The proposed bill aims to regulate crowdfunding practices in Ohio by enacting several new sections of the Revised Code, specifically sections 1349.07 through 1349.08. It defines "crowdfunding" as the process of soliciting and receiving funds for noncommercial purposes, while explicitly excluding practices that involve financial stakes or product development. The bill mandates that crowdfunding platforms include terms of service prohibiting the misuse of funds, such as using them for purposes other than those specified during solicitation, promoting violence, or engaging in unlawful activities. Additionally, it requires platforms to refund excess funds to donors if the campaign's purpose has been fulfilled.

The legislation also establishes penalties for crowdfunding platforms that violate these regulations, including administrative fines and the potential for civil action by the attorney general. Platforms are required to maintain accurate records of fundraising activities for at least three years and submit annual reports detailing campaign statistics and compliance issues. This comprehensive approach aims to enhance transparency and accountability in crowdfunding, ensuring that funds are used as intended and protecting the interests of donors.