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SSB 3086

A bill for an act relating to consumer fraud and unlawful practices, including digital financial asset transaction kiosks, and providing civil penalties.

2025-2026 Regular Session

Treats violations of digital asset kiosk provisions as unlawful practices under Iowa’s consumer protection laws, expanding penalties and aligning enforcement with the Consumer Prot

Committee report approving bill, renumbered as SF 2296.
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Bill Summary · SSB 3086

Summary of SSB 3086 (Iowa) — 2025-2026 Session

Overview

SSB 3086 is a bill relating to consumer fraud and unlawful practices, with a focus on digital financial asset transaction kiosks. It changes enforcement authority and penalties by recharacterizing violations of certain digital asset kiosk provisions as unlawful practices under Iowa’s consumer protection laws, and it expands civil penalties available for injunction violations.

Main Purpose and Intent

  • Strengthen the state’s enforcement framework against unlawful practices in the area of digital financial asset transaction kiosks.
  • Align enforcement of digital financial asset kiosk violations with Iowa’s consumer protection statutes, while allowing higher penalties for injunction violations.
  • Repeal or modify existing attorney general enforcement provisions associated with digital asset kiosks to rely on consumer fraud remedies.

Key Provisions and Changes

  1. Enforcement and Penalties for Digital Asset Kiosk Violations

    • Replaces the current enforcement scheme (which previously allowed the attorney general to bring civil actions, injunctions, and civil penalties under separate provisions) with a framework where a violation of Code section 533C.1004 (digital financial asset transaction kiosks) is treated as an unlawful practice under Code section 714.16 (consumer frauds).
    • Violations are subject to the remedies and enforcement provisions available under Code section 714.16.

  2. Civil Penalties for Injunction Violations

    • If the attorney general reasonably believes a person is violating an injunction issued under Code section 714.16, the attorney general may file a civil action to seek a civil penalty of up to $100,000 for each violation of the injunction.
    • This increases potential penalties for injunction violations beyond the general limit applicable to unlawful practices, which is capped at $40,000 per violation.

  3. Treatment of Course of Conduct

    • Current law restricts civil penalties for unlawful methods, acts, or practices to not exceeding $40,000 per violation, and historically did not treat a course of conduct affecting multiple persons as multiple separate violations.
    • SSB 3086 strikes the limitation that a course of conduct affecting more than one person would not be treated as multiple violations, harmonizing with broader consumer protection enforcement that can address multiple affected individuals under a single course of conduct.

  4. General Penalty Structure and Deposits

    • Penalties imposed under the act (subsection enforcement) are in addition to any penalties under existing law (section 537.6113).
    • Civil penalties obtained under this framework are to be deposited with the treasurer of the state and deposited into the general fund.

Who Is Affected

  • Entities and individuals operating digital financial asset transaction kiosks in Iowa, including manufacturers, operators, and vendors of such kiosks.
  • Potential respondents in civil actions brought by the Iowa Attorney General for violations of consumer protection laws related to digital asset kiosks.
  • Consumers and customers interacting with digital financial asset kiosks who could be protected by enhanced enforcement against unlawful practices.

Procedural and Timeline Aspects

  • The bill’s action history shows committee progression in 2026, including:
    • Subcommittee recommendations and hearings in late January 2026.
    • Committee report approved on February 11, 2026, with the bill renumbered as SF 2296.
  • The changes would take effect upon enactment and apply to violations of the referenced codes going forward, with penalties potentially applying to injunctive violations as described.
  • The bill expressly notes penalties are in addition to existing penalties under current law.

Impact Summary

  • Increases potential penalties for injunction violations related to consumer protection enforcement (up to $100,000 per violation).
  • Expands the reach of consumer protection remedies to include violations of digital asset kiosk provisions as unlawful practices.
  • Clarifies and potentially expands penalties for multi-party or multi-person course of conduct by not counting a single course of conduct as limiting the number of violations.
  • Aligns digital asset kiosk enforcement with the general framework of the Iowa Consumer Protection Act, while preserving higher penalties for injunction breaches.

Note: This summary reflects the bill text and stated purposes; for the latest status and any amendments, consult the Iowa Legislature’s bill tracking resources.

Compiled from official sources — confirm details with the bill’s official record.

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