Oklahoma 2022 Regular Session

Oklahoma House Bill HB3279 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 3279 Page 1 1
	3	+	HB3279 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 3279 By: Humphrey, Pae and Phillips
30		-	of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022 )
	34	+
	35	+	HOUSE BILL 3279 By: Humphrey and Pae of the
	36	+	House
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32	38		and
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34	40		Jett of the Senate
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	45	+	AS INTRODUCED
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40		-	[ technology - creating the Oklahoma Distributed
41		-	Ledger Technology Assets Offering Act - permitting
42		-	act be used to regulate medical marijuana -
43		-	effective date ]
	47	+	An Act relating to technology; creating the Oklahom a
	48	+	Distributed Ledger Technology Assets Offering Act;
	49	+	providing legislative findings; requiring act be used
	50	+	to regulate medical marijuana; defining terms;
	51	+	authorizing state to develop and use distributed
	52	+	ledger technologies; requiring certain software;
	53	+	requiring certain security and legal requirements;
	54	+	permitting use of certain smartphone ap plications;
	55	+	authorizing additional uses; requiring cert ain
	56	+	software features; limiting use of convertible
	57	+	virtual currency; prescribing value of convertible
	58	+	virtual currency; providing requirements for digital
	59	+	and smart contracts; requiring a digital ident ity and
	60	+	wallet; prohibiting use of convertible virtual
	61	+	currency as an investment; requiring use of decision
	62	+	tree; requiring separate digital contract to charge a
	63	+	fee; prescribing procedure for payment; requiring
	64	+	ecosystem operator to collect fees and taxes;
	65	+	requiring ecosystem operator to perform certain
	66	+	accounting; prescribing method of compensation;
	67	+	requiring ecosystem operator to provide certain
	68	+	information; requiring the Oklahoma Tax Commission
	69	+	and Office of Management and Enterprise Services to
	70	+	make certain determinations; authorizing the Tax
	71	+	Commission, Office of Management and Enterprise
	72	+	Services, Secretary of State, and State Treasurer to
	73	+	promulgate rules; allowing payment of taxes from
	74	+	certain sources; permitting Tax Commission to appoint
	75	+	agents for certain purposes; creating requirements
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48		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
49		-	SECTION 1. NEW LAW A new section of law to be codified
50		-	in the Oklahoma Statute s as Section 12001 of Title 74, unless there
51		-	is created a duplication in numberin g, reads as follows:
52		-	This act shall be known and may be cited as the "Oklahoma
53		-	Distributed Ledger Technology Assets Offering Act".
54		-	SECTION 2. NEW LAW A new section of law not to be
55		-	codified in the Oklahoma Statutes reads as follows:
56		-	The Legislature makes the following findings con cerning the
57		-	necessity for the Oklahoma Distributed Ledger Technology Assets
58		-	Offering Act:
59		-
60		-	ENGR. H. B. NO. 3279 Page 2 1
	77	+	HB3279 HFLR Page 2
	78	+	BOLD FACE denotes Committee Amendments. 1
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	103	+	for distributed ledger technology asset offering
	104	+	agents; creating requirements for distributed ledger
	105	+	technology asset offering e cosystem operators;
	106	+	authorizing the Tax Commission and Office of
	107	+	Management and Enterp rise Services to promulgate
	108	+	rules to validate transactio ns; allowing certain
	109	+	contracts; allowing use of memorandums of
	110	+	understanding; allowing certain working groups;
	111	+	prohibiting certification as a class action;
	112	+	requiring certain security in action under t his act;
	113	+	providing for severability; providing for
	114	+	noncodification; providing for codification ; and
	115	+	providing an effective date .
	116	+
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	118	+
	119	+	BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
	120	+	SECTION 1. NEW LAW A new section of law to be codified
	121	+	in the Oklahoma Statute s as Section 12001 of Title 74, unless there
	122	+	is created a duplication in numbering, reads as follows:
	123	+	This act shall be known and may be c ited as the "Oklahoma
	124	+	Distributed Ledger Technology Assets Offering Act".
	125	+	SECTION 2. NEW LAW A new section of law not to be
	126	+	codified in the Oklahoma Statutes reads as follows:
	127	+	The Legislature makes the following findings concerning the
	128	+	necessity for the Oklahoma Distributed Ledger Technology Assets
	129	+	Offering Act:
85	130		1. For the immutable recording of i dentity, contracts, and
86	131		payments, as well as protocols that govern the production,
87	132		distribution, and consumption of goods and services in a digital
88	133		economy, distributed ledger technology assets offering ecosystems
89	134		afford the most efficient, effective, and transparent method of
90		-	achieving such, necessitating a proactive strategy to creat e,
91		-	maintain, and advance the regulation of Intern et activities;
92		-	2. Especially configured and government -regulated blockchain
93		-	and distributed ledger technologies have emerged as critical
94		-	solutions to many Internet crimes, cyberwarfare, tax revenue
95		-	collection, product diversion, state and non state acts of terrorism,
96		-	money laundering, foreign interference with information
97		-	technologies, and corruption problems; and in view of suc h, the
98		-	State of Oklahoma has the pote ntial to foster an Internet of
99		-	regulation and to create new forms of decentralized platforms and
100		-	distributed networks and distributed applications, and under the
101		-	jurisdiction and control of the state, such networks and
102		-	applications may have advantages over the current centralized
103		-	Internet platforms and applications;
104		-	3. The State of Oklahoma has the power and opportunity to
105		-	establish its own regulatory fr amework and to realize its potential
106		-	to become a global leader and a center for companies and
107		-	entrepreneurs that seek to utilize distributed ledger technology
108		-	ecosystems to power blockchain - or distributed-ledger-technology-
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110		-	ENGR. H. B. NO. 3279 Page 3 1
	136	+	HB3279 HFLR Page 3
	137	+	BOLD FACE denotes Committee Amendments. 1
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135		-	based business models, social media, and governmental systems , all
136		-	of which will drive innovation within the state and give the State
137		-	of Oklahoma an economic opportunity and global advantage to develop
138		-	a regulated and operated ne twork for local economies, to create new
139		-	jobs, and export locally developed technologies;
	162	+	achieving such, necessitating a proactive strategy to create,
	163	+	maintain, and advance the regulation of Internet activ ities;
	164	+	2. Especially configured and government -regulated blockchain
	165	+	and distributed ledger technologies have emerged as critical
	166	+	solutions to many Internet crimes, cyberwarfare, tax revenue
	167	+	collection, product diversion, state and non -state acts of
	168	+	terrorism, money laundering, foreign interference with information
	169	+	technologies, and corruption problems; and in view of suc h, the
	170	+	State of Oklahoma has the pote ntial to foster an Internet of
	171	+	regulation and to create new forms of decentralized platforms and
	172	+	distributed applications that have advantages over the current
	173	+	centralized Internet platforms and applications;
	174	+	3. The State of Oklahoma has the power and opportunity to
	175	+	realize its potential to become a global leader and a center for
	176	+	companies and entreprene urs that seek to utilize distributed ledger
	177	+	technology systems to power blockch ain- and distributed-ledger-
	178	+	technology-based business models, social media, and governmental
	179	+	systems, all of which will drive innovation within the state and
	180	+	give the State of Oklahoma an economic opportunity and global
	181	+	advantage to develop local economies , create new jobs, and export
	182	+	locally developed technologies;
140	183		4. Oklahoma's many sovereign entities and governmental units
141	184		are not optimally integrated or united in law enforce ment, Internet
142		-	regulation, or first -responder efforts. Regulated distributed
143		-	ledger technology assets offerings, digital contra cts, and immutable
144		-	identities can enable precise financial auditing and the coordinated
145		-	tracking and tracing of the activities of criminal elements, cyber
146		-	incursions, and organize d crime, making it more difficult for these
147		-	criminal and terrorist elements t o be able to hide their activities.
148		-	These same capabilities will augment, facilitate, and integrate the
149		-	protection of public safe ty and can immediately help first
150		-	responders to identify and meet the needs of the citizenry,
151		-	especially in victim identificat ion, triage, treatment, search-and-
152		-	rescue functions during natural and man-made disaster events, such
153		-	as pandemics, tornadoes, and floods, and also will assist in
154		-	detecting and preventing foreign military cyber and signals
155		-	intelligence operations;
156		-	5. The unalterable recordings of revenue collection and product
157		-	tracking by any state, county, or local governmental unit or agency
158		-	of the State of Oklahoma should occur through an ecosystem operator
	185	+	regulation, or first -responder efforts. Distributed ledger
159	186
160		-	ENGR. H. B. NO. 3279 Page 4 1
	187	+	HB3279 HFLR Page 4
	188	+	BOLD FACE denotes Committee Amendments. 1
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	213	+	technology assets offerings, digital contra cts, and immutable
	214	+	identities can enable precise financial auditing and the coordinated
	215	+	tracking and tracing of the activities of criminal elements, cyber
	216	+	incursions, and organized crime, making it more difficult for these
	217	+	criminal and terrorist elements t o be able to hide their activities.
