Amendment S-3057 to SF 449

Filed March 26, 2025 in the Senate by CHARLIE

What it changes

1. Page 1, after line 10 by inserting: “b. “Consumer” means either a new consumer or an existing consumer.”
2. Page 1, line 11, by striking “b.” and inserting “c.”
3. Page 1, by striking lines 14 through 17 and inserting: “d. “Digital financial asset transaction kiosk” means an electronic terminal acting as a mechanical agent of an operator to enable the operator to facilitate the exchange of a digital financial asset for money, bank credit, or other digital financial asset, including but not limited to any of the following: (1) By connecting directly to a separate licensed digital financial asset exchange that performs the digital financial asset transaction. (2) By drawing upon a digital financial asset in the possession of the operator.”
4. Page 1, after line 17 by inserting: “e. “Existing consumer” means an individual who is not a new consumer.”
5. Page 1, line 18, by striking “d.” and inserting “f.”
6. Page 1, after line 21 by inserting: “g. “New consumer” means an individual who has not previously engaged in a digital financial asset transaction with a particular operator. An individual shall continue to be considered a new consumer for a period of thirty calendar days after the individual makes their first digital financial asset transaction with a particular operator.”
7. Page 1, line 22, by striking “e.” and inserting “h.”
8. Page 1, line 24, by striking “f.” and inserting “i.”
9. Page 1, by striking line 28 and inserting: “
10. Daily transactions. a. An operator shall not, via a digital”
11. Page 1, after line 31 by inserting: “b. In the thirty calendar days following a new consumer’s first financial asset transaction with a particular operator, the operator shall not, via a digital financial asset transaction kiosk, accept from the new consumer or dispense to the new consumer more than ten thousand dollars.”
12. Page 3, after line 12 by inserting: “c. Prior to entering into a digital financial asset transaction with a consumer, an operator shall require the consumer to attest to receiving the disclosure required under paragraph “a” .”
13. Page 4, line 34, after “operator” by inserting “, or an established third party acting on behalf of the operator and that specializes in performing blockchain analytics,”
14. Page 5, line 6, after “operator” by inserting “, or of an established third party acting on behalf of the operator and that specializes in performing blockchain analytics”
15. Page 5, after line 11 by inserting: “
16. Refunds —— new consumers. Upon the request of a new consumer, an operator shall issue to the consumer a refund for the full amount of all digital financial asset transactions that the consumer made during the thirty-calendar-day period that the consumer was a new consumer if all of the following circumstances exist: a. The new consumer was fraudulently induced to engage in the digital financial asset transaction for which the consumer is requesting a refund. b. The consumer has contacted the operator and a government or law enforcement agency to report the fraudulent nature of the digital financial asset transaction within ninety calendar days of the last digital financial asset transaction to occur while the consumer was a new consumer. c. The consumer has submitted proof of the fraud to the operator, including but not limited to a police report or sworn declaration detailing the fraudulent nature of the digital financial asset transaction.
17. Refunds —— existing consumers. Upon the request of an existing consumer, an operator shall issue to the existing consumer a refund for the full amount of all digital financial asset transactions that the existing consumer made if all of the following circumstances exist: a. The existing consumer was fraudulently induced to engage in the digital financial asset transaction for which the consumer is requesting a refund. b. The existing consumer has contacted the operator and a government or law enforcement agency to report the fraudulent nature of the digital financial asset transaction within ninety calendar days of the digital financial asset transaction for which the consumer is requesting a refund. c. The existing consumer has submitted proof of the fraud to the operator, including but not limited to a police report or sworn declaration detailing the fraudulent nature of the digital financial asset transaction.
18. Enforcement —— penalties. a. If the attorney general has reasonable belief that an operator is in violation of this section, the attorney general has the sole authority to bring civil action to provide for all of the following: (1) Enjoin further violations by the operator. (2) Enforce compliance with this section. (3) Civil penalties in an amount not more than ten thousand dollars for each violation of this section. (4) Other remedies permitted under law. b. If the attorney general has reasonable belief that a person is in violation of an injunction issued under this subsection, the attorney general has the sole authority to bring civil action to provide for civil penalties in an amount not more than one hundred thousand dollars. c. An individual that has knowledge of a violation of this section may report the violation to the attorney general. d. The attorney general shall establish an electronic reporting system for the submission of reports pursuant to this subsection.
19. Compliance policies. An operator shall implement, maintain, and enforce written policies and procedures for compliance with this section. The policies and procedures shall be reviewed and approved by the operator’s board of directors or an equivalent governing body of the operator.
20. Fraud policy. An operator shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written antifraud policy. The antifraud policy shall, at a minimum, include all of the following: a. The identification and assessment of fraud-related risk areas. b. Procedures and controls to protect against identified risks. c. Allocation of responsibility for monitoring risks. d. Procedures for the periodic evaluation and revision of the antifraud procedures, controls, and monitoring mechanisms.
21. Compliance officer. An operator shall designate and employ a compliance officer who meets all of the following requirements: a. The individual is qualified to coordinate and monitor compliance with this section and all applicable state and federal laws and rules. b. The individual is a full-time employee of the operator. c. The individual does not own more than twenty percent of the operator that employs the individual. Sec. ___. EFFECTIVE DATE. This Act, being deemed of immediate importance, takes effect upon enactment. Sec. ___. APPLICABILITY. This Act applies on or after July 1, 2025, to operators.”
22. Title page, line 1, after “kiosks” by inserting “and including penalties, and effective date and applicability provisions.”
23. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book