S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9782
 
                           I N  A S S E M B L Y
 
                             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:

   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  CYRPTOCURRENCY  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14554-01-8

 A. 9782                             2
 
 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 CRYPTOCURENCY  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 and directed to be made and completed
 on or before such effective date.