SB228: SB228 State Depositories; State Depository Board to allow the state treasurer to invest in bitcoin; provide

25 LC 55 0509 Senate Bill 228 By: Senators Esteves of the 35th, Jackson of the 41st, Parent of the 44th, Mallow of the 2nd and Jones II of the 22nd A BILL TO BE ENTITLED AN ACT To amend Article 3 of Chapter 17 of Title 50 of the Official Co de of Georgia Annotated,1 relating to state depositories, so as to provide for the State Depository Board to allow the2 state treasurer to invest in bitcoin; to require the state trea surer to develop policies and3 procedures for the acceptance, storage, and transacting of bitcoin by the state; to require that4 bitcoin received or otherwise owned by the state shall be held in accordance with such5 policies and procedures; to provide for definitions; to provide for related matters; to repeal6 conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Article 3 of Chapter 17 of Title 50 of the Official Code of Geo rgia Annotated, relating to10 state depositories, is amended by revising subsection (b) of Code Section 50-17-63, relating11 to deposit of demand funds, investment of funds, reports, remittance of interest earned, motor12 fuel tax revenues, as follows:13 "(b) All departments, boards, bureaus, and other agencies of th e state shall report to the14 board, on such forms and at such times as the board may prescribe, such information as the15 board may reasonably require concerning deposits and withdrawals pursuant to this Code16 S. B. 228 - 1 - 25 LC 55 0509 section and shall enable the board to determine compliance with this Code section. Interest17 earned on state funds withdrawn from the state treasury on appr oved budgets shall be18 remitted to the Office of the State Treasurer by each department, board, bureau, or agency19 and placed in the general fund. The board may permit the state treasurer to invest in any20 one or more of the following: bankers' acceptances; commercial paper; bonds, bills,21 certificates of indebtedness, notes, or other obligations of th e United States and its22 subsidiary corporations and instrumentalities or entities sanct ioned or authorized by the23 United States government including, but not limited to, obligations or securities issued or24 guaranteed by Banks for Cooperatives regulated by the Farm Cred it Administration, the25 Commodity Credit Corporation, Farm Credit Banks regulated by th e Farm Credit26 Administration, Federal Assets Financing Trusts, the Federal Fi nancing Bank, Federal27 Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National28 Mortgage Association, the Financial Assistance Corporation chartered by the Farm Credit29 Administration, the Government National Mortgage Association, the Import-Export Bank,30 Production Credit Associations regulated by the Farm Credit Adm inistration, the31 Resolution Trust Corporation, and the Tennessee Valley Authorit y; obligations of32 corporations organized under the laws of this state or any othe r state but only if the33 corporation has a market capitalization equivalent to $100 million; provided, however, that34 such obligation shall be listed as investment grade by a nation ally recognized rating35 agency; the shares of any mutual fund the investments of which are limited to securities of36 the type described in this subsection and distributions from which are treated for federal37 income tax purposes in the same manner as the interest on said obligations, provided that38 at the time of investment such obligations, or the obligations held by any such unit39 investment trust or the obligations held or to be acquired by a ny such mutual fund, are40 limited to obligations which are rated within one of the top tw o rating categories of any41 nationally recognized rating service or any rating service recognized by the commissioner42 of banking and finance, and no others, or to securities lending transactions involving43 S. B. 228 - 2 - 25 LC 55 0509 securities of the type described in this subsection; bonds, not es, warrants, and other44 securities not in default which are the direct obligations of the government of any foreign45 country which the International Monetary Fund lists as an industrialized country and for46 which the full faith and credit of such government has been ple dged for the payment of47 principal and interest, provided that such securities are liste d as investment grade by a48 nationally recognized rating agency; bitcoin, as such term is d efined in Code49 Section 50-17-68; or obligations issued, assumed, or guaranteed by the International Bank50 for Reconstruction and Development or the International Financial Corporation, provided51 that such securities are listed as investment grade by a nationally recognized rating agency;52 provided, however, that interest earned on the investment of motor fuel tax revenues shall53 be defined as motor fuel tax revenues and shall be appropriated in conformity with and54 pursuant to Article III, Section IX, Paragraph VI(b) of the Con stitution of Georgia. The55 board may also permit the state treasurer to lend any of the securities of the type identified56 in this subsection subject to the limitations of subsection (b) of Code Section 50-5A-7 and57 this chapter."58 SECTION 2.59 Said article is further amended by adding a new Code section to read as follows:60 "50-17-68.61 (a) As used in this Code section, the term:62 (1) 'Bitcoin' means the decentralized digital asset created by a peer-to-peer network that63 operates with no central authority or banks.64 (2) 'Cold storage' means a method of storing private keys required to transact in bitcoin,65 with a nexus to a secure, physical location that is protected from unauthorized access and66 isolated from any network connections.67 (b) The state treasurer, in consultation with the board, shall develop policies and68 procedures for the acceptance of, storage of, and transacting in bitcoin on behalf of the state69 S. B. 228 - 3 - 25 LC 55 0509 that ensures the secure storage and protection of any bitcoin o wned by the state and that70 utilizes secure custodial technologies, cold storage, and best practices in digital asset71 management. Such policies and procedures may involve the use of qualified, United States72 based entities that are approved by the board to serve as the custodians of bitcoin owned73 by the state. All bitcoin received or otherwise owned by the s tate, including, without74 limitation, investments made in bitcoin pursuant to Code Section 50-17-63, shall be held75 in accordance with such policies and procedures."76 SECTION 3.77 All laws and parts of laws in conflict with this Act are repealed. 78 S. B. 228 - 4 -