	218	+	These same capabilities will augment, facilitate, and integrate the
	219	+	protection of public safety and c an immediately help first
	220	+	responders to identify and meet the needs of the citi zenry,
	221	+	especially in victim identificat ion, triage, treatment, search-and-
	222	+	rescue functions during natural and man-made disaster events, such
	223	+	as pandemics, tornadoes, and floods, and also will assist in
	224	+	detecting and preventing foreign military cyber and si gnals
	225	+	intelligence operations;
	226	+	5. The unalterable recordings of revenue collection and product
	227	+	tracking, by any state, county, or local governmental unit or agency
	228	+	of the State of Oklahoma, should occur through an ecosystem operator
185	229		that has had prior suc cessful participation in state and fede ral no-
186	230		action processes pertaining to securities registration, exemption,
187	231		regulation, and compliance requirements for persons or entities
188	232		using distributed ledger technology assets offerings . In addition,
189	233		an ecosystem operator should have a demonstrated c apacity to assist
190		-	in the incubation of distributed ledger technology utilities, and
191		-	may be available to assist in incubating use cases and collaborate
192		-	with other ecosystem operators cooperatively to thwart the creation
193		-	or formation of monopolies and to promot e a thriving, free market
194		-	approach; and
	234	+	in the incubation of distributed ledger utilities ; and
195	235		6. The anticipated benefits of the development and use by the
196	236		State of Oklahoma and its political subdivisions or agencies thereof
197		-	of an integrated logistics, information, custodial, and payment
198		-	tracking ecosystem, which uses hack -resistant distributed ledger
199		-	technologies and a convertible virtual currency include:
200		-	a. keeping customers' and any government citizens ' or
201		-	licensees' data secure and confidential, under the
202		-	auspices of Oklahoma licensed fiduciaries, but
203		-	available to ecosystem participants, stakeholders,
204		-	regulators, and law enforcement communities on a
205		-	transparent and need-to-know basis, as allowed or
206		-	required by relevant laws or agreements between
207		-	cooperating customers, persons, or parties ,
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209		-	ENGR. H. B. NO. 3279 Page 5 1
	238	+	HB3279 HFLR Page 5
	239	+	BOLD FACE denotes Committee Amendments. 1
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	264	+	of an integrated logistics, information, custodial, and payment
	265	+	tracking ecosystem, which uses hack -resistant distributed ledger
	266	+	technologies and a convertible virtual currency include:
	267	+	a. keeping customers' and any government citizens ' or
	268	+	licensees' data secure and confidential, but available
	269	+	to ecosystem participants, stakeholders, regulators,
	270	+	and law enforcement communities on a transparent and
	271	+	need-to-know basis, as allowed or required b y relevant
	272	+	laws or agreements between cooperating customers,
	273	+	persons, or parties,
234	274		b. automating notifications of a child attempting to
235	275		purchase contraband,
236	276		c. minimizing black market activities by:
237	277		(1) integrating smart packaging, facilitated by Radio
238	278		Frequency Identification (RFID), Near-Field
239	279		Communication (NFC), or other uniquely
240	280		identifiable technology, to be placed o n all
241	281		products with payments and tracking throughout
242	282		the supply chain using digital assets and
243	283		distributed ledger technologies,
244	284		(2) making cashless purchasing easier with biometric
245	285		identification and database matching and
246	286		providing for the availability of easy digital
247		-	asset payment systems, which can also accommodate
248		-	cash payments as required in specific
249		-	circumstances where parties do not have access to
250		-	banking services,
251		-	(3) holding down compliance costs and allowing legal
252		-	transactions at a lower price point, and
253		-	(4) increasing logistical velocity and improving
254		-	quality and quantity in supply chains by reducing
255		-	delivery time, increasing s pecific product
256		-	availability, and facilitating predictive, just -
	287	+	asset payment systems,
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258		-	ENGR. H. B. NO. 3279 Page 6 1
	289	+	HB3279 HFLR Page 6
	290	+	BOLD FACE denotes Committee Amendments. 1
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	315	+	(3) holding down compliance costs and allowing legal
	316	+	transactions at a lower price point, and
	317	+	(4) increasing logistical velocity and improving
	318	+	quality and quantity in supply chains by reducing
	319	+	delivery time, increasing s pecific product
	320	+	availability, and facilitating predictive, just -
283	321		in-time production, processing , and
284	322		merchandising,
285	323		d. enhancing the stability of any legal market by:
286		-	(1) using the cashless, electronic fund s transfer of
287		-	digital assets for transactions ~~between parties~~
288		-	within the specified community, including
	324	+	(1) using the cashless, electronic fund transfer of
	325	+	digital assets for all transactions be tween all
	326	+	parties within the specified community, including
289	327		employees, to maximize micropayment capabilities
290	328		and to create a maximally pro ductive and legally
291		-	adherent business community wherever lawfully
292		-	possible,
	329	+	adherent business community,
293	330		(2) reporting shrinkage and lo st product in the
294	331		supply chain at any point and identifying
295	332		culprits,
296	333		(3) complying with the Anti -Money Laundering and Know
297	334		Your Customer provisions of th e federal Bank
298	335		Secrecy Act, and the Suspicious Activity Reports
299	336		of the United States Treasury Financial Crimes
300	337		Enforcement Network,
301		-	(4) increasing data collection for business owners
302		-	and policymakers at a lower cost, thus reducing
303		-	administrative compliance overhead, and
304		-	(5) automating periodic data reporting volume and
305		-	tracking data from point -of-sale systems, thereby
306	338
307		-	ENGR. H. B. NO. 3279 Page 7 1
	339	+	HB3279 HFLR Page 7
	340	+	BOLD FACE denotes Committee Amendments. 1
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332		-	providing policymakers and regulators with data
333		-	that predicts black market emergence,
	365	+	(4) increasing data collection for business owners
	366	+	and policymakers at a lower cost, thus reducing
	367	+	administrative compliance overhead, and
	368	+	(5) automating periodic data reporting volume and
	369	+	tracking data from point -of-sale systems, thereby
	370	+	providing policymakers and regulators with real-
	371	+	time data that predicts black market emergence,
334	372		e. generating statistical data for decision -making by:
335	373		(1) allowing designated agency or authorized
336	374		political subdivision personnel to create surve ys
337	375		and order data sets,
338	376		(2) allowing digital asset micropayments to obtain
339	377		survey reporting participation, thereby
340	378		reinforcing research efficacy,
341	379		(3) establishing and collecting Health Insurance
342	380		Portability and Accountability Act of 1996
343	381		(HIPAA) compliant, self-reported, voluntary
344	382		patient reviews, and correlating and tracking
345	383		specific products for their physiological and
346	384		psychological efficacy, thus enabling patients,
347	385		health care providers, labs, processors , and
348	386		producers to better calibrate and correlate t heir
349	387		related choices, and
350		-	(4) giving policymakers empirically based and broad
351		-	statistical samples based on surveys,
352		-	f. optimizing the remittance, accounting, and reporting
353		-	of tax revenue by:
354		-	(1) tabulating financials for bu sinesses and
355		-	regulators and making data available to business
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	389	+	HB3279 HFLR Page 8
	390	+	BOLD FACE denotes Committee Amendments. 1
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382		-	owners and government agencies in an expedient
383		-	manner and on a need-to-know basis, while using
384		-	data privacy best practices,
	415	+	(4) giving policymakers empirically based and broad
	416	+	statistical samples based on surveys,
	417	+	f. optimizing the remittance, accounting, and reporting
	418	+	of tax revenue by:
	419	+	(1) tabulating financials for bu sinesses and
	420	+	regulators and makin g data available to business
	421	+	owners and government agencies in real time and
	422	+	on a need-to-know basis, while using data privacy
	423	+	best practices,
385	424		(2) allowing regulators to calcula te business or
386	425		activity density, estimate illegal activity, and
387	426		model taxation rates to compete with and minimize
388	427		black market activities,
389	428		(3) monitoring consumer price sensitivity to allow
390	429		for appropriate modification of taxation policy ,
391	430		and
392	431		(4) keeping retail prices below the threshold
393	432		consistent with best practices for preventing
394	433		illegal activities,
395	434		g. allowing local and tribal governments to train first
396	435		responders and search -and-rescue dogs as critical
397	436		adjuncts to a distributed ledger technology asset s
398	437		offering used in a payment and tracking ecosystem for
399	438		detecting and preventing criminal activity, tax
400		-	evasion, and other unlawful behaviors, and also used
401		-	in response to natural and man-made disasters,
402		-	h. enabling vocational technical training in distributed
403		-	ledger technologies for incarcerated persons in the
404		-	custody of the Department of Corrections, and
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	441	+	BOLD FACE denotes Committee Amendments. 1
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	466	+	evasion, and other unlawful behaviors, and also used
	467	+	in response to natural and man-made disasters,
	468	+	h. enabling vocational technical training in distribu ted
	469	+	ledger technologies for incarcerated persons in the
	470	+	custody of the Departme nt of Corrections, and
431	471		i. facilitating public and private education on the
432	472		usefulness of distributed ledger technologies and the
433	473		law through Oklahoma Bar Foundation programs .
434	474		SECTION 3. NEW LAW A new section of law not to be
435	475		codified in the Oklahoma Statutes reads as follow s:
436		-	This act ~~may~~ first be implemented for the lawful regulation of
	476	+	This act shall first be implemented for the lawful regulation of
437	477		the medical marijuana industry so long as the commodity is lawfully
438	478		permitted for use in the State of Oklahoma.
439	479		SECTION 4. NEW LAW A new section of law to be codified
440	480		in the Oklahoma Statutes as Section 12002 of Title 74, unless there
441	481		is created a duplication in numbering, reads as follows:
442	482		As used in this act:
443	483		1. "Application programming interface " means a connection
444	484		between computers or between computer programs using a type o f
445	485		software interface offering a service to other pieces of software;
446	486		2. "Blockchain" means a system or digital ledger of
447	487		transactions maintained by a network of computers in a way that
448	488		makes it difficult to hack or alter , and every time a new
449		-	transaction occurs on the blockchain, a record of that transaction
450		-	is added to every participant 's ledger. "Blockchain" may also be
451		-	interpreted as "ecosystem" interchangeably;
452		-	3. "Consumptive purpose" means a purpose to provide or receive
453		-	goods, services, or content, including access to goods, services, or
454		-	content;
455	489
456		-	ENGR. H. B. NO. 3279 Page 10 1
	490	+	HB3279 HFLR Page 10
	491	+	BOLD FACE denotes Committee Amendments. 1
457	492		2
458	493		3
459	494		4
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462	497		7
463	498		8
464	499		9
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466	501		11
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468	503		13
469	504		14
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471	506		16
472	507		17
473	508		18
474	509		19
475	510		20
476	511		21
477	512		22
478	513		23
479	514		24
480	515
	516	+	transaction occurs on the blockchain, a record of that transaction
	517	+	is added to every participant 's ledger;
	518	+	3. "Consumptive purpose" means a purpose to provide or receive
	519	+	goods, services, or content, including acc ess to goods, services, or
	520	+	content;
481	521		4. "Convertible virtual currency" means a substitute or avatar
482	522		for real and legally recognized currency, even though it does not
483	523		have the status of legal tender. Convertible virtual currency
484	524		includes convertible digital currency, digital asset s, or
485	525		distributed ledger techn ology assets, a convertible virtual
486	526		currency;
487	527		5. "Customer" means any person, corporation , or entity who may
488	528		qualify for the required Anti-Money Laundering and Know Your
489	529		Customer provisions of the Ban k Secrecy Act, 31 U.S.C., Section 5311
490	530		et seq., and thereby obtains confirmation of their identity;
491	531		6. "Decision tree" means a decision support tool that uses a
492	532		tree-like model of decisions and possible consequences, including
493	533		chance event outcomes, to re cord agreements between parties;
494	534		7. "Digital contract" means a coded contract that functions as
495	535		an immutable digital agreement which is entered into between
496	536		customers, in order to specify the terms and conditions of payment,
497	537		custody, performance, timing, delivery, tax remittance, regulatory
498	538		compliance, escrow, contingencies, choice of law, forum, or other
499		-	terms. Digital contract does not mean an asset or convertible
500		-	virtual currency;
501		-	8. "Digital identity" means immutable informati on about an
502		-	entity or individual used by computer systems to record and
503		-	represent an external or internal agent , which may be a person,
504		-	organization, application, or device , and any permissive access
505	539
506		-	ENGR. H. B. NO. 3279 Page 11 1
	540	+	HB3279 HFLR Page 11
	541	+	BOLD FACE denotes Committee Amendments. 1
507	542		2
508	543		3
509	544		4
510	545		5
511	546		6
512	547		7
513	548		8
514	549		9
515	550		10
516	551		11
517	552		12
518	553		13
519	554		14
520	555		15
521	556		16
522	557		17
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524	559		19
525	560		20
526	561		21
527	562		22
528	563		23
529	564		24
530	565
	566	+	terms. Digital contract does not mean an asset or convertible
	567	+	virtual currency;
	568	+	8. "Digital identity" means immutable information about an
	569	+	entity or individual used by computer systems to record and
	570	+	represent an external or internal agent , which may be a person,
	571	+	organization, application, or device , and any permissive access
531	572		relative to such is protected with biometric identification.
