Amends and adds to existing law to establish provisions regarding programmable money.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 709 BY BUSINESS COMMITTEE AN ACT1 RELATING TO PROGRAMMABLE MONEY; AMENDING SECTION 28-1-201, IDAHO CODE, TO2 REVISE A DEFINITION; AMENDING SECTION 28-9-102, IDAHO CODE, TO REVISE A3 DEFINITION AND TO MAKE A TECHNICAL CORRECTION; AMENDING TITLE 28, IDAHO4 CODE, BY THE ADDITION OF A NEW CHAPTER 54, TITLE 28, IDAHO CODE, TO DE-5 FINE TERMS, TO LIMIT THE USE OF PROGRAMMABLE MONEY, TO PROVIDE REMEDIES,6 AND TO ESTABLISH PROVISIONS REGARDING CRIMINAL PENALTIES; PROVIDING7 SEVERABILITY; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE8 DATE.9

Be It Enacted by the Legislature of the State of Idaho:10

SECTION 1. That Section 28-1-201, Idaho Code, be, and the same is hereby11 amended to read as follows:12 28-1-201. GENERAL DEFINITIONS. (a) Unless the context otherwise re-13 quires, words or phrases defined in this section, or in the additional defi-14 nitions contained in other chapters of the uniform commercial code that ap-15 ply to particular chapters or parts thereof, have the meanings stated.16 (b) Subject to definitions contained in other articles of the uniform17 commercial code that apply to particular articles or parts thereof:18 (1) "Action," in the sense of a judicial proceeding, includes recoup-19 ment, counterclaim, set-off, suit in equity, and any other proceeding20 in which rights are determined.21 (2) "Aggrieved party" means a party entitled to pursue a remedy.22 (3) "Agreement," as distinguished from "contract," means the bargain23 of the parties in fact, as found in their language or inferred from other24 circumstances, including course of performance, course of dealing or25 usage of trade as provided in section 28-1-303, Idaho Code.26 (4) "Bank" means a person engaged in the business of banking and in-27 cludes a savings bank, savings and loan association, credit union, and28 trust company.29 (5) "Bearer" means a person in control of a negotiable electronic docu-30 ment of title or a person in possession of a negotiable instrument, ne-31 gotiable tangible document of title, or certificated security that is32 payable to bearer or indorsed in blank.33 (6) "Bill of lading" means a document of title evidencing the receipt34 of goods for shipment issued by a person engaged in the business of di-35 rectly or indirectly transporting or forwarding goods. The term does36 not include a warehouse receipt.37 (7) "Branch" includes a separately incorporated foreign branch of a38 bank.39 (8) "Burden of establishing" a fact means the burden of persuading the40 trier of fact that the existence of the fact is more probable than its41 nonexistence.42

2 (9) "Buyer in ordinary course of business" means a person that buys1 goods in good faith, without knowledge that the sale violates the rights2 of another person in the goods, and in the ordinary course from a per-3 son, other than a pawnbroker, in the business of selling goods of that4 kind. A person buys goods in the ordinary course if the sale to the5 person comports with the usual or customary practices in the kind of6 business in which the seller is engaged or with the seller's own usual7 or customary practices. A person that sells oil, gas or other minerals8 at the wellhead or minehead is a person in the business of selling goods9 of that kind. A buyer in ordinary course of business may buy for cash,10 by exchange of other property, or on secured or unsecured credit, and11 may acquire goods or documents of title under a preexisting contract for12 sale. Only a buyer that takes possession of the goods or has a right to13 recover the goods from the seller under chapter 2, title 28, Idaho Code,14 may be a buyer in ordinary course of business. "Buyer in ordinary course15 of business" does not include a person that acquires goods in a transfer16 in bulk or as security for or in total or partial satisfaction of a money17 debt.18 (10) "Conspicuous," with reference to a term, means so written, dis-19 played, or presented that a reasonable person against which it is to op-20 erate ought to have noticed it. Whether a term is "conspicuous" or not21 is a decision for the court. Conspicuous terms include the following:22 (A) A heading in capitals equal to or greater in size than the sur-23 rounding text, or in contrasting type, font, or color to the sur-24 rounding text of the same or lesser size; and25 (B) Language in the body of a record or display in larger type than26 the surrounding text, or in contrasting type, font, or color to the27 surrounding text of the same size, or set off from the surrounding28 text of the same size by symbols or other marks that call attention29 to the language.30 (11) "Consumer" means an individual who enters into a transaction pri-31 marily for personal, family, or household purposes.32 (12) "Contract," as distinguished from "agreement," means the total le-33 gal obligation that results from the parties' agreement as determined34 by the uniform commercial code as supplemented by any other applicable35 laws.36 (13) "Creditor" includes a general creditor, a secured creditor, a lien37 creditor, and any representative of creditors, including an assignee38 for the benefit of creditors, a trustee in bankruptcy, a receiver in eq-39 uity, and an executor or administrator of an insolvent debtor's or as-40 signor's estate.41 (14) "Defendant" includes a person in the position of defendant in a42 counterclaim, cross-claim, or third-party claim.43 (15) "Delivery," with respect to an electronic document of title means44 voluntary transfer of control and with respect to an instrument, a tan-45 gible document of title, or chattel paper, means voluntary transfer of46 possession.47 (16) "Document of title" means a record (i) that in the regular course48 of business or financing is treated as adequately evidencing that the49 person in possession or control of the record is entitled to receive,50

