respect to traveler's checks and money orders, the 
 name, if known, and last known address, if any, of each person appearing from the 
 records of the holder to be the owner of property, the value of which is $100 or more, 
 presumed abandoned under AS 34.45.110 - 34.45.430 and other statutes specifically 
 made subject to this reporting requirement; 
 (2) in the case of unclaimed money amounting to $100 or more, held 
 or owing under a life or endowment insurance policy or annuity contract, the full name 
 and last known address of the insured or annuitant and of the beneficiary or other 
 person who is entitled to the proceeds according to the records of the insurance 
 company holding or owing the funds; 
 (3) in the case of the contents of a safe deposit box or other 
 safekeeping repository or of other tangible personal property, a description of the 
 property and the place where it is held and may be inspected by the department and 
 any amounts owing to the holder; 
 (4) in the case of virtual currency, the type of virtual currency, 
 quantity of virtual currency, valuation of the virtual currency in dollars on the 
 date that the virtual currency was presumed abandoned, and whether the holder 
 of the virtual currency has full control of the necessary private keys required to

transfer the virtual currency; 
 (5) [(4)] the nature and identifying number, if any, or description of the 
 property and the amount appearing from the records to be due; items of value under 
 $100 each may be reported in the aggregate; 
 (6) [(5)] the date the property became payable, demandable, or 
 returnable, and the date of the last transaction with the apparent owner with respect to 
 the property; and 
 (7) [(6)] other information that the department prescribes by regulation 
 as necessary for the administration of this chapter. 
 * Sec. 68. AS 34.45.320(a) is amended to read: 
 (a) Except as otherwise provided in (b) or (e) of this section, a person who is 
 required to file a report under AS 34.45.280, shall, at the time of filing the report 
 under that section, pay or deliver to the administrator all of the property shown on the 
 report and remaining unclaimed by the apparent owner. Upon written request showing 
 good cause, the administrator may postpone the payment or delivery upon the terms or 
 conditions the administrator considers necessary and appropriate. The property paid or 
 delivered to the administrator must include all interest, dividends, increments, and 
 accretions due, payable, or distributable on the property at the time of filing the report. 
 If payment or delivery is postponed, the property paid or delivered to the administrator 
 must include all interest, dividends, increments, and accretions due, payable, or 
 distributable on the day that the property is paid or delivered to the administrator. 
 * Sec. 69. AS 34.45.320 is amended by adding a new subsection to read: 
 (e) The holder of a virtual currency shall pay or deliver the virtual currency to 
 the administrator in the native form of the virtual currency. If the holder is unable to 
 pay or deliver the virtual currency to the administrator, the holder shall maintain 
 possession of the virtual currency until the holder is able to pay or deliver the virtual 
 currency, the requirements under (b) of this section are met, or an election not to 
 receive custody of the virtual currency is made by the department under 
 AS 34.45.410(a). If payment or delivery of the virtual currency to the administrator is 
 not practical or the administrator holding the virtual currency is uneconomical despite 
 the best efforts of the administrator, the administrator may postpone delivery of the

virtual currency upon the terms or conditions the administrator considers necessary 
 and appropriate. 
 * Sec. 70. AS 34.45.380 is amended by adding a new subsection to read: 
 (g) If a holder is in possession of virtual currency because payment or delivery 
 was postponed under AS 34.45.320(a) or (e), a person, excluding another state, 
 claiming an interest in the virtual currency may file a claim in the form and bearing 
 the notice required under (a) of this section. If the claim is allowed and the holder is 
 able to pay or deliver the virtual currency, the holder shall pay or deliver the virtual 
 currency to the claimant upon receiving notice from the department. If the holder pays 
 or delivers the virtual currency to the claimant in good faith under this subsection and 
 another person subsequently claims the virtual currency from the holder or another 
 state claims the virtual currency under the laws of the other state relating to escheat or 
 unclaimed property, the department shall defend the holder against the claim and 
 indemnify the holder against liability on the claim upon receiving written notice of the 
 claim. 
 * Sec. 71. AS 34.45.390(c) is amended to read: 
 (c) The department shall require a state, before recovering property under this 
 section, to agree to indemnify this state, this state's [AND ITS] officers and 
 employees, and, if applicable, a holder paying or delivering possession of virtual 
 currency under (d) of this section against liability on a claim for the property. 
 * Sec. 72. AS 34.45.390 is amended by adding a new subsection to read: 
 (d) If a holder is in possession of virtual currency because payment or delivery 
 was postponed under AS 34.45.320(a) or (e), another state may make a claim to 
 recover abandoned virtual currency in the form required under (b) of this section. The 
 department shall allow the claim if the department determines that the other state is 
 entitled to the abandoned virtual currency under (a) of this section. If the claim is 
 allowed and the holder is able to pay or deliver the virtual currency, the holder shall 
 pay or deliver possession of the virtual currency to the other state upon receiving 
 notice from the department. 
 * Sec. 73. AS 34.45.760(11) is amended to read: 
 (11) "intangible property"