532	573		Digital identity is functional software programmed uniquely for the
533	574		individual customer and cannot be resold, duplicated, or
534	575		counterfeited;
535	576		9. "Digital asset processor " means a method for recording and
536	577		converting virtual currency as a digital asset to and from United
537	578		States dollars, where both the processor and currencies use
538	579		distributed ledger technologies and smart contracts programmed with
539	580		computer code that will enable self -executing escrow accounts, also
540		-	referred to as an electronic ~~funds~~ transfer system interchange;
	581	+	referred to as an electronic fund transfer system interchange ;
541	582		10. "Distributed ledger technology " means a type of data base
542	583		spread across multiple sites, regions, or participants , known as
543	584		validators, that does not require a sequence of bloc ks;
544	585		11. "Distributed ledger technology asset " means a digital unit
545	586		with specified characteristics, secured through a decentralized
546	587		ledger or database, exchangeable for goods or services, and capable
547	588		of being traded or transferred bet ween persons with the use of a
548	589		distributed ledger technology asset offering agent and fiduciary or
549		-	the custodial intermediary. A distributed ledger technolo gy asset
550		-	is a digital unit that is:
551		-	a. created in response to the verification or collection
552		-	of a specified number of transact ions relating to a
553		-	digital ledger or database by d eploying computer code
554		-	to a blockchain or distributed ledger technology
555	590
556		-	ENGR. H. B. NO. 3279 Page 12 1
	591	+	HB3279 HFLR Page 12
	592	+	BOLD FACE denotes Committee Amendments. 1
557	593		2
558	594		3
559	595		4
560	596		5
561	597		6
562	598		7
563	599		8
564	600		9
565	601		10
566	602		11
567	603		12
568	604		13
569	605		14
570	606		15
571	607		16
572	608		17
573	609		18
574	610		19
575	611		20
576	612		21
577	613		22
578	614		23
579	615		24
580	616
	617	+	the custodial intermediary. A distributed ledger technolo gy asset
	618	+	is a digital unit that is:
	619	+	a. created in response to the verification or collection
	620	+	of a specified number of tra nsactions relating to a
	621	+	digital ledger or database by deploying computer code
	622	+	to a blockchain or distributed ledger technology
581	623		network that allows for the creation of distribu ted
582	624		ledger technology assets, or
583	625		b. recorded in a digital ledger or d atabase that is
584	626		chronological, consensus-based, decentralized, and
585	627		mathematically verified in nature, especially relating
586	628		to the supply of units an d their distribution;
587	629		12. "Digital ledger technology asset offering card " means any
588	630		instrument or device, whether known as a credit card, identification
589	631		card, credit plate, gift card, prepaid card, c harge plate, debit
590	632		card, or by any other name, issued wi th or without fee by an
591	633		ecosystem operator for the use of the cardholder in obtaining goods,
592	634		services, or anything of val ue on credit or debit ;
593	635		13. "Distributed ledger technology asset offering agent " means
594	636		a person who is appointed by a distributed ledger technology asset
595	637		offering ecosystem operator and who is a licensed attorney with at
596	638		least fifteen (15) years of law practice, in good standing with the
597	639		Oklahoma Bar Association , and is appointed as counsel by the
598	640		submission of entry of appearance documen tation to the Oklahoma
599		-	Department of Securities, the Office of Management and Enterprise
600		-	Services, and the Oklahoma Tax Commis sion;
601		-	14. "Electronic funds transfer " means any transfer of funds,
602		-	other than a transaction originated by check, draft, or simila r
603		-	paper instrument, which is initiated through an electronic terminal,
604		-	telephonic instrument, computer, or magnetic tape, so as to order,
605	641
606		-	ENGR. H. B. NO. 3279 Page 13 1
	642	+	HB3279 HFLR Page 13
	643	+	BOLD FACE denotes Committee Amendments. 1
607	644		2
608	645		3
609	646		4
610	647		5
611	648		6
612	649		7
613	650		8
614	651		9
615	652		10
616	653		11
617	654		12
618	655		13
619	656		14
620	657		15
621	658		16
622	659		17
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624	661		19
625	662		20
626	663		21
627	664		22
628	665		23
629	666		24
630	667
	668	+	Department of Securities, the Office of Management and Enterprise
	669	+	Services, and the Oklahoma Tax C ommission;
	670	+	14. "Electronic funds transfer " means any transfer of funds,
	671	+	other than a transaction originated by check, draft, or simila r
	672	+	paper instrument, which is initiated through an electronic terminal,
	673	+	telephonic instrument, computer, or magnetic tape, so as to order,
631	674		instruct, or authorize a financial institution to debit or cre dit an
632	675		account. Such term includes, but is not limited to, point-of-sale
633	676		transfers, automated teller machine transactions, automated
634	677		clearinghouses, direct deposits or withdraw als of funds, and
635	678		transfers initiated by telephone;
636	679		15. "Electronic funds transfer system interchange " means a
637	680		distributed ledger tech nology asset offering, an interchange
638	681		platform, or digital asset processor, which operates with a protocol
639	682		that allows customers to acquire and transfer any fiat currencies,
640	683		lawful cryptocurrencies, d igital assets, convertible virtual
641	684		currency, or distributed ledger technology assets from one form of
642	685		value to the other by using a convertible virtual currency to
643	686		acquire and to transfer;
644	687		16. "Ecosystem" means a complex network of an interconnected
645	688		technology system or systems;
646	689		17. "Distributed ledger techno logy asset offering ecosystem
647		-	operator" or "ecosystem operator" means a person or entity
648		-	contracted with the State of Oklahoma or its instrumentalities,
649		-	agencies, or political subdivisions, which employs at least one
650		-	licensed Oklahoma fiduciary as its principal agent and which has
651		-	general supervisory control over the subject ecosystem and provides
652		-	to its customers smart contracts for electronic funds transfers, tax
653		-	remittances, contract forms, escrow, custody, and goods and services
654		-	tracking that become obligations for customers to pay the ecosystem
	690	+	operator" or "ecosystem operator" means a person or entity which
	691	+	employs at least one licensed Oklahoma fiduciary as its principal
655	692
656		-	ENGR. H. B. NO. 3279 Page 14 1
	693	+	HB3279 HFLR Page 14
	694	+	BOLD FACE denotes Committee Amendments. 1
657	695		2
658	696		3
659	697		4
660	698		5
661	699		6
662	700		7
663	701		8
664	702		9
665	703		10
666	704		11
667	705		12
668	706		13
669	707		14
670	708		15
671	709		16
672	710		17
673	711		18
674	712		19
675	713		20
676	714		21
677	715		22
678	716		23
679	717		24
680	718
681		-	operator by agreement and in accordance with the terms of a
682		-	designated and immutable smart contract;
	719	+	agent and which has general supervisory control over the subject
	720	+	ecosystem and provides to its customers smart contracts for
	721	+	electronic funds transfers, tax remittances, contract forms, escrow,
	722	+	custody, and goods and services tracking that become obligations for
	723	+	customers to pay the ecosystem o perator in accordance with the terms
	724	+	of a designated and immutable smart contract;
683	725		18. "Fintech" means a combination of finance and technology and
684	726		is a technology that seeks to improve, support, and automate
685	727		payment, banking, and other financial services;
686	728		19. "Hack" means to use a computer to gain unauthorize d access
687	729		to data in a system;
688		-	20. "Micropayment" means small transactions or payments ,
689		-	~~usually~~ of less than One Dollar ($1.00) and, in some cases, only a
690		-	~~fraction~~ of a cent, that are mainly made online and which are a way
691		-	to leverage the Internet to facilitate the immediate distribution of
	730	+	20. "Micropayment" means small transactions or payments usually
	731	+	of less than One Dollar ($1.00) and, in some cases, only a fraction
	732	+	of a cent that are mainly made online and which are a way to
	733	+	leverage the Internet to facilitate the immediate distribution of
692	734		digital rights, royalties, in -game purchases, online tipping, and to
693	735		coordinate devices connected via the Internet ;
694	736		21. "Onboarding" means identifying and adding cus tomers to an
695	737		ecosystem by first qualifying them with Anti-Money Laundering and
696	738		Know Your Customer provisions of the Bank Secrecy Act, 31 U.S.C.,
697	739		Section 5311 et seq. ;
698	740		22. "Smart contract" means a self-executing digital contract ,
699	741		which can be an escrow agr eement, with the terms of the agreement
700	742		between buyer and seller directly written into lines of code wherein
701		-	the code and the agreement contained therein exist across a
702		-	distributed, decentralized, blockchain network. Smart contracts are
703		-	not digital assets but are software packages and use distributed
704	743
705		-	ENGR. H. B. NO. 3279 Page 15 1
	744	+	HB3279 HFLR Page 15
	745	+	BOLD FACE denotes Committee Amendments. 1
706	746		2
707	747		3
708	748		4
709	749		5
710	750		6
711	751		7
712	752		8
713	753		9
714	754		10
715	755		11
716	756		12
717	757		13
718	758		14
719	759		15
720	760		16
721	761		17
722	762		18
723	763		19
724	764		20
725	765		21
726	766		22
727	767		23
728	768		24
729	769
	770	+	the code and the agreement contained therein exist across a
	771	+	distributed, decentralized, blockchain network. Smart contracts are
	772	+	not digital assets but are software packages and use distributed
730	773		ledger technologies with unalterable accounting and immutable
731	774		identification and escrow functions; and
732	775		23. "Travel Rule" means the rule promulgated under the Bank
733	776		Secrecy Act, 31 C.F.R. , Section 1010.410(f), which requires
734	777		financial institutions to pass certain in formation on to the next
735	778		financial institution in certain funds transmittals involving more
736	779		than one financial institutio n.