3 control, hold, and dispose of the record and the goods the record cov-1 ers and (ii) that purports to be issued by or addressed to a bailee and2 to cover goods in the bailee's possession which are either identified or3 are fungible portions of an identified mass. The term includes a bill of4 lading, transport document, dock warrant, dock receipt, warehouse re-5 ceipt, and order for delivery of goods. An electronic document of title6 means a document of title evidenced by a record consisting of informa-7 tion stored in an electronic medium. A tangible document of title means8 a document of title evidenced by a record consisting of information that9 is inscribed on a tangible medium.10 (17) "Fault" means a default, breach, or wrongful act or omission.11 (18) "Fungible goods" means:12 (A) Goods of which any unit, by nature or usage of trade, is the13 equivalent of any other like unit; or14 (B) Goods that by agreement are treated as equivalent.15 (19) "Genuine" means free of forgery or counterfeiting.16 (20) "Good faith" means honesty in fact in the conduct or transaction17 concerned.18 (21) "Holder" means:19 (A) The person in possession of a negotiable instrument that is20 payable either to bearer or to an identified person that is the21 person in possession;22 (B) The person in possession of a negotiable tangible document of23 title if the goods are deliverable either to bearer or to the order24 of the person in possession; or25 (C) The person in control of a negotiable electronic document of26 title.27 (22) "Insolvency proceeding" includes an assignment for the benefit of28 creditors or other proceeding intended to liquidate or rehabilitate the29 estate of the person involved.30 (23) "Insolvent" means:31 (A) Having generally ceased to pay debts in the ordinary course of32 business other than as a result of bona fide dispute;33 (B) Being unable to pay debts as they become due; or34 (C) Being insolvent within the meaning of federal bankruptcy law.35 (24) "Money" means a medium of exchange currently authorized or adopted36 by a domestic or foreign government. The term includes a monetary37 unit of account established by an intergovernmental organization or by38 agreement between two (2) or more countries. "Money" does not include39 programmable money.40 (25) "Organization" means a person other than an individual.41 (26) "Party," as distinguished from "third party," means a person that42 has engaged in a transaction or made an agreement subject to the uniform43 commercial code.44 (27) "Person" means an individual, corporation, business trust, es-45 tate, trust, partnership, limited liability company, association,46 joint venture, government, governmental subdivision, agency, or in-47 strumentality, public corporation, or any other legal or commercial48 entity.49

4 (28) "Present value" means the amount as of a date certain of one (1)1 or more sums payable in the future, discounted to the date certain by2 use of either an interest rate specified by the parties if that rate is3 not manifestly unreasonable at the time the transaction is entered into4 or, if an interest rate is not so specified, a commercially reasonable5 rate that takes into account the facts and circumstances at the time the6 transaction is entered into.7 (29) "Purchase" means taking by sale, lease, discount, negotiation,8 mortgage, pledge, lien, security interest, issue or reissue, gift, or9 any other voluntary transaction creating an interest in property.10 (30) "Purchaser" means a person that takes by purchase.11 (31) "Record" means information that is inscribed on a tangible medium12 or that is stored in an electronic or other medium and is retrievable in13 perceivable form.14 (32) "Remedy" means any remedial right to which an aggrieved party is15 entitled with or without resort to a tribunal.16 (33) "Representative" means a person empowered to act for another,17 including an agent, an officer of a corporation or association, and a18 trustee, executor, or administrator of an estate.19 (34) "Rights" includes remedy.20 (35) "Security interest" means an interest in personal property or fix-21 tures which secures payment or performance of an obligation. "Security22 interest" includes any interest of a consignor and a buyer of accounts,23 chattel paper, a payment intangible, or a promissory note in a trans-24 action that is subject to chapter 9, title 28, Idaho Code. "Security25 interest" does not include the special property interest of a buyer26 of goods on identification of those goods to a contract for sale under27 section 28-2-401, Idaho Code, but a buyer may also acquire a "security28 interest" by complying with chapter 9, title 28, Idaho Code. Except29 as otherwise provided in section 28-2-505, Idaho Code, the right of a30 seller or lessor of goods under chapter 2 or chapter 12, title 28, Idaho31 Code, to retain or acquire possession of the goods is not a "security32 interest," but a seller or lessor may also acquire a "security interest"33 by complying with chapter 9, title 28, Idaho Code. The retention or34 reservation of title by a seller of goods notwithstanding shipment or35 delivery to the buyer under section 28-2-401, Idaho Code, is limited in36 effect to a reservation of a "security interest." Whether a transaction37 in the form of a lease creates a "security interest" is determined pur-38 suant to section 28-1-203, Idaho Code.39 (36) "Send" in connection with a writing, record, or notice means:40 (A) To deposit in the mail or deliver for transmission by any other41 usual means of communication with postage or cost of transmission42 provided for and properly addressed and, in the case of an instru-43 ment, to an address specified thereon or otherwise agreed, or if44 there be none to any address reasonable under the circumstances;45 or46 (B) In any other way to cause to be received any record or notice47 within the time it would have arrived if properly sent.48 (37) "Signed" includes using any symbol executed or adopted with49 present intention to adopt or accept a writing.50

