Legislature(2015 - 2016)BARNES 124

04/11/2016 03:15 PM LABOR & COMMERCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

Audio Topic
03:29:46 PM Start
03:30:00 PM HB234
03:36:52 PM Alaska Workers' Compensation Board
04:20:05 PM HB271
04:32:02 PM SB127
04:49:46 PM SB142
04:54:56 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
- Alaska State Board of Public Accountancy
- Alcoholic Beverage Control Board
- State Board of Registration for Architects,
Engineers, and Land Surveyors
- Board of Barbers and Hairdressers
- Board of Certified Real Estate Appraisers
- Board of Chiropractic Examiners
- Board of Dental Examiners
- Alaska Gasline Development Corporation Board
of Directors
- Alaska Labor Relations Agency
- Marijuana Control Board
- Board of Marine Pilots
- Board of Marital and Family Therapy
- Board of Massage Therapists
- Board of Certified Direct-Entry Midwives
- Board of Nursing
- Occupational Safety and Health Review Board
- Board of Examiners in Optometry
- Board of Pharmacy
- State Physical Therapy and Occupational Therapy
- Board of Psychologists and Psychological
Associate Examiners
- Regulatory Commission of Alaska
- Board of Social Work Examiners
- Board of Veterinary Examiners
- Workers' Compensation Appeals Commission
- Alaska Workers' Compensation Board
-- Public Testimony --
**Streamed live on AKL.tv**
Moved CSHB 234(L&C) Out of Committee
-- Public Testimony --
**Streamed live on AKL.tv**
Moved CSHB 271(L&C) Out of Committee
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
Moved SB 127 Out of Committee
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
Moved HCS CSSB 142(L&C) Out of Committee
-- Public Testimony --
**Streamed live on AKL.tv**
        HB 271-MONEY SERVICES BUSINESS: REQS; LICENSING;                                                                    
4:20:05 PM                                                                                                                    
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL  NO.  271,  "An  Act relating  to  a  money  services                                                               
business;  relating to  transmitting value  that substitutes  for                                                               
money;  relating  to   licensing  requirements  and  registration                                                               
through the Nationwide Multistate  Licensing System and Registry;                                                               
relating  to  surety  bonding requirements;  authorizing  certain                                                               
licensees  to contract  to use  subdelegates for  reloading funds                                                               
onto stored-value cards; relating  to record retention, reporting                                                               
requirements,   and    enforcement   provisions;    relating   to                                                               
exemptions;  relating  to  money  services  Internet  activities;                                                               
relating  to   definitions  regarding  the   transmitting  value,                                                               
currency,  and   money  transmission  business   activities;  and                                                               
providing for an effective date."                                                                                               
4:20:13 PM                                                                                                                    
REPRESENTATIVE  HUGHES moved  to adopt  the committee  substitute                                                               
for  HB 271,  Version  [29-GH2067\H], Bannister,  4/4/16, as  the                                                               
working document.                                                                                                               
CHAIR OLSON objected for discussion purposes.                                                                                   
4:20:35 PM                                                                                                                    
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED),  answered   questions  raised  at  a   previous  meeting                                                               
regarding the  money services business, including  some ancillary                                                               
issues such  as gift cards  and pre-paid  cards.  She  provided a                                                               
copy  of  a  Wikipedia  sourced   list  of  the  various  virtual                                                               
currencies  available.   Ms. Anselm  paraphrased  the summary  of                                                               
changes  made  by  Version H  as  follows  [original  punctuation                                                               
     In   general,  Legislative   Counsel  made   conforming                                                                    
     drafting,   legal   and   organizational   improvements                                                                    
     throughout the bill  including expanding definitions to                                                                    
     include related concepts, products or practices.                                                                           
                       Summary of Changes                                                                                       
     Article 1. Money Transmission Licenses.  Sec. 1- 13. No                                                                    
     substantive changes.                                                                                                       
     Article 2.  Currency Exchange Licenses.  Sec. 14  - 22.                                                                    
     No substantive changes.                                                                                                    
     Article 3. Authorized Delegates. Sec. 23- 25.                                                                              
          Sec. 23. AS 06.55.301(b). Retains "remit"                                                                             
     definition  from  the  current   law  in  this  Article                                                                    
     instead  of  in  the  definition  section  and  adds  a                                                                    
     listing  of  the  financial  institutions  eligible  to                                                                    
     receive   authorized    delegate   deposits.   Proposed                                                                    
     language  relating to  licensee responsibility  for the                                                                    
     acts  of  an  authorized  representative  was  deleted.                                                                    
     (former Sec. 20)                                                                                                           
MS.  ANSELM explained  the  aforementioned  language was  deleted                                                               
because  it  was  clear  the  division  had  the  same  authority                                                               
elsewhere in the bill.                                                                                                          
     Article 4.  Examinations, Report and Records.  Sec. 26-                                                                    
          Sec. 27. AS 06.55.402 Consultation was added to                                                                       
     "Cooperation" in  the title of former  Sec. 23 relating                                                                    
     to working with other regulators.                                                                                          
MS. ANSELM related that not  only does the division cooperate but                                                               
also consults.                                                                                                                  
          Sec. 31. AS 06.55.404(a) Modified former Sec. 27                                                                      
     to require a licensee to  give the department notice of                                                                    
     a change of control 30  days before the proposed change                                                                    
     of  control  and  request approval  with  the  required                                                                    
     information  and fee  instead of  within 15  days after                                                                    
     learning of a proposed change of control.                                                                                  
MS. ANSELM  clarified that there  is only  one date, which  is 30                                                               
days before a proposed change.   Elsewhere in the law, there is a                                                               
