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AB9782 Summary:

BILL NOA09782
 
SAME ASNo Same As
 
SPONSORVanel
 
COSPNSRSepulveda, Seawright, Mosley, Ra
 
MLTSPNSRCook
 
Add 4-b, St Fin L
 
Establishes that state agencies are allowed to accept cryptocurrencies such as bitcoin, ethereum, litecoin and bitcoin cash as payment.
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AB9782 Actions:

BILL NOA09782
 
02/07/2018referred to governmental operations
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AB9782 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9782
 
SPONSOR: Vanel
  TITLE OF BILL: An act to amend the state finance law, in relation to allowing New York state agencies to accept cryptocurrencies as a form of payment   PURPOSE OR GENERAL IDEA OF BILL: Relates to establishing cryptocurrencies as a form of payment for state agencies.   SUMMARY OF PROVISIONS: Section 1 amends the state finance law to add a new section 4-b Section 2 states that the act shall effect ninety days after it shall have become a law.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): N/A   JUSTIFICATION: In New York State there are many cryptocurrency related transactions. There are a number of exchanges that operate under our Bitlicense. The exchanges under the New York license, allow New Yorkers to buy and sell a number of cryptocurrencies. Additionally in our state, there are hundreds of Bitcoin ATM machines in local stores. And, numerous compa- nies and stores accept cryptocurrency as payments. New York State collects fees, fines and charges. This bill would create a task force to study the possibility of New York State accepting such payments in cryptocurrency such as Bitcoin, Ethere- um, Bitcoin Cash and Litecoin.   PRIOR LEGISLATIVE HISTORY: N/A   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined   EFFECTIVE DATE: Effective ninety days after signed into law
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AB9782 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9782
 
                   IN ASSEMBLY
 
                                    February 7, 2018
                                       ___________
 
        Introduced  by M. of A. VANEL -- read once and referred to the Committee
          on Governmental Operations
 
        AN ACT to amend the state finance law, in relation to allowing New  York
          state agencies to accept cryptocurrencies as a form of payment
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The state finance law is amended by adding  a  new  section
     2  4-b to read as follows:
     3    §  4-b.  Cryptocurrency  as a form of payment. 1. The following terms,
     4  when used or referred to in this section, shall have the following mean-
     5  ings:
     6    a. "Cryptocurrency" means  any  form  of  digital  currency  in  which
     7  encryption  techniques  are  used to regulate the generation of units of
     8  currency and verify the transfer of funds, operating independently of  a
     9  central  bank  including but not limited to, bitcoin, ethereum, litecoin
    10  and bitcoin cash.
    11    b. "Cryptocurrency issuer" means an issuer of any form  of  cryptocur-
    12  rency,  including  but  not  limited to, bitcoin, ethereum, litecoin and
    13  bitcoin cash.
    14    c. "Person" means an individual, partnership, corporation or any other
    15  legal or commercial entity.
    16    2. Each state agency is  authorized  to  enter  into  agreements  with
    17  persons to provide the acceptance, by offices of the state, of crytocur-
    18  rency  as  a  means  of  payment of fines, civil penalties, rent, rates,
    19  taxes, fees, charges, revenue, financial obligations or  other  amounts,
    20  including  penalties,  special  assessments  and interest, owed to state
    21  agencies. Any such agreement shall govern the terms and conditions  upon
    22  which  cyrptocurrency  proffered  as a means of payment of a fine, civil
    23  penalties, rent, rate, tax, fee, charge, revenue,  financial  obligation
    24  or  other  amount,  including penalties, special assessment or interest,
    25  shall be accepted or declined and the  manner  in  and  conditions  upon
    26  which such person or cryptocurrency issuer shall pay to such state agen-
    27  cy  such  amount  of  fines,  civil penalties, rent, rates, taxes, fees,
    28  charges, revenue, financial  obligations  or  other  amounts,  including
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14554-01-8

        A. 9782                             2
 
     1  penalties,  special  assessment or interest, paid by means of cryptocur-
     2  rency pursuant to such agreement.
     3    3.  Any state agency which has entered into an agreement with a person
     4  or cryptocurrency issuer as authorized by the provisions of  subdivision
     5  two  of  this section may accept cryptocurrency as a means of payment of
     6  fines, civil penalties, rent,  rates,  taxes,  fees,  charges,  revenue,
     7  financial  obligations  or  other  amounts, including penalties, special
     8  assessment or interest, as provided in such agreement and may  pay  such
     9  fees as are specified in such agreement to such cryptocurrency issuer in
    10  consideration  of  the  services  rendered by such cryptocurrency issuer
    11  thereunder. Notwithstanding any other provision of law to the  contrary,
    12  it  shall  be  the  option  of  the  state to require, as a condition of
    13  accepting payment by cryptocurrency, that such person  offering  payment
    14  by  such  means  pay  a  service  fee  to  the state not exceeding costs
    15  incurred by the state in  connection  with  the  cryptocurrency  payment
    16  transaction,  including  any fee owed by the state to the cryptocurrency
    17  issuer arising from that transaction.
    18    4. The underlying debt,  lien,  obligation,  bill,  account  or  other
    19  amount owed to the state for which payment by cryptocurrency is accepted
    20  by  the  state shall not be expunged, cancelled, released, discharged or
    21  satisfied, and any receipt or other evidence of payment shall be  deemed
    22  conditional,  until  the  state  has  received  final  and unconditional
    23  payment of the full amount due from the cryptocurency  issuer  for  such
    24  cryptocurrency transaction.
    25    § 2. This act shall take effect ninety days after it shall have become
    26  a  law.  Effective immediately, the addition, amendment and/or repeal of
    27  any rule or regulation necessary for the implementation of this  act  on
    28  its  effective date are authorized and directed to be made and completed
    29  on or before such effective date.
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