SB173 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

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licensing by Securities Commission, approval of authorized delegates, fees, exemptions, duties, penalties, Sec. 8-7-1 repealed; Secs. 8-7A-1 to 8-7A-27, inclusive, added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

SB173 would replace the Sale of Checks Act with the Alabama Monetary Transmission Act, placing money transmission businesses under licensing and regulation by the Alabama Securities Commission.

What This Bill Does

If enacted, the act would require money transmission businesses in Alabama to obtain a license from the Alabama Securities Commission and meet specified licensing requirements. Licensees must keep detailed records of each transaction, maintain financial security (bond or other), and submit to periodic examinations and renewal every year; the Commission would have enforcement powers including stop orders, license suspensions or revocations, and criminal penalties for violations. It also creates rules for authorized delegates, establishes exemptions from licensing for certain entities, and gives aggrieved parties a right to hearings. The law aims to protect consumers by regulating money transmission and providing oversight of those who handle funds for transmission.

Who It Affects

• Money transmission businesses in Alabama and their executives/officers, who would need to obtain a license, maintain financial security, keep transaction records, and subject themselves to exams and renewals.
• Authorized delegates (agents) acting for licensed money transmitters, who must operate under the license, follow governance policies, and cannot subdelegate money transmission tasks.

Key Provisions

• Repeals the Sale of Checks Act and creates the Alabama Monetary Transmission Act, placing money transmissions under the Alabama Securities Commission.
• Requires money transmitters to be licensed or operate as authorized delegates; licenses are non-transferable.
• Sets licensing requirements, including applicant information, a minimum net worth of $25,000, and a required security (bond or equivalent) with potential for higher security if needed.
• Requires licensees to maintain transaction records, file renewal reports, disclose material changes, and undergo periodic examinations; includes change-of-control review.
• Gives the Commission authority to issue cease-and-desist orders, suspend or revoke licenses or authorized delegates, and impose civil penalties up to $1,000 per day and criminal penalties for violations.
• Provides exemptions from licensing for certain entities (e.g., governmental money transfers, certain clearing and settlement services, and banks under specified conditions) and tight controls on authorized delegates (no subdelegation).
• Confidentiality of most examination and filing information with limited disclosures to other agencies; allows cooperation with state and federal regulators during enforcement.

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