SF 2296 (LSB 6574SV (2) 91)

SENATE FILE 2296

BY  COMMITTEE ON TECHNOLOGY

(SUCCESSOR TO SSB 3086)

A BILL FOR

An Act relating to digital financial kiosks, modifying civil penalties, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 533C.1004, subsection 10, paragraphs a and b, Code 2026, are amended to read as follows:
   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 A violation of this section is an unlawful practice under section 714.16.
   b.  If Notwithstanding the civil penalty limit under section 714.16, subsection 7, paragraph “b”, if the attorney general has reasonable belief that a person is in violation of an injunction issued under this subsection section 714.16, subsection 2, paragraph “t”, the attorney general has the sole authority to bring a civil action to provide for a civil penalties penalty for violation of the injunction in an amount not more than one hundred thousand dollars.
    Sec. 2.  Section 714.16, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  t.  It shall be an unlawful practice for a person to violate section 533C.1004.
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  APPLICABILITY.  This Act applies to civil actions commenced on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to digital financial asset transaction kiosks.
   The bill strikes existing enforcement and civil penalty provisions that authorize the attorney general to bring civil actions, seek injunctions and civil penalties, and enforce compliance for violations of Code section 533C.1004 (digital financial asset transaction kiosks). Instead, the bill provides that a violation of Code section 533C.1004 constitutes an unlawful practice under Code section 714.16 (consumer frauds), and subjects such violations to the remedies and enforcement provisions available under that section.
   Under current law, the attorney general may request and a court may impose a civil penalty not to exceed $40,000 per violation for unlawful methods, acts, or practices under Code section 714.16. The bill provides that notwithstanding this civil penalty limit, if the attorney general has reasonable belief that a person is in violation of an injunction issued to enforce Code section 533C.1004, the attorney general may bring a civil action to seek a civil penalty of up to $100,000 for a violation of the injunction.