HB3479ham002 103RD GENERAL ASSEMBLY

Rep. Mark L. Walker

Filed: 4/24/2023

10300HB3479ham002 LRB103 29212 BMS 60901 a

AMENDMENT TO HOUSE BILL 3479

AMENDMENT NO. ______. Amend House Bill 3479 on page 13, lines 16 and 17, by replacing "Sections 1 through 25" with "Section 1 et seq."; and

on page 15, line 3, by replacing "An insured depository" with "A"; and

on page 15, line 5, by replacing "deposits" with "member share accounts"; and

on page 15, line 6, by replacing "regulator" with "financial regulatory agency"; and

on page 15, line 7, by replacing "as a" with "to engage in"; and

on page 15, line 7, after "business", by inserting "activities"; and

on page 15, line 8, by replacing "Asset" with "Assets"; and

on page 87, line 6, by replacing "either" with "any"; and

on page 87, immediately below line 15, by inserting the following:

"(3) A digital representation of value that is used as part of prepaid cards."; and

on page 87, lines 17 and 18, by deleting ", whether or not redeemable for fiat currency or another digital asset"; and

on page 88, immediately below line 9, by inserting the following:

""Exchange" does not include buying, selling, or trading digital assets for a person's own account in a principal capacity."; and

on page 88, by replacing lines 20 through 25 with the following:

""Fiat currency" means money that is authorized or adopted by the United States or a foreign government as part of its currency and that is customarily used and accepted as a medium of exchange in the country of issuance."; and

on page 89, immediately below line 14, by inserting the following:

""Prepaid card" means an electronic payment device that, subject to any rules adopted by the Department:

(1) is usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo, or is usable at multiple, unaffiliated merchants or service providers;

(2) is issued in and for a specified amount of fiat currency;

(3) can be reloaded in and for only fiat currency, if at all;

(4) is issued or reloaded on a prepaid basis for the future purchase or delivery of goods or services;

(5) is honored upon presentation;

(6) can be redeemed in and for only fiat currency, if at all;

(7) is governed by the Uniform Money Transmission Modernization Act; and

(8) complies with any other condition designated by rule by the Department as may be necessary and appropriate for the protection of residents."; and

on page 91, line 7, by deleting "from or"; and

on page 92, lines 9 and 10, by replacing "subsection (b) or (c)" with "subsections (b), (c), (d), or (e)"; and

on page 92, by replacing lines 11 through 17 with the following:

"(b)(1) This Act does not apply to the exchange, transfer, or storage of a digital asset or to digital asset administration to the extent that:

(A) the Securities Exchange Act of 1934, 15 U.S.C. 78a et seq., or the Illinois Securities Law of 1953 govern the activity as a security transaction and the activity is actually regulated for the purpose of investor protection by the U.S. Securities and Exchange Commission or the Illinois Secretary of State; or

(B) the Commodity Exchange Act, 7 U.S.C. 1 et seq., governs the activity as a contract of sale of a commodity for future delivery or a swap and the activity is actually regulated for the purpose of investor protection by the U.S. Commodity Futures Trading Commission.

(2) This subsection shall be construed in a manner consistent with affording the greatest protection to residents and the Department's authority under subsection (a) of Section 101-15 to exercise nonexclusive oversight and enforcement under any federal law applicable to digital asset business activity. This subsection shall not be construed to exempt an activity solely because a financial regulatory agency has anti-fraud and anti-manipulation enforcement authority over the activity."; and

on page 93, immediately below line 7, by inserting the following:

"(6) A credit union with member share accounts insured by an insurer approved by the credit union's primary financial regulatory agency, however, an out-of-state credit union may not conduct any activity in this State that is not authorized for a credit union chartered under the laws of this State.

Nothing in this Act grants persons described in this subsection (c) authority to engage in any activity not otherwise granted under existing law.

(d) The Department may by rule or order clarify whether an activity is governed by the Uniform Money Transmission Modernization Act or this Act, however, this subsection (d) shall not be applied in a manner inconsistent with the protection of residents.

(e) Notwithstanding any other provision of this Act, the Department, by rule or order, may conditionally or unconditionally exempt any person, digital asset, or transaction, or any class or classes of persons, digital assets, or transactions, from any provision of this Act or of any rule thereunder, to the extent that the exemption is necessary or appropriate, in the public interest, and consistent with the protection of residents."; and

on page 97, line 13, after "created", by inserting "as a special fund in the State treasury"; and

on page 131, by replacing lines 5 through 7 with the following:

"(D) The account number, name, and physical address of:

(i) the parties to the transaction that are customers or account holders of the licensee; and

(ii) to the extent practicable, any other parties to the transaction."; and

on page 171, by replacing lines 2 through 7 with the following:

"Section 900-10. The State Finance Act is amended by adding Section 5.990 as follows:

(30 ILCS 105/5.990 new)

Sec. 5.990. The Digital Assets Regulation Fund.".