(A) includes 
 (i) money, checks, drafts, warrants, deposits, interest, 
 dividends, [AND] income, and virtual currency; 
 (ii) credit balances, customer overpayments, gift 
 certificates, security deposits, refunds, credit memos, unpaid wages, 
 and unidentified remittances; 
 (iii) stocks and other intangible equity interests in 
 business associations; 
 (iv) money deposited to redeem stocks, bonds, coupons, 
 and other securities, or to make distributions; 
 (v) amounts due and payable under the terms of 
 insurance policies; 
 (vi) amounts distributable from a trust or custodial fund 
 established under a plan to provide health, welfare, pension, vacation, 
 severance, retirement, death, stock purchase, profit-sharing, employee 
 savings, supplemental unemployment insurance, or similar benefits; 
 and 
 (vii) amounts due and payable as mineral proceeds; 
 (B) does not include 
 (i) unused airline tickets; 
 (ii) shares of stock issued by a corporation organized 
 under 43 U.S.C. 1601 et seq. (Alaska Native Claims Settlement Act) or 
 unclaimed dividends payable on the shares of stock; or 
 (iii) overpaid contributions by employers to the 
 unemployment compensation fund under AS 23.20.130; 
 * Sec. 74. AS 34.45.760 is amended by adding new paragraphs to read: 
 (20) "blockchain" includes data that is 
 (A) shared across a peer-to-peer network to create a ledger of 
 verified transactions or information among network participants that is linked 
 together using cryptography to maintain the integrity of the ledger and execute 
 other functions; or

(B) distributed among network participants automatically to 
 concurrently update the network participants on the state of a ledger and other 
 functions; 
 (21) "private key" means a unique element of cryptographic data used 
 for signing transactions on a blockchain and that is known to the owner of the element; 
 (22) "virtual currency" has the meaning given in AS 06.55.990. 
 * Sec. 75. AS 06.55.103, 06.55.104, 06.55.107, 06.55.201, 06.55.202, 06.55.203, 06.55.204, 
 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, 
 06.55.990(5), 06.55.990(6), 06.55.990(8), 06.55.990(9), 06.55.990(12), 06.55.990(13), 
 06.55.990(14), 06.55.990(16), 06.55.990(17), and 06.55.990(18) are repealed. 
 * Sec. 76. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 INDIRECT COURT RULE AMENDMENT. AS 06.55.605(b), enacted by sec. 38 of 
 this Act, has the effect of changing Rules 79 and 82, Alaska Rules of Civil Procedure, by 
 changing the award of court costs and attorney fees in certain cases. 
 * Sec. 77. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 TRANSITION: EXISTING CONTRACTS, RIGHTS, LIABILITIES, AND 
 OBLIGATIONS. Contracts, rights, liabilities, and obligations created by or under a law 
 repealed or amended by secs. 1 - 65 and 75 - 78 of this Act, and in effect on the day before the 
 effective date of the repeal or amendment, remain in effect notwithstanding secs. 1 - 65 and 
 75 - 78 of this Act taking effect. 
 * Sec. 78. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 TRANSITION: CURRENT MONEY SERVICES LICENSEES. A person that has a 
 valid money services license or approval on June 30, 2027, may continue to operate under that 
 license or approval until the licensee renews the license under AS 06.55.106, as repealed and 
 reenacted by sec. 5 of this Act, or through July 1, 2028, whichever is later. In this section, 
 (1) "approval" means approval under AS 06.55.103, as that section read on 
 June 30, 2027; 
 (2) "money services licensee" has the meaning given in AS 06.55.990, as that

section read on June 30, 2027. 
 * Sec. 79. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 TRANSITION: REGULATIONS. (a) The Department of Commerce, Community, 
 and Economic Development may adopt regulations necessary to implement the changes made 
 by secs. 1 - 65 and 75 - 78 of this Act. The regulations take effect under AS 44.62 
 (Administrative Procedure Act), but not before the effective date of the law implemented by 
 the regulation. 
 (b) The Department of Revenue may adopt regulations necessary to implement the 
 changes made by secs. 66 - 74 of this Act. The regulations take effect under AS 44.62 
 (Administrative Procedure Act), but not before the effective date of the law implemented by 
 the regulation. 
 * Sec. 80. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 CONDITIONAL EFFECT. AS 06.55.605(b), enacted by sec. 38 of this Act, takes 
 effect only if sec. 76 of this Act receives the two-thirds majority vote of each house required 
 by art. IV, sec. 15, Constitution of the State of Alaska. 
 * Sec. 81. Section 79 of this Act takes effect immediately under AS 01.10.070(c). 
 * Sec. 82. Sections 1 - 65 and 75 - 78 of this Act take effect July 1, 2027.