5 (38) "State" means a state of the United States, the District of Colum-1 bia, Puerto Rico, the United States Virgin Islands, or any territory or2 insular possession subject to the jurisdiction of the United States.3 (39) "Surety" includes a guarantor or other secondary obligor.4 (40) "Term" means a portion of an agreement that relates to a particular5 matter.6 (41) "Unauthorized signature" means a signature made without actual,7 implied, or apparent authority. The term includes a forgery.8 (42) "Warehouse receipt" means a document of title issued by a person9 engaged in the business of storing goods for hire.10 (43) "Written" or "writing" includes printing, typewriting, or any11 other intentional reduction to tangible form.12

SECTION 2. That Section 28-9-102, Idaho Code, be, and the same is hereby13 amended to read as follows:14 28-9-102. DEFINITIONS AND INDEX OF DEFINITIONS. (a) In this chapter:15 (1) "Accession" means goods that are physically united with other goods16 in such a manner that the identity of the original goods is not lost.17 (2) "Account," except as used in "account for," means a right to payment18 of a monetary obligation, whether or not earned by performance: (i) for19 property that has been or is to be sold, leased, licensed, assigned, or20 otherwise disposed of; (ii) for services rendered or to be rendered;21 (iii) for a policy of insurance issued or to be issued; (iv) for a sec-22 ondary obligation incurred or to be incurred; (v) for energy provided23 or to be provided; (vi) for the use or hire of a vessel under a charter24 or other contract; (vii) arising out of the use of a credit or charge25 card or information contained on or for use with the card; or (viii) as26 winnings in a lottery or other game of chance operated or sponsored by a27 state, governmental unit of a state, or a person licensed or authorized28 to operate the game by a state or governmental unit of a state. The term29 includes health care insurance receivables. The term does not include:30 (i) rights to payment evidenced by chattel paper or an instrument; (ii)31 commercial tort claims; (iii) deposit accounts; (iv) investment prop-32 erty; (v) letter of credit rights or letters of credit; or (vi) rights to33 payment for money or funds advanced or sold, other than rights arising34 out of the use of a credit or charge card or information contained on or35 for use with the card.36 (3) "Account debtor" means a person obligated on an account, chat-37 tel paper, or general intangible. The term does not include persons38 obligated to pay a negotiable instrument, even if the instrument con-39 stitutes part of chattel paper.40 (4) "Accounting," except as used in "accounting for," means a record:41 (A) authenticated by a secured party;42 (B) indicating the aggregate unpaid secured obligations as of a43 date not more than thirty-five (35) days earlier or thirty-five44 (35) days later than the date of the record; and45 (C) identifying the components of the obligations in reasonable46 detail.47 (5) "Agricultural lien" means an interest, other than a security inter-48 est, in farm products:49

6 (A) which secures payment or performance of an obligation for:1 (i) goods or services furnished in connection with a2 debtor's farming operation; or3 (ii) rent on real property leased by a debtor in connection4 with its farming operation;5 (B) which is created by statute in favor of a person that:6 (i) in the ordinary course of its business furnished goods7 or services to a debtor in connection with a debtor's farming8 operation; or9 (ii) leased real property to a debtor in connection with the10 debtor's farming operation; and11 (C) whose effectiveness does not depend on the person's posses-12 sion of the personal property.13 (6) "As-extracted collateral" means:14 (A) oil, gas, or other minerals that are subject to a security in-15 terest that:16 (i) is created by a debtor having an interest in the miner-17 als before extraction; and18 (ii) attaches to the minerals as extracted; or19 (B) accounts arising out of the sale at the wellhead or minehead20 of oil, gas, or other minerals in which the debtor had an interest21 before extraction.22 (7) "Authenticate" means:23 (A) to sign; or24 (B) with the intent to adopt or accept a record, to attach to or25 logically associate with the record an electronic sound, symbol or26 process.27 (8) "Bank" means an organization that is engaged in the business of28 banking. The term includes savings banks, savings and loan associa-29 tions, credit unions and trust companies.30 (9) "Cash proceeds" means proceeds that are money, checks, deposit ac-31 counts, or the like.32 (10) "Certificate of title" means a certificate of title with respect to33 which a statute provides for the security interest in question to be in-34 dicated on the certificate as a condition or result of the security in-35 terest's obtaining priority over the rights of a lien creditor with re-36 spect to the collateral. The term includes another record maintained as37 an alternative to a certificate of title by the governmental unit that38 issues certificates of title if a statute permits the security interest39 in question to be indicated on the record as a condition or result of the40 security interest's obtaining priority over the rights of a lien credi-41 tor with respect to the collateral.42 (11) "Chattel paper" means a record or records that evidence both a mon-43 etary obligation and a security interest in specific goods, a security44 interest in specific goods and software used in the goods, a security45 interest in specific goods and license of software used in the goods,46 a lease of specific goods, or a lease of specific goods and license of47 software used in the goods. In this paragraph, "monetary obligation"48 means a monetary obligation secured by the goods or owed under a lease49 of the goods and includes a monetary obligation with respect to software50

