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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 57
2025-2026
Senator O'Brien
A
BILL
To
amend
sections
9.16, 113.40, and
2981.12
and to enact
sections
135.146
and 5703.83
of the Revised Code
to
authorize investment of state funds in bitcoin, to require state
entities to accept payment in cryptocurrency, and to name this act
the Ohio Bitcoin Reserve Act.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections
9.16, 113.40, and
2981.12
be amended and
sections
135.146
and 5703.83
of the Revised Code be enacted to read as follows:
Sec.
9.16.
(A)
As used in this section:
(1)
"Governmental
entity" means the state or a political subdivision.
(2)
"Political
subdivision" has the same meaning as in section 9.48 of the
Revised Code.
(3)
"State"
has the same meaning as in section 2744.01 of the Revised Code.
(B)
A governmental entity may utilize distributed ledger technology,
including blockchain technology, in the exercise of its authority.
(C)
A governmental entity shall accept cryptocurrency, as approved by the
tax commissioner under section 5703.83 of the Revised Code, for the
payment of any tax, fee, cost, charge, assessment, fine, or other
payment of expense owed to the governmental entity. The governmental
entity may require the payer to pay any service fees associated with
the cryptocurrency transaction.
(D)
Upon receiving cryptocurrency as payment under division (C) of this
section, the governmental entity shall transfer the cryptocurrency to
the treasurer of state for investment in accordance with section
135.146 of the Revised Code. The treasurer of state shall reimburse
the governmental entity for the value of the cryptocurrency in United
States dollars from the Ohio bitcoin investment fund. If the
unencumbered balance of the Ohio bitcoin investment fund is
insufficient to reimburse the governmental entity, the director of
budget and management shall reimburse the remainder from the general
revenue fund.
Sec.
113.40.
(A)
As used in this section:
(1)
"Financial transaction device" includes a credit card,
debit card, charge card, prepaid or stored value card,
cryptocurrency,
or automated clearinghouse network credit, debit, or e-check entry
that includes, but is not limited to, accounts receivable and
internet-initiated, point of purchase, and telephone-initiated
applications, or any other device or method for making an electronic
payment or transfer of funds.
(2)
"State expenses" includes fees, costs, taxes, assessments,
fines, penalties, payments, or any other expense a person owes to a
state office under the authority of a state elected official or to a
state entity.
(3)
"State elected official" means the governor, lieutenant
governor, attorney general, secretary of state, treasurer of state,
and auditor of state.
(4)
"State entity" includes any state department, agency,
board, or commission that deposits funds into the state treasury.
(B)
Notwithstanding any other section of the Revised Code and subject to
division (D) of this section, the board of deposit may adopt a
resolution authorizing the acceptance of payments by financial
transaction device to pay for state expenses. The resolution shall
include all of the following:
(1)
A designation of those state elected officials and state entities
authorized to accept payments by financial transaction device;
(2)
A list of state expenses that may be paid by the use of a financial
transaction device;
(3)
Specific identification of financial transaction devices that a state
elected official or state entity may authorize as acceptable means of
payment for state expenses. Division (B)(3) of this section does not
require that the same financial transaction devices be accepted for
the payment of different types of state expenses.
(4)
The amount, if any, authorized as a surcharge or convenience fee
under division (E) of this section for persons using a financial
transaction device. Division (B)(4) of this section does not require
that the same surcharges or convenience fees be applied to the
payment of different types of state expenses.
(5)
A specific requirement, as provided in division (G) of this section,
for the payment of a penalty if a payment made by means of a
financial transaction device is returned or dishonored for any
reason.
The
board of deposit's resolution also shall designate the treasurer of
state as the administrative agent to solicit proposals, within
guidelines established by the board of deposit in the resolution and
in compliance with the procedures provided in division (C) of this
section, from financial institutions, issuers of financial
transaction devices, and processors of financial transaction devices;
to make recommendations about those proposals to the state elected
officials; and to assist state offices in implementing the state's
financial transaction device acceptance and processing program.
(C)
The administrative agent shall follow the procedures provided in this
division whenever it plans to contract with financial institutions,
issuers of financial transaction devices, or processors of financial
transaction devices for the purposes of this section. The
administrative agent shall request proposals from at least three
financial institutions, issuers of financial transaction devices, or
processors of financial transaction devices, as appropriate in
accordance with the resolution adopted under division (B) of this
section. Prior to sending any financial institution, issuer, or
processor a copy of any such request, the administrative agent shall
advertise its intent to request proposals for two consecutive weeks
by electronic publication on a state agency web site made available
to the general public. The notice shall state that the administrative
agent intends to request proposals; specify the purpose of the
request; indicate the date, which shall be at least ten days after
the publication, on which the request for proposals will be
electronically mailed to financial institutions, issuers, or
processors; and require that any financial institution, issuer, or
processor, whichever is appropriate, interested in receiving the
request for proposals submit written notice of this interest to the
administrative agent not later than the day on which the request for
proposals will be electronically mailed.
