The bill amends the Management and Budget Act of 1984 by creating a countercyclical budget and economic stabilization fund to help stabilize revenue and employment during economic downturns. It introduces a new section, 351a, which allows the state treasurer to invest funds from the general fund and the newly established stabilization fund in cryptocurrency, with a limit of 10% of the available funds in each. Additionally, any taxes or fees generated in cryptocurrency must be transferred to the general fund, and if designated for another fund, that fund will be reimbursed from the general fund.

The bill also outlines specific requirements for how cryptocurrency must be held by the state treasurer, including the use of secure custody solutions, qualified custodians, or exchange-traded products. It defines key terms related to cryptocurrency and establishes guidelines for the potential loaning of cryptocurrency to generate returns, provided it does not increase financial risk to the state. The bill emphasizes the importance of security and governance in managing cryptocurrency assets.

Statutes affected:
House Introduced Bill: 18.1351