7 used in the goods. The term does not include: (i) charters or other con-1 tracts involving the use or hire of a vessel; or (ii) records that evi-2 dence a right to payment arising out of the use of a credit or charge card3 or information contained on or for use with the card. If a transaction4 is evidenced by records that include an instrument or series of instru-5 ments, the group of records taken together constitutes chattel paper.6 (12) "Collateral" means the property subject to a security interest or7 agricultural lien. The term includes:8 (A) proceeds to which a security interest attaches;9 (B) accounts, chattel paper, payment intangibles, and promissory10 notes that have been sold; and11 (C) goods that are the subject of a consignment.12 (13) "Commercial tort claim" means a claim arising in tort with respect13 to which:14 (A) the claimant is an organization; or15 (B) the claimant is an individual and the claim:16 (i) arose in the course of the claimant's business or pro-17 fession; and18 (ii) does not include damages arising out of personal injury19 to or the death of an individual.20 (14) "Commodity account" means an account maintained by a commodity in-21 termediary in which a commodity contract is carried for a commodity cus-22 tomer.23 (15) "Commodity contract" means a commodity futures contract, an option24 on a commodity futures contract, a commodity option, or another con-25 tract if the contract or option is:26 (A) traded on or subject to the rules of a board of trade that has27 been designated as a contract market for such a contract pursuant28 to federal commodities laws; or29 (B) traded on a foreign commodity board of trade, exchange, or30 market, and is carried on the books of a commodity intermediary for31 a commodity customer.32 (16) "Commodity customer" means a person for which a commodity interme-33 diary carries a commodity contract on its books.34 (17) "Commodity intermediary" means a person that:35 (A) is registered as a futures commission merchant under federal36 commodities law; or37 (B) in the ordinary course of its business provides clearance or38 settlement services for a board of trade that has been designated39 as a contract market pursuant to federal commodities law.40 (18) "Communicate" means:41 (A) to send a written or other tangible record;42 (B) to transmit a record by any means agreed upon by the persons43 sending and receiving the record; or44 (C) in the case of transmission of a record to or by a filing of-45 fice, to transmit a record by any means prescribed by filing office46 rule.47 (19) "Consignee" means a merchant to which goods are delivered in a con-48 signment.49

8 (20) "Consignment" means a transaction, regardless of its form, in1 which a person delivers goods to a merchant for the purpose of sale and:2 (A) the merchant:3 (i) deals in goods of that kind under a name other than the4 name of the person making delivery;5 (ii) is not an auctioneer; and6 (iii) is not generally known by its creditors to be substan-7 tially engaged in selling the goods of others;8 (B) with respect to each delivery, the aggregate value of the9 goods is one thousand dollars ($1,000) or more at the time of de-10 livery;11 (C) the goods are not consumer goods immediately before delivery;12 and13 (D) the transaction does not create a security interest that se-14 cures an obligation.15 (21) "Consignor" means a person that delivers goods to a consignee in a16 consignment.17 (22) "Consumer debtor" means a debtor in a consumer transaction.18 (23) "Consumer goods" means goods that are used or bought for use pri-19 marily for personal, family or household purposes.20 (24) "Consumer goods transaction" means a consumer transaction in21 which:22 (A) an individual incurs an obligation primarily for personal,23 family or household purposes; and24 (B) a security interest in consumer goods secures the obligation.25 (25) "Consumer obligor" means an obligor who is an individual and who26 incurred the obligation as part of a transaction entered into primarily27 for personal, family or household purposes.28 (26) "Consumer transaction" means a transaction in which: (i) an indi-29 vidual incurs an obligation primarily for personal, family or household30 purposes; (ii) a security interest secures the obligation; and (iii)31 the collateral is held or acquired primarily for personal, family or32 household purposes. The term includes consumer goods transactions.33 (27) "Continuation statement" means an amendment of a financing state-34 ment which:35 (A) identifies, by its file number, the initial financing state-36 ment to which it relates; and37 (B) indicates that it is a continuation statement for, or that it38 is filed to continue the effectiveness of, the identified financ-39 ing statement.40 (28) "Debtor" means:41 (A) a person having an interest, other than a security interest42 or other lien, in the collateral, whether or not the person is an43 obligor;44 (B) a seller of accounts, chattel paper, payment intangibles or45 promissory notes; or46 (C) a consignee.47 (29) "Deposit account" means a demand, time, savings, passbook, or sim-48 ilar account maintained with a bank. The term does not include invest-49

