Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 596 of the Regular Session
 1   State of Arkansas                   As Engrossed:       H3/30/23
 2   94th General Assembly                        A Bill
 3   Regular Session, 2023                                                             HOUSE BILL 1720
 4
 5   By: Representative Lundstrum
 6   By: Senator J. Dismang
 7
 8                                     For An Act To Be Entitled
 9                  AN ACT TO AMEND THE LAWS CONCERNING LEGAL TENDER; TO
10                  PROHIBIT THE TRACKING OF AN INDIVIDUAL THROUGH THE
11                  USE OF DIGITAL CURRENCY EXCEPT FOR LIMITED
12                  CIRCUMSTANCES; TO CLARIFY THE USE OF DIGITAL
13                  CURRENCY; AND FOR OTHER PURPOSES.
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15
16                                                 Subtitle
17                           TO AMEND THE LAWS CONCERNING LEGAL
18                           TENDER; TO PROHIBIT THE TRACKING OF AN
19                           INDIVIDUAL THROUGH THE USE OF DIGITAL
20                           CURRENCY EXCEPT FOR LIMITED
21                           CIRCUMSTANCES; AND TO CLARIFY THE USE OF
22                           DIGITAL CURRENCY.
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24
25   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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27          SECTION 1.        Arkansas Code Title 4, Chapter 56, Subchapter 1, is amended
28   to add an additional section to read as follows:
29          4-56-106.        Digital currency — Legislative findings — Prohibited —
30   Definitions.
31          (a)    The General Assembly finds that:
32                  (1)      Digital currency may be used for many common things,
33   including without limitation payment applications or through online
34   transactions;
35                  (2)      Individuals feel strongly about their right to privacy;
36                  (3)      An individual may be tracked through the use of digital
     *ANS361*                                                                    03-30-2023 10:26:16 ANS361
     As Engrossed:       H3/30/23                                                    HB1720
 1   currency concerning purchases and locations; and
 2                 (4)    Tracking an individual without their knowledge and consent
 3   or a legal right to do so should be prohibited.
 4        (b)    As used in this section:
 5                 (1)    "Central bank" means a financial institution given
 6   privileged control over the production and distribution of money and credit
 7   for the United States;
 8                 (2)    "Central bank digital currency" means a digital form of
 9   central bank money that is available to the general public;
10                 (3)    "Central bank money" means legal tender that is a liability
11   of the central bank; and
12                 (4)(A)     "Digital currency" means a digital form of money that is
13   available to the general public.
14                          (B)   "Digital currency" includes central bank digital
15   currency.
16        (c)    A digital currency tracker shall not be used in this state to
17   track an individual's purchases or location through the use by an individual
18   of digital currency unless:
19                 (1)    A warrant has been issued in a criminal or civil court case
20   that expressly authorizes the tracking of the individual's purchases; or
21                 (2)    The individual knows and consents to the digital currency
22   tracker.
23        (d)(1)     The Right to Financial Privacy Act of 1978, Pub. L. No. 95-630,
24   restricts the ability of a government authority to access or obtain the
25   financial records of a customer of a financial institution.
26                 (2)    The Right to Financial Privacy Act of 1978, Pub. L. No. 95-
27   630 provides exceptions for when a financial institution does not need
28   customer consent for the disclosure, including if a legitimate law
29   enforcement inquiry is submitted to the financial institution.
30                 (3)    To the extent the disclosure authority is restricted by a
31   state statute that limits the ability of a financial institution to share
32   information relating to a legitimate law enforcement inquiry, it could be
33   determined to conflict with the Right to Financial Privacy Act of 1978, Pub.
34   L. No. 95-630, and would be subject to challenge under federal law.
35                 (4)(A)     This chapter does not require a financial institution, or
36   an officer, employee, or agent of a financial institution, from compliance
                                              2               03-30-2023 10:26:16 ANS361
     As Engrossed:   H3/30/23                                                  HB1720
 1   with the Right to Financial Privacy Act of 1978, Pub. L. No. 95-630, Bank
 2   Secrecy Act, Pub. L. No. 91-508, Federal Financial Institutions Examination
 3   Council regulations, including without limitation currency transaction
 4   reports and suspicious activity reports.
 5                     (B)   A financial institution, or officer, employee, or
 6   agent thereof, refusing a request for disclosure of disclosure of protected
 7   nonpublic information under this subsection in good faith, shall not be
 8   liable to any government authority.
 9
10                                    /s/Lundstrum
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13                                  APPROVED: 4/11/23
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