| SB 614 - This act establishes new provisions relating to digital assets. INVESTMENT IN DIGITAL ASSETS The act permits the State Treasurer to invest a portion of public funds in qualifying digital assets. The amount of public funds that the State Treasurer may invest may not, at the time the investment is made, exceed ten percent of the total amount of public funds in that account. The State Treasurer shall hold digital assets acquired under this act: (1) Directly through the use of a secure custody solution; (2) Through a qualified custodian on behalf of the state; or (3) In the form of an exchange traded product issued by a registered investment company. The state treasurer may engage in staking of qualifying digital assets if: (1) The treasurer's office retains legal ownership of the digital asset; and (2) The staking is conducted using a third-party solution. The state treasurer may loan qualifying digital assets if: (1) The loan does not increase the financial risk to the state; and (2) The loan complies with rules established by the treasurer. USE OF DIGITAL ASSETS This act prohibits the state from prohibiting, restricting, or otherwise impairing the ability of an individual to use digital assets to purchase legal goods or services. Additionally, the state shall not prohibit, restrict, or otherwise impair the ability of an individual to self-custody digital assets using a self-hosted wallet or third-party wallet. TAXATION OF DIGITAL ASSETS Digital assets used as a method of payment shall not be subject to any additional tax, withholding, assessment, or charge by the state or a political subdivision that is based solely on the use of the digital asset as the method of payment. Digital assets used as a method of payment shall not be subject to capital gains tax subject to a two-hundred-dollar limit per transaction, such amount to be adjusted for inflation on January first annually based on the percentage increase in the Consumer Price Index. DIGITAL ASSET MINING Neither the state nor a political subdivision thereof shall prohibit an individual from participating in home digital asset mining as long as such individual complies with all local noise ordinances. Moreover, no political subdivision shall place any specific limit on sound decibels generated from home digital asset mining that is more restrictive than other limits set for sound pollution enforced by the political subdivision. DIGITAL ASSET MINING BUSINESSES Neither the state nor a political subdivision thereof shall prohibit a digital asset mining business from operating in any area zoned for industrial use provided they comply with all current ordinances. Moreover, no political subdivision shall place any specific limit on sound decibels generated from a digital asset mining business that is more restrictive than other general limits set for sound pollution in areas zoned for industrial use. No political subdivision shall impose any requirement on a digital asset mining business that is not also a requirement for data centers in its jurisdiction. No political subdivision shall change the zoning of a digital asset mining business without satisfying proper notice and comment requirements. A digital asset mining business shall be able to appeal a change in zoning to a court with proper jurisdiction. Provisions are included governing any cause of action brought pursuant to this provision. RATES SET BY THE PUBLIC SERVICE COMMISSION The public service commission may approve rates reflective of cost to serve but shall not approve a rate schedule for digital asset mining that creates discriminatory rates for digital asset mining businesses. Certain provisions are this act are identical to SB 309 (2025) and SCS/SB 1050 (2024) and substantially similar to SB 1507 and HB 2107 (2024) and similar to SB 692 (2023). SCOTT SVAGERA
|