The proposed bill aims to establish regulations for crowdfunding activities in Ohio by enacting several new sections of the Revised Code. It defines "crowdfunding" and outlines the responsibilities of crowdfunding platforms, including a prohibition against using funds for fraudulent or misleading purposes. Crowdfunding platforms will be required to register with the Attorney General, maintain accurate records of fundraising activities for at least three years, and submit annual reports detailing campaign statistics. Additionally, the bill mandates that platforms must terminate campaigns that violate the established rules and facilitate refunds to donors.

To enforce compliance, the bill grants the Attorney General the authority to investigate potential violations and impose administrative penalties on crowdfunding platforms that fail to adhere to the regulations. Specifically, a penalty of $10,000 will be imposed for each violation of the prohibition against using funds for unlawful purposes. The Attorney General can also seek civil action for further relief, including injunctions and additional penalties for repeated violations. Overall, the bill aims to enhance transparency and accountability in crowdfunding practices while protecting donors from potential fraud.