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Industry groups urge Alaska to adopt updated money-transmission model law
Summary
Two national industry groups told the House Labor and Commerce Committee Feb. 26 they support House Bill 99, which would adopt a model update to Alaska’s money-transmission law and align state rules with the Conference of State Bank Supervisors’ model provisions to improve consumer protections and regulatory harmonization.
Industry representatives gave brief public testimony in support of HB 99, a draft based on a CSBS model designed to modernize state money-transmission regulation.
Adam Atlas, an adviser for the Money Services Business Association, told the committee the proposed act is based on a Conference of State Bank Supervisors model and has been adopted by 24 other states in whole or in part. "The act ... provides significant benefits for consumers, states and industry," Atlas said, adding that the model law creates consistent protections for Alaskans and common standards for firms that serve the state.
Adam Fleischer of the Money Services Roundtable echoed the support and said the measure clarifies which activities are regulated and would allow state examiners to more efficiently oversee licensed money transmitters. He said harmonization across states reduces compliance costs for firms and can expand consumer access to regulated payment services.
Both witnesses emphasized that fee-setting authority would remain with the state regulator and that the model is intended to protect consumers while enabling payment firms to operate predictably across states. The committee took the testimony and did not act on HB 99 at the Feb. 26 meeting.