737	780		SECTION 5. NEW LAW A new section of law to be codifi ed
738	781		in the Oklahoma Statutes as Section 12003 of Title 74, unless there
739	782		is created a duplication in numbering, reads as follows:
740	783		A. Utilizing the assistance of any distributed ledger
741	784		technology company that contracts with the state, the State of
742	785		Oklahoma shall develop and employ an integrated logistics,
743		-	information, and payment tracking ecosystem as a publicly owned,
744		-	operated, and regulated payment tracking utility network, which uses
745		-	hack-resistant, distributed ledger technologies in support of state
	786	+	information, and payment tracking ecosystem which uses hack-
	787	+	resistant, distributed ledger technologies in support of state
746	788		agencies and tribal, county, and local governmental units :
747	789		1. To facilitate information and revenue recording, collection ,
748	790		and sharing; and
749	791		2. To prevent cybercrimes, black market activities, money
750	792		laundering, and tax evasion.
751		-	B. Every distributed ledger technology ecosystem described in
752		-	this section shall use types of software that are:
753	793
754		-	ENGR. H. B. NO. 3279 Page 16 1
	794	+	HB3279 HFLR Page 16
	795	+	BOLD FACE denotes Committee Amendments. 1
755	796		2
756	797		3
757	798		4
758	799		5
759	800		6
760	801		7
761	802		8
762	803		9
763	804		10
764	805		11
765	806		12
766	807		13
767	808		14
768	809		15
769	810		16
770	811		17
771	812		18
772	813		19
773	814		20
774	815		21
775	816		22
776	817		23
777	818		24
778	819
	820	+	B. Every distributed ledger tec hnology ecosystem described in
	821	+	this section shall use types of software that ar e:
779	822		1. Digital representations of dollars such as conver tible
780	823		virtual currency;
781	824		2. Digital representation s of identities such as blockchain and
782	825		biometrics; or
783	826		3. Digital representations of contracts such as digital and
784	827		smart contracts.
785	828		C. To contract with the state or any of its political
786	829		subdivisions, a distributed ledger technology asset offering
787	830		ecosystem which is equipped to license, maintain, and offer for sale
788	831		software and to perform electronic fund s transfers and logistical
789	832		tracking services using digital assets or convertible virtual
790	833		currencies as the medium of value transfer shall fulfill the
791	834		following minimum threshold securities regulatory requirements:
792	835		1. Prior to the acceptance by a state, county, or local
793	836		governmental unit or agency of a vendor's bid or offer to contract,
794	837		the prospective ecosyst em or distributed ledger technology asset
795	838		offering ecosystem operator shall show proof of having successful ly
796	839		participated in a state or federal convertible virtual currency a nd
797		-	payment gateway demonstration and no-action processes; and
798		-	2. Demonstrate the proper procedural protocol publicly or
799		-	privately in a test of the distributed ledger technology to the
800		-	satisfaction of the state or federal securitie s regulators'
801		-	compliance review processes.
	840	+	payment gateway demons tration and no-action processes. Such proof
	841	+	shall be satisfactory to the sec urities regulators of both the state
	842	+	and federal governments; and
802	843
803		-	ENGR. H. B. NO. 3279 Page 17 1
	844	+	HB3279 HFLR Page 17
	845	+	BOLD FACE denotes Committee Amendments. 1
804	846		2
805	847		3
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810	852		8
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814	856		12
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818	860		16
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820	862		18
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822	864		20
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827	869
	870	+	2. Demonstrate the proper procedu ral protocol publicly or
	871	+	privately in a test of the distributed ledger technolo gy to the
	872	+	satisfaction of the state or federal securitie s regulators'
	873	+	compliance review processes.
828	874		D. Preferences should be given to ecosystem operator applicants
829		-	which have capabilities of a distributed ledger technology e cosystem
830		-	incubator or which have obtained United States Treasury, United
831		-	States Department of Agriculture, and government charters, or
832		-	certification as community developm ent entities or credit programs
833		-	which have maintained such status for at least ten (10) years and
834		-	which are headed by licensed Oklahoma fiduciaries.
835		-	E. Every fintech vendor or data company employing blockchain or
	875	+	which have obtained United States Treasury, United States Department
	876	+	of Agriculture, and government charters, or certification as
	877	+	community development entities or credit programs which have
	878	+	maintained such status for at least ten (10) years and which are
	879	+	headed by licensed Oklahoma fiduciaries.
	880	+	E. The ecosystem operator or the fintech vendor ma y be a sole
	881	+	source provider to be compensa ted based upon a fixed fee, as allowed
	882	+	by Section 264 of Title 68 of the Oklahoma Statutes and Section
	883	+	85.44D.1 of Title 74 of the Okla homa Statutes, and shall be exempt
	884	+	from the provisions of Section 85.7 of Title 74 of the Oklahoma
	885	+	Statutes for the purpose of implemen ting this act.
	886	+	F. Every fintech vendor or data company employing blockchain or
836	887		distributed ledger technologies on behalf of the state, or its
837	888		political subdivision s or agencies, and operating within the state
838	889		shall adhere to the securities and finance law s of the state and the
839	890		United States.
840		-	F. A convertible virtual currency ~~o r~~ digital asset designed and
	891	+	G. A convertible virtual currency or digital asset designed and
841	892		used by the state and any of its agencies or political subdivisions
842		-	shall be prepaid and stable and shall be designed for correlated
843		-	payment and the trac king of goods, services, and custodians.
844		-	G. Distributed ledger technology asset offering ecosystem
845		-	operators or blockchain-specialized vendors may use smartphone
846		-	applications for the purchase and redemption of the convertible
847		-	virtual currencies for onboa rding customers who need payment and
848		-	tracking services pursuant to any stat e-authorized program.
849		-	H. Every distributed ledger technology asset offering ecosystem
850		-	shall be designed as a publicly owned, operated, and regulated
851		-	entity and as the property of the State of Oklahoma and to become
852	893
853		-	ENGR. H. B. NO. 3279 Page 18 1
	894	+	HB3279 HFLR Page 18
	895	+	BOLD FACE denotes Committee Amendments. 1
854	896		2
855	897		3
856	898		4
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858	900		6
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876	918		24
877	919
878		-	autonomous and disintermediated by using programmable smart
879		-	contracts managed by algorithms and encoded with relevant state,
880		-	county, local, tribal, or federal laws and regulations for taxation,
881		-	accounting, escrows, remittances, custody tracking, and other
882		-	applications.
883		-	I. The initial use case shall be a distributed ledger
	920	+	shall be prepaid and stable and shall be designed for correlated
	921	+	payment and the trac king of goods, services, and custodians.
	922	+	H. Distributed ledger technology ass et offering ecosystem
	923	+	operators and blockchain specialized vendors may use smartphone
	924	+	applications for the purchase and re demption of the convertible
	925	+	virtual currencies for onboa rding customers who need payment and
	926	+	tracking services pursuant to any state -authorized program.
	927	+	I. Every distributed ledger technology asset offering ecosystem
	928	+	shall be designed to become autonomous and disintermediated by using
	929	+	programmable smart contra cts managed by algorithms and encoded with
	930	+	relevant state, county, local, tribal, or federal laws and
	931	+	regulations for taxation, accounting, escrows, remittances, custody
	932	+	tracking, and other applicatio ns.
	933	+	J. The initial use case shall be a distributed ledger
884	934		technology asset offering ecosystem which shall provide an
885	935		integrated logistics, payment, and tax recording and remitt ance
886	936		system for the use of government taxing and regulatory authorities
887	937		that will also provide for customer payment and custody transfe rs
888	938		using escrow and smart contracts for services and goods at the
889	939		retail and wholesale levels among producers, merchants, and
890	940		customers.
891		-	J. Every distributed ledger technology or fintech vendor shall
	941	+	K. Every distributed ledger technology or fintech vendor shall
892	942		tailor its technology to comply with and conform to the state's
893		-	anti-monopoly and records laws and to include regulations for
894		-	dispute resolution, evidentiary proceedings, money services
895		-	businesses, tax revenue remittance, tax reporting, securities, and
896		-	escrow.
897		-	K. For logistical track ing and recording, the ecosystem shall
898		-	use correlated payment-custodian-product registries, technologies,
899		-	or other vendors with lawfully permissive technology for the state
900		-	and the ecosystem to achieve its end s, such as matching Radio
	943	+	records laws and regulations for dispute resolution, evidentiary
901	944
902		-	ENGR. H. B. NO. 3279 Page 19 1
	945	+	HB3279 HFLR Page 19
	946	+	BOLD FACE denotes Committee Amendments. 1
903	947		2
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914	958		13
915	959		14
916	960		15
917	961		16
918	962		17
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920	964		19
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922	966		21
923	967		22
924	968		23
925	969		24
926	970
927		-	Frequency Identificat ion, quick response code, or other bar-code-
928		-	enabled identification.
929		-	L. 1. Pursuant to the ecosystem 's requirements, agencies,
	971	+	proceedings, money services businesses, tax rev enue remittance, tax
	972	+	reporting, securities, and escrow.
	973	+	L. For logistical trac king and recording, the ecosystem shall
	974	+	use correlated payment-custodian-product registries, such as
	975	+	matching Radio Frequency Identification , quick response code, or
	976	+	other bar-code-enabled identification.
	977	+	M. 1. Pursuant to the ecosystem 's requirements, agencies,
930	978		customers, or users of the software shall:
931	979		a. create an unalterable recorded digital identity or
932		-	digital account or technology such as a lawful digital
933		-	wallet, and
934		-	b. open a digital or smart contract account which shall
935		-	enable the customer or user to interact within the
936		-	ecosystem.
	980	+	digital wallet, and
	981	+	b. open a smart contract account which shall enable the
	982	+	customer or user to interact within the ecosystem ; and
937	983		2. Customers may purchase software-based contracts as digital
938	984		contracts for customer-to-customer, customer-to-business, business-
939	985		to-business, government -to-customer, business-to-government, or
940	986		government-to-government.
941	987		SECTION 6. NEW LAW A new sectio n of law to be codified
942	988		in the Oklahoma Statutes as Sect ion 12004 of Title 74, unless there
943	989		is created a duplication in numbering, reads as follows:
944	990		A. For convertible virtual currency designed for the state and
945	991		its political subdivisions, an entity operating an ecosystem, and
946		-	any entity affiliated with ~~an ecosystem~~ operator, shall not use any
	992	+	any entity affiliated with the ec osystem operator, shall not use any
947	993		proceeds from the convertible virtual currency sales, purchases,
948	994		transfers, or conver sions to develop the ecosystem, applications, or
949		-	platforms referenced by this act, which shall be fully developed and
950	995
951		-	ENGR. H. B. NO. 3279 Page 20 1
	996	+	HB3279 HFLR Page 20
	997	+	BOLD FACE denotes Committee Amendments. 1
952	998		2
953	999		3
954	1000		4
955	1001		5
956	1002		6
957	1003		7
958	1004		8
959	1005		9
960	1006		10
961	1007		11
962	1008		12
963	1009		13
964	1010		14
965	1011		15
966	1012		16
967	1013		17
968	1014		18
969	1015		19
970	1016		20
971	1017		21
972	1018		22
973	1019		23
974	1020		24
975	1021
	1022	+	platforms referenced by this act, which shall be fully developed and
976	1023		operational at the time of any convertible virtual currency transfer
977	1024		or conversion.
