Senate File 2296 - Introduced SENATE FILE 2296 BY COMMITTEE ON TECHNOLOGY (SUCCESSOR TO SSB 3086) A BILL FOR An Act relating to digital financial kiosks, modifying civil 1 penalties, and including effective date and applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6574SV (2) 91 lh/jh

S.F. 2296 Section 1. Section 533C.1004, subsection 10, paragraphs a 1 and b, Code 2026, are amended to read as follows: 2 a. If the attorney general has reasonable belief that an 3 operator is in violation of this section , the attorney general 4 has the sole authority to bring civil action to provide for all 5 of the following: 6 (1) Enjoin further violations by the operator. 7 (2) Enforce compliance with this section . 8 (3) Civil penalties in an amount not more than ten thousand 9 dollars for each violation of this section . 10 (4) Other remedies permitted under law A violation of this 11 section is an unlawful practice under section 714.16 . 12 b. If Notwithstanding the civil penalty limit under 13 section 714.16, subsection 7, paragraph “b” , if the attorney 14 general has reasonable belief that a person is in violation 15 of an injunction issued under this subsection section 714.16, 16 subsection 2, paragraph “t” , the attorney general has the 17 sole authority to bring a civil action to provide for a civil 18 penalties penalty for violation of the injunction in an amount 19 not more than one hundred thousand dollars. 20 Sec. 2. Section 714.16, subsection 2, Code 2026, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . t. It shall be an unlawful practice for a 23 person to violate section 533C.1004. 24 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 25 importance, takes effect upon enactment. 26 Sec. 4. APPLICABILITY. This Act applies to civil actions 27 commenced on or after the effective date of this Act. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to digital financial asset transaction 32 kiosks. 33 The bill strikes existing enforcement and civil penalty 34 provisions that authorize the attorney general to bring civil 35 -1- LSB 6574SV (2) 91 lh/jh 1/ 2

S.F. 2296 actions, seek injunctions and civil penalties, and enforce 1 compliance for violations of Code section 533C.1004 (digital 2 financial asset transaction kiosks). Instead, the bill 3 provides that a violation of Code section 533C.1004 constitutes 4 an unlawful practice under Code section 714.16 (consumer 5 frauds), and subjects such violations to the remedies and 6 enforcement provisions available under that section. 7 Under current law, the attorney general may request and a 8 court may impose a civil penalty not to exceed $40,000 per 9 violation for unlawful methods, acts, or practices under Code 10 section 714.16. The bill provides that notwithstanding this 11 civil penalty limit, if the attorney general has reasonable 12 belief that a person is in violation of an injunction issued to 13 enforce Code section 533C.1004, the attorney general may bring 14 a civil action to seek a civil penalty of up to $100,000 for a 15 violation of the injunction. 16 -2- LSB 6574SV (2) 91 lh/jh 2/ 2