As Introduced
135th General Assembly
Regular Session H. B. No. 703
2023-2024
Representative Merrin
A BILL
To amend section 2981.12 and to enact section 1
135.146 of the Revised Code to authorize 2
investment of state funds in bitcoin and to name 3
this act the Ohio Bitcoin Reserve Act. 4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 2981.12 be amended and section 5
135.146 of the Revised Code be enacted to read as follows: 6
Sec. 135.146. (A) As used in this section: 7
(1) "Bitcoin" means the decentralized digital asset 8
created by a peer-to-peer network, which operates with no 9
central authority or banks. 10
(2) "Private key" means a unique element of cryptographic 11
data used for signing transactions on a blockchain that is known 12
to the owner of the unique element. 13
(3) "Secure custody solution" means a technological 14
product or blended product and service that has all of the 15
following characteristics: 16
(a) The private keys that secure digital assets are 17
exclusively known to, and accessible by, the government entity. 18
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(b) The private keys that secure digital assets are 19
exclusively contained within an encrypted environment and are 20
accessible only via end-to-end encrypted channels. 21
(c) The private keys that secure digital assets are not at 22
any time contained by, accessible by, or controllable via a 23
smartphone. 24
(d) Any hardware that contains the private keys that 25
secure digital assets is maintained in at least two 26
geographically diversified locations. 27
(e) The secure custody solution enforces a multi-party 28
governance structure for authorizing transactions, enforces user 29
access controls, and logs all user-initiated actions. 30
(f) The provider of the secure custody solution has 31
implemented a disaster recovery protocol that ensures customer 32
access to digital assets in the event the provider becomes 33
unavailable. 34
(g) The secure custody solution undergoes regular code 35
audits and penetration testing from audit firms, and any 36
identified vulnerabilities are promptly remedied. 37
(4) "Qualified custodian" means any federal or state- 38
chartered bank, trust company, or a company regulated by the 39
state that has custody of bitcoin. 40
(B) The general assembly finds all of the following: 41
(1) That bitcoin is a valuable digital asset and property 42
with strategic potential for enhancing the state's fiscal 43
resilience. 44
(2) The decentralized nature and finite supply of bitcoin 45
provide unique qualities that can serve as a hedge against the 46
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devaluation of the United States dollar and economic volatility. 47
(3) A strategic bitcoin reserve fund aligns with the 48
state's commitment to fostering innovation in digital assets and 49
providing Ohioans with enhanced financial security. 50
(C) The Ohio bitcoin reserve fund is created in the state 51
treasury. The fund shall consist of amounts transferred to it 52
pursuant to section 2981.12 of the Revised Code and by acts of 53
the general assembly. The treasurer of state shall administer 54
the Ohio bitcoin reserve fund in accordance with the 55
requirements of this section. 56
(D) The treasurer of state may invest interim money of the 57
state and amounts deposited to the Ohio bitcoin reserve fund in 58
bitcoin. 59
(E) Any bitcoin acquired as an investment under this 60
section must be held in one of the following ways: 61
(1) Directly by the treasurer of state through the use of 62
a secure custody solution; 63
(2) On behalf of the state by a qualified custodian. 64
Sec. 2981.12. (A) Unclaimed or forfeited property in the 65
custody of a law enforcement agency, other than property 66
described in division (A)(2) of section 2981.11 of the Revised 67
Code, shall be disposed of by order of any court of record that 68
has territorial jurisdiction over the political subdivision that 69
employs the law enforcement agency, as follows: 70
(1) Drugs shall be disposed of pursuant to section 3719.11 71
of the Revised Code or placed in the custody of the secretary of 72
the treasury of the United States for disposal or use for 73
medical or scientific purposes under applicable federal law. 74
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(2) Firearms and dangerous ordnance suitable for police 75
work may be given to a law enforcement agency for that purpose. 76
Firearms suitable for sporting use or as museum pieces or 77
collectors' items may be sold at public auction pursuant to 78
division (B) of this section. The agency may sell other firearms 79
and dangerous ordnance to a federally licensed firearms dealer 80
in a manner that the court considers proper. The agency shall 81
destroy any firearms or dangerous ordnance not given to a law 82
enforcement agency or sold or shall send them to the bureau of 83
criminal identification and investigation for destruction by the 84
bureau. 85
(3) Obscene materials shall be destroyed. 86
(4) Beer, intoxicating liquor, or alcohol seized from a 87
person who does not hold a permit issued under Chapters 4301. 88
and 4303. of the Revised Code or otherwise forfeited to the 89
state for an offense under section 4301.45 or 4301.53 of the 90
Revised Code shall be sold by the division of liquor control if 91
the division determines that it is fit for sale or shall be 92
placed in the custody of the investigations unit in the 93
department of public safety and be used for training relating to 94
law enforcement activities. The department, with the assistance 95
of the division of liquor control, shall adopt rules in 96
accordance with Chapter 119. of the Revised Code to provide for 97
the distribution to state or local law enforcement agencies upon 98
their request. If any tax imposed under Title XLIII of the 99
Revised Code has not been paid in relation to the beer, 100
intoxicating liquor, or alcohol, any moneys acquired from the 101
sale shall first be used to pay the tax. All other money 102
collected under this division shall be paid into the state 103
treasury. Any beer, intoxicating liquor, or alcohol that the 104
division determines to be unfit for sale shall be destroyed. 105
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(5) Money received by an inmate of a correctional 106
institution from an unauthorized source or in an unauthorized 107
manner shall be returned to the sender, if known, or deposited 108
in the inmates' industrial and entertainment fund of the 109
institution if the sender is not known. 110
(6)(a) Any mobile instrumentality forfeited under this 111
chapter may be given to the law enforcement agency that 112
initially seized the mobile instrumentality for use in 113
performing its duties, if the agency wants the mobile 114