978	1025		B. The convertible virtual currency designed for the state and
979	1026		its political subdivisions shall be exclusively marketed to
980	1027		customers and immediately usable for its intended function or
981	1028		functions at the time it is purchased, sold, transferred, or
982	1029		converted and not with any potential for the increase in the ma rket
983	1030		value of the convertible virtual currency.
984		-	C. An ecosystem operator shall restrict sales, purchases,
	1031	+	C. The ecosystem operator shall restrict sales, purchases,
985	1032		transfers, and conversions of the convertible virtual currency to
986	1033		ecosystem digital wallets only.
987	1034		D. Any customer who holds convertible virtual cur rency designed
988	1035		for the state and its political subdivisions may only transfer or
989	1036		convert the convertible virtual currency at the face v alue of One
990	1037		United States Dollar ($1.00) per convertible virtual currency to
991	1038		another ecosystem-approved wallet.
992		-	E. An ecosystem operator shall sell, purchase, transfer, and
993		-	convert the convertible virtual currency designed for the state or
994		-	its political subdivisions at a price of One United States Dollar
995		-	($1.00) per convertible virtual currency throughout the life of the
996		-	program, and each convertible virtual currency shall represent an
997		-	ecosystem obligation to convert or transfer the convertible virtual
998		-	currency at a value of One United States Dollar ($1.00) per
999		-	convertible virtual currency.
	1039	+	E. The operator of the ecosystem shall sell, purchase,
	1040	+	transfer, and convert the conver tible virtual currency designed for
	1041	+	the state or its pol itical subdivisions at a price of One United
	1042	+	States Dollar ($1.00) per convertible virtual currency throughout
	1043	+	the life of the program, and each convertible virtual currency shall
	1044	+	represent an ecosyst em obligation to convert or transfer the
1000	1045
1001		-	ENGR. H. B. NO. 3279 Page 21 1
	1046	+	HB3279 HFLR Page 21
	1047	+	BOLD FACE denotes Committee Amendments. 1
1002	1048		2
1003	1049		3
1004	1050		4
1005	1051		5
1006	1052		6
1007	1053		7
1008	1054		8
1009	1055		9
1010	1056		10
1011	1057		11
1012	1058		12
1013	1059		13
1014	1060		14
1015	1061		15
1016	1062		16
1017	1063		17
1018	1064		18
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1020	1066		20
1021	1067		21
1022	1068		22
1023	1069		23
1024	1070		24
1025	1071
	1072	+	convertible virtual currency at a value of One United States Dollar
	1073	+	($1.00) per convertible virtual currency.
1026	1074		F. Convertible virtual cu rrency designed for the state or its
1027	1075		political subdivisions shall be fully backed by United States dollar
1028	1076		assets deposited in United St ates financial institut ions.
1029	1077		G. Selling, buying, converting, or transferring convertible
1030	1078		virtual currency designed for the state or its political
1031	1079		subdivisions for less or more than One United States Dollar ($1.00)
1032	1080		shall be technologically impossible.
1033	1081		SECTION 7. NEW LAW A new section of law to be codified
1034	1082		in the Oklahoma Statutes as Section 12005 of Title 74, unless there
1035	1083		is created a duplication in numbering, reads as follows:
1036	1084		A. Digital contracts or smart contracts used by this state and
1037	1085		its political subdivisions shall be programmed for accountancy,
1038	1086		identity, regulatory permissibility , and legality, credit
1039	1087		verification, product location, work performance, customer status,
1040	1088		agreements, and various relationships as conditions precede nt to
1041	1089		escrowed funds release.
1042	1090		B. Smart contracts shall track performance from inception to
1043	1091		completion and legally satisf y the release from escrow, which
1044	1092		initiates a convertible virtual currency trans fer.
1045	1093		C. The ecosystem network provided for the benefit of state
1046	1094		agencies, political subdivisions, and tribal-level entities on a
1047		-	voluntary basis shall be controlled and regulated by an electronic
1048		-	funds transfer system interchange .
1049	1095
1050		-	ENGR. H. B. NO. 3279 Page 22 1
	1096	+	HB3279 HFLR Page 22
	1097	+	BOLD FACE denotes Committee Amendments. 1
1051	1098		2
1052	1099		3
1053	1100		4
1054	1101		5
1055	1102		6
1056	1103		7
1057	1104		8
1058	1105		9
1059	1106		10
1060	1107		11
1061	1108		12
1062	1109		13
1063	1110		14
1064	1111		15
1065	1112		16
1066	1113		17
1067	1114		18
1068	1115		19
1069	1116		20
1070	1117		21
1071	1118		22
1072	1119		23
1073	1120		24
1074	1121
	1122	+	voluntary basis shall be controlled and regulat ed by an electronic
	1123	+	funds transfer system interchange .
1075	1124		D. Anyone who interacts with the ecosystem shall have a digital
1076		-	identity~~, or like technology,~~ which shall be a precondition to
1077		-	~~initiating a~~ convertible virtual ~~cu rrency~~ transfer.
	1125	+	identity and wallet which shall be a precondition to initiating a
	1126	+	convertible virtual currency transfer.
1078	1127		E. Any transfer of convertible virtual currency shall be in
1079	1128		accordance with the Travel Rule as defined in Sec tion 4 of this act.
1080	1129		F. Customers shall agree with a con spicuous electronic
1081	1130		signature declaring that they are acquiring the convertible virtu al
1082	1131		currency for a consumptive purpos e and not as an investment, nor
1083	1132		with an expectation that the convertible virtua l currency shall earn
1084	1133		profits based upon the activities and efforts of third par ties.
1085	1134		G. Convertible virtual currency functionality shall always be
1086	1135		associated with a digital co ntract, which shall determine the terms
1087	1136		of how, when, where, and to whom any co nvertible virtual currency is
1088	1137		transferred or converted b y an ecosystem operator.
1089	1138		H. Before any transfer, purchase, sale, or conversion of
1090	1139		convertible virtual currency is finalized, the customer shall first
1091	1140		enter decision tree terms to show mutuality of co nsent between
1092	1141		customers.
1093		-	I. To form a smart contract or to obtain any service s from an
	1142	+	I. To form a smart contract or to obtain any service s from the
1094	1143		ecosystem, customers in a supply chain must agree to terms and fees
1095	1144		for using the smart contract software, which may be established by
1096	1145		the participating state agency, political subdivision, or tribal
1097		-	entity regulating that ecosystem operator who provides various
1098		-	services in exchange for the custo mer paying the fees to the
1099	1146
1100		-	ENGR. H. B. NO. 3279 Page 23 1
	1147	+	HB3279 HFLR Page 23
	1148	+	BOLD FACE denotes Committee Amendments. 1
1101	1149		2
1102	1150		3
1103	1151		4
1104	1152		5
1105	1153		6
1106	1154		7
1107	1155		8
1108	1156		9
1109	1157		10
1110	1158		11
1111	1159		12
1112	1160		13
1113	1161		14
1114	1162		15
1115	1163		16
1116	1164		17
1117	1165		18
1118	1166		19
1119	1167		20
1120	1168		21
1121	1169		22
1122	1170		23
1123	1171		24
1124	1172
1125		-	ecosystem operator, as set forth in a smart contract agreement for
1126		-	services rendered as determined between the parties or by operation
1127		-	or direction of the participating government agency, tribal entity,
1128		-	or political subdivision .
	1173	+	entity and the ecosystem operator who provide s various services in
	1174	+	exchange for the customer paying the fees to the ecosystem operator,
	1175	+	as set forth in a smart contract agreement for services rendered as
	1176	+	determined between the parties or by operation of the participating
	1177	+	government agency, tribal entit y, or political subdivision .
1129	1178		J. Customers may purchase digital contracts and the n egotiation
1130	1179		of the charged fee in another digital contract , which is the smart
1131	1180		contract, escrow, and accounting tool that determines the income
1132		-	going to an ecosystem operator for its services and that defines
1133		-	that particular relationship of an ecosystem operator-to-customer
1134		-	and any controlling law or regulation affecting or specifying
1135		-	contractual relationships .
1136		-	K. The digital contract shall determine how an ecosystem
1137		-	operator compensates the customer and how the customer compensates
1138		-	its ecosystem operator for goods and services . The contents of a
1139		-	digital contract may be determined by reference to existing terms
1140		-	administered by an ecosystem operator as an agent of a participating
1141		-	state agency, tribe, or political subdivision, but any participation
1142		-	by a tribal entity must be voluntary and as part of a memorandum of
1143		-	understanding or other appropri ate agreement as provided by this act
1144		-	or by federal, state, or tribal law. A digital contract and payment
1145		-	to the customer by an ecosystem operator may include , but is not
1146		-	limited to, customer efforts as measured by vo lume of transfers or
1147		-	conversions, payment for the customer filling out a survey , or a
1148		-	referral fee for additional customers brought in by a customer.
	1181	+	going to the ecosystem operato r for its services and that defines
	1182	+	the ecosystem operator -to-customer and any controlling law or
	1183	+	regulation affecting or specifying contractual relationships .
	1184	+	K. The digital contract or smart contract shall determine how
	1185	+	the ecosystem operator compensate s the customer and how the customer
	1186	+	compensates the ecosystem operator for goods and services . The
	1187	+	contents of a digital contract may be determined by reference to
	1188	+	existing terms administered by the ecosystem operator as an agent o f
	1189	+	a participating state agency, tribe, or political subdivision, but
	1190	+	any participation by a tribal entity must be volunta ry and as part
	1191	+	of a memorandum of understanding or other appropri ate agreement as
	1192	+	provided by this act or by federal, state, or tribal law. A digital
	1193	+	contract and payment to the customer by the ecosystem operator may
	1194	+	include, but is not limited to, customer efforts as measured by
	1195	+	volume of transfers or conversions, payment for the customer filling
	1196	+	out a survey, or a referral fee for addi tional customers brought in
1149	1197
1150		-	ENGR. H. B. NO. 3279 Page 24 1
	1198	+	HB3279 HFLR Page 24
	1199	+	BOLD FACE denotes Committee Amendments. 1
1151	1200		2
1152	1201		3
1153	1202		4
1154	1203		5
1155	1204		6
1156	1205		7
1157	1206		8
1158	1207		9
1159	1208		10
1160	1209		11
1161	1210		12
1162	1211		13
1163	1212		14
1164	1213		15
1165	1214		16
1166	1215		17
1167	1216		18
1168	1217		19
1169	1218		20
1170	1219		21
1171	1220		22
1172	1221		23
1173	1222		24
1174	1223
1175		-	Services that an ecosystem operator may p rovide to customers for
1176		-	which the operator is compensated may include such matters as
1177		-	identification, transfers, conversions, agreements, escrow, consent,
1178		-	due diligence, custody, taxation, or other matters.
