HB215 Alabama 2017 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ken Johnson
Republican
Session: Regular Session 2017
Title: Money transmission services, regulation and licensing by Securities Commission, approval of authorized delegates, fees, exemptions, duties, penalties, Sec. 8-7-1 repealed; Secs. 8-7A-1 to 8-7A-27, inclusive, added
Summary: HB215 creates the Alabama Monetary Transmission Act to regulate money transmission through licensing, recordkeeping, and enforcement by the Alabama Securities Commission.
What This Bill Does
It repeals the Sale of Checks Act and replaces it with new provisions that require anyone engaged in money transmission to be licensed by the Alabama Securities Commission, with defined licensing rules and certain exemptions. Licensees must keep detailed records of transactions, maintain financial security and net worth, and submit to periodic examinations and possible enforcement actions. The Commission gains powers to issue cease-and-desist orders, suspend or revoke licenses, impose civil and criminal penalties, and handle change-of-control and reporting requirements, with due process for aggrieved parties.

Who It Affects
Money transmission businesses and their authorized delegates: must obtain and maintain an active license, keep transaction records, meet security and net worth requirements, and be subject to examinations and potential enforcement actions.
Consumers and the general public using money transmission services: benefit from licensure and regulatory oversight aimed at reducing unlicensed activity, with enforcement actions and potential restitution when violations occur.

Key Provisions
Repeals Chapter 7 (Sale of Checks) and adds Chapter 7A, the Alabama Monetary Transmission Act.
Requires license for money transmission businesses and authorized delegates; defines license transfer rules and authorizes certain exemptions.
Establishes definitions for money transmission, payment instruments, stored value, and related terms; sets exclusions.
Licensing process includes detailed application requirements, fees, and potential waivers; license non-transferable.
Licensees must maintain security (bond or similar), with minimum bond of $100,000 and tail coverage of at least five years; security forms and remedies specified.
Minimum net worth of $25,000; potential to increase security requirements based on financial condition.
Authorized delegates must operate under the licensee’s controls; no subdelegation allowed; contracts enforce compliance.
Examinations may be annual or on-site; licensees pay examination costs; records kept for at least five years and available for examination.
Civil penalties up to $1,000 per day for violations; additional costs of investigations or examinations may be charged; funds go to the ASC.
Criminal penalties for false statements or unlicensed activity with varying degrees of felony classifications depending on penalties received.
Rules and interpretive opinions rules may be issued; confidentiality provisions protect most information, with limited disclosures to other agencies.
Change of control requires notice and Commission approval within 120 days; failure to decide within 120 days results in deemed approval.
Transition rule preserves existing Chapter 7 licenses until their next renewal date; renewal process includes fees, financial statements, and security verifications.
Exclusions and exemptions outline which entities are not subject to licensing (e.g., banks, government agencies, certain clearing and settlement services).
Section 4 notes the act is exempt from Amendment 621 requirements because it creates a new crime or amends the definition of an existing crime.
Effective date set for the first day of the third month after approval; existing licensees continue until their next renewal date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Money Transmission Services