Honorable John T. Smithee, Chair, House Committee on Criminal Jurisprudence
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1498 by Nichols (Relating to civil asset forfeiture of digital currency or other similar property.), As Engrossed
The fiscal implications of the bill cannot be determined since the total number and value of forfeitures recovered by the state are unknown.
The bill would require law enforcement agencies to transfer seized digital currency, NFTs, and stablecoins to a wallet that is not connected to an exchange or network and only accessible by the law enforcement agency or the attorney representing the state.
The bill would make forfeiture proceedings involving property that is a digital currency, NFT, stablecoin, or wallet not connected to an exchange or network, commence in the county of the law enforcement agency that initiated the seizure of the property.
The bill would allow regulated financial institutions, at the time the appropriate seizure warrant is served on the institution, to transfer any digital currency, NFT, or stablecoin held by the institution to a secure wallet that is not connected to an exchange or network and is in the possession of a law enforcement agency or an attorney representing the state
According to the Comptroller of Public Accounts, the bill could increase revenue to the state; however, since the total number and value of future forfeitures are unknown, the total increase can not be determined.
It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time.