1179		-	L. Any state-authorized ecosystem operator shall extract fees
1180		-	pursuant to the controlling law, regulation, agency rule, or digital
1181		-	contract account's defined terms, debited from the business or
1182		-	customer bank account as payment for the ecosystem operator's
1183		-	services. The defined terms for those services shall be found in
1184		-	the digital contract accounts or the relevant law or regulation
1185		-	affecting the specific agency, political subdivision , or tribal
1186		-	entity.
1187		-	M. An ecosystem operator's debits and credits shall be entered
	1224	+	by a customer. Services the ecosystem operator may p rovide to
	1225	+	customers for which the operat or is compensated may include such
	1226	+	matters as identification, transfers, conver sions, agreements,
	1227	+	escrow, consent, due diligence, custo dy, taxation, or other matters.
	1228	+	L. The ecosystem operator shall extract fees pursuant to the
	1229	+	controlling law, regulatio n, agency rule, or digital contract
	1230	+	account's defined terms, debited from the business's or customer's
	1231	+	bank account as payment for the ecosystem operator's services. The
	1232	+	defined terms for those services shall be found in the digital
	1233	+	contract accounts or the relevant law or regulation affecting the
	1234	+	specific agency, political subdivis ion, or tribal entity.
	1235	+	M. The ecosystem operator's debits and credits shall be entered
1188	1236		onto the immutable ledger in the form of a customer credit or debit
1189	1237		to their digital wall ets or corresponding bank acco unts using
1190	1238		automated clearinghouse services and a pplication program interface .
1191		-	N. Compensation shall be paid to or by an ecosystem operator in
1192		-	United States dollars. Any fees an ecosystem operator charges for
1193		-	transfers, conversions, escrows, tax remittances , or other services
1194		-	performed in assisting in the execution of customers ' transactions,
1195		-	or digital contracts entered between customers, shall be based upon
1196		-	a negotiated fee schedule, which shall be calculated, accounted for,
1197		-	tracked, and collected from any transaction between the customers,
1198		-	and a deduction shall be debited from th e customers' accounts
	1239	+	N. Compensation shall be paid to or by the ecosys tem operator
	1240	+	in United States dollars. Any fees the ecosystem operator charges
	1241	+	for transfers, conversions, escrows, tax remittances , or other
	1242	+	services performed in assisting i n the execution of customers '
	1243	+	transactions, or digital c ontracts entered between customers, shall
	1244	+	be based upon a negotiated fee schedule, which shall be calculated,
	1245	+	accounted for, tracked, and collected from any transaction between
	1246	+	the customers, and a de duction shall be debited from the customers '
	1247	+	accounts pursuant to an agreement a s memorialized in the smart
1199	1248
1200		-	ENGR. H. B. NO. 3279 Page 25 1
	1249	+	HB3279 HFLR Page 25
	1250	+	BOLD FACE denotes Committee Amendments. 1
1201	1251		2
1202	1252		3
1203	1253		4
1204	1254		5
1205	1255		6
1206	1256		7
1207	1257		8
1208	1258		9
1209	1259		10
1210	1260		11
1211	1261		12
1212	1262		13
1213	1263		14
1214	1264		15
1215	1265		16
1216	1266		17
1217	1267		18
1218	1268		19
1219	1269		20
1220	1270		21
1221	1271		22
1222	1272		23
1223	1273		24
1224	1274
1225		-	pursuant to an agreement a s memorialized in the smart contract
1226		-	account. Such fees charged may differ depending on matters such as
1227		-	the type of transaction, identity of the parties to the transaction,
1228		-	amount and level of services or goods, and the terms of individual
1229		-	smart contracts.
	1275	+	contract account. Such fees charged may differ depending on matters
	1276	+	such as the type of transaction, identity of the parties to the
	1277	+	transaction, amount and level of services or goods, and the terms of
	1278	+	individual smart contracts .
1230	1279		O. Tax remittances, withholding, reporting, or payments shall
1231		-	be determined by reference to the digital or smart contract, and
1232		-	that particular ecosystem operator in that transaction shall collect
1233		-	the same as an agent on behalf of individuals, businesses,
1234		-	government regulators, and taxing authorities. Nothing in this
1235		-	subsection shall be used to limit the authority or power of agencies
1236		-	to define the contours best applicable to the custody and transfer
1237		-	of monies owed to the state.
	1280	+	be determined by reference to th e smart contract, and the ecosystem
	1281	+	operator shall collect the same as an agent on behalf of
	1282	+	individuals, businesses, government regulators, and taxing
	1283	+	authorities.
1238	1284		SECTION 8. NEW LAW A new section of law to be codified
1239	1285		in the Oklahoma Statutes as Section 12006 of Title 74, unless there
1240	1286		is created a duplicatio n in numbering, reads as follows:
1241		-	A distributed ledger technology asset ~~offering~~ ecosystem
	1287	+	The distributed ledger technology asset offeri ng ecosystem
1242	1288		operator shall provide relevant tax revenue and information sharing
1243	1289		optimization models, designs, and processes to the Office of
1244	1290		Management and Enterprise Services and the Oklahoma Tax Commission,
1245	1291		and shall prevent tax evasion and other financial crimes.
1246	1292		SECTION 9. NEW LAW A new section of law to be codified
1247	1293		in the Oklahoma Statutes as Section 12007 of Title 74, unless there
1248	1294		is created a duplication in numbering, reads as follows:
	1295	+	A. The Oklahoma Tax Commission shall determine which cards or
	1296	+	smartphone applications shall be accepted. However, the Tax
	1297	+	Commission shall ensure that no loss of state revenue shall occur
1249	1298
1250		-	ENGR. H. B. NO. 3279 Page 26 1
	1299	+	HB3279 HFLR Page 26
	1300	+	BOLD FACE denotes Committee Amendments. 1
1251	1301		2
1252	1302		3
1253	1303		4
1254	1304		5
1255	1305		6
1256	1306		7
1257	1307		8
1258	1308		9
1259	1309		10
1260	1310		11
1261	1311		12
1262	1312		13
1263	1313		14
1264	1314		15
1265	1315		16
1266	1316		17
1267	1317		18
1268	1318		19
1269	1319		20
1270	1320		21
1271	1321		22
1272	1322		23
1273	1323		24
1274	1324
1275		-	A. The Oklahoma Tax Commission shall determine which cards or
1276		-	smartphone applications shall be accepted. However, the Tax
1277		-	Commission shall ensure that no loss of state revenue shall occur
1278	1325		using any such card or sma rtphone application in relation to tax
1279	1326		collection and remittance.
1280	1327		B. The Tax Commission and Office of Management and Enterprise
1281	1328		Services shall promulgate rules to allow for the orderly
1282	1329		implementation of payment by digital assets and distributed ledger
1283		-	technologies using the services of an ecosystem operator.
	1330	+	technologies using the services of the ecosystem operator .
1284	1331		SECTION 10. NEW LAW A new section of law to be codified
1285	1332		in the Oklahoma Statutes as Section 12008 of Title 74, unless there
1286	1333		is created a duplication in numbering, reads as follo ws:
1287	1334		A. Taxes may be collected using a digital asset loaded onto a
1288	1335		card or smartphone application as a credit or a pre paid store of
1289	1336		value as long as no loss of state revenue shall occur by the
1290	1337		acceptance of such payment .
1291	1338		B. The Oklahoma Tax Commission shall have discretion to
1292	1339		determine the nature of the instru ment or device used for tax
1293	1340		remittance, so long as the Tax Commission ensures that the
1294	1341		electronic funds transfer solution does not result in any loss of
1295	1342		state revenue because of the use of such a card , device, or
1296	1343		application. The Tax Commission shall prom ulgate rules to allow for
1297	1344		the orderly implementation of paym ent by convertible virtual
1298	1345		currency. The digitized credit or distributed ledger technology
	1346	+	asset shall then be transmitt ed via electronic fund transfer system
	1347	+	interchange.
1299	1348
1300		-	ENGR. H. B. NO. 3279 Page 27 1
	1349	+	HB3279 HFLR Page 27
	1350	+	BOLD FACE denotes Committee Amendments. 1
1301	1351		2
1302	1352		3
1303	1353		4
1304	1354		5
1305	1355		6
1306	1356		7
1307	1357		8
1308	1358		9
1309	1359		10
1310	1360		11
1311	1361		12
1312	1362		13
1313	1363		14
1314	1364		15
1315	1365		16
1316	1366		17
1317	1367		18
1318	1368		19
1319	1369		20
1320	1370		21
1321	1371		22
1322	1372		23
1323	1373		24
1324	1374
1325		-	asset shall then be transmitt ed via electronic fund s transfer system
1326		-	interchange.
1327		-	C. The Tax Commission, or the ap plicable taxing jurisdiction,
1328		-	may exercise authori ty to ensure monies correlation as with the
1329		-	purpose of this act.
1330		-	D. Businesses shall as sist in the collection of taxes. The Tax
	1375	+	C. Businesses shall as sist in the collection of taxes. The Tax
1331	1376		Commission may mandate how the taxes are paid when using electronic
1332	1377		fund transfer cards or smartphone applications. The duty to pay and
1333	1378		collect the tax shall be on the customer, business, or other end
1334	1379		user.
1335	1380		SECTION 11. NEW LAW A new section of law to be codified
1336	1381		in the Oklahoma Statutes as Section 12009 of Title 74, unless there
1337	1382		is created a duplication in numbering, reads as follows:
1338	1383		A. The Oklahoma Tax Commission shall promulgate rules and
1339	1384		regulations on how to collect taxes using a convertible virtual
1340	1385		currency, by and through the services of distributed ledger
1341	1386		technology asset offering ecosystem operators, to provide a
1342	1387		functional electronic funds transfer asset offering system
1343	1388		interchange platform and network.
1344	1389		B. The Tax Commission may appoint a qualified ecosystem
1345	1390		operator as its agent to assist in collect ing taxes using
1346	1391		distributed ledger technologies and for enforcing the tax laws by
1347	1392		examination and investigation.
