Senate File 449 S-3057 Amend Senate File 449 as follows: 1 1. Page 1, after line 10 by inserting: 2 < b. “Consumer” means either a new consumer or an existing 3 consumer. > 4 2. Page 1, line 11, by striking < b. > and inserting < c. > 5 3. Page 1, by striking lines 14 through 17 and inserting: 6 < d. “Digital financial asset transaction kiosk” means 7 an electronic terminal acting as a mechanical agent of an 8 operator to enable the operator to facilitate the exchange of 9 a digital financial asset for money, bank credit, or other 10 digital financial asset, including but not limited to any of 11 the following: 12 (1) By connecting directly to a separate licensed digital 13 financial asset exchange that performs the digital financial 14 asset transaction. 15 (2) By drawing upon a digital financial asset in the 16 possession of the operator. > 17 4. Page 1, after line 17 by inserting: 18 < e. “Existing consumer” means an individual who is not a new 19 consumer. > 20 5. Page 1, line 18, by striking < d. > and inserting < f. > 21 6. Page 1, after line 21 by inserting: 22 < g. “New consumer” means an individual who has not 23 previously engaged in a digital financial asset transaction 24 with a particular operator. An individual shall continue to be 25 considered a new consumer for a period of thirty calendar days 26 after the individual makes their first digital financial asset 27 transaction with a particular operator. > 28 7. Page 1, line 22, by striking < e. > and inserting < h. > 29 8. Page 1, line 24, by striking < f. > and inserting < i. > 30 9. Page 1, by striking line 28 and inserting: 31 < 2. Daily transactions. 32 a. An operator shall not, via a digital > 33 10. Page 1, after line 31 by inserting: 34 < b. In the thirty calendar days following a new consumer’s 35 -1- SF 449.978 (2) 91 nls/ko 1/ 5 #1. #2. #3. #4. #5. #6. #7. #8. #9. #10.

first financial asset transaction with a particular operator, 1 the operator shall not, via a digital financial asset 2 transaction kiosk, accept from the new consumer or dispense to 3 the new consumer more than ten thousand dollars. > 4 11. Page 3, after line 12 by inserting: 5 < c. Prior to entering into a digital financial asset 6 transaction with a consumer, an operator shall require the 7 consumer to attest to receiving the disclosure required under 8 paragraph “a” . > 9 12. Page 4, line 34, after < operator > by inserting < , or an 10 established third party acting on behalf of the operator and 11 that specializes in performing blockchain analytics, > 12 13. Page 5, line 6, after < operator > by inserting < , or of 13 an established third party acting on behalf of the operator and 14 that specializes in performing blockchain analytics > 15 14. Page 5, after line 11 by inserting: 16 < 8. Refunds —— new consumers. Upon the request of a new 17 consumer, an operator shall issue to the consumer a refund for 18 the full amount of all digital financial asset transactions 19 that the consumer made during the thirty-calendar-day period 20 that the consumer was a new consumer if all of the following 21 circumstances exist: 22 a. The new consumer was fraudulently induced to engage in 23 the digital financial asset transaction for which the consumer 24 is requesting a refund. 25 b. The consumer has contacted the operator and a government 26 or law enforcement agency to report the fraudulent nature of 27 the digital financial asset transaction within ninety calendar 28 days of the last digital financial asset transaction to occur 29 while the consumer was a new consumer. 30 c. The consumer has submitted proof of the fraud to the 31 operator, including but not limited to a police report or sworn 32 declaration detailing the fraudulent nature of the digital 33 financial asset transaction. 34 9. Refunds —— existing consumers. Upon the request of an 35 -2- SF 449.978 (2) 91 nls/ko 2/ 5 #11. #12. #13. #14.

existing consumer, an operator shall issue to the existing 1 consumer a refund for the full amount of all digital financial 2 asset transactions that the existing consumer made if all of 3 the following circumstances exist: 4 a. The existing consumer was fraudulently induced to engage 5 in the digital financial asset transaction for which the 6 consumer is requesting a refund. 7 b. The existing consumer has contacted the operator and a 8 government or law enforcement agency to report the fraudulent 9 nature of the digital financial asset transaction within ninety 10 calendar days of the digital financial asset transaction for 11 which the consumer is requesting a refund. 12 c. The existing consumer has submitted proof of the fraud 13 to the operator, including but not limited to a police report 14 or sworn declaration detailing the fraudulent nature of the 15 digital financial asset transaction. 16 10. Enforcement —— penalties. 17 a. If the attorney general has reasonable belief that an 18 operator is in violation of this section, the attorney general 19 has the sole authority to bring civil action to provide for all 20 of the following: 21 (1) Enjoin further violations by the operator. 22 (2) Enforce compliance with this section. 23 (3) Civil penalties in an amount not more than ten thousand 24 dollars for each violation of this section. 25 (4) Other remedies permitted under law. 26 b. If the attorney general has reasonable belief that a 27 person is in violation of an injunction issued under this 28 subsection, the attorney general has the sole authority to 29 bring civil action to provide for civil penalties in an amount 30 not more than one hundred thousand dollars. 31 c. An individual that has knowledge of a violation of this 32 section may report the violation to the attorney general. 33 d. The attorney general shall establish an electronic 34 reporting system for the submission of reports pursuant to this 35 -3- SF 449.978 (2) 91 nls/ko 3/ 5

subsection. 1 11. Compliance policies. An operator shall implement, 2 maintain, and enforce written policies and procedures for 3 compliance with this section. The policies and procedures 4 shall be reviewed and approved by the operator’s board of 5 directors or an equivalent governing body of the operator. 6 12. Fraud policy. An operator shall take reasonable 7 steps to detect and prevent fraud, including establishing and 8 maintaining a written antifraud policy. The antifraud policy 9 shall, at a minimum, include all of the following: 10 a. The identification and assessment of fraud-related risk 11 areas. 12 b. Procedures and controls to protect against identified 13 risks. 14 c. Allocation of responsibility for monitoring risks. 15 d. Procedures for the periodic evaluation and revision of 16 the antifraud procedures, controls, and monitoring mechanisms. 17 13. Compliance officer. An operator shall designate and 18 employ a compliance officer who meets all of the following 19 requirements: 20 a. The individual is qualified to coordinate and monitor 21 compliance with this section and all applicable state and 22 federal laws and rules. 23 b. The individual is a full-time employee of the operator. 24 c. The individual does not own more than twenty percent of 25 the operator that employs the individual. 26 Sec. ___. EFFECTIVE DATE. This Act, being deemed of 27 immediate importance, takes effect upon enactment. 28 Sec. ___. APPLICABILITY. This Act applies on or after July 29 1, 2025, to operators. > 30 15. Title page, line 1, after < kiosks > by inserting < and 31 including penalties, and effective date and applicability 32 provisions. > 33 16. By renumbering as necessary. 34 -4- SF 449.978 (2) 91 nls/ko 4/ 5 #15.