9 ment property, or accounts evidenced by an instrument, or programmable1 money.2 (30) "Document" means a document of title or a receipt of the type de-3 scribed in section 28-7-201(b), Idaho Code.4 (31) "Electronic chattel paper" means chattel paper evidenced by a5 record or records consisting of information stored in an electronic6 medium.7 (32) "Encumbrance" means a right, other than an ownership interest,8 in real property. The term includes mortgages and other liens on real9 property.10 (33) "Equipment" means goods other than inventory, farm products or11 consumer goods.12 (34) "Farm products" means goods, other than standing timber, with re-13 spect to which the debtor is engaged in a farming operation and which14 are:15 (A) crops grown, growing, or to be grown, including:16 (i) crops produced on trees, vines and bushes; and17 (ii) aquatic goods produced in aquacultural operations;18 (B) livestock, born or unborn, including aquatic goods produced19 in aquacultural operations;20 (C) supplies used or produced in a farming operation; or21 (D) products of crops or livestock in their unmanufactured22 states.23 (35) "Farming operation" means raising, cultivating, propagating, fat-24 tening, grazing, or any other farming, livestock, or aquacultural oper-25 ation.26 (36) "File number" means the number assigned to an initial financing27 statement pursuant to section 28-9-519(a), Idaho Code.28 (37) "Filing office" means an office designated in section 28-9-501,29 Idaho Code, as the place to file a financing statement.30 (38) "Filing office rule" means a rule adopted pursuant to section 28-9-31 526, Idaho Code.32 (39) "Financing statement" means a record or records composed of an ini-33 tial financing statement and any filed record relating to the initial34 financing statement.35 (40) "Fixture filing" means the filing of a financing statement cov-36 ering goods that are or are to become fixtures and satisfying section37 28-9-502(a) and (b), Idaho Code. The term includes the filing of a fi-38 nancing statement covering goods of a transmitting utility which are or39 are to become fixtures.40 (41) "Fixtures" means goods that have become so related to particular41 real property that an interest in them arises under real property law.42 (42) "General intangible" means any personal property, including43 things in action, other than accounts, chattel paper, commercial tort44 claims, deposit accounts, documents, goods, instruments, investment45 property, letter of credit rights, letters of credit, money, and oil,46 gas, or other minerals before extraction. The term includes payment47 intangibles and software.48 (43) "Good faith" means honesty in fact and the observance of reasonable49 commercial standards of fair dealing.50

10 (44) "Goods" means all things that are movable when a security inter-1 est attaches. The term includes: (i) fixtures; (ii) standing timber2 that is to be cut and removed under a conveyance or contract for sale;3 (iii) the unborn young of animals; (iv) crops grown, growing, or to be4 grown, even if the crops are produced on trees, vines or bushes; and (v)5 manufactured homes. The term also includes a computer program embed-6 ded in goods and any supporting information provided in connection with7 a transaction relating to the program if: (i) the program is associ-8 ated with the goods in such a manner that it customarily is considered9 part of the goods; or (ii) by becoming the owner of the goods, a person10 acquires a right to use the program in connection with the goods. The11 term does not include a computer program embedded in goods that consist12 solely of the medium in which the program is embedded. The term also13 does not include accounts, chattel paper, commercial tort claims, de-14 posit accounts, documents, general intangibles, instruments, invest-15 ment property, letter of credit rights, letters of credit, money, or16 oil, gas, or other minerals before extraction.17 (45) "Governmental unit" means a subdivision, agency, department,18 county, parish, municipality, or other unit of the government of the19 United States, a state, or a foreign country. The term includes an or-20 ganization having a separate corporate existence if the organization is21 eligible to issue debt on which interest is exempt from income taxation22 under the laws of the United States.23 (46) "Health care insurance receivable" means an interest in or claim24 under a policy of insurance which is a right to payment of a monetary25 obligation for health care goods or services provided or to be provided.26 (47) "Instrument" means a negotiable instrument or any other writing27 that evidences a right to the payment of a monetary obligation, is not28 itself a security agreement or lease, and is of a type that in the ordi-29 nary course of business is transferred by delivery with any necessary30 indorsement or assignment. The term does not include: (i) investment31 property; (ii) letters of credit; or (iii) writings that evidence a32 right to payment arising out of the use of a credit or charge card or33 information contained on or for use with the card.34 (48) "Inventory" means goods, other than farm products, which:35 (A) are leased by a person as lessor;36 (B) are held by a person for sale or lease or to be furnished under37 a contract of service;38 (C) are furnished by a person under a contract of service; or39 (D) consist of raw materials, work in process, or materials used40 or consumed in a business.41 (49) "Investment property" means a security, whether certificated or42 uncertificated, security entitlement, securities account, commodity43 contract or commodity account.44 (50) "Jurisdiction of organization," with respect to a registered or-45 ganization, means the jurisdiction under whose law the organization is46 formed or organized.47 (51) "Letter of credit right" means a right to payment or performance48 under a letter of credit, whether or not the beneficiary has demanded or49 is at the time entitled to demand payment or performance. The term does50