instrumentality. The agency shall take the mobile 115
instrumentality subject to any security interest or lien on the 116
mobile instrumentality. 117
(b) Vehicles and vehicle parts forfeited under sections 118
4549.61 to 4549.63 of the Revised Code may be given to a law 119
enforcement agency for use in performing its duties. Those parts 120
may be incorporated into any other official vehicle. Parts that 121
do not bear vehicle identification numbers or derivatives of 122
them may be sold or disposed of as provided by rules of the 123
director of public safety. Parts from which a vehicle 124
identification number or derivative of it has been removed, 125
defaced, covered, altered, or destroyed and that are not 126
suitable for police work or incorporation into an official 127
vehicle shall be destroyed and sold as junk or scrap. 128
(7) Computers, computer networks, computer systems, and 129
computer software suitable for police work may be given to a law 130
enforcement agency for that purpose or disposed of under 131
division (B) of this section. 132
(8) Money seized in connection with a violation of section 133
2905.32, 2907.21, or 2907.22 of the Revised Code shall be 134
deposited in the victims of human trafficking fund created by 135
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section 5101.87 of the Revised Code. 136
(9) Bitcoin, as defined in section 135.146 of the Revised 137
Code, may be transferred to the Ohio bitcoin reserve fund 138
created in section 131.62 of the Revised Code or disposed of 139
under division (B) of this section. 140
(B) Unclaimed or forfeited property that is not described 141
in division (A) of this section or division (A)(2) of section 142
2981.11 of the Revised Code, with court approval, may be used by 143
the law enforcement agency in possession of it. If it is not 144
used by the agency, it may be sold without appraisal at a public 145
auction to the highest bidder for cash or disposed of in another 146
manner that the court considers proper. 147
(C) Except as provided in divisions (A) and (F) of this 148
section and after compliance with division (D) of this section 149
when applicable, any moneys acquired from the sale of property 150
disposed of pursuant to this section shall be placed in the 151
general revenue fund of the state, or the general fund of the 152
county, the township, or the municipal corporation of which the 153
law enforcement agency involved is an agency. 154
(D) If the property was in the possession of the law 155
enforcement agency in relation to a delinquent child proceeding 156
in a juvenile court, ten per cent of any moneys acquired from 157
the sale of property disposed of under this section shall be 158
applied to one or more community addiction services providers, 159
as defined in section 5119.01 of the Revised Code. A juvenile 160
court shall not specify a services provider, except as provided 161
in this division, unless the services provider is in the same 162
county as the court or in a contiguous county. If no services 163
provider is located in any of those counties, the juvenile court 164
may specify a services provider anywhere in Ohio. The remaining 165
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ninety per cent of the proceeds or cash shall be applied as 166
provided in division (C) of this section. 167
Each services provider that receives in any calendar year 168
forfeited money under this division shall file an annual report 169
for that year with the attorney general and with the court of 170
common pleas and board of county commissioners of the county in 171
which the services provider is located and of any other county 172
from which the services provider received forfeited money. The 173
services provider shall file the report on or before the first 174
day of March in the calendar year following the calendar year in 175
which the services provider received the money. The report shall 176
include statistics on the number of persons the services 177
provider served, identify the types of treatment services it 178
provided to them, and include a specific accounting of the 179
purposes for which it used the money so received. No information 180
contained in the report shall identify, or enable a person to 181
determine the identity of, any person served by the services 182
provider. 183
(E) Each community addiction services provider that 184
receives in any calendar year money under this section or under 185
section 2981.13 of the Revised Code as the result of a juvenile 186
forfeiture order shall file an annual report for that calendar 187
year with the attorney general and with the court of common 188
pleas and board of county commissioners of the county in which 189
the services provider is located and of any other county from 190
which the services provider received the money. The services 191
provider shall file the report on or before the first day of 192
March in the calendar year following the year in which the 193
services provider received the money. The report shall include 194
statistics on the number of persons served with the money, 195
identify the types of treatment services provided, and 196
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specifically account for how the money was used. No information 197
in the report shall identify or enable a person to determine the 198
identity of anyone served by the services provider. 199
As used in this division, "juvenile-related forfeiture 200
order" means any forfeiture order issued by a juvenile court 201
under section 2981.04 or 2981.05 of the Revised Code and any 202
disposal of property ordered by a court under section 2981.11 of 203
the Revised Code regarding property that was in the possession 204
of a law enforcement agency in relation to a delinquent child 205
proceeding in a juvenile court. 206
(F) Each board of county commissioners that recognizes a 207
citizens' reward program under section 9.92 of the Revised Code 208
shall notify each law enforcement agency of that county and of a 209
township or municipal corporation wholly located in that county 210
of the recognition by filing a copy of its resolution conferring 211
that recognition with each of those agencies. When the board 212
recognizes a citizens' reward program and the county includes a 213
part, but not all, of the territory of a municipal corporation, 214
the board shall so notify the law enforcement agency of that 215
municipal corporation of the recognition of the citizens' reward 216
program only if the county contains the highest percentage of 217
the municipal corporation's population. 218
Upon being so notified, each law enforcement agency shall 219
pay twenty-five per cent of any forfeited proceeds or cash 220
derived from each sale of property disposed of pursuant to this 221
section to the citizens' re