provision to  notify the division within  15 days, if there  is a                                                               
     Article  5.  Permissible  Investments. Sec.  38-39.  No                                                                    
     substantive changes.                                                                                                       
     Article  6.  Enforcement.  Sec. 40-49.  No  substantive                                                                    
     Article  7.  Administrative  Procedures.  Sec.  50.  No                                                                    
     substantive changes.                                                                                                       
     Article 8.  Miscellaneous Provisions. Sec.  51- 54.Sec.                                                                    
     54.  AS  06.55.855.  New  section  that  describes  how                                                                    
     references to virtual currency will be construed.                                                                          
4:23:58 PM                                                                                                                    
MS. ANSELM explained that in  addition to a definition of virtual                                                               
currency, which  has been expanded,  there is also  a description                                                               
in  lay  terms  that  describes  how  those  references  will  be                                                               
     Article  9. Definitions.  Sec. 55  - 65.  Sec. 56  - 65                                                                    
     reordered the definitions in former Sec. 50.                                                                               
MS. ANSELM said the definitions  were reordered.  The definitions                                                               
already existing in  law are in the same order,  any changes stay                                                               
in the  same order,  and new  definitions are  added at  the end.                                                               
The original bill had alphabetized  the definitions and this will                                                               
place them back into "date" order.                                                                                              
     Notable changes include:                                                                                                   
          Sec. 56. AS 06.55.990(3) "control" is more                                                                            
     precisely defined. Formerly Sec. 50(4)                                                                                     
          Sec. 58. AS 06.55.990(15) "money transmission" is                                                                     
     expanded  to  include  explanations of  the  activities                                                                    
     included  in  an  informal transfer  system,  open-loop                                                                    
     stored  value  devices,  virtual currency,  and  retail                                                                    
     conversion  services,  including those  definitions  or                                                                    
     referencing  definitions that  were formerly  separated                                                                    
     in Sec. 50.                                                                                                                
4:25:09 PM                                                                                                                    
MS.  ANSELM related  that  this helps  people  to understand  how                                                               
these various sorts of money transmission services meet.                                                                        
          Sec. 66-73. No substantive changes.                                                                                   
4:26:02 PM                                                                                                                    
CHAIR  OLSON withdrew  his  objection.   There  being no  further                                                               
objection, Version H was before the committee.                                                                                  
REPRESENTATIVE HUGHES  commented that this is  a complicated bill                                                               
and  she   requested  a   written  updated   sectional  analysis,                                                               
including a summary of changes.                                                                                                 
MS. ANSELM agreed to provide further information.                                                                               
CHAIR OLSON  noted that  public testimony  was closed  during the                                                               
last meeting.                                                                                                                   
4:27:33 PM                                                                                                                    
REPRESENTATIVE  KITO expressed  concern regarding  the regulating                                                               
of fees,  and about having  fees on cards identified  as specific                                                               
profit  centers by  companies, so  that a  consumer might  not be                                                               
aware that  they are paying a  lot of money in  order to maintain                                                               
these instruments.   He  asked whether  there is  a way  that the                                                               
legislature  can protect  consumers from  overcharges on  some of                                                               
these types of instruments.                                                                                                     
MS. ANSELM  advised that  the division  reviews the  fees, during                                                               
examinations, as well  as when the firms  are initially licensed.                                                               
There  are three  different  examples of  fees  being charged  in                                                               
Alaska  currently  on prepaid  cards.    She explained  that  the                                                               
division  doesn't have  limits on  those fees  but that  could be                                                               
done by  regulation.   She pointed  out that  nationally, similar                                                               
fees  are substantial;  it takes  quite a  bit of  administrative                                                               
work to keep  multiple accounts current.  Ms. Anselm  said she is                                                               
aware there are some costs  involved, but she would research that                                                               
issue  to  determine  whether  it   makes  sense  to  regulate  a                                                               
limitation on fees, and to see what other states do.                                                                            
4:29:19 PM                                                                                                                    
REPRESENTATIVE HUGHES  moved to  report the  committee substitute                                                               
for HB  271, [29-GH2067\H,] Bannister,  4/4/16, out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being  no objection,  CSHB 271(L&C),  was reported                                                               
out of the House Labor and Commerce Standing Committee.                                                                         

Document Name Date/Time Subjects
HB234 Draft Proposed CS ver W.pdf HL&C 4/11/2016 3:15:00 PM
HB 234
HB234 Supporting Documents-Email Anne Henry 04-07-16.pdf HL&C 4/11/2016 3:15:00 PM
HB 234
HB234 Supporting Documents Summary of Changes ver A to ver W.pdf HL&C 4/11/2016 3:15:00 PM
HB 234
HB271 Draft Proposed CS ver H.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents DCCED-Committee Follow up.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents-GiftCards - ListofStatesWGiftCardLaws.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents-GiftCards - FTC-gift-cards Consumer Information.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents-GiftCards - Title IV-GiftCards.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents-GreenDot_cardholderagreement_fees.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents-NetSpend-what_it_costs.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Supporting Documents-QCardFees.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Sectional Analysis ver H.pdf HL&C 4/11/2016 3:15:00 PM
HB 271
HB271 Summary of Changes ver A to ver H.pdf HL&C 4/11/2016 3:15:00 PM
HB 271