11 not include the right of a beneficiary to demand payment or performance1 under a letter of credit.2 (52) "Lien creditor" means:3 (A) a creditor that has acquired a lien on the property involved by4 attachment, levy, or the like;5 (B) an assignee for benefit of creditors from the time of assign-6 ment;7 (C) a trustee in bankruptcy from the date of the filing of the pe-8 tition; or9 (D) a receiver in equity from the time of appointment.10 (53) "Manufactured home" means a structure, transportable in one (1) or11 more sections, which, in the traveling mode, is eight (8) body feet or12 more in width or forty (40) body feet or more in length, or, when erected13 on site, is three hundred twenty (320) or more square feet, and which14 is built on a permanent chassis and designed to be used as a dwelling15 with or without a permanent foundation when connected to the required16 utilities, and includes the plumbing, heating, air conditioning, and17 electrical systems contained therein. The term includes any structure18 that meets all of the requirements of this paragraph except the size re-19 quirements and with respect to which the manufacturer voluntarily files20 a certification required by the United States secretary of housing and21 urban development and complies with the standards established under ti-22 tle 42 of the United States Code.23 (54) "Manufactured home transaction" means a secured transaction:24 (A) that creates a purchase-money security interest in a manufac-25 tured home, other than a manufactured home held as inventory; or26 (B) in which a manufactured home, other than a manufactured home27 held as inventory, is the primary collateral.28 (55) "Mortgage" means a consensual interest in real property, including29 fixtures, which secures payment or performance of an obligation.30 (56) "New debtor" means a person that becomes bound as debtor under sec-31 tion 28-9-203(d), Idaho Code, by a security agreement previously en-32 tered into by another person.33 (57) "New value" means: (i) money; (ii) money's worth in property, ser-34 vices or new credit; or (iii) release by a transferee of an interest in35 property previously transferred to the transferee. The term does not36 include an obligation substituted for another obligation.37 (58) "Noncash proceeds" means proceeds other than cash proceeds.38 (59) "Obligor" means a person that, with respect to an obligation39 secured by a security interest in or an agricultural lien on the col-40 lateral: (i) owes payment or other performance of the obligation; (ii)41 has provided property other than the collateral to secure payment or42 other performance of the obligation; or (iii) is otherwise accountable43 in whole or in part for payment or other performance of the obligation.44 The term does not include issuers or nominated persons under a letter of45 credit.46 (60) "Original debtor," except as used in section 28-9-310(c), Idaho47 Code, means a person that, as debtor, entered into a security agreement48 to which a new debtor has become bound under section 28-9-203(d), Idaho49 Code.50

12 (61) "Payment intangible" means a general intangible under which the1 account debtor's principal obligation is a monetary obligation.2 (62) "Person related to," with respect to an individual, means:3 (A) the spouse of the individual;4 (B) a brother, brother-in-law, sister, or sister-in-law of the5 individual;6 (C) an ancestor or lineal descendant of the individual or the in-7 dividual's spouse; or8 (D) any other relative, by blood or marriage, of the individual or9 the individual's spouse who shares the same home with the individ-10 ual.11 (63) "Person related to," with respect to an organization, means:12 (A) a person directly or indirectly controlling, controlled by,13 or under common control with the organization;14 (B) an officer or director of, or a person performing similar15 functions with respect to, the organization;16 (C) an officer or director of, or a person performing similar17 functions with respect to, a person described in subparagraph (A)18 of this paragraph;19 (D) the spouse of an individual described in subparagraph (A), (B)20 or (C) of this paragraph; or21 (E) an individual who is related by blood or marriage to an indi-22 vidual described in subparagraph (A), (B), (C) or (D) of this para-23 graph and shares the same home with the individual.24 (64) "Proceeds" means the following property:25 (A) whatever is acquired upon the sale, lease, license, exchange26 or other disposition of collateral;27 (B) whatever is collected on, or distributed on account of, col-28 lateral;29 (C) rights arising out of collateral;30 (D) to the extent of the value of collateral, claims arising out of31 the loss, nonconformity, or interference with the use of, defects32 or infringement of rights in, or damage to, the collateral; or33 (E) to the extent of the value of collateral and to the extent34 payable to the debtor or the secured party, insurance payable by35 reason of the loss or nonconformity of, defects or infringement of36 rights in, or damage to, the collateral.37 (65) "Promissory note" means an instrument that evidences a promise to38 pay a monetary obligation, does not evidence an order to pay, and does39 not contain an acknowledgment by a bank that the bank has received for40 deposit a sum of money or funds.41 (66) "Proposal" means a record authenticated by a secured party which42 includes the terms on which the secured party is willing to accept col-43 lateral in full or partial satisfaction of the obligation it secures44 pursuant to sections 28-9-620, 28-9-621 and 28-9-622, Idaho Code.45 (67) "Public-finance transaction" means a secured transaction in con-46 nection with which:47 (A) debt securities are issued;48 (B) all or a portion of the securities issued have an initial49 stated maturity of at least twenty (20) years; and50

13 (C) the debtor, obligor, secured party, account debtor or other1 person obligated on collateral, assignor or assignee of a secured2 obligation, or assignor or assignee of a security interest is a3 state or a governmental unit of a state.4 (68) "Public organic record" means a record that is available to the5 public for inspection and that is:6 (A) a record consisting of the record initially filed with or is-7 sued by a state or the United States to form or organize an organ-8 ization and any record filed with or issued by the state or the9 United States which amends or restates the initial record;10 (B) an organic record of a business trust consisting of the record11 initially filed with a state and any record filed with the state12 which amends or restates the initial record, if a statute of the13 state governing business trusts requires that the record be filed14 with the state; or15 (C) a record consisting of legislation enacted by the legislature16 of a state or the congress of the United States which forms or or-17 ganizes an organization, any record amending the legislation, and18 any record filed with or issued by the state or United States which19 amends or restates the name of the organization.20 (69) "Pursuant to commitment," with respect to an advance made or other21 value given by a secured party, means pursuant to the secured party's22 obligation, whether or not a subsequent event of default or other event23 not within the secured party's control has relieved or may relieve the24 secured party from its obligation.25 (70) "Record," except as used in "for record," "of record," "record or26 legal title," and "record owner," means information that is inscribed27 on a tangible medium or which is stored in an electronic or other medium28 and is retrievable in perceivable form.29 (71) "Registered organization" means an organization formed or orga-30 nized solely under the law of a single state or the United States by the31 filing of a public organic record with, the issuance of a public or-32 ganic record by, or the enactment of legislation by the state or United33 States. The term includes a business trust that is formed or organized34 under the law of a single state if a statute of the state governing busi-35 ness trusts requires that the business trust's organic record be filed36 with the state.37 (72) "Secondary obligor" means an obligor to the extent that:38 (A) the obligor's obligation is secondary; or39 (B) the obligor has a right of recourse with respect to an obliga-40 tion secured by collateral against the debtor, another obligor, or41 property of either.42 (73) "Secured party" means:43 (A) a person in whose favor a security interest is created or pro-44 vided for under a security agreement, whether or not any obliga-45 tion to be secured is outstanding;46 (B) a person that holds an agricultural lien;47 (C) a consignor;48 (D) a person to which accounts, chattel paper, payment intangi-49 bles or promissory notes have been sold;50

