COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2910S.01I Bill No.:SB 779 Subject:Banks and Financial Institutions; Department of Commerce and Insurance Type:Original Date:April 7, 2025Bill Summary:This proposal creates new provisions governing virtual currency.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Division of Finance
Fund (0550)*UnknownUnknownUnknown
Total Estimated Net
Effect on Other State
Funds UnknownUnknownUnknown
*The number of unlicensed virtual currency kiosk operators is unknown as well as the money
transmitter license fee to be charged by DCI, therefore, the potential revenue generated from
current unlicensed virtual currency kiosk operators is unknown, likely, to be less than $250,000.
Numbers within parentheses: () indicate costs or losses. L.R. No. 2910S.01I
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 2910S.01I
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FISCAL ANALYSIS
ASSUMPTION
Officials from Department of Commerce and Insurance assume the proposal will have no
fiscal impact on their organization.
Oversight assumes Subsection 361.1100.18 requires all unlicensed virtual currency kiosk
operators to apply for a money transmitter license. If denied by the department, all unlicensed
virtual currency kiosk operators will be required to cease operation.
Oversight notes, according to DCI, the number of unlicensed virtual currency kiosk operators is
unknown. DCI states the Division of Finance is in the process of drafting an administrative rule
to establish the money transmitter license fees. Money transmitter license fees are deposited into
the Division of Finance Fund 0550.
Since the number of applicants and the license fee to be charged are both unknown, for fiscal
note purposes, Oversight will reflect a positive unknown revenue to the Division of Finance
Fund (0550). Oversight assumes the revenue generated will be less than $250,000.
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor. L.R. No. 2910S.01I
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028DIVISION OF FINANCE FUND
(0550)
Revenue – DCI
Virtual Currency Kiosk License Fee
UnknownUnknownUnknownESTIMATED NET EFFECT TO
THE DIVISION OF FINANCE
FUNDUnknownUnknownUnknown
*The number of unlicensed virtual currency kiosk operators is unknown as well as the money
transmitter license fee to be charged by DCI, therefore, the potential revenue generated from
current unlicensed virtual currency kiosk operators is unknown, likely, to be less than $250,000.
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
Changing some of the requirements a virtual currency kiosk operator will be required to comply
with, a direct fiscal impact to small businesses that use a virtual currency kiosk could be
expected as a result of this proposal.
FISCAL DESCRIPTION
This bill creates the "Virtual Currency Kiosk Consumer Protection Act" which establishes
certain requirements pertaining to and regulations governing virtual currency kiosk operators.
Each virtual currency kiosk operator must meet the following requirements:
(1) Operators must make certain disclosures upon establishing a relationship with a customer or
prior to opening an account for a new customer, indicating the material risks associated with the
products, services, and activities offered, as well as the terms and conditions of the services
provided;
(2) Upon completing a transaction, an operator must provide a receipt containing specific
information, as detailed in the bill;
(3) Operators must provide live customer service, weekdays between 8:00 a.m. and 10:00 p.m.; L.R. No. 2910S.01I
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(4) Operators must take steps to prevent fraud, as specified in the bill, including by establishing
and maintaining a written antifraud policy and by the use of blockchain analytics;
(5) Operators must maintain, implement, and enforce a written "Enhanced Due Diligence
Policy";
(6) Operators must designate and employ a compliance officer with responsibilities as specified
in the bill, and maintain, implement, and enforce written compliance policies and procedures;
(7) Operators must designate and employ a consumer protection officer, with responsibilities as
provided in the bill. Virtual currency kiosk operators are required to submit quarterly reports to
the Division of Finance, within the Department of Commerce and Insurance, detailing the
location of each virtual currency kiosk in the state.
Virtual currency kiosk operators are deemed to be money transmitters and are required to be
licensed under and comply with the Money Transmission Modernization Act of 2024.
The Director of the Division of Finance is permitted to request evidence showing compliance
with this bill as reasonably necessary or appropriate to administer the bill, and other applicable
laws such as the Bank Secrecy Act and the United States
An operator is required to provide the Director with any records requested. All information or
reports obtained by the Division from a virtual currency kiosk operator, and all information
contained in or related to an examination, investigation, operating report, or condition report are
confidential and not subject to disclosure under the Sunshine Law. The bill includes provisions
for obtaining information relating to records that are not regarded as confidential.
This bill requires any unlicensed virtual currency kiosk operator to apply for a money transmitter
license within 60 days after this provision becomes effective. Any operator that applies within
this time is allowed to continue operations while the Division reviews the application.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 2910S.01I
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SOURCES OF INFORMATION
Department of Commerce and Insurance
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffJessica HarrisDirectorAssistant DirectorApril 7, 2025April 7, 2025