	1393	+	SECTION 12. NEW LAW A new section of l aw to be codified
	1394	+	in the Oklahoma Statutes as Section 12010 of Title 74, unless there
	1395	+	is created a duplication in numbering, reads as follows:
	1396	+	A. Every distributed ledger technology asset offering ecosystem
	1397	+	operator is required to appoint, and always have in place, a
	1398	+	distributed ledger technology asset offering agent:
1348	1399
1349		-	ENGR. H. B. NO. 3279 Page 28 1
	1400	+	HB3279 HFLR Page 28
	1401	+	BOLD FACE denotes Committee Amendments. 1
1350	1402		2
1351	1403		3
1352	1404		4
1353	1405		5
1354	1406		6
1355	1407		7
1356	1408		8
1357	1409		9
1358	1410		10
1359	1411		11
1360	1412		12
1361	1413		13
1362	1414		14
1363	1415		15
1364	1416		16
1365	1417		17
1366	1418		18
1367	1419		19
1368	1420		20
1369	1421		21
1370	1422		22
1371	1423		23
1372	1424		24
1373	1425
1374		-	SECTION 12. NEW LAW A new section of l aw to be codified
1375		-	in the Oklahoma Statutes as Section 12010 of Title 74, unless there
1376		-	is created a duplication in numbering, read s as follows:
1377		-	A. Every distributed ledger technology asset offering ecosystem
1378		-	operator is required to appoint, and always have in place, a
1379		-	distributed ledger technology asset offering agent:
1380	1426		1. Who shall be a licensed attorney in good standing wi th the
1381	1427		Oklahoma Bar Association; and
1382	1428		2. Whose representation is made known to the Oklahoma
1383	1429		Department of Securities, the Office of Management and Enterprise
1384	1430		Services, and the Oklahoma Tax Commission .
1385	1431		B. The distributed ledger technology asset offering a gent
1386	1432		shall:
1387		-	1. Ensure ~~that his or her~~ ecosystem ~~operator~~ has satisfied all
1388		-	~~requirements~~ as prescribed in the provisions of this act and of any
1389		-	~~rules or~~ regulations issued thereunder, including that such issuer
1390		-	~~is a fit~~ and proper person to carry out the activity ~~o r~~ activities
1391		-	~~under this~~ act;
1392		-	2. Advise and guide ~~his or her~~ ecosystem operator as to its
	1433	+	1. Ensure the ecosystem oper ator has satisfied all requirements
	1434	+	as prescribed in the provisions of this act and of any rules or
	1435	+	regulations issued thereunder, including that such issuer is a fit
	1436	+	and proper person to carry out the activity or activities under th is
	1437	+	act;
	1438	+	2. Advise and guide the ecosystem operator as to its
1393	1439		responsibilities and obligations to ensure compliance with the
1394	1440		provisions of this act and any rules or regulations issued
1395	1441		thereunder;
1396		-	3. Advise and guide his or her ecosystem operator on all
1397		-	matters relating to the admission of the issuer 's convertible
	1442	+	3. Advise and guide the ecosystem operator on all matters
	1443	+	relating to the admissio n of the issuer's convertible virtual
	1444	+	currencies for transfer on an electronic fund transfer system
	1445	+	interchange, and ongoing interchanges and transfers thereon, and
	1446	+	submit all required documentation and information in relation
	1447	+	thereto;
	1448	+	4. Submit to the United States Securities and Exchange
	1449	+	Commission, Oklahoma Department of Securities, Office of Management
1398	1450
1399		-	ENGR. H. B. NO. 3279 Page 29 1
	1451	+	HB3279 HFLR Page 29
	1452	+	BOLD FACE denotes Committee Amendments. 1
1400	1453		2
1401	1454		3
1402	1455		4
1403	1456		5
1404	1457		6
1405	1458		7
1406	1459		8
1407	1460		9
1408	1461		10
1409	1462		11
1410	1463		12
1411	1464		13
1412	1465		14
1413	1466		15
1414	1467		16
1415	1468		17
1416	1469		18
1417	1470		19
1418	1471		20
1419	1472		21
1420	1473		22
1421	1474		23
1422	1475		24
1423	1476
1424		-	virtual currencies for transfer on an electronic funds transfer
1425		-	system interchange, and ongoing interchanges and transf ers thereon,
1426		-	and submit all required documentation and information in relation
1427		-	thereto;
1428		-	4. Submit to the United States Securities and Exchange
1429		-	Commission, Oklahoma Department of Securities, Office of Management
1430		-	and Enterprise Services, Oklahoma Banking Department, and the Tax
1431		-	Commission all required information and documentation under this act
1432		-	and any regulations made or rules issued thereunder, including the
1433		-	confirmations in terms, in a timely manner;
	1477	+	and Enterprise Services, and the Tax Commission all required
	1478	+	information and documentation under this act and any regulations
	1479	+	made or rules issued there under, including the confirmations in
	1480	+	terms, in a timely manner;
1434	1481		5. Disclose to the Office of Management and En terprise
1435	1482		Services, the Tax Commission, or other cooperating agenc ies,
1436	1483		political subdivisions, or tribal entities without delay any
1437	1484		information or explanations that those a gencies may reasonably
1438	1485		require for the purpose of verifying any information submitted;
1439	1486		6. Act as liaison between the ecosystem operator and the Office
1440	1487		of Management and Enterprise Services and the Tax Commission on all
1441		-	matters in connection with the transfer of ~~his or her~~ ecosystem
1442		-	~~operator's~~ distributed ledger technology assets on an electronic
1443		-	~~funds transfer~~ system interchange ;
	1488	+	matters in connection with the transfer of the ecosystem operator 's
	1489	+	distributed ledger technology assets on an electronic fund transfer
	1490	+	system interchange;
1444	1491		7. Notify the Office of Management and Enterprise Services or
1445	1492		the Tax Commission in writing without delay of the distributed
1446	1493		ledger technology asset offering agent's resignation, his or her
1447	1494		intention to surrender his or her appointment, or if his or her
	1495	+	appointment is terminated , giving details of any relevant fact or
	1496	+	circumstances thereto. A copy of such notif ication shall also be
	1497	+	sent to the ecosystem operator;
	1498	+	8. Submit to the Office of Management and Enterprise Serv ices
	1499	+	and the Tax Commission, on behalf of the ecosystem operator , an
	1500	+	annual certificate of compliance; and
1448	1501
1449		-	ENGR. H. B. NO. 3279 Page 30 1
	1502	+	HB3279 HFLR Page 30
	1503	+	BOLD FACE denotes Committee Amendments. 1
1450	1504		2
1451	1505		3
1452	1506		4
1453	1507		5
1454	1508		6
1455	1509		7
1456	1510		8
1457	1511		9
1458	1512		10
1459	1513		11
1460	1514		12
1461	1515		13
1462	1516		14
1463	1517		15
1464	1518		16
1465	1519		17
1466	1520		18
1467	1521		19
1468	1522		20
1469	1523		21
1470	1524		22
1471	1525		23
1472	1526		24
1473	1527
1474		-	appointment is terminated, giving details of any relevant fact or
1475		-	circumstances thereto. A copy of such notification shall also be
1476		-	sent to the ecosystem operator;
1477		-	8. Submit to the Office of Management and Enterprise Serv ices
1478		-	and the Tax Commission, on behalf of his or her ecosystem operator,
1479		-	an annual certificate of compliance; and
1480	1528		9. Comply with any other conditions as the Oklahoma Department
1481	1529		of Securities, Office of Man agement and Enterprise Services, and the
1482	1530		Tax Commission may require or as may be prescribed.
1483	1531		C. In discharging his or her obligations under subsection B of
1484	1532		this section, a distributed ledger technolo gy asset offering agent
1485	1533		shall:
1486	1534		1. Deal with the Oklahoma Department of Securities, Office of
1487	1535		Management and Enterprise Services, and the Tax Commission in an
1488	1536		open and cooperative manner;
1489	1537		2. Deal promptly with all inquiries raised by any such agency;
	1538	+	and
1490	1539		3. Disclose to the agencies in a timely manner any mate rial
1491		-	information relating to the agent's or his or her ecosystem
1492		-	operator's, of which the agent has kno wledge of, noncompliance with
1493		-	any of the provisions of this a ct or of any regulations made or
1494		-	rules issued thereunder ; and
1495		-	4. Provide upon request, and with out unreasonable delay, data
1496		-	to the Legislative Office of Fiscal Transparency to ensure that
1497		-	policymakers are operating with t ransparent data sets.
	1540	+	information relating to the agent's or the ecosystem operator's, of
	1541	+	which the agent has knowledge of, noncompliance with any of the
	1542	+	provisions of this a ct or of any regulations made or r ules issued
	1543	+	thereunder.
	1544	+	SECTION 13. NEW LAW A new section of law to be codified
	1545	+	in the Oklahoma Statutes as Section 1201 1 of Title 74, unless there
	1546	+	is created a duplication in numbering, reads as follows:
	1547	+	A distributed ledger technology asset offering ecosystem
	1548	+	operator shall:
	1549	+	1. Conduct its busi ness with honesty and integrity;
	1550	+	2. Communicate with all stakeholders in a fair, clear, and non-
	1551	+	misleading manner;
1498	1552
1499		-	ENGR. H. B. NO. 3279 Page 31 1
	1553	+	HB3279 HFLR Page 31
	1554	+	BOLD FACE denotes Committee Amendments. 1
1500	1555		2
1501	1556		3
1502	1557		4
1503	1558		5
1504	1559		6
1505	1560		7
1506	1561		8
1507	1562		9
1508	1563		10
1509	1564		11
1510	1565		12
1511	1566		13
1512	1567		14
1513	1568		15
1514	1569		16
1515	1570		17
1516	1571		18
1517	1572		19
1518	1573		20
1519	1574		21
1520	1575		22
1521	1576		23
1522	1577		24
1523	1578
1524		-	SECTION 13. NEW LAW A new section of law to be codified
1525		-	in the Oklahoma Statutes as Section 1201 1 of Title 74, unless there
1526		-	is created a duplication in numbering, reads as follows:
1527		-	A distributed ledger technology asset offering ecosystem
1528		-	operator shall:
1529		-	1. Conduct its busi ness with honesty and integrity;
1530		-	2. Communicate with all stakeholders in a fair, clear, and
1531		-	nonmisleading manner;
1532	1579		3. Conduct its business with due skill, care , and diligence;
1533	1580		4. Identify and manag e any conflict of interest that may arise;
1534	1581		5. Have effective arrangements in place for the protection of
1535	1582		stakeholders' and customers' funds;
1536	1583		6. Have effective administration a rrangements;
1537	1584		7. Maintain all of its systems and security access protocols to
1538	1585		appropriate international standards; and
1539	1586		8. When an ecosystem operator maintains a website and is
1540	1587		required to make public disclosures, m ake public any information or
1541	1588		provide notice to the public on its website as required by law .