Upon
receiving the proposals, the administrative agent shall review them
and make a recommendation to the board of deposit regarding which
proposals to accept. The board of deposit shall consider the agent's
recommendation and review all proposals submitted, and then may
choose to contract with any or all of the entities submitting
proposals, as appropriate. The board of deposit shall provide any
financial institution, issuer, or processor that submitted a
proposal, but with which the board does not enter into a contract,
notice that its proposal is rejected.
(D)
The board of deposit shall send a copy of the resolution adopted
under division (B) of this section to each state elected official and
state entity authorized to accept payments for state expenses by
financial transaction device. After receiving the resolution and
before accepting such payments by financial transaction device, such
a state elected official or state entity shall provide written
notification to the administrative agent of the official's or
entity's intent to implement the resolution within the official's or
entity's office. Each state office or entity subject to the board's
resolution adopted under division (B) of this section shall use only
the financial institutions, issuers of financial transaction devices,
and processors of financial transaction devices with which the board
of deposit contracts, and each such office or entity is subject to
the terms of those contracts.
If
a state entity under the authority of a state elected official is
directly responsible for collecting one or more state expenses and
the state elected official determines not to accept payments by
financial transaction device for one or more of those expenses, the
office is not required to accept payments by financial transaction
device for those expenses, notwithstanding the adoption of a
resolution by the board of deposit under division (B) of this
section.
(E)
The board of deposit may establish a surcharge or convenience fee
that may be imposed upon a person making payment by a financial
transaction device. The surcharge or convenience fee shall not be
imposed unless authorized or otherwise permitted by the rules
prescribed under a contract, between the financial institution,
issuer, or processor and the administrative agent, governing the use
and acceptance of the financial transaction device.
The
establishment of a surcharge or convenience fee shall follow the
guidelines of the financial institution, issuer of financial
transaction devices, or processor of financial transaction devices
with which the board of deposit contracts.
If
a surcharge or convenience fee is imposed, every state entity
accepting payment by a financial transaction device, regardless of
whether that entity is subject to a resolution adopted by the board
of deposit, shall clearly post a notice in the entity's office, and
shall notify each person making a payment by such a device, about the
surcharge or fee. Notice to each person making a payment shall be
provided regardless of the medium used to make the payment and in a
manner appropriate to that medium. Each notice shall include all of
the following:
(1)
A statement that there is a surcharge or convenience fee for using a
financial transaction device;
(2)
The total amount of the charge or fee expressed in dollars and cents
for each transaction, or the rate of the charge or fee expressed as a
percentage of the total amount of the transaction, whichever is
applicable;
(3)
A clear statement that the surcharge or convenience fee is
nonrefundable.
(F)
If a person elects to make a payment by a financial transaction
device and a surcharge or convenience fee is imposed, the payment of
the surcharge or convenience fee is not refundable.
(G)
If a person makes payment by a financial transaction device and the
payment is returned or dishonored for any reason, the person is
liable to the state for the state expense and any reimbursable costs
for collection, including banking charges, legal fees, or other
expenses incurred by the state in collecting the returned or
dishonored payment. The remedies and procedures provided in this
section are in addition to any other available civil or criminal
remedies provided by law.
(H)
No person making any payment by a financial transaction device to a
state office shall be relieved from liability for the underlying
obligation, except to the extent that the state realizes final
payment of the underlying obligation in cash or its equivalent. If
final payment is not made by the financial transaction device issuer
or other guarantor of payment in the transaction, the underlying
obligation survives and the state shall retain all remedies for
enforcement that would have applied if the transaction had not
occurred.
(I)
A state entity or employee who accepts a financial transaction device
payment in accordance with this section and any applicable state or
local policies or rules is immune from personal liability for the
final collection of such payments as specified in section 9.87 of the
Revised Code.
(J)
If the board of deposit determines that it is necessary and in the
state's best interest to contract with an additional entity
subsequent to the contract award made under division (C) of this
section, the board may meet and choose to contract with one or more
additional entities for the remainder of the period previously
established by a contract award made under division (C) of this
section.