14 (E) a trustee, indenture trustee, agent, collateral agent, or1 other representative in whose favor a security interest or agri-2 cultural lien is created or provided for; or3 (F) a person that holds a security interest arising under sec-4 tion 28-2-401, 28-2-505, 28-2-711(3), 28-4-210, 28-5-120 or5 28-12-508(5), Idaho Code.6 (74) "Security agreement" means an agreement that creates or provides7 for a security interest.8 (75) "Send," in connection with a record or notification, means:9 (A) to deposit in the mail, deliver for transmission, or trans-10 mit by any other usual means of communication, with postage or cost11 of transmission provided for, addressed to any address reasonable12 under the circumstances; or13 (B) to cause the record or notification to be received within the14 time that it would have been received if properly sent under sub-15 paragraph (A) of this paragraph.16 (76) "Software" means a computer program and any supporting information17 provided in connection with a transaction relating to the program. The18 term does not include a computer program that is included in the defini-19 tion of goods.20 (77) "State" means a state of the United States, the District of Colum-21 bia, Puerto Rico, the United States Virgin Islands, or any territory or22 insular possession subject to the jurisdiction of the United States.23 (78) "Supporting obligation" means a letter of credit right or sec-24 ondary obligation that supports the payment or performance of an ac-25 count, chattel paper, a document, a general intangible, an instrument26 or investment property.27 (79) "Tangible chattel paper" means chattel paper evidenced by a record28 or records consisting of information that is inscribed on a tangible29 medium.30 (80) "Termination statement" means an amendment of a financing state-31 ment which:32 (A) identifies, by its file number, the initial financing state-33 ment to which it relates; and34 (B) indicates either that it is a termination statement or that35 the identified financing statement is no longer effective.36 (81) "Transmitting utility" means a person primarily engaged in the37 business of:38 (A) operating a railroad, subway, street railway, or trolley bus;39 (B) transmitting communications electrically, electromagneti-40 cally or by light;41 (C) transmitting goods by pipeline or sewer; or42 (D) transmitting or producing and transmitting electricity,43 steam, gas or water.44 (b) "Control" as provided in section 28-7-106, Idaho Code, and the fol-45 lowing definitions in other chapters apply to this chapter:46 "Applicant"47 section 28-5-102, Idaho Code. "Beneficiary"48 section 28-5-102, Idaho Code. "Broker"49 section 28-8-102, Idaho Code.

15 "Certificated security"1 section 28-8-102, Idaho Code. "Check"2 section 28-3-104, Idaho Code. "Clearing corporation"3 section 28-8-102, Idaho Code. "Contract for sale"4 section 28-2-106, Idaho Code. "Customer"5 section 28-4-104, Idaho Code. "Entitlement holder"6 section 28-8-102, Idaho Code. "Financial asset"7 section 28-8-102, Idaho Code. "Holder in due course"8 section 28-3-302, Idaho Code. "Issuer" (with respect to a letter of credit9 or letter of credit right)10 section 28-5-102, Idaho Code. "Issuer" (with respect to a security)11 section 28-8-201, Idaho Code. "Issuer" (with respect to documents12 of title)13 section 28-7-102, Idaho Code. "Lease"14 section 28-12-103, Idaho Code. "Lease agreement"15 section 28-12-103, Idaho Code. "Lease contract"16 section 28-12-103, Idaho Code. "Leasehold interest"17 section 28-12-103, Idaho Code. "Lessee"18 section 28-12-103, Idaho Code. "Lessee in ordinary course of business"19 section 28-12-103, Idaho Code. "Lessor"20 section 28-12-103, Idaho Code. "Lessor's residual interest"21 section 28-12-103, Idaho Code. "Letter of credit"22 section 28-5-102, Idaho Code. "Merchant"23 section 28-2-104, Idaho Code. "Negotiable instrument"24 section 28-3-104, Idaho Code. "Nominated person"25 section 28-5-102, Idaho Code. "Note"26 section 28-3-104, Idaho Code. "Proceeds of a letter of credit"27 section 28-5-114, Idaho Code. "Prove"28 section 28-3-103, Idaho Code. "Sale"29 section 28-2-106, Idaho Code. "Securities account"30 section 28-8-501, Idaho Code. "Securities intermediary"31 section 28-8-102, Idaho Code. "Security"32 section 28-8-102, Idaho Code. "Security certificate"33 section 28-8-102, Idaho Code. "Security entitlement"34 section 28-8-102, Idaho Code. "Uncertificated security"35 section 28-8-102, Idaho Code. (c) Chapter 1, title 28, Idaho Code, contains general definitions and36 principles of construction and interpretation applicable throughout this37 chapter.38

