SB 173 Summary

• Repeals the existing Sale of Checks Act and establishes the Alabama Monetary Transmission Act, transferring regulation of money transmission services from the Alabama Securities Commission to comprehensive new licensing requirements.

• Requires any person engaging in money transmission to obtain a license from the Alabama Securities Commission, with application fees and annual renewal fees of at least $500 each, and maintain a surety bond of at least $100,000 or the average daily outstanding obligations, whichever is greater.

• Establishes exemptions for banks, the U.S. Postal Service, government agencies, securities brokers, and certain payment system operators, while requiring licensees to maintain records, submit to periodic examinations, and report material changes and certain events within specified timeframes.

• Grants the Commission enforcement powers including cease-and-desist orders, license suspension or revocation, civil penalties up to $1,000 per day, and the ability to issue subpoenas, with judicial review available through the Administrative Procedure Act.

• Creates criminal penalties ranging from Class C to Class D felonies for unlicensed money transmission activities and false statements, while requiring licensees to maintain a minimum net worth of $25,000 and comply with federal money laundering reporting requirements.