(K)
(K)(1)
A state entity that accepts cryptocurrency as payment of state
expenses shall convert the cryptocurrency to an equivalent value of
bitcoin, as defined in section 135.146 of the Revised Code, and
transfer the bitcoin to the credit of the Ohio bitcoin reserve fund.
(2)
The treasurer of state shall compensate a state entity for the
bitcoin in an equivalent value of United States dollars of the
bitcoin received.
(L)
The
administrative agent, in cooperation with the office of budget and
management, may adopt, amend, and rescind rules in accordance with
section 111.15 of the Revised Code to implement and administer this
section.
Sec.
135.146.
(A)
As used in this section:
(1)
"Bitcoin" means the decentralized digital asset created by
a peer-to-peer network, which operates with no central authority or
banks.
(2)
"Donor" means a resident of this state who gifts, grants,
donates, bequests, or devises bitcoin to the Ohio bitcoin reserve
fund.
(3)
"Private key" means a unique element of cryptographic data
used for signing transactions on a blockchain that is known to the
owner of the unique element.
(4)
"Political subdivision" has the same meaning as in section
2744.01 of the Revised Code.
(5)
"Secure custody solution" means a technological product or
blended product and service that has all of the following
characteristics:
(a)
The private keys that secure digital assets are exclusively known to,
and accessible by, the government entity.
(b)
The private keys that secure digital assets are exclusively contained
within an encrypted environment and are accessible only via
end-to-end encrypted channels.
(c)
The private keys that secure digital assets are not at any time
contained by, accessible by, or controllable via a smartphone or any
other unauthorized electronic means.
(d)
Any hardware that contains the private keys that secure digital
assets is maintained in at least two geographically diversified
locations.
(e)
The secure custody solution enforces a multi-party governance
structure for authorizing transactions, enforces user access
controls, and logs all user-initiated actions.
(f)
The provider of the secure custody solution has implemented a
disaster recovery protocol that ensures customer access to digital
assets in the event the provider becomes unavailable.
(g)
The secure custody solution undergoes regular code audits and
penetration testing from audit firms, and any identified
vulnerabilities are promptly remedied.
(6)
"Qualified custodian" means any federal or state-chartered
bank, trust company, or a company regulated by the state that has
custody of bitcoin.
(B)
The Ohio bitcoin reserve fund is created in the state treasury. The
fund shall consist of amounts transferred to it pursuant to section
2981.12 of the Revised Code and by acts of the general assembly. The
treasurer of state shall administer the Ohio bitcoin reserve fund in
accordance with the requirements of this section.
(C)
The treasurer of state may use the interim money of the state and
amounts deposited to the Ohio bitcoin reserve fund to acquire bitcoin
as an investment. The treasurer of state shall hold bitcoin acquired
under this section for at least five years following the date that
the bitcoin enters the state's custody. After the five-year holding
period, the treasurer of state may transfer, sell, appropriate, or
convert the bitcoin to another cryptocurrency.
(D)
Any bitcoin acquired as an investment under this section must be held
using a secure custody solution by either the treasurer of state or a
qualified custodian.
(E)
The treasurer of state may accept gifts, grants, and donations of
bitcoin from any of the following:
(1)
A resident of this state;
(2)
The state, a political subdivision, or an agency or instrumentality
of the state or a political subdivision;
(3)
A state institution of higher education, as defined in section
3345.011 of the Revised Code.
(F)
The treasurer of state shall develop a process by which donors may
contribute bitcoin to the Ohio bitcoin reserve fund. Upon request,
the treasurer of state may issue a certificate of acknowledgement to
a donor. The treasurer of state may also establish a recognition
program to publicly honor significant contributions made to the fund
by donors.
(G)(1)
The treasurer of state shall prepare a biennial report that includes
all of the following information:
(a)
The total amount of bitcoin held by the state as an investment under
this section;
(b)
The equivalent value of the bitcoin expressed in United States
dollars;
(c)
The net change in amount and value reported under divisions (G)(1)(a)
and (b) of this section since the last report;
(d)
Any transactions or expenditures related to this section since the
previous report;
(e)
Any security threats experienced in administering this section since
the previous report.
(2)
Not later than the thirty-first day of December of each even-numbered
year, the treasurer of state shall electronically publish the report
on the treasurer of state's web site and notify the general assembly
that the report is available.
(H)
The treasurer of state may adopt rules in accordance with Chapter
119. of the Revised Code to administer this section, including rules
concerning security protocols, reporting standards, donation
procedures, and a process for returning bitcoin contributed by any
person or entity other than those described in division (E) of this
section.
Sec.
2981.12.
