State of Alaska
Fiscal Note
Bill Version: HB 408
2022 Legislative Session
Fiscal Note Number: 1
(H) Publish Date: 4/4/2022
Identifier: LL0312-3-DCCED-DBS-03-18-22 Department: Department of Commerce, Community and
Sponsor: RLS BY REQUEST OF THE GOVERNOR Appropriation: Banking and Securities
Requester: Rules by Request of the Governor Allocation: Banking and Securities
OMB Component Number: 2808
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2023 Governor's
Appropriation FY2023 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Personal Services 309.0 432.8 519.6 519.6 519.6 519.6
Travel 7.5 10.0 12.5 12.5 12.5 12.5
Services 55.0 60.0 75.0 75.0 75.0 75.0
Commodities 30.0 10.0 10.0
Capital Outlay
Grants & Benefits
Total Operating 401.5 0.0 512.8 617.1 607.1 607.1 607.1
Fund Source (Operating Only)
1005 GF/Prgm (DGF) 401.5 512.8 617.1 607.1 607.1 607.1
Total 401.5 0.0 512.8 617.1 607.1 607.1 607.1
Full-time 3.0 4.0 5.0 5.0 5.0 5.0
Change in Revenues
1005 GF/Prgm (DGF) 110.0 512.8 617.1 607.1 607.1 607.1
Total 110.0 0.0 512.8 617.1 607.1 607.1 607.1
Estimated SUPPLEMENTAL (FY2022) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2023) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 01/02/23
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Robert H. Schmidt, Director Phone: (907)269-5469
Division: Banking and Securities Date: 03/16/2022 01:00 PM
Approved By: Micaela Fowler, Administrative Services Director Date: 03/18/22
Agency: Department of Commerce, Community, and Economic Development
Printed 4/4/2022 Page 1 of 2 Control Code: ldRRp
HB 408 - Fiscal Note 1
This legislation allows the Division of Banking and Securities to become current with the rapidly changing money services
industry, including virtual currency/cryptocurrency. It modernizes AS 06.55, Alaska Uniform Money Services Act, by
adopting pertinent sections of a Uniform Money Transmission Modernization Act, a model law drafted and developed by
the Conference of State Bank Supervisors (CSBS) and industry representatives. The bill will reduce regulatory burden and
bring uniformity across states for core licensing and examination processes. Further, it will clarify the division's authority
to regulate virtual currencies. The total volume of virtual currency transmissions exceeded $2.3 billion for calendar year
2021 as reported by current licensees. Virtual currency transmission in Alaska has grown 6,782% since 2019.
This bill clarifies licensure requirements for companies conducting financial services activities in Alaska, particularly in the
financial technology space such as online transmission of virtual currencies and payroll processing via stored value cards.
The bill expands and clarifies business activities exempt from licensure and supervision by the division. The bill
incorporates language that allows the division to fully utilize the Nationwide Multistate Licensing System (NMLS) online
registry including the system's criminal background checks. The changes allow the division to coordinate more effectively
with other states and leverage resources to reduce regulatory burden on licensees.
New program receipt revenue is estimated to be a minimum of $110.0 for 35 new license applications. It is difficult to
anticipate the number of new applications and annual renewal fees, and resulting revenue, for future years. However, the
division expects to adopt an assessment fee model through new regulations that would ensure actual costs of regulation
would be covered through annual program receipts. Costs in excess of revenue in FY2024 will be supported from existing
program receipt collections.
The division will require additional staff and support costs to respond to the growth in money services activities, the
complexity of new business models, and use of thirdparty partnerships. The positions will allow the division to implement
the new law, incorporate changes in the operation of the NMLS, develop proficiency in the examination of electronic
systems, and assessment of cybersecurity measures in a highrisk environment.
Personal Services: $309.0 in FY2023 for three positions: Financial Registration Examiner (range 14),
Financial Examiner 1/2 flex (range 17/19), Financial Examiner 3 (range 21)
$432.8 in FY2024 for four positions total: those added in FY2023, as well as
Financial Examiner 3 (range 21)
$519.6 in FY2024FY2028 for five positions total: those added in FY2023 and
FY2024, as well as Financial Registration Examiner (range 14)
Travel: $2.5 in travel costs per position in each fiscal year to travel to outofstate
trainings necessary to implement and comply with this Act
Services: $10.0 in FY2023 for Department of Law regulations review
$45.0 in FY2023 for core services and allocated costs ($15.0/position/year)
$60.0 in FY2024 for core services and allocated costs ($15.0/position/year)
$75.0 in FY2025FY2028 for core services and allocated costs ($15.0/position/year)
Commodities: $30.0 in FY2024 for initial setup costs ($10.0/position)
$10.0 in FY2025 for initial setup costs ($10.0/position)
$10.0 in FY2025 for initial setup costs ($10.0/position)
(Revised 11/23/2021 OMB/LFD) Page 2 of 2
LL0312-3-DCCED-DBS-03-18-22 Page 2 of 2 Control Code: ldRRp

Statutes affected:
HB0408A, AM HB 408, introduced 04/04/2022: 06.55.101, 06.55.802, 06.55.102, 06.55.505, 05.55.105, 06.55.105, 06.55.109, 06.55.106, 06.55.205, 06.55.290, U.S.C, 45.56.100, 45.56.995, 45.08.102, 45.29.102, 06.55.110, 06.55.206, 06.55.207, 06.55.208, 06.55.209, 06.55.301, 06.55.302, 06.55.401, 06.55.407, 06.55.403, 06.55.404, 06.55.412, 06.55.501, 06.55.506, 06.55.405, 06.55.406, 40.25.100, 40.25.295, 06.55.410, 06.55.411, 06.55.502, 06.55.601, 06.55.602, 06.55.603, 06.55.605, 06.55.606, 06.55.607, 06.55.201, 06.55.701, 06.55.702, 06.55.810, 06.55.830, C.F.R, 06.55.840, 06.55.850, 06.55.990, 06.55.107, 06.55.103, 06.55.995, 06.55.104, 06.55.202, 06.55.203, 06.55.204, 06.55.402, 06.55.820, 06.55.890