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
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.