(A)
Unclaimed or forfeited property in the custody of a law enforcement
agency, other than property described in division (A)(2) of section
2981.11 of the Revised Code, shall be disposed of by order of any
court of record that has territorial jurisdiction over the political
subdivision that employs the law enforcement agency, as follows:
(1)
Drugs shall be disposed of pursuant to section 3719.11 of the Revised
Code or placed in the custody of the secretary of the treasury of the
United States for disposal or use for medical or scientific purposes
under applicable federal law.
(2)
Firearms and dangerous ordnance suitable for police work may be given
to a law enforcement agency for that purpose. Firearms suitable for
sporting use or as museum pieces or collectors' items may be sold at
public auction pursuant to division (B) of this section. The agency
may sell other firearms and dangerous ordnance to a federally
licensed firearms dealer in a manner that the court considers proper.
The agency shall destroy any firearms or dangerous ordnance not given
to a law enforcement agency or sold or shall send them to the bureau
of criminal identification and investigation for destruction by the
bureau.
(3)
Obscene materials shall be destroyed.
(4)
Beer, intoxicating liquor, or alcohol seized from a person who does
not hold a permit issued under Chapters 4301. and 4303. of the
Revised Code or otherwise forfeited to the state for an offense under
section 4301.45 or 4301.53 of the Revised Code shall be sold by the
division of liquor control if the division determines that it is fit
for sale or shall be placed in the custody of the investigations unit
in the department of public safety and be used for training relating
to law enforcement activities. The department, with the assistance of
the division of liquor control, shall adopt rules in accordance with
Chapter 119. of the Revised Code to provide for the distribution to
state or local law enforcement agencies upon their request. If any
tax imposed under Title XLIII of the Revised Code has not been paid
in relation to the beer, intoxicating liquor, or alcohol, any moneys
acquired from the sale shall first be used to pay the tax. All other
money collected under this division shall be paid into the state
treasury. Any beer, intoxicating liquor, or alcohol that the division
determines to be unfit for sale shall be destroyed.
(5)
Money received by an inmate of a correctional institution from an
unauthorized source or in an unauthorized manner shall be returned to
the sender, if known, or deposited in the inmates' industrial and
entertainment fund of the institution if the sender is not known.
(6)(a)
Any mobile instrumentality forfeited under this chapter may be given
to the law enforcement agency that initially seized the mobile
instrumentality for use in performing its duties, if the agency wants
the mobile instrumentality. The agency shall take the mobile
instrumentality subject to any security interest or lien on the
mobile instrumentality.
(b)
Vehicles and vehicle parts forfeited under sections 4549.61 to
4549.63 of the Revised Code may be given to a law enforcement agency
for use in performing its duties. Those parts may be incorporated
into any other official vehicle. Parts that do not bear vehicle
identification numbers or derivatives of them may be sold or disposed
of as provided by rules of the director of public safety. Parts from
which a vehicle identification number or derivative of it has been
removed, defaced, covered, altered, or destroyed and that are not
suitable for police work or incorporation into an official vehicle
shall be destroyed and sold as junk or scrap.
(7)
Computers, computer networks, computer systems, and computer software
suitable for police work may be given to a law enforcement agency for
that purpose or disposed of under division (B) of this section.
(8)
Money seized in connection with a violation of section 2905.32,
2907.21, or 2907.22 of the Revised Code shall be deposited in the
victims of human trafficking fund created by section 5101.87 of the
Revised Code.
(9)
Bitcoin, as defined in section 135.146 of the Revised Code, may be
transferred to the Ohio bitcoin reserve fund created in section
131.62 of the Revised Code or disposed of under division (B) of this
section.
(B)
Unclaimed or forfeited property that is not described in division (A)
of this section or division (A)(2) of section 2981.11 of the Revised
Code, with court approval, may be used by the law enforcement agency
in possession of it. If it is not used by the agency, it may be sold
without appraisal at a public auction to the highest bidder for cash
or disposed of in another manner that the court considers proper.
(C)
Except as provided in divisions (A) and (F) of this section and after
compliance with division (D) of this section when applicable, any
moneys acquired from the sale of property disposed of pursuant to
this section shall be placed in the general revenue fund of the
state, or the general fund of the county, the township, or the
municipal corporation of which the law enforcement agency involved is
an agency.
(D)
If the property was in the possession of the law enforcement agency
in relation to a delinquent child proceeding in a juvenile court, ten
per cent of any moneys acquired from the sale of property disposed of
under this section shall be applied to one or more community
addiction services providers, as defined in section 5119.01 of the
Revised Code. A juvenile court shall not specify a services provider,
except as provided in this division, unless the services provider is
in the same county as the court or in a contiguous county. If no
services provider is located in any of those counties, the juvenile
court may specify a services provider anywhere in Ohio. The remaining
ninety per cent of the proceeds or cash shall be applied as provided
in division (C) of this section.
