S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1500
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 15, 2019
                                ___________
 
 Introduced  by  M. of A. VANEL, SEAWRIGHT, MOSLEY, RA -- Multi-Sponsored
   by -- M. of A.  COOK -- 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01285-01-9

 A. 1500                             2
 
 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
 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 and directed to be made and completed
 on or before such effective date.