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 Code of Georgia Annotated,
relating to state depositories, so as to provide for the State Depository Board to allow the
state treasurer to invest in bitcoin; to require the state treasurer to develop policies and
procedures for the acceptance, storage, and transacting of bitcoin by the state; to require that
bitcoin received or otherwise owned by the state shall be held in accordance with such
policies and procedures; to provide for definitions; to provide for related matters; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 3 of Chapter 17 of Title 50 of the Official Code of Georgia Annotated, relating to
state depositories, is amended by revising subsection (b) of Code Section 50-17-63, relating
to deposit of demand funds, investment of funds, reports, remittance of interest earned, motor
fuel tax revenues, as follows:
"(b) All departments, boards, bureaus, and other agencies of the state shall report to the
board, on such forms and at such times as the board may prescribe, such information as the
board may reasonably require concerning deposits and withdrawals pursuant to this Code
section and shall enable the board to determine compliance with this Code section. Interest
earned on state funds withdrawn from the state treasury on approved budgets shall be
remitted to the Office of the State Treasurer by each department, board, bureau, or agency
and placed in the general fund. The board may permit the state treasurer to invest in any
one or more of the following: bankers' acceptances; commercial paper; bonds, bills,
certificates of indebtedness, notes, or other obligations of the United States and its
subsidiary corporations and instrumentalities or entities sanctioned or authorized by the
United States government including, but not limited to, obligations or securities issued or
guaranteed by Banks for Cooperatives regulated by the Farm Credit Administration, the
Commodity Credit Corporation, Farm Credit Banks regulated by the Farm Credit
Administration, Federal Assets Financing Trusts, the Federal Financing Bank, Federal
Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National
Mortgage Association, the Financial Assistance Corporation chartered by the Farm Credit
Administration, the Government National Mortgage Association, the Import-Export Bank,
Production Credit Associations regulated by the Farm Credit Administration, the
Resolution Trust Corporation, and the Tennessee Valley Authority; obligations of
corporations organized under the laws of this state or any other state but only if the
corporation has a market capitalization equivalent to $100 million; provided, however, that
such obligation shall be listed as investment grade by a nationally recognized rating
agency; the shares of any mutual fund the investments of which are limited to securities of
the type described in this subsection and distributions from which are treated for federal
income tax purposes in the same manner as the interest on said obligations, provided that
at the time of investment such obligations, or the obligations held by any such unit
investment trust or the obligations held or to be acquired by any such mutual fund, are
limited to obligations which are rated within one of the top two rating categories of any
nationally recognized rating service or any rating service recognized by the commissioner
of banking and finance, and no others, or to securities lending transactions involving
securities of the type described in this subsection; bonds, notes, warrants, and other
securities not in default which are the direct obligations of the government of any foreign
country which the International Monetary Fund lists as an industrialized country and for
which the full faith and credit of such government has been pledged for the payment of
principal and interest, provided that such securities are listed as investment grade by a
nationally recognized rating agency; <ins>bitcoin, as such term is defined in Code
Section 50-17-68;</ins> or obligations issued, assumed, or guaranteed by the International Bank
for Reconstruction and Development or the International Financial Corporation, provided
that such securities are listed as investment grade by a nationally recognized rating agency;
provided, however, that interest earned on the investment of motor fuel tax revenues shall
be defined as motor fuel tax revenues and shall be appropriated in conformity with and
pursuant to Article III, Section IX, Paragraph VI(b) of the Constitution of Georgia. The
board may also permit the state treasurer to lend any of the securities of the type identified
in this subsection subject to the limitations of subsection (b) of Code Section 50-5A-7 and
this chapter."
SECTION 2.
Said article is further amended by adding a new Code section to read as follows:
<ins>"50-17-68.
(a) As used in this Code section, the term:
(1) 'Bitcoin' means the decentralized digital asset created by a peer-to-peer network that
operates with no central authority or banks.
(2) 'Cold storage' means a method of storing private keys required to transact in bitcoin,
with a nexus to a secure, physical location that is protected from unauthorized access and
isolated from any network connections.
(b) The state treasurer, in consultation with the board, shall develop policies and
procedures for the acceptance of, storage of, and transacting in bitcoin on behalf of the state
</ins>
<ins>that ensures the secure storage and protection of any bitcoin owned by the state and that
utilizes secure custodial technologies, cold storage, and best practices in digital asset
management. Such policies and procedures may involve the use of qualified, United States
based entities that are approved by the board to serve as the custodians of bitcoin owned
by the state. All bitcoin received or otherwise owned by the state, including, without
limitation, investments made in bitcoin pursuant to Code Section 50-17-63, shall be held
in accordance with such policies and procedures."
</ins> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.