1542	1589		SECTION 14. NEW LAW A new section of law to be codified
1543	1590		in the Oklahoma Statutes as Section 12012 of Title 74, unless there
1544	1591		is created a duplication in numbering, reads as follows:
1545	1592		A. The Oklahoma Tax Commission, the State Treasurer, the
1546	1593		Secretary of State, and the Office of Management and Enterprise
1547	1594		Services shall promulgate rules to implement the provisions of this
	1595	+	act including, without limitation, the implementation of methods to
	1596	+	validate transactions for distributed ledger technologies.
	1597	+	B. The Tax Commission and Office of Management and Enterprise
	1598	+	Services may contract with third-party vendors and other
	1599	+	governmental entities to carry out the respective duties and
	1600	+	functions as specified in this act, and may work with the Oklahoma
	1601	+	State Banking Department, the State Treasurer, and the Oklahoma
	1602	+	Finance Authority to develop good practices and standards for
1548	1603
1549		-	ENGR. H. B. NO. 3279 Page 32 1
	1604	+	HB3279 HFLR Page 32
	1605	+	BOLD FACE denotes Committee Amendments. 1
1550	1606		2
1551	1607		3
1552	1608		4
1553	1609		5
1554	1610		6
1555	1611		7
1556	1612		8
1557	1613		9
1558	1614		10
1559	1615		11
1560	1616		12
1561	1617		13
1562	1618		14
1563	1619		15
1564	1620		16
1565	1621		17
1566	1622		18
1567	1623		19
1568	1624		20
1569	1625		21
1570	1626		22
1571	1627		23
1572	1628		24
1573	1629
1574		-	act including, without limitation, the implementation of meth ods to
1575		-	validate transactions for distributed ledge r technologies.
1576		-	B. The Tax Commission and Office of Management and Enterprise
1577		-	Services may contract with third-party vendors and other
1578		-	governmental entities to carry out the respective duties and
1579		-	functions as specified in this act, and may work with the O klahoma
1580		-	State Banking Department, the State Treasurer , and the Oklahoma
1581		-	Development Finance Authority to develop good practices and
1582		-	standards for banking and finance for distributed ledger technology
1583		-	assets offering businesses.
	1630	+	banking and finance for distributed ledger technology assets
	1631	+	offering businesses.
1584	1632		C. The Office of Management and Enterprise Services, Secretary
1585		-	of State, Oklahoma ~~Development Finance~~ Authority, and the Tax
1586		-	~~Commission may~~ be assisted by ecosystem ~~operators~~ and shall be
1587		-	~~authorized to~~ enter and negotiate the terms ~~o f~~ any memorandums of
1588		-	~~understanding~~ between ~~themsel ves~~ and other states, federal, tribal,
1589		-	~~county, and~~ local governments and agencies thereof in effectuating
1590		-	~~the terms of~~ this act.
	1633	+	of State, Oklahoma Financial Authority, and the Tax Commission ma y
	1634	+	be assisted by the ecosystem operator and shall be aut horized to
	1635	+	enter and negotiate the terms of any memorandums of un derstanding
	1636	+	between themselves and other states, federal, tribal, county, and
	1637	+	local governments and agencies thereof in effectuating th e terms of
	1638	+	this act.
1591	1639		D. The Office of Management and En terprise Services, the Tax
1592	1640		Commission, the Secretary of State, th e Oklahoma State Banking
1593	1641		Department, the Oklahoma Sta te Bureau of Investigation , the Oklahoma
1594		-	Department of Securities, Oklahoma Development Finance Authority,
1595		-	and the State Treasurer may participate in an interagency working
1596		-	group, assisted by ecosystem operators designated by the agencies,
1597		-	for implementing data-driven solutions for sustainable economic
	1642	+	Department of Securities, Oklahoma Financ e Authority, and the State
	1643	+	Treasurer may participate in an interagency working group , assisted
	1644	+	by the ecosystem operator , for implementing data-driven solutions
	1645	+	for sustainable economic development, f inancial crime, and tax
	1646	+	evasion problems by using distri buted ledger technologies.
	1647	+	E. The Office of Management and Enterprise Services shall
	1648	+	coordinate with the ecosystem opera tor to determine the funding
	1649	+	requirements and information data points state agencies and local
	1650	+	governments need in order to optimize their regulatory duties for
	1651	+	compliance and enforcement and for usin g fintech and databases. The
	1652	+	Office of Management and Enterprise Services and the Tax Commission
	1653	+	shall appoint a steering committee o r working group to determine the
1598	1654
1599		-	ENGR. H. B. NO. 3279 Page 33 1
	1655	+	HB3279 HFLR Page 33
	1656	+	BOLD FACE denotes Committee Amendments. 1
1600	1657		2
1601	1658		3
1602	1659		4
1603	1660		5
1604	1661		6
1605	1662		7
1606	1663		8
1607	1664		9
1608	1665		10
1609	1666		11
1610	1667		12
1611	1668		13
1612	1669		14
1613	1670		15
1614	1671		16
1615	1672		17
1616	1673		18
1617	1674		19
1618	1675		20
1619	1676		21
1620	1677		22
1621	1678		23
1622	1679		24
1623	1680
1624		-	development, financial crime , and tax evasion problems by using
1625		-	distributed ledger technologies.
1626		-	E. The Office of Management and Enterprise Services may
1627		-	coordinate with any designated ecosystem operator to de termine the
1628		-	funding requirements and information data points state agencies and
1629		-	local governments need in order to optimize their regulatory duties
1630		-	for compliance and enforcement and for using fintech and databases.
1631		-	The Office of Management and Enterpris e Services and the Tax
1632		-	Commission shall appoint a steering committee or working group to
1633		-	determine the compliance burdens and optimal revenue sharing
1634		-	formulas between the local and state governmental subunits.
1635		-	Thereafter, there shall be developed a formul a for revenue-sharing
1636		-	or apportioning regulatory funding based upon the needs and burdens
1637		-	of state agencies and local governme nts, all to be memorialized by a
1638		-	memorandum of understanding.
	1681	+	compliance burdens and optimal revenue sharing formulas bet ween the
	1682	+	local and state gove rnmental subunits. Thereafter, there shall be
	1683	+	developed a formula for revenue sharing or apportioning regulatory
	1684	+	funding based upon th e needs and burdens of state agencies and local
	1685	+	governments, all to be memorialized by a mem orandum of
	1686	+	understanding.
1639	1687		SECTION 15. NEW LAW A new section of law to be codified
1640	1688		in the Oklahoma Statutes as Section 1201 3 of Title 74, unless there
1641	1689		is created a duplication in numbering, reads as follows:
1642	1690		No cause of action brought pursuant to this act shall be
1643	1691		certified as a class action.
1644	1692		SECTION 16. NEW LAW A new section of law to be codified
1645	1693		in the Oklahoma Statutes as Section 12014 of Title 74, unless there
1646	1694		is created a duplication in numbering, reads as f ollows:
	1695	+	A. An individual filing any pleading that raises or attempts to
	1696	+	raise a claim under this act must file at the same time as filing
	1697	+	the pleading a surety bond or other security if the pendency of the
	1698	+	case would impede or interfere with:
	1699	+	1. The operation of the distributed ledg er technology asset
	1700	+	offering ecosystem operator;
	1701	+	2. The collection of any tax;
	1702	+	3. The tracking of products, payment s, or custodians; or
	1703	+	4. Any other state or local governmental function un der this
	1704	+	act.
1647	1705
1648		-	ENGR. H. B. NO. 3279 Page 34 1
	1706	+	HB3279 HFLR Page 34
	1707	+	BOLD FACE denotes Committee Amendments. 1
1649	1708		2
1650	1709		3
1651	1710		4
1652	1711		5
1653	1712		6
1654	1713		7
1655	1714		8
1656	1715		9
1657	1716		10
1658	1717		11
1659	1718		12
1660	1719		13
1661	1720		14
1662	1721		15
1663	1722		16
1664	1723		17
1665	1724		18
1666	1725		19
1667	1726		20
1668	1727		21
1669	1728		22
1670	1729		23
1671	1730		24
1672	1731
1673		-	A. An individual filing any pleading that raises or attempts to
1674		-	raise a claim under this act must file at the same time as filing
1675		-	the pleading a surety bond or other security if the pendency of the
1676		-	case would impede or interfere with:
1677		-	1. The operation of any distributed ledger technology asset
1678		-	offering ecosystem operator;
1679		-	2. The collection of any tax;
1680		-	3. The tracking of products, payment s, or custodians; or
1681		-	4. Any other state or local governmental function un der this
1682		-	act.
1683	1732		B. The surety bond or other security required by subsection A
1684	1733		of this section must be approved by the Oklahoma Tax Commission and
1685	1734		shall be in such form and amount as a pplicable tax law shall require
1686	1735		or, in the absence of a specific requireme nt, in such amount as the
1687	1736		Tax Commission may require, and shall b e signed as surety by a
1688	1737		surety company authorized to tra nsact business in this state. In
1689	1738		lieu of such surety bond, a claimant may file with the court clerk
1690	1739		security in the form of a negotiabl e bond or other obligation of the
1691	1740		United States or this state of an actual market value not less than
1692	1741		the amount fixed by applicable law or the Tax Commission.
1693	1742		C. The surety bond or other security re quired by this section
1694	1743		shall not exceed Twenty -five Million Dollars ($25,000,000.00).
1695		-
1696		-	ENGR. H. B. NO. 3279 Page 35 1
1697		-	2
1698		-	3
1699		-	4
1700		-	5
1701		-	6
1702		-	7
1703		-	8
1704		-	9
1705		-	10
1706		-	11
1707		-	12
1708		-	13
1709		-	14
1710		-	15
1711		-	16
1712		-	17
1713		-	18
1714		-	19
1715		-	20
1716		-	21
1717		-	22
1718		-	23
1719		-	24
1720		-
1721	1744		SECTION 17. NEW LAW A new section of law to be codified
1722	1745		in the Oklahoma Statutes as Section 12015 of Title 74, unless there
1723	1746		is created a duplicatio n in numbering, reads as follows:
1724	1747		The provisions of this act are severable and if any part of this
1725	1748		act be decided by the courts to be unconstitutional or invalid, the
1726	1749		same shall not affect the validity of this act as a whole, or any
1727	1750		part thereof other than the part so decided to be unconstitutional
1728	1751		or invalid.
1729	1752		SECTION 18. This act shall become effective Novem ber 1, 2022.
1730		-	Passed the House of Representatives the 15th day of March, 2022.
1731	1753
1732		-
1733		-
1734		-
1735		-	Presiding Officer of the House
1736		-	of Representatives
1737		-
1738		-
1739		-	Passed the Senate the ___ day of __________, 2022.
1740		-
1741		-
1742		-
1743		-
1744		-	Presiding Officer of the Senate
1745		-
1746		-
	1754	+	COMMITTEE REPORT BY: COMMITTEE ON TECHNOLO GY, dated 02/16/2022 - DO
	1755	+	PASS, As Coauthored.