NY State Senate Bill S5621A

Current Bill Status - In Senate Committee Ethics And Internal Governance Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (3)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 16, 2023	print number 5621a
Mar 16, 2023	amend and recommit to ethics and internal governance
Mar 09, 2023	referred to ethics and internal governance

Bill Amendments

Original

A (Active)

Original

A (Active)

S5621 - Details

See Assembly Version of this Bill:: A2873
Current Committee:: Senate Ethics And Internal Governance
Law Section:: Public Officers Law
Laws Affected:: Amd §73-a, Pub Off L
Versions Introduced in 2021-2022 Legislative Session:: S7272, A9086

S5621 - Summary

Relates to reporting of cryptocurrency holdings on the annual statement of financial disclosure filed with the legislative ethics commission or the joint commission on public ethics.

S5621 - Sponsor Memo

 
BILL NUMBER: S5621

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the public officers law, in relation to reporting of
cryptocurrency holdings on the annual statement of financial disclosure

 
PURPOSE:

The purpose of this bill is to close the loophole on cryptocurrency
assets, like bitcoin, on the state's financial disclosure statement and
add transparency regarding individuals' interest in this type of digital
financial property.

 
SUMMARY OF PROVISIONS:

A new paragraph 16-a is added to subdivision 3 of section 73-a of the
public officers law to require the reporting of type and market value of
cryptocurrencies held by the reporting individual, in excess of $1,000
at the close of the taxable year prior to the date of filing.  For
purposes of the bill, "cryptocurrency" is defined as a digital currency

in which encryption techniques are used to regulate the generation of
units and currency and verify the transfer of funds, operating independ-
ently from a central bank.

 
JUSTIFICATION:

In 2014 the Internal Revenue Service (IRS) ruled that the first non-cen-
tral bank digital cryptocurrency, known as bitcoin, be treated as prop-
erty for tax purposes. This meant that bitcoin would, henceforth, be
subject to capital gains tax. In July 2019, the IRS started sending
letters to cryptocurrency owners warning them to amend their returns and
pay taxes. Additionally, academic research has shown that bitcoin has
some characteristics more like the precious metals market than tradi-
tional currencies, signaling agreement with the IRS decision even if
based on different reasons.

Source: https://en.wikipedia.org/wiki/Cryptocurrency

Because cryptocurrency transactions can be made anonymously, they are
difficult to track and to regulate. They are increasingly popular tools
for cybercrimes and "ransomware," a kind of digital hijacking.  The
recent shutdown of the Colonial natural gas pipeline in the US southeast
was an international cyberattack by hackers who demanded payment via
cryptocurrency. This type of digital asset is designed to work as a
medium of exchange of units called "coins". The coins are stored in a
ledger existing in a form of a computerized database and is called a
"blockchain". Cryptocurrency does not exist in physical form (like paper
money) and is typically not issued by a central authority. Bitcoin is
the first decentralized cryptocurrency. Since the release of bitcoin,
many other cryptocurrencies have been created.

 
LEGISLATIVE HISTORY:

2022- S7272 (MAY) THIRD READING/A9086 (Kelles) Ref Gov Ops

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
January 1st after enactment

S5621 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5621
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2023
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Ethics and Internal Gover-
   nance
 
 AN ACT to amend the public officers law, in  relation  to  reporting  of
   cryptocurrency  holdings  on the annual statement of financial disclo-
   sure

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 73-a of the public officers law is
 amended by adding a new paragraph 16-a to read as follows:
   16-A. LIST BELOW THE TYPE AND MARKET VALUE OF CRYPTOCURRENCIES HELD BY
 THE REPORTING INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE IN EXCESS OF $1,000
 AT  THE  CLOSE  OF  THE TAXABLE YEAR LAST OCCURRING PRIOR TO THE DATE OF
 FILING. WHENEVER AN INTEREST IN CRYPTOCURRENCIES EXISTS THROUGH A  BENE-
 FICIAL  INTEREST  IN  A  TRUST,  THE CRYPTOCURRENCIES HELD IN SUCH TRUST
 SHALL BE LISTED ONLY IF THE REPORTING INDIVIDUAL HAS  KNOWLEDGE  THEREOF
 EXCEPT  WHERE  THE  REPORTING  INDIVIDUAL  OR THE REPORTING INDIVIDUAL'S
 SPOUSE HAS TRANSFERRED ASSETS TO SUCH TRUST FOR HIS OR  HER  BENEFIT  IN
 WHICH  EVENT  SUCH  CRYPTOCURRENCIES SHALL BE LISTED UNLESS THEY ARE NOT
 ASCERTAINABLE BY THE REPORTING INDIVIDUAL BECAUSE THE TRUSTEE  IS  UNDER
 AN  OBLIGATION  OR  HAS  BEEN  INSTRUCTED IN WRITING NOT TO DISCLOSE THE
 CONTENTS OF THE TRUST TO THE REPORTING INDIVIDUAL.  CRYPTOCURRENCIES  OF
 WHICH  THE  REPORTING INDIVIDUAL OR THE REPORTING INDIVIDUAL'S SPOUSE IS
 THE OWNER OF RECORD BUT IN WHICH SUCH INDIVIDUAL OR THE REPORTING  INDI-
 VIDUAL'S  SPOUSE  HAS  NO  BENEFICIAL INTEREST SHALL NOT BE LISTED. ALSO
 LIST CRYPTOCURRENCIES OWNED FOR INVESTMENT  PURPOSES  BY  A  CORPORATION
 MORE  THAN  FIFTY  PERCENT  (50%)  OF  THE  STOCK  OF  WHICH IS OWNED OR
 CONTROLLED BY THE REPORTING INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE.  FOR
 THE PURPOSES OF THIS ITEM THE TERM "CRYPTOCURRENCY" SHALL MEAN A DIGITAL
 CURRENCY  IN WHICH ENCRYPTION TECHNIQUES ARE USED TO REGULATE THE GENER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03465-01-3
 S. 5621                             2

