SF 2079 (LSB 5613XS (3) 88)

SENATE FILE 2079

BY  NUNN

A BILL FOR

An Act prohibiting the state and political subdivisions of the state from accepting payment in the form of virtual currency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  8H.1  Prohibition on the acceptance of virtual currency.
   The state and a political subdivision of the state shall only accept payment in the form of cash.
    Sec. 2.  NEW SECTION.  8H.2  Definitions.
   As used in this chapter, unless the context otherwise requires:

   1.  “Cash” means United States currency. “Cash” does not include virtual currency, regardless of whether such virtual currency has an equivalent value in legal tender.
   2.  “Political subdivision” means a city, county, township, or school district.
   3.  “Virtual currency” means a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but is not legal tender in the United States.
    Sec. 3.  Section 8B.22, subsection 2, paragraph a, Code 2020, is amended to read as follows:
   a.  Establish standards, consistent with other state law, for the implementation of electronic commerce, including standards for electronic signatures, electronic currency payments, and other items associated with electronic commerce. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill prohibits the state and its political subdivisions from accepting payments in the form of virtual currency. The bill provides the state and a political subdivision of the state shall only accept payment in the form of cash.
   The bill defines “cash” as United States currency, but excludes virtual currency from the definition, regardless of whether such virtual currency has an equivalent value in legal tender. The bill defines “political subdivision” as a city, county, township, or school district. The bill defines “virtual currency” as a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but is not legal tender in the United States.
   The bill also amends Code section 8B.22, subsection 2, paragraph “a”, to indicate the office of the chief information officer, in establishing standards for the implementation of electronic commerce, is not to establish such standards for electronic currency. Instead, the office is to establish such standards for electronic payments.