The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2532
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 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:
 
   Section 1. The state finance law is amended by adding  a  new  section
 4-b to read as follows:
   §  4-B.  CRYPTOCURRENCY  AS A FORM OF PAYMENT. 1. THE FOLLOWING TERMS,
 WHEN USED OR REFERRED TO IN THIS SECTION, SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   A. "CRYPTOCURRENCY" MEANS  ANY  FORM  OF  DIGITAL  CURRENCY  IN  WHICH
 ENCRYPTION  TECHNIQUES  ARE  USED TO REGULATE THE GENERATION OF UNITS OF
 CURRENCY AND VERIFY THE TRANSFER OF FUNDS, OPERATING INDEPENDENTLY OF  A
 CENTRAL  BANK  INCLUDING BUT NOT LIMITED TO, BITCOIN, ETHEREUM, LITECOIN
 AND BITCOIN CASH.
   B. "CRYPTOCURRENCY ISSUER" MEANS AN ISSUER OF ANY FORM  OF  CRYPTOCUR-
 RENCY,  INCLUDING  BUT  NOT  LIMITED TO, BITCOIN, ETHEREUM, LITECOIN AND
 BITCOIN CASH.
   C. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, CORPORATION OR ANY OTHER
 LEGAL OR COMMERCIAL ENTITY.
   2. EACH STATE AGENCY IS  AUTHORIZED  TO  ENTER  INTO  AGREEMENTS  WITH
 PERSONS TO PROVIDE THE ACCEPTANCE, BY OFFICES OF THE STATE, OF CRYTOCUR-
 RENCY  AS  A  MEANS  OF  PAYMENT OF FINES, CIVIL PENALTIES, RENT, RATES,
 TAXES, FEES, CHARGES, REVENUE, FINANCIAL OBLIGATIONS OR  OTHER  AMOUNTS,
 INCLUDING  PENALTIES,  SPECIAL  ASSESSMENTS  AND INTEREST, OWED TO STATE
 AGENCIES. ANY SUCH AGREEMENT SHALL GOVERN THE TERMS AND CONDITIONS  UPON
 WHICH  CRYPTOCURRENCY  PROFFERED  AS A MEANS OF PAYMENT OF A FINE, CIVIL
 PENALTIES, RENT, RATE, TAX, FEE, CHARGE, REVENUE,  FINANCIAL  OBLIGATION
 OR  OTHER  AMOUNT,  INCLUDING PENALTIES, SPECIAL ASSESSMENT OR INTEREST,
 SHALL BE ACCEPTED OR DECLINED AND THE  MANNER  IN  AND  CONDITIONS  UPON
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06220-01-3

 A. 2532                             2
 
 WHICH SUCH PERSON OR CRYPTOCURRENCY ISSUER SHALL PAY TO SUCH STATE AGEN-
 CY  SUCH  AMOUNT  OF  FINES,  CIVIL PENALTIES, RENT, RATES, TAXES, FEES,
 CHARGES, REVENUE, FINANCIAL  OBLIGATIONS  OR  OTHER  AMOUNTS,  INCLUDING
 PENALTIES,  SPECIAL  ASSESSMENT OR INTEREST, PAID BY MEANS OF CRYPTOCUR-
 RENCY PURSUANT TO SUCH AGREEMENT.
   3. ANY STATE AGENCY WHICH HAS ENTERED INTO AN AGREEMENT WITH A  PERSON
 OR  CRYPTOCURRENCY ISSUER AS AUTHORIZED BY THE PROVISIONS OF SUBDIVISION
 TWO OF THIS SECTION MAY ACCEPT CRYPTOCURRENCY AS A MEANS OF  PAYMENT  OF
 FINES,  CIVIL  PENALTIES,  RENT,  RATES,  TAXES, FEES, CHARGES, REVENUE,
 FINANCIAL OBLIGATIONS OR OTHER  AMOUNTS,  INCLUDING  PENALTIES,  SPECIAL
 ASSESSMENT  OR  INTEREST, AS PROVIDED IN SUCH AGREEMENT AND MAY PAY SUCH
 FEES AS ARE SPECIFIED IN SUCH AGREEMENT TO SUCH CRYPTOCURRENCY ISSUER IN
 CONSIDERATION OF THE SERVICES RENDERED  BY  SUCH  CRYPTOCURRENCY  ISSUER
 THEREUNDER.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
 IT SHALL BE THE OPTION OF THE  STATE  TO  REQUIRE,  AS  A  CONDITION  OF
 ACCEPTING  PAYMENT  BY CRYPTOCURRENCY, THAT SUCH PERSON OFFERING PAYMENT
 BY SUCH MEANS PAY A  SERVICE  FEE  TO  THE  STATE  NOT  EXCEEDING  COSTS
 INCURRED  BY  THE  STATE  IN  CONNECTION WITH THE CRYPTOCURRENCY PAYMENT
 TRANSACTION, INCLUDING ANY FEE OWED BY THE STATE TO  THE  CRYPTOCURRENCY
 ISSUER ARISING FROM THAT TRANSACTION.
   4.  THE  UNDERLYING  DEBT,  LIEN,  OBLIGATION,  BILL, ACCOUNT OR OTHER
 AMOUNT OWED TO THE STATE FOR WHICH PAYMENT BY CRYPTOCURRENCY IS ACCEPTED
 BY THE STATE SHALL NOT BE EXPUNGED, CANCELLED, RELEASED,  DISCHARGED  OR
 SATISFIED,  AND ANY RECEIPT OR OTHER EVIDENCE OF PAYMENT SHALL BE DEEMED
 CONDITIONAL, UNTIL  THE  STATE  HAS  RECEIVED  FINAL  AND  UNCONDITIONAL
 PAYMENT  OF  THE FULL AMOUNT DUE FROM THE CRYPTOCURRENCY ISSUER FOR SUCH
 CRYPTOCURRENCY TRANSACTION.
   § 2. This act shall take effect ninety days after it shall have become
 a law. Effective immediately, the addition, amendment and/or  repeal  of
 any  rule  or regulation necessary for the implementation of this act on
 its effective date are authorized to be made and completed on or  before
 such effective date.