 
 ATION OF UNITS AND CURRENCY AND VERIFY THE TRANSFER OF FUNDS,  OPERATING
 INDEPENDENTLY FROM A CENTRAL BANK.
 
                                         CATEGORY OF
                                         MARKET VALUE
                                         AS OF THE CLOSE
                                         OF THE TAXABLE
                                         YEAR LAST
                                         OCCURRING
                                         PRIOR TO
   SELF/        TYPE OF                  THE FILING OF
   SPOUSE       CRYPTOCURRENCY           THIS STATEMENT
                                         (IN TABLE II)
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
   §  2. This act shall take effect on the first of January next succeed-
 ing the date upon which it shall have become a law.

S5621A (ACTIVE) - Details

See Assembly Version of this Bill:: A2873
Current Committee:: Senate Ethics And Internal Governance
Law Section:: Public Officers Law
Laws Affected:: Amd §73-a, Pub Off L
Versions Introduced in 2021-2022 Legislative Session:: S7272, A9086

S5621A (ACTIVE) - Summary

Relates to reporting of cryptocurrency holdings on the annual statement of financial disclosure filed with the legislative ethics commission or the joint commission on public ethics.

S5621A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5621A

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the public officers law, in relation to reporting of
cryptocurrency holdings on the annual statement of financial disclosure

 
PURPOSE:

The purpose of this bill is to close the loophole on cryptocurrency
assets, like bitcoin, on the state's financial disclosure statement and
add transparency regarding individuals' interest in this type of digital
financial property.

 
SUMMARY OF PROVISIONS:

A new paragraph 16-a is added to subdivision 3 of section 73-a of the
public officers law to require the reporting of type and market value of
cryptocurrencies held by the reporting individual, in excess of $1,000,
at the close of the taxable year prior to the date of filing.

For purposes of the bill, "cryptocurrency" is defined as a digital
currency in which encryption techniques are used to regulate the gener-
ation of units and currency and verify the transfer of funds, operating
independently from a central bank.

 
JUSTIFICATION:

In 2014 the Internal Revenue Service (IRS) ruled that the first non-cen-
tral bank digital cryptocurrency, known as bitcoin, be treated as prop-
erty for tax purposes. This meant that bitcoin would henceforth be
subject to capital gains tax. In July 2019, the IRS started sending
letters to cryptocurrency owners warning them to amend their returns and
pay taxes. Additionally, academic research has shown that bitcoin has
some characteristics more like the precious metals market than tradi-
tional currencies, signaling agreement with the IRS decision even if
based on different reasons.  Source:
https://en.wikipedia.org/wiki/Cryptocurrency

Because cryptocurrency transactions can be made anonymously, they are
difficult to track and to regulate. They are increasingly popular tools
for cybercrimes and "ransomware," a kind of digital hijacking.  The
shutdown of the Colonial natural gas pipeline in the US southeast was an
international cyberattack by hackers who demanded payment via cryptocur-
rency. This type of digital asset is designed to work as a medium of
exchange of units called "coins". The coins are stored in a ledger
existing in a form of a computerized database and is called a "block-
chain".. Cryptocurrency does not exist in physical form (like paper
money) and is typically not issued by a central authority.  Bitcoin is
the first decentralized cryptocurrency. Since the release of bitcoin,
many other cryptocurrencies have been created.

