34-LS1515\N34-LS1515\A CS FOR HOUSE BILL NO.

324(JUD)324 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - SECOND SESSION BY THEREPRESENTATIVES HOUSEMOORE, JUDICIARYFields, COMMITTEECarrick Referred:Introduced:

Labor2/23/26 andReferred: Commerce Sponsor(s):

REPRESENTATIVESJudiciary, MOORE,Labor Fields,and CarrickCommerce A BILL FOR AN ACT ENTITLED "An Act relating to virtual currency kiosks;

06.55.115.06.55.120.

06.55.120.

Mandatory hold for first transaction.

If a user has not HB0324b -1- CSHB 324(JUD) New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N previously engaged with a virtual currency kiosk operator, the virtual currency kiosk operator shall put a 48-hour hold on the first virtual currency kiosk transaction that the user engages in with the virtual currency kiosk operator before completing the transaction.

The virtual currency kiosk operator may not engage in another transaction with the user until the 48-hour hold has expired.

Sec.

(a) Within 45 days after the end of each calendar HB0324a -1- HB 324 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\A quarter, a virtual currency kiosk operator shall submit a quarterly report to the department for each location in the state at which the person operates a virtual currency kiosk.

(3) the total number and value of virtual currency transactions the CSHB 324(JUD) -2- HB0324b New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N virtual currency kiosk operator conducted through virtual currency kiosks in the state;

HB 324 -2- HB0324a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\A (6) contact details for the virtual currency kiosk operator's compliance officer;

(1) a warning, written prominently and in bold type stating HB0324b -3- CSHB 324(JUD) New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N WARNING:

If someone asked you to deposit money in this machine or is on the telephone with you and claims to be a friend or family member, government agent, computer software representative, bill collector, law enforcement officer, or anyone you do not know personally IMMEDIATELY STOP THIS TRANSACTION and contact your local HB0324a -3- HB 324 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\A law enforcement and the kiosk operator.

(d) The disclosures required under this section do not affect the obligation of a virtual currency kiosk operator to issue a refund under AS 06.55.160.06.55.160 to a user who is a victim of fraud.

(e) After the completion of each transaction, the virtual currency kiosk operator shall provide users with paper and electronic receipts.

CSHB 324(JUD) -4- HB0324b New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N (4) each applicable virtual currency address and transaction hash, if applicable;

(6) the exchange rate used between the virtual currency and United HB 324 -4- HB0324a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\A States dollar;

(7) if the transaction is subject to a firststatement transaction hold required under AS 06.55.120, notice of the holdvirtual andcurrency whenkiosk theoperator's holdrefund expires;policy;

(8) aany statementadditional ofinformation the virtualdepartment currencyrequires kioskby operator'sregulation. refund policy;

(9) any additional information the department requires by regulation.

HB0324b -5- CSHB 324(JUD) New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N Sec.

(a) A virtual currency kiosk operator or HB0324a -5- HB 324 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\A their authorized delegate shall verify the identity of a user before accepting payment from the user for a virtual currency transaction.

(a) For cases related to fraud, a virtual currency kiosk operator shall issue a full refund to a user ifin the full amount of all transactions paid by the user (1)at engagedthe intime aof the transaction, including transaction involvingcharges, regardless of any acknowledgment the virtualuser currencymay kioskhave thatmade wasbefore affectedfinalizing bythe fraud;transactions.

(2)This informedrefund themust virtualbe currencypaid kioskin operator of the fraudulentoriginating naturecurrency. of the transaction or transactions at issue within 90 days after the last CSHB 324(JUD) -6- HB0324b New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N transaction or within 90 days after the user became aware of the fraud, whichever is later;

andA (3)user withinis 120entitled daysto aftera contactingfull refund if the virtualuser currency(1) kioskengaged operator,in submitteda totransaction involving the virtual currency kiosk operatorthat awas policeaffected report, report by thefraud; department, or a sworn statement detailing the fraudulent nature of the transaction.

(b)(2) Ifinformed athe uservirtual requestscurrency thatkiosk aoperator transactionof bethe cancelledfraudulent duringnature aof firstthe transaction holdor requiredtransactions underat ASissue 06.55.120,within the90 virtualdays currencyafter kioskthe operatorlast shalltransaction cancelor thewithin transaction90 anddays provideafter the user withbecame aaware fullof refund.the fraud, whichever is later;

(c)and IfHB the324 conditions-6- forHB0324a aNew refundText underUnderlined (a)[DELETED orTEXT (b)BRACKETED] of34-LS1515\A this(3) sectionwithin are120 met,days after contacting the virtual currency kiosk operatoroperator, shallsubmitted issueto the refundvirtual tocurrency thekiosk useroperator (1)a inpolice report, report by the originaldepartment, currencyor provideda bysworn statement detailing the user;fraudulent nature of the transaction.

(2)(b) inIf the fullconditions amountfor ofa allrefund transactionsunder paidthis bysection are met, the uservirtual atcurrency thekiosk timeoperator ofshall theissue transaction,a includingfull transactionrefund charges,within regardless72 ofhours anyafter acknowledgmentreceiving thea usercopy mayof havethe madepolice beforereport, finalizingreport by the transactions;department, or sworn statement.

and (3) within 72 hours after receiving a copy of the police report, report by the department, or sworn statement for a refund required under (a) of this section or a request that the transaction be cancelled during a first transaction hold for a refund required under (b) of this section.

The use of alternative products, including online purchasing or over- HB0324b -7- CSHB 324(JUD) New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\N the-counter platforms, may not be employed to circumvent or exceed the limits in this section.

06.55.175.06.55.172.

06.55.180.06.55.175.

06.55.185.06.55.180.

The dedicated line HB0324a -7- HB 324 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1515\A must be an electronic mail address or telephone number based in the United States.

06.55.190.06.55.185.

(a) A virtual currency kiosk operator that violates AS 06.55.11506.55.120 - 06.55.20006.55.195 commits an unfair trade or deceptive act or practice in violation of AS 45.50.471.

(b) A virtual currency kiosk operator operating in this state without a money transmission license or that otherwise violates AS 06.55.11506.55.120 - 06.55.20006.55.195 is subject to administrative action, including civil penalties, that may, notwithstanding AS 06.55.605, include the seizure of any virtual currency kiosk and the forfeiture of all fees received from customers in the state during the period of unlicensed activity or noncompliance.

06.55.195.06.55.190.