Each
services provider that receives in any calendar year forfeited money
under this division shall file an annual report for that year with
the attorney general and with the court of common pleas and board of
county commissioners of the county in which the services provider is
located and of any other county from which the services provider
received forfeited money. The services provider shall file the report
on or before the first day of March in the calendar year following
the calendar year in which the services provider received the money.
The report shall include statistics on the number of persons the
services provider served, identify the types of treatment services it
provided to them, and include a specific accounting of the purposes
for which it used the money so received. No information contained in
the report shall identify, or enable a person to determine the
identity of, any person served by the services provider.
(E)
Each community addiction services provider that receives in any
calendar year money under this section or under section 2981.13 of
the Revised Code as the result of a juvenile forfeiture order shall
file an annual report for that calendar year with the attorney
general and with the court of common pleas and board of county
commissioners of the county in which the services provider is located
and of any other county from which the services provider received the
money. The services provider shall file the report on or before the
first day of March in the calendar year following the year in which
the services provider received the money. The report shall include
statistics on the number of persons served with the money, identify
the types of treatment services provided, and specifically account
for how the money was used. No information in the report shall
identify or enable a person to determine the identity of anyone
served by the services provider.
As
used in this division, "juvenile-related forfeiture order"
means any forfeiture order issued by a juvenile court under section
2981.04 or 2981.05 of the Revised Code and any disposal of property
ordered by a court under section 2981.11 of the Revised Code
regarding property that was in the possession of a law enforcement
agency in relation to a delinquent child proceeding in a juvenile
court.
(F)
Each board of county commissioners that recognizes a citizens' reward
program under section 9.92 of the Revised Code shall notify each law
enforcement agency of that county and of a township or municipal
corporation wholly located in that county of the recognition by
filing a copy of its resolution conferring that recognition with each
of those agencies. When the board recognizes a citizens' reward
program and the county includes a part, but not all, of the territory
of a municipal corporation, the board shall so notify the law
enforcement agency of that municipal corporation of the recognition
of the citizens' reward program only if the county contains the
highest percentage of the municipal corporation's population.
Upon
being so notified, each law enforcement agency shall pay twenty-five
per cent of any forfeited proceeds or cash derived from each sale of
property disposed of pursuant to this section to the citizens' reward
program for use exclusively to pay rewards. No part of the funds may
be used to pay expenses associated with the program. If a citizens'
reward program that operates in more than one county or in another
state in addition to this state receives funds under this section,
the funds shall be used to pay rewards only for tips and information
to law enforcement agencies concerning offenses committed in the
county from which the funds were received.
Receiving
funds under this section or section 2981.11 of the Revised Code does
not make the citizens' reward program a governmental unit or public
office for purposes of section 149.43 of the Revised Code.
(G)
Any property forfeited under this chapter shall not be used to pay
any fine imposed upon a person who is convicted of or pleads guilty
to an underlying criminal offense or a different offense arising out
of the same facts and circumstances.
(H)
Any moneys acquired from the sale of personal effects, tools, or
other property seized because the personal effects, tools, or other
property were used in the commission of a violation of section
2905.32, 2907.21, or 2907.22 of the Revised Code or derived from the
proceeds of the commission of a violation of section 2905.32,
2907.21, or 2907.22 of the Revised Code and disposed of pursuant to
this section shall be placed in the victims of human trafficking fund
created by section 5101.87 of the Revised Code.
Sec.
5703.83.
(A)
As used in this section, "cryptocurrency" means a digital
representation of value that functions as a medium of exchange, unit
of account, or store of value, which may be bought, sold, or traded
securely, in which the generation of units is regulated, transactions
are verified, and records are maintained by a decentralized system
using cryptography, such as blockchain or similar distributed ledger
technology, and for which there is a reasonable expectation that it
will maintain a stable value relative to a fixed amount of monetary
value. "Cryptocurrency" does not include a national
currency.
(B)
The tax commissioner, on or before the thirtieth day of June of each
year, shall approve and publish on the department of taxation's web
site a list of cryptocurrencies acceptable for the payment of any
tax, fee, cost, charge, assessment, fine, or other payment of expense
under section 9.16 of the Revised Code.
Section
2.
That
existing
sections
9.16, 113.40, and
2981.12
of the Revised Code
are
hereby
repealed.
Section
3.
This
act shall be known as the Ohio Bitcoin Reserve Act.