 
LEGISLATIVE HISTORY:

2022- S7272 (MAY) THIRD READING/ A9086 (Kelles) Ref Gov Ops

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
January 1st after enactment

S5621A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5621--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2023
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Ethics and Internal Gover-
   nance -- committee discharged,  bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the public officers law, in relation to reporting of
   cryptocurrency holdings on the annual statement of  financial  disclo-
   sure
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 73-a of the public officers law is
 amended by adding a new paragraph 16-a to read as follows:
   16-A. LIST BELOW THE TYPE AND MARKET VALUE OF CRYPTOCURRENCIES HELD BY
 THE REPORTING INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE OR DOMESTIC PARTNER
 IN EXCESS OF $1,000 AT THE CLOSE OF  THE  TAXABLE  YEAR  LAST  OCCURRING
 PRIOR  TO  THE  DATE OF FILING. WHENEVER AN INTEREST IN CRYPTOCURRENCIES
 EXISTS THROUGH A BENEFICIAL INTEREST IN A  TRUST,  THE  CRYPTOCURRENCIES
 HELD  IN SUCH TRUST SHALL BE LISTED ONLY IF THE REPORTING INDIVIDUAL HAS
 KNOWLEDGE THEREOF EXCEPT WHERE THE REPORTING INDIVIDUAL OR THE REPORTING
 INDIVIDUAL'S SPOUSE OR DOMESTIC PARTNER HAS TRANSFERRED ASSETS  TO  SUCH
 TRUST  FOR HIS OR HER BENEFIT IN WHICH EVENT SUCH CRYPTOCURRENCIES SHALL
 BE LISTED UNLESS THEY ARE NOT ASCERTAINABLE BY THE REPORTING  INDIVIDUAL
 BECAUSE  THE  TRUSTEE  IS  UNDER AN OBLIGATION OR HAS BEEN INSTRUCTED IN
 WRITING NOT TO DISCLOSE THE CONTENTS OF THE TRUST TO THE REPORTING INDI-
 VIDUAL.   CRYPTOCURRENCIES OF WHICH  THE  REPORTING  INDIVIDUAL  OR  THE
 REPORTING INDIVIDUAL'S SPOUSE OR DOMESTIC PARTNER IS THE OWNER OF RECORD
 BUT  IN  WHICH  SUCH  INDIVIDUAL OR THE REPORTING INDIVIDUAL'S SPOUSE OR
 DOMESTIC PARTNER HAS NO BENEFICIAL INTEREST SHALL NOT  BE  LISTED.  ALSO
 LIST  CRYPTOCURRENCIES  OWNED  FOR  INVESTMENT PURPOSES BY A CORPORATION
 MORE THAN FIFTY PERCENT  (50%)  OF  THE  STOCK  OF  WHICH  IS  OWNED  OR
 CONTROLLED  BY  THE  REPORTING INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE OR
 DOMESTIC PARTNER. FOR THE PURPOSES OF THIS ITEM THE TERM  "CRYPTOCURREN-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03465-03-3

 S. 5621--A                          2
 
 CY"  SHALL  MEAN  A  DIGITAL CURRENCY IN WHICH ENCRYPTION TECHNIQUES ARE
 USED TO REGULATE THE GENERATION OF UNITS AND  CURRENCY  AND  VERIFY  THE
 TRANSFER OF FUNDS, OPERATING INDEPENDENTLY FROM A CENTRAL BANK.

                                         CATEGORY OF
                                         MARKET VALUE
                                         AS OF THE CLOSE
                                         OF THE TAXABLE
                                         YEAR LAST
                                         OCCURRING
                                         PRIOR TO
   SELF/        TYPE OF                  THE FILING OF
   SPOUSE OR    CRYPTOCURRENCY           THIS STATEMENT
   DOMESTIC                              (IN TABLE II)
   PARTNER
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
   §  2. This act shall take effect on the first of January next succeed-
 ing the date upon which it shall have become a law.

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The New York State Senate

senate Bill S5621A

Sponsored By

Current Bill Status - In Senate Committee Ethics And Internal Governance Committee

Your Voice

Actions

Bill Amendments

S5621 - Details

S5621 - Summary

S5621 - Sponsor Memo

S5621 - Bill Text download pdf

S5621A (ACTIVE) - Details

S5621A (ACTIVE) - Summary

S5621A (ACTIVE) - Sponsor Memo

S5621A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5621A

Share this bill

Sponsored By

Rachel May

Current Bill Status - In Senate Committee Ethics And Internal Governance Committee

Your Voice

Actions

Bill Amendments

S5621 - Details

S5621 - Summary

S5621 - Sponsor Memo

S5621 - Bill Text download pdf

S5621A (ACTIVE) - Details

S5621A (ACTIVE) - Summary

S5621A (ACTIVE) - Sponsor Memo

S5621A (ACTIVE) - Bill Text download pdf

Comments