SECTION 3. That Title 28, Idaho Code, be, and the same is hereby amended39 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-40 ter 54, Title 28, Idaho Code, and to read as follows:41

16 CHAPTER 541 CONSUMER PAYMENT RIGHTS AND TRANSPARENCY ACT2 28-5401. DEFINITIONS. As used in this chapter:3 (1) "Automation" means actions used by, on behalf of, or in support of4 an issuer by computer code, algorithms, or artificial intelligence for the5 issuer, the issuer's products, or the issuer's affiliates.6 (2) "Issuer" means any person or entity that creates, controls, or dis-7 tributes programmable money.8 (3) "Programmable money" means money or currency that can be encoded9 with specific rules and conditions that allow it to be automatically con-10 trolled and used according to predefined parameters, including:11 (a) The capability to deny or approve a specific transaction;12 (b) Allowing user-specific restrictions on location, time, use, and13 identity of the transaction or parties to the transaction;14 (c) Expiring or diminishing, instead of being subject to ordinary in-15 flation; or16 (d) Being used to implement a social credit score system.17 (4) "Social credit score system" means a system to monitor the behavior18 of persons in order to restrict access to financial services using a rating19 or score based on lawful activities or factors, including but not limited to:20 (a) The factors described in section 28-5402(1)(b), Idaho Code;21 (b) The manufacture, distribution, sale, purchase, or use of firearms,22 including firearm accessories and ammunition;23 (c) Fossil fuel or agricultural activities;24 (d) Lawful advocacy of the state or federal government;25 (e) Refusal to participate in or to meet social governance standards,26 environmental standards, or employment composition standards, pro-27 vided the person is in compliance with applicable state and federal law;28 and29 (f) Participation in or refusal to participate in social justice pro-30 grams, such as diversity, equity, and inclusion.31 28-5402. PROGRAMMABLE MONEY -- UNLAWFUL ACTS AND PRACTICES. (1) It32 shall be a violation of the provisions of this chapter for an issuer to:33 (a) Require the use of programmable money for any transaction without34 offering a non-digital alternative free of charge;35 (b) Deny a transaction based on the following factors:36 (i) Sex, race, or ethnicity;37 (ii) Political opinion, speech, religion, or affiliations;38 (iii) Medical history, including vaccination status;39 (iv) Purchase and browsing history;40 (v) Geographical location;41 (vi) A person's trade, profession, or business activity;42 (vii) Application of a social credit score system or similar eval-43 uation; or44 (viii) Any other lawful activity; or45 (c) Cause or allow, through an act or omission, the denial of a trans-46 action based on criteria listed in paragraph (b) of this subsection,47 through direct action, automation, or programming.48

17 (2) If an issuer denies a transaction, a party may request a statement1 of specific reason within ninety (90) days of the denial.2 (3) If a statement of specific reason is requested pursuant to subsec-3 tion (2) of this section, the issuer shall respond with a statement of spe-4 cific reason within thirty (30) days of receiving the request. Such state-5 ment shall include:6 (a) The reason for the denial with a detailed description and citation7 to the specific terms of service that were the basis for the denial;8 (b) A phone number, email address, and physical address where the re-9 questing party can further inquire; and10 (c) A copy of the terms of service.11 28-5403. REMEDIES. (1) An aggrieved party, pursuant to a violation of12 this chapter, may bring a civil action for declaratory or injunctive relief13 and may recover actual and punitive damages against the violating party.14 (2) In an action pursuant to this chapter, the prevailing party, upon15 each separate cause of action, shall recover reasonable attorney's fees.16 (3) If the court finds, by a preponderance of the evidence, that the de-17 fendant acted intentionally or knowingly or repeatedly violated the provi-18 sions of this chapter, the court may order revocation of the defendant's au-19 thorization to conduct business in Idaho.20 28-5404. CRIMINAL PENALTIES. (1) An issuer who violates the provi-21 sions of this chapter is guilty of a misdemeanor and, upon conviction, may be22 sentenced to pay a fine of ten thousand dollars ($10,000) per violation, to23 imprisonment not exceeding one (1) year, or both such fine and imprisonment.24 (2) Pursuant to section 28-5402(1), Idaho Code, each denial or failed25 transaction not justified constitutes a separate offense.26 (3) Nothing in this section shall be construed to prohibit a pro-27 grammable money issuer the ability to decline a transaction that constitutes28 a criminal offense or payment for a criminal act.29 (4) Nothing in this chapter shall be construed to prohibit the purchase30 or sale of cryptocurrency or other assets by public or private parties.31

SECTION 4. SEVERABILITY. The provisions of this act are hereby declared32 to be severable and if any provision of this act or the application of such33 provision to any person or circumstance is declared invalid for any reason,34 such declaration shall not affect the validity of the remaining portions of35 this act.36

SECTION 5. An emergency existing therefor, which emergency is hereby37 declared to exist, this act shall be in full force and